Liquor and Gaming NSW > Gaming & Wagering

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Gaming Licences

In order to operate gaming machines, you must have a licence. There are two types of licences that allow you to operate gaming machines:

    Hotel gaming licences are obtained as gaming machine entitlements (GMEs) and poker machine permits (PMPs).

    Club gaming licences are obtained as gaming machine entitlements (GMEs).

    If you are involved in manufacturing, selling, servicing or testing of gaming machines, you must have an appropriate gaming-related licence:

    • ​Gaming machine dealer's licence
    • Gaming machine seller's licence
    • Gaming machine testing facility licence
    • Gaming machine technician's licence

    For details see Gaming-related licences.

    Hotel Gaming Licences​

    In addition to selling and serving alcohol on and off premises, a hotel licence allows you to operate gaming machines.

    You must have one gaming machine entitlement (GME), or one poker machine permit (PMP), for each gaming machine operated at the hotel.

    Gaming Machine Threshold (GMT) defines the maximum number of GMEs and PMPs for your premises, and thus the maximum number of gaming machines that you can operate in your hotel.

    You can have a maximum of 30 gaming machines in a hotel. Hotels with more than 10 gaming machines must have a separate Hotel Gaming Room.

    GMT is limited by the floor space of the premises of the hotel.

    For a new hotel licence, or when a hotel relocates to a different premises, GMT for the hotel is automatically set to zero. GMT cannot be increased if the hotel is, or will be, in the immediate vicinity of a school, place of public worship or hospital, or if the hotel is in a retail shopping center.

    You must apply for increase in GMT for the hotel if you want to operate gaming machines. Normally, a Local Impact Assessment must accompany a GMT increase application, and, the GMT can only be increased if the proposed increase in gaming machines for the hotel results in a positive impact to the community

    Each hotel must acquire gaming machine entitlements and permits from within the existing supply in other hotels as part of the NSW Governments gradual reduction strategy; transfer of entitlements attracts a compulsory forfeiture of one entitlement in every block of three (or two) entitlements being transferred from other hotel(s).

    In limited cases, transfer of a single entitlement between two country hotels is permitted without forfeiture.

    There is no forfeiture for transfer of permits between hotels.

    In limited cases, GMT for a hotel premises can be increased with a simultaneous transfer of gaming machine entitlements or poker machine permits.

    If you want to operate gaming machines you need to follow these 3 steps:

    For more information about GMT increase and transfer of GMEs and PMPs, refer to:    

    Club Gaming Licences

    In addition to selling and serving alcohol on and off premises, a registered club licence allows you to operate gaming machines.

    You must have one gaming machine entitlement (GME) for each gaming machine operated at the club.

    Gaming Machine Threshold (GMT) defines the maximum number of GMEs for your premises, and thus the maximum number of gaming machines that you can operate in your club.

    GMT is limited by the floor space of the premises of the club.

    For a new club licence, or if the club has relocated to a different premises, GMT for the club is automatically set to zero. GMT cannot be increased if the club is, or will be, in the immediate vicinity of a school, place of public worship or hospital, or if the club is located in a retail shopping center.

    You must apply for increase in GMT for the club if you want to operate gaming machines. Normally, a Local Impact Assessment (LIA) must accompany a GMT increase application, and, the GMT can only be increased if the proposed increase in gaming machines for the club results in a positive impact to the community.

    Each club must acquire gaming machine entitlements from within the existing supply in other clubs. Subject to exemptions, transfer of entitlements attracts a compulsory forfeiture of the one entitlement in every block of three (or two) entitlements being transferred from other club(s). This is part of the NSW Governments strategy to gradually reduce the number of gaming machines in the commuity.

    In limited cases, GMT for a club premises can be increased with a simultaneous transfer of gaming machine entitlements.

    Clubs wishing to increase their GMT over 450 who do not have to complete a Local Impact Assessment (LIA), must still demonstrate:

    • That approving the application will provide additional benefits to club members or the community, and
    • That the club will manage any negative impact from the additional gaming machines on the amenity of the local area.
    For more information about GMT increase and transfer of GMEs, refer to:

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