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Instead, it proposed a risk-based approach. It suggested lighter controls on use cases such as coding assistants, but strong checks on customer-facing functions, particularly those involving fraud and responsible gambling.

Kenneth Brincat, CEO of the MDIA, said companies needed “practical ways” to better understand where AI fits within their businesses.

“Trust is fundamental to the responsible adoption of AI. As its use becomes increasingly embedded across the gaming sector, organisations need practical ways to understand where AI is being used, manage the associated risks and ensure that accountability and human oversight remain firmly in place,” he said.

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Faehrmann also hit back at the NSW’s latest gaming machine data that highlighted a record loss of $2.38 billion by NSW residents on pokies during Q2 of 2026. 

The MP blamed the Minns Labor government’s reforms for the losses, claiming: “The gambling industry understands exactly what this government’s approach means and they love it: more reviews, more delays and more record losses.

“The question for Chris Minns is simple: how much more harm is he prepared to tolerate before he stands up to the gambling lobby?” she asked. 

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