NSW will begin trialling cashless gaming within months but the move has been criticised for not doing enough to help problem gamblers.
The poker machines trial is part of the state Labor's government gambling reform package and a key election pledge.
Premier Chris Minns says a panel including police, industry representatives and health experts will supervise the trial before recommending a "roadmap" for reforms.
The 16-member panel will be chaired by former Liquor, Gaming and Racing commissioner Michael Foggo and also include academics, a cyber security expert and a union official.
"We know the harmful effects of problem gaming on families, and I want to make sure we stamp out criminal activity in clubs," Mr Minns told reporters on Thursday.
"The panel has a big job to do but we have the balance right to ensure we have an evidence-based roadmap for future gaming reforms."
Its members will decide which clubs and pubs will participate in the trial and how many machines will be involved.
"It could be more than 500, we're going to leave it up to the panel," Mr Minns said, indicating more than 3000 machines have been offered up.
Gaming and Racing Minister David Harris concedes panel members will hold "quite differing views" but say they would come together with goodwill.
In addition to the trial, the government will ban gambling-related signage from outside pubs and clubs.
It has also vowed to reduce the number of pokies in the state and impose a ban on political donations from clubs with gaming operations.
Wesley Mission, which will also have a seat on the panel, fully supports a cashless system.
Chief executive Stu Cameron said the latest changes will do more than any other reform to reduce gambling harm but cautioned transparency would be key to its success.
He called on the government to empower the Independent Liquor and Gaming Authority to impose harm minimisation measures "lawfully and effectively".
Key NSW independent MPs Alex Greenwich, Greg Piper and Joe McGirr welcomed the announcement as an important step forward in protecting vulnerable gamblers and eliminating money laundering.
But opposition gaming spokesman Kevin Anderson said it had "fallen way short of expectations" and the pledge to bring in mandatory cashless gaming cards with a daily spending cap under the former coalition government was stronger.
He called on the government to increase its $100 million commitment to match the coalition's $340 million support package.
"I am deeply concerned that we will be into 2025 before we see any real change in NSW," he said.
