Historically, in Australia, gambling policy and regulation have been the sole responsibility of Australian State and Territory governments. However, in 1998-99 the Commonwealth commissioned an unprecedented national inquiry into gambling that was highly critical of existing gambling policies and regulatory regimes. The Productivity Commission proposed a 'blueprint' for an effective, independent gambling regulatory system. Seven years on, this article revisits Australian gambling regulation to present a contextualised account of regulatory reform in Victoria and New South Wales (NSW). It finds that that they have taken a markedly different approach to structural reform. Neither State has adopted the Productivity Commission's 'ideal' regulatory model. Reforms have been shaped by local circumstances and government priorities, rather than the regulatory principles and functions outlined by the Productivity Commission.