All external gambling-related signs will need to be removed or altered before September 1 after Premier Chris Minns promised to crack down on the pokie industry.
Pubs and clubs will be formally notified from next week and will have three months to remove the signage.
Names such as "VIP room" and "VIP lounge" will be among the banned terms, while images of dragons, coins or lightning will also be barred from club signage.
Gaming Minister David Harris said there were already laws in place to prohibit gaming- related signage, but venue operators are able to circumvent the system by advertising so-called "VIP lounges".
"The facades of pubs and clubs across the state are littered with signs such as 'VIP lounge' to alert those walking or driving by that they have gaming machines," he said.
"We are putting an end to this loophole."
The government said it would work with industry associations and venues across NSW during the transition period.
Those that failed to remove their signs could face penalties of up to $11,000 for each offence.
Mr Minns has also promised a cashless card trial on 500 machines from July 1 and other measures such as a reduction in pokie machines and a ban on political donations from clubs with gaming operations.
The former coalition government pledged to go further and introduce mandatory cashless gaming cards across the state with a daily spending cap.
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