The NSW government has substantially increased the money pokie players can store in an account or a smartcard to $5000, prompting a warning the move is "dangerous" for problem gamblers.

It coincides with a decision to increase the threshold below which poker machine winnings can be paid in cash instead of by cheque or electronic funds transfer from $2000 to $5000.

Large-scale changes to poker machine rules are coming into force in July.

The concessions are among a raft of changes to poker machine rules in a regulation recently approved by Deputy Premier Troy Grant.

Under the current rules, the maximum a player can hold in an account or smartcards is $200. This may be increased to $1000 but only after a club or hotel receives special permission from gambling authorities.