NSW Government greenlights expanded cashless gaming trial

The NSW Government and the designated Independent Panel on Gaming Reform have set a course at full throttle forward for the introduction of an expanded cashless gaming trial.

Cashless gaming has been a widely debated topic in Australia, with proponents of the measure arguing that it would help curb money laundering, protect vulnerable consumers, and ultimately ensure the integrity of the industry.

Business owners, and some industry groups, though have refused this, arguing that cashless gaming would make loyal customers feel like criminals. Others have raised the issue of data theft and the possibility of circumnavigating proposed safeguards by criminals, defeating the purpose of cashless gambling in the first place.

Yet, the Minns government has weighed those arguments and decided in favor of cashless gaming, expanding the trial to include 4,500 new machines from across 28 clubs and hotels and in 24 metropolitan and regional government areas, an official statement detailed. These new machines will now be added to the 250 slots that have already been running trials at Wests Newcastle and Club York.

Minister for Gaming and Racing David Harris hailed this new opportunity and said that the new trial was considerably bigger than the existing one, offering a much better sample size into the impacts of the measure. Harris similarly hailed the interest shown by venues that want to be part of the forays to establish cashless gaming despite the putative opposition.

"The strong interest in participating in the cashless gaming trial proves just how serious clubs and hotels are about working with the government to reduce gambling harm and money laundering associated with electronic gaming machines," Harris added.

The expanded trial is designed to ensure that the government adopts an evidence-based approach when looking to re-regulate gambling and minimize money laundering and gambling harm. A state-wide cashless gaming system is yet to be implemented anywhere, but this trial may serve as the basis for better understanding the impacts of large-scale cashless offerings at clubs.

The Independent Panel would have to come up with a gaming reform and propose it to the NSW Government that specifically examines the use of technology to safeguard consumers, minimize harm, and establish a good baseline for the industry.

Any changes will come on top of the already sweeping reforms that have been passed into the state, including the removal of VIP gaming signage, the reduction of cash input limit from $5,000 to $500, the reduction of allowed gaming machines, the prohibition of political donations from gaming entities, and not least, the allocation of $100m that will go into various programs and efforts to minimize gambling-related harm for a period of four years.

On a federal level, Australia has implemented a credit card ban for online gambling and has established the country’s first national self-exclusion program, earlier this year.

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