Will cashless gambling bring real change to New South Wales?

Just before the elections in New South Wales (NSW), Australia, many proposals were heard about the overhaul of the gambling sector. Representatives of the Liberal and Labor parties both showed support for different initiatives that seek to bring meaningful changes to the industry in NSW. Their proposals had similarities and differences but there was one main condition involving the changes they proposed. That was who would be the winner of the elections.

Proposed changes within the gambling sector in NSW

The implementation of a cashless gaming card was a proposal that has seen support from the two parties. Ultimately, this digitalization effort seeks to better protect consumers from gambling addiction, which in turn may reduce the rate of problem gambling, supporters of the proposals said. Moreover, the implementation of a cashless gaming card is expected to contribute to the fight against money laundering, terrorism financing, or financial crimes.

While one of the rival parties showed support for a cashless gaming card trial, the other sought a more generalized approach. Still, those talks were pre-election, and the actual changes are yet to be introduced and approved.

Besides the cashless gaming card, the Liberal and Labor parties hinted at the use of facial recognition technology (FRT) within the gaming sector. That technology isn't new, but its expansion can help protect not only the users but the gambling operators as well, by reducing the access of people not permitted to the gambling floor, people who are self-excluded for example.

Election results are out

Talks about reform of regulations within the gambling vertical weren't only a hot topic in NSW, which is the most populated state in Australia. In light of discussions for a nationwide reform, Australia's Primer Minister, Anthony Albanese, said earlier this year that the regulation of gambling activities and the changes to the framework are in the hands of lawmakers in different states, a report released by the Australian Financial Review revealed. Speaking for NSW in particular, the Prime Minister said: "It's a matter for the NSW Government to deal with." Albanese also acknowledged that the regulatory framework differs from one jurisdiction to another.

Late last month, the 2023 NSW state elections were held. According to the Financial Review, as of April 9, 2023, the Labor Party secured 45 seats, followed by the Liberal/National Coalition (LNC) with 36 seats. This marks an interesting outcome of the election, as lawmakers would need 47 seats for a majority.

Keeping in mind those results, it looks like the Labor Party would only need two votes to pass legislation. However, in reality, it may need broader support, especially for important legislative changes.

It is likely that the outcome of the election would also impact the changes to the gambling sector as well. This is because NSW Labor showed support for a cashless gaming machines trial with some 500 devices. The proposal called to implement this change this summer but was criticized by the opposition that said that a limited cashless gaming trial won't have the desired effect.

On the other hand, NSW Labor's rival, the Liberal/National Coalition with its leader, Dominic Perrottet, previously called for implementing cashless gaming technology for all poker machines. Back in February, the Party proposed the implementation of cashless gambling over a period of five years, through 2028, given that it won the election.

Digital solutions are a good start

Change is imminent, but which path lawmakers will take to, remains to be decided. Besides the reform of the gambling regulation, another topic of discussion will likely be changes within the rules for betting ads. Further discussions involve climate change and the environment, among other topics that are also ongoing and a part of the priorities of the local and national governments in Australia.

In light of the upcoming changes to the regulation in New South Wales, the CasinoGuru team reached out to Maris Catania, Safer Gambling Senior Consultant with SG:certified and an expert in the responsible gambling vertical. Here's what Ms. Catania said when we asked her a few questions on the topic at hand.

Q: Recently the government in Australia steered away from a countrywide gambling overhaul, passing the hot potato to the lawmakers in each state. Is it better for each state to review its gambling regulations and lead its reform or there should be a countrywide change in an effort to protect the consumers?

· Lots can be learned from what’s happened in other jurisdictions. I think the more collaboration there can be across different gambling regulations, the better consumer protection can be achieved.

Q: Do you think that cashless gaming technology has the potential to help curb problem gambling, reduce gambling losses or crimes such as money laundering?

· I think that such cashless gaming technology can help if it can endorse markers of harm and interventions involved.

Q: Facial recognition technology is making its way to more gambling venues, but is it a fix-it-all solution?

· I don’t think there will ever be a fix-it-all solution, but it looks like a good way to start. I think the more protection processes that can be added the better, the priority should always be finding new ways to keep players safe without impacting their experience negatively.

Q: Strict regulation always raises concerns about people fleeing to the black market. Is that a real threat in your opinion?

· I think appropriate regulation can always help consumer protection. There just needs to be a balance between consumer protection and safer gambling.

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