Former NSW Treasurer Michael Egan backs ‘genius’ cashless gambling card

Former NSW Treasurer Michael Egan has likened politicians “captured” by the gambling lobby to America’s problems with guns.

The state’s longest-serving treasurer has accused NSW politicians of being “captured” by the gambling lobby in a searing rebuke as he weighed into a bitter cabinet divide over pokies reform.

Michael Egan, who served as treasurer from 1995 to 2005, has likened NSW’s problems with gambling reform to America’s problems with gun reform, describing it as a “blind spot”.

The respected former Labor treasurer — who remains highly regarded on both sides of politics — said the gaming industry has “many obscene links to politics”, declaring “some MPs are simply mouthpieces for gambling interests and this needs to stop”.

Former Treasurer Michael Egan says NSW has a blind spot over gambling. Picture: Hollie Adams

Mr Egan has thrown his support behind NSW Minister for Customer Service Victor Dominello, who wants to reform the industry with a cashless gaming card to stamp out money laundering and problem gambling.

State cabinet is at war over the reforms, with Deputy Premier John Barilaro arguing clubs are the lifeblood of NSW and must not be strangled by red tape.

Others, including Police Minister David Elliott, are privately wary of the reform prospects. The debate has intensified after Commissioner Patricia Bergin’s report into Crown casino highlighted the problem of money laundering through pokies.

Mr Egan said that as a “one-eyed Labor supporter” he hated giving the Liberals credit for anything but, with reluctance, said he supported Mr Dominello’s proposal as “sheer genius”.

Deputy Premier John Barilaro says he doesn’t want clubs weighed down by red tape. Picture: NCA NewsWire / Gaye Gerard

He conceded that a transition to cashless pokies would come with a cost, but he said that could be balanced easily by the benefits.

“This cost also needs to be weighed against the price of cleaning up the mess organised crime leaves behind, the drug addicts, the victims, the gambling addicts, not to mention the cost of our selfless law and healthcare workers,” he said.

Mr Barilaro said: “The bottom line is a gambling card won’t address problem gambling, and it won’t address illegal money laundering, but it will strangle hospitality businesses state wide after one of their toughest years ever.”

CLUBS FIGHT BACK AGAINST CASHLESS CARD

Clubs NSW is set to launch a major offensive against Customer Service Minister Victor Dominello’s proposed cashless gambling card.

The industry body will seize on a 2015 report by the Financial Action Task Force which found that of 5837 entities in corporate groups deemed “high-risk” for money laundering by AUSTRAC in 2013-14, only 38 were clubs or pubs.

Clubs NSW is set to lobby NSW MPs in a bid to quash proposals for a cashless gaming card, highlighting that a bombshell report into Crown’s Barangaroo casino only referenced the card in relation to preventing money laundering “through a casino”.

Customer Service Minister Victor Dominello is the man behind the cashless card. Picture: NCA NewsWire/Joel Carrett

It comes as the chair of the NSW gaming regulator said it would be “crazy” not to work on a gaming card.

Clubs NSW have slammed the proposal from Mr Dominello which would force punters to register for a cashless gaming card before being able to play the pokies.

“A club is a ludicrous place to attempt to launder money,” CEO Josh Landis said, adding a gambling card “won’t work and will hurt” the industry.