The surprise twist in new cashless gaming system

Cash could still be used in poker machines but it would no longer be possible to play anonymously in a gambling reform model under consideration by the NSW government.

A leaked draft of the Roadmap for Gaming Reform report, the final version of which was delivered to government on Monday, shows the terminology has been changed from “cashless” to “account-based” gambling.

Controversially, it recommends a non-binding default limit on the amount of money and time that could be spent on the pokies and for players to be able to amend these limits or opt out of them altogether.

Gaming Minister David Harris has received the gambling reform panel’s report, but he is not yet releasing it.Credit: Nikki Short

The plan, prepared by the Independent Panel for Gaming Reform’s three-person executive committee, recommends a system that holds poker machine players’ identities on a statewide centralised system.

Labor has been reluctant to embrace the NSW Crime Commission’s recommendation for mandatory cashless gaming. The commission found eliminating cash from poker machines would stop them being used by criminals to launder their dirty money.

But while the Coalition committed to introducing a cashless regime, industry groups claimed such a model unfairly maligned recreational players and Labor never endorsed the recommendation in opposition or government.

Anonymous play would not be possible, under the new plan, but reduced identity verification processes may be possible for casual or interstate players.

Players would each have their own accounts, which could be topped up with cash up to a pre-determined level, or via electronic funds transfers. Players could also receive their winnings in cash but only up to a maximum of $500.

Several members of the independent panel have spoken publicly about the dangers of cashless gaming without mandatory and binding limits.

Sally Gainsbury, a University of Sydney gambling researcher and panel member, co-authored a paper published in the Psychology of Addictive Behaviours journal last year which found cashless gaming may increase the potential for gambling harm by facilitating overspending.

It concluded a mandatory system that allowed consumers to set their own binding limits based on their personal circumstances would be the best way to reduce gambling harm.

“Research has repeatedly demonstrated that people spend more when making electronic as opposed to cash payments,” Gainsbury said.

“When we interviewed regular [poker machine players] they were highly concerned that being able to link their bank accounts would result in them spending more than they intended.

“Any system which permitted electronic funds transfer has a strong potential to increase gambling harms, which is why it would be essential for there to be strong consumer protection measures including the ability to set binding limits, delays on payments, breaks in play and mandated spend summaries.”

Gainsbury was prevented by a non-disclosure agreement from commenting on the work of the independent panel, or the recommendations contained in the report sent to government. The final report received by the government may differ from the recommendations in the draft seen by the Herald.

The draft report indicated the government would need to take further advice on the most effective way to implement breaks in play and how to use data analytics to identify and mitigate harmful gambling behaviour, including “awareness of spend”.

It would also need to find a more consumer-friendly way to describe “account-based gaming”. The new system would be launched in 2027 and made mandatory in 2028, when cash limits of $500 would also take effect.

The government appointed the independent panel to oversee a trial of cashless technology last year, along with various other gambling measures such as banning the external signage of gambling rooms, reducing the cash input limit from $5000 to $500 and banning political donations from clubs with poker machines.

But the trial was hampered by the withdrawal of technology provider Aristocrat midway through the process, which meant 11 of 27 venues that had signed up could no longer participate. By the end of the trial, just 32 poker machine players were active participants in the research.

Gaming Minister David Harris thanked those patrons on Tuesday morning, along with the 14 venues and three technology providers that stayed to the end. Gaming reform could improve outcomes in addressing money laundering and reducing gambling harm and could also have major impacts on the hospitality industry, he said.

“It is important the next steps are undertaken in a thoroughly considered way to ensure an economically sustainable hospitality industry in NSW,” Harris said.

“The government will now consider the three-volume, 530-page roadmap report and its 30 recommendations and will not be rushing its response.”

A spokeswoman for the premier said the government would release the final report before Christmas.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.