The introduction of cashless gaming cards in NSW once seemed like a certainty, but now these plans appear to have fallen out of favour. The state government now seems to be favouring the concept of opt-in digital payments and critics of this new direction have stated that it would do little to minimise gambling harm and nothing to prevent money-laundering activities.
Decision Makers
The Customer Service and Digital Minister, Victor Dominello, proposed in 2020 that both casual and problem gamblers should be required to load all their gambling funds onto smart cards.
This concept was a component of a wider initiative to introduce cashless gambling which saw the trial introduction of cashless gaming machines, hosted by the Wests City venue in Newcastle.
The card idea was also supported by former Supreme Court judge Patricia Bergin, who Dominello appointed to administer an investigation into Crown Resorts. The former judge subsequently advised that cashless cards would be an effective tool in the effort against money laundering, while ultimately abstaining from directly endorsing them.
Since then the push for cashless gambling has garnered a mixed bag of support from the NSW cabinet. Dominello was subsequently replaced by Hospitality and Racing Minister, Kevin Anderson. This move was regarded by many as punishment as his suggestions had caused concern among several prominent industry groups.
The Alliance for Gambling Reform’s chief advocate, Reverend Tim Costello, recently spoke in a media interview, saying that he is against a mandatory cashless gaming card administered by the government. He indicated that he was somewhat in favour of digital payments, but only as an “opt-in”.
The government has advised that it is examining the findings of the ongoing NSW Crime Commission inquiry, which it says is a vital source of information about the connection between organised crime and pokie machine-related money laundering activities.
In the balance
Cashless gambling’s future currently looks uncertain as stakeholders all wait to see what comes of the government’s deliberations. ClubsNSW’s CEO, Josh Landis, has spoken in support of the inquiry in the past and advised that the organisation looks forward to a fair valuation of the issue, which will enable clubs to do their part to combat organised crime.
On the other hand, NSW upper house independent MP, Justin Field recently accused the government of being intimidated by the clubs and hotel associations that are primarily concerned with safeguarding their pokies revenue.
“The idea that organised criminals would ‘opt in’ to a digital wallet is fanciful nonsense that will keep open the door to money laundering through poker machines in NSW,” Field remarked.
