In a new report, the Independent Panel on Gaming Reform has recommended the mandatory rollout of a statewide account-based gaming system in New South Wales by 2028. The proposal aims to minimize gambling-related harm and curb money laundering, balancing these priorities with operational realities and patron preferences.
The panel’s roadmap, presented after 16 months of deliberation, includes phased implementation of cashless gaming technologies in clubs and hotels. Players would need to establish accounts linked to physical cards or digital wallets, although limited use of cash would still be permitted under strict conditions.
The panel, chaired by former NSW Office of Liquor, Gaming, and Racing Commissioner Michael Foggo, consisted of 16 members, including law enforcement officials, industry representatives, academics, cybersecurity experts, and a lived-experience advocate. Their work was informed by a cashless gaming trial, conducted between March and September 2024, which aimed to explore the feasibility of the technology.
“This has been challenging and complex work, and I thank each of the panel’s 16 members for their time, expertise, and enthusiasm over the 16 months of the panel’s work, and for contributing their views to developing the recommendations,” Foggo said.
The trial, however, faced significant hurdles. Of the 243 participants who initially signed up, only 14 actively engaged with the technology for two or more days. Despite the limited engagement, the panel described the trial as “a great success” for the insights it provided.
The panel’s recommendations extend beyond cashless gaming. It advised the government on mandatory facial recognition technology to identify self-excluded patrons and proposed a statewide exclusion register. Additionally, it supported reducing the number of gaming machine entitlements in NSW and streamlining regulatory processes.
A critical takeaway from the trial was that voluntary cashless systems are insufficient. The report noted: “A voluntary system will not address money laundering and would likely increase the risk as it could potentially be exploited to make laundering cash easier.”
The report also acknowledged patron resistance, citing concerns over privacy, cybersecurity, and financial scrutiny. Foggo emphasized that a mandatory system was essential, adding: “I don’t see the point of implementing a system that nobody uses.”
The recommendations have sparked mixed reactions. The Australian Hotels Association (AHA) of NSW criticized the trial’s findings, labeling them “embarrassing and not credible” due to the low sample size. AHA NSW argued for a voluntary approach, calling the proposed mandatory rollout timeline unrealistic.
On the other hand, NSW Council of Social Service CEO Cara Varian supported the findings, stating: “Mandatory and universal account-based gaming is the only way we will achieve meaningful reform on gambling harm reduction and anti-money laundering.”
The NSW government has committed to carefully considering the panel’s 30 recommendations, outlined in a 530-page report. A spokesperson for Gaming and Racing Minister David Harris acknowledged the complexities involved, indicating that a response would take time.
Premier Chris Minns had initially pledged the trial as part of his campaign to address gambling harms, following a NSW Crime Commission report revealing extensive money laundering through poker machines. The panel concluded that further industry impact analysis is necessary before implementing mandatory cashless gaming.
Original article: https://www.yogonet.com/international/news/2024/12/03/87351-australia-nsw-panel-calls-for-mandatory-cashless-gaming-by-2028-in-the-backdrop-of-divided-opinions
