A pivotal report aimed at overhauling New South Wales’ gambling landscape has become the center of a heated debate. The Independent Panel on Gambling Reform, after conducting a cashless gaming trial, has faced significant pushback from the industry regarding its recommendations for sweeping changes to the state’s gaming systems.

The cashless trial controversy:

The crux of the controversy lies in the results of a cashless gaming trial orchestrated by the state, which, according to the panel, failed to produce conclusive data due to its limited scope. The trial, which was based on a small sample of only 14 active users, aimed to explore the potential benefits and drawbacks of imposing spending limits on poker machine players to curb problematic gambling behaviors and combat money laundering. Despite the small sample size, the panel proposed the introduction of a mandatory statewide account-based gaming system linked to a central database, where players would need to be identified.

The recommendations have been met with fierce opposition from various industry stakeholders. Major lobby groups like the Australian Hotels Association (AHA) and ClubsNSW have criticized the trial’s methodology and findings, describing them as “embarrassing and not credible.” These groups argue that the recommendations are based on inadequate evidence, citing a report by 3Arc that included limited user feedback on the proposed system. As reported by MSN, AHA stated: “This was the panel’s primary purpose. Without this information, it is not possible to make an evidence-based recommendation on statewide account-based gaming – particularly as it was not trialled in any venue.”

ClubsNSW further highlighted the economic repercussions seen in the casino sector, where similar technologies have been introduced, pointing to job losses and operational difficulties at major casinos like Crown and Star. They caution that a hurried, mandatory implementation of such systems across all venues could lead to significant economic strain and job cuts within the industry.

Leagues Clubs Australia (LCA) has expressed significant concerns regarding the recommendations from the Independent Panel on Gambling Reform, pointing out that they extend beyond the panel’s intended scope. LCA acknowledged some potential benefits in the proposals but criticized the endorsement of recommendations that diverge from the panel’s original guidelines. They stressed the importance of decisions being supported by substantial data, industry impact assessments, and feasibility studies that consider the long-term sustainability of NSW’s gaming and hospitality sectors.

Highlighting the deficiencies in the trial, LCA detailed the issues: “With only a handful of participants and a complex, time-consuming sign-up process that deterred broader engagement, the report lacks the firsthand data necessary to assess the effectiveness or feasibility of account-based gaming technology.” They also criticized the panel’s broader conclusions, stating, “Furthermore, its conclusions on the potential for mandatory cashless gaming extend beyond the trial’s scope, without capturing the broader impacts on industry sustainability, employment, or consumer interest.”

Government and advocacy group reactions:

While the NSW government has promised a careful review of the panel’s findings, the response from harm minimisation advocates has been mixed. Organizations like Wesley Mission and the NSW Council of Social Services have endorsed the stricter controls, arguing that without mandatory limits, the digital payment systems could exacerbate gambling losses. They compare the optional nature of the trial to the ineffective voluntary adoption of safety measures like seat belts.

According to Australian Broadcast Corporation, the panel’s chair, Michael Foggo, emphasized that the roadmap for reform would need continual adjustments and should be reassessed once the recommendations are implemented. The goal, according to Foggo, is to refine the approach based on practical feedback and more comprehensive data, potentially adjusting the blend of cash and digital transactions allowed within the gaming system.