Panel proposes mandatory cashless gambling system for New South Wales
The panel has also suggested establishing a statewide exclusion register with facial recognition.
Australia.- The Independent Panel for Gaming Reform in New South Wales has released its Roadmap for Gaming Reform report outlining recommendations for changes to gaming regulation. The panel has recommended that a mandatory statewide account-based gaming system be introduced by 2028, with a phased implementation approach to allow for voluntary adoption until a centralised system is fully operational.
The report incorporated findings from a 16-month trial of cashless gaming technology in clubs and hotels by industry representatives, harm reduction experts, law enforcement, cybersecurity specialists, academics, community organisations and a person with lived experience of gambling harm. Some 14 venues and 2,388 EGMs were included in the trial, which saw slightly different solutions rolled out by three technology providers from March to September 2024.
The review concluded: “The uptake by patrons was found to be very low. Moreover, very few patrons overall (and even fewer frequent gamblers) reported intending to use the technology in the future.” It further stated, “The digital gaming wallet is largely viewed negatively, with perceptions stemming from concerns that it eliminates cash usage, undermines user autonomy and choice, and exposes them to data privacy and security risks.”
Stakeholders expressed a preference for a voluntary hybrid model. However, the report stated the trial found that a hybrid model with voluntary limits would have a limited impact on gambling harm due to a probable lack of uptake, at least in the short to medium term. Industry stakeholders fear a mandatory model would have a detrimental impact on the industry, leading to the potential closure of some venues.
Among other key proposals, the panel suggested creating a statewide exclusion register that includes third-party exclusions and facial recognition technology to identify self-excluded patrons. A Harm Minimisation Fund would finance system development and educational campaigns.
Michael Foggo, chairperson of the Independent Panel for Gaming Reform, said: “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.
“The trial of this new technology was an important step to better understand the benefits and challenges for its implementation, giving technology providers, venues, patrons and government insights on operational issues tested in the real world.
“The trial learnings, advice from experts, research and evidence have informed the recommendations and safeguards to manage gambling harm and money-laundering risks and inform reasonable implementation timeframes to minimise impacts on industry.
“The roadmap also includes recommendations to progress the government’s commitment to reduce the overall number of gaming machine entitlements in NSW, as well as removing unnecessary complexity and further streamlining existing gaming regulatory regimes.”
New gambling measures already implemented in NSW
The New South Wales regulator, Liquor & Gaming NSW (L&GNSW) has implemented a series of major reforms over the last year, including reducing the cash input limit for new electronic gaming machines, capping the number of gaming machine entitlements and banning political donations from gaming-involved clubs.
There is also a ban on external gambling signage, and gaming venues are not allowed to offer free or discounted alcohol as an inducement to gamble. From January 1, 2025, ATMs must be situated outside of a five-meter radius of any entrance or exit of a gaming area in a hotel or club.
