NSW Gambling Overhaul Faces Backlash over Questionable Research

A nationwide overhaul of the gambling sector in Australia is yet to pick up speed, despite calls by responsible gambling advocates and charities, highlighting the harm the activity brings. Losses in hundreds of millions of dollars continue to affect customers across the country, while lawmakers are cautiously exploring options for a potential gambling reform.

New Account-Based Gambling System Proposed in NSW

Efforts toward the introduction of a mandatory cashless gambling scheme in New South Wales (NSW) are currently facing opposition, primarily from the powerful organizations behind clubs and hotels offering pokies across the state. As announced by the Guardian, an independent panel part of the local government proposed the implementation of an “account-based gaming system.”

Per the proposal, the new mandatory system would impact all pokies across NSW, effectively ending anonymous play. If the proposed system is approved and implemented, it would bring significant changes to the gambling sector starting in 2028.

Ultimately, by going cashless and eliminating anonymous gambling activities, the NSW government seeks to combat financial crimes, including money laundering. At the same time, the new account-based gaming system, which effectively links money lost and won at each pokie machine in the state, can also help curb the rate of problem gambling.

The Proposal Faces Pushback from the Gambling Sector

Several organizations, part of the NSW independent panel rejected the proposed scheme, arguing that the proposal relies on limited analytical data and a cashless gaming trial that consisted of less than three dozen participants. Fears about the impact of restrictions on the sector are not limited to Australia as gambling industry stakeholders continuously warn that draconian measures may push some players into the unregulated sector.

“With only 14 genuine and active users participating in the trial, such a low adoption should necessitate a cautious, measured, voluntary approach to implementation of account-based gaming, rather than a short timeframe for a statewide, mandatory rollout,“

said ClubsNSW about the proposed changes

According to ClubsNSW, the committee’s recommendations follow the “significantly low uptake” of the cashless gaming trial. Standing in opposition to the discussed mandatory scheme that would eliminate anonymous gambling, the organization argued that the impact of the scheme wasn’t estimated.

Still, ClubsNSW predicted that such restrictions may lead to “tens of thousands of job losses and venue closures right across NSW.” Moreover, ClubsNSW urged for a cautious approach to changes in the regulations about the land-based gambling sector, reiterating that just above a dozen active players participated in the trial prior to the proposal of the scheme. Similarly, other stakeholders such as the Australian Hotels Association (AHA) and Leagues Club Australia also announced their opposition to the proposed scheme. “The research findings of the cashless gaming trial are embarrassing and not credible,” the AHA explained about the cashless gaming report.