A key report aimed at thoroughly reforming the gambling industry landscape in New South Wales has become the focus of intense debate. The Independent Gambling Reform Commission faced strong opposition from the industry after conducting a cashless gambling trial and proposing comprehensive reforms to the state's gambling system.
Cashless Pilot Controversy:
The crux of the controversy lies in the results of the cashless gambling trial planned by the state. According to the expert panel, due to its limited scope, the trial failed to produce conclusive data. The trial was based on a small sample of just 14 active users, aimed at exploring the imposition of spending limits on slot machine players to curb problem gambling behavior and combat money laundering.
Despite the small sample size, the expert panel still proposed introducing a mandatory statewide account-based gambling system, which would be connected to a central database where players would need to verify their identity.
These recommendations faced strong opposition from industry stakeholders. Major lobbying groups such as the Australian Hotels Association (AHA) and ClubsNSW criticized the trial's methodology and outcomes, calling them "embarrassing and not credible." These groups argued that the recommendations were based on insufficient evidence and cited a report from 3Arc, which contained limited user feedback on the proposed system. According to MSN, AHA stated: "This was the main purpose of the panel.
Without this information, it is impossible to propose evidence-based statewide account-based gambling—especially since it has not been trialed at any venue."
ClubsNSW further emphasized the economic impact suffered by the casino industry after the introduction of similar technologies, pointing out that major casinos like Crown Casino and Star Casino faced unemployment and operational difficulties. They warned that hastily and mandatorily implementing such systems in all casinos could lead to severe economic pressures and layoffs within the industry.
The Australian Clubs Alliance (LCA) expressed serious concerns about the recommendations of the Independent Gambling Reform Panel, noting that these recommendations exceeded the panel's expected scope.
LCA acknowledged some potential benefits of these recommendations but criticized suggestions that contradicted the panel's initial guidelines. They emphasized that decisions must be based on extensive data, industry impact assessments, and feasibility studies, considering the long-term sustainability of New South Wales' gambling and hospitality industries.
LCA highlighted the shortcomings of the trial and detailed these issues: "Due to the extremely small number of participants, the complex and time-consuming registration process hindered broader participation, and the report lacked the firsthand data needed to assess the effectiveness or feasibility of account-based gambling technology."
They also criticized the panel's broader conclusions, noting: "Furthermore, its conclusions about the feasibility of mandatory cashless gambling exceeded the scope of the trial and did not consider the broader impacts on industry sustainability, employment, or consumer benefits."
Government and Advocacy Group Responses:
Although the New South Wales government promised to carefully review the findings of the expert panel, the reactions from harm minimization advocates were mixed. Organizations such as the Wesley Mission and the New South Wales Council of Social Service supported stricter control measures, believing that without mandatory restrictions, digital payment systems could exacerbate gambling losses. They compared the optional nature of the trial to ineffective safety measures like voluntary seatbelt adoption.
According to the Australian Broadcasting Corporation, the panel's chair, Michael Fogg, emphasized that the reform roadmap needs constant adjustment, and once recommendations are implemented, they should be re-evaluated. Fogg stated that the goal is to improve methods based on actual feedback and more comprehensive data, potentially adjusting the mix of cash and digital transactions allowed within the gambling system.
