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The NSW government’s pioneering cashless gaming trial, due to report results in November, may struggle to meet its mandate as participation wanes.
Driving a climate for reform, the state’s former Premier and Coalition government had planned to make all poker machines cashless by 2028.
In response, Labor went on to win the election with a commitment to a trial of the technology on 500 machines in metro and regional precincts.
The goal of the trial was to provide insights into the use of cashless gaming technology in hotels and clubs, particularly the potential effects on reducing gambling harm and money laundering.
Early this year an expanded trial was announced, to include around 4,500 machines, across 28 clubs and hotels, in 24 LGAs in city and regional areas. It would be overseen by the Independent Panel on Gaming Reform (IPGR).
The new Premier, Chris Minns, stressed that an evidenced-based approach was necessary to ensure any measures introduced would work, and not have unintended consequences.
Beginning in April, the trial saw the addition of cashless gaming technology installed, allowing patrons the option to use digital wallets or existing cash methods. More than 200 people signed on to the scheme.
Less than six months on, the expanded trial now amounts to only 14 venues, across 12 LGAs, and only 32 active users participating. The revised list, on the Liquor and Gaming NSW website, details the 10 clubs and four hotels taking part. Significant omissions are major Sydney entities the Epping Club and Wests HQ.
No explanation has been provided by the regulator for the exit by half of the original venues.
During recent budget estimates Hospitality & Racing deputy secretary Tarek Barakat revealed some of the outcomes so far, including that the trial has cost over $630K to date.
The IPGR also determined to revise its communications, after finding references to ‘cashless gaming’ was causing confusion amongst some patrons, who mistakenly thought the trial machines did not accept cash.
Messaging has been revised, removing ‘cashless’ and instead referring to ‘digital gaming wallets’, which the IPGR suggests is a better reflection of what is in fact a hybrid model being used during the trial.
Gaming Minister David Harris is confident the trial will produce insights for the government, offering that they are learning of the ‘pitfalls’ and understanding the gaming environment, with a view to “what would work going forward”.
The Minister voiced the challenges of the technology involved, requiring a gamut of smart phones and associated software to communicate with the cashless system.
But Harris remains confident the IPGR can deliver its mandated gaming reform report in November.
Since being elected the Minns government has implemented multiple reforms, including reducing the cash input limit for all new EGMs (from $5k to $500), reducing the state-wide cap on entitlements, banning political donations from clubs with gaming, removing VIP signage on gaming rooms, and investing $100m into gambling harm minimisation over the next four years.
Further to these, from 21-27 October 2024 the NSW government is running GambleAware Week, to raise awareness of safer behaviours.
Venues are invited to get involved, which can include hosting an event, with support available from the community engagement team in the nearest GambleAware region.
Contact them to register an event and have it promoted on the GambleAware events page.
