In a high-stakes showdown over the future of gambling in New South Wales, powerful industry groups are warning the state government against implementing key reforms recommended by an independent panel. The clubs and hotels industry is fiercely opposing proposals to introduce a mandatory account-based system that would abolish anonymous gambling on poker machines by 2028.
Industry Slams ‘Embarrassing’ Research Behind Reform Push
Central to the industry’s pushback is their dismissal of research cited by the panel’s executive committee in recommending the mandatory cashless gaming system. ClubsNSW and the Australian Hotels Association (AHA) argue that the analysis, based on a trial with only 32 participants, is “embarrassing and not credible.”
In a dissenting section of the reform panel’s report, the AHA blasted the researcher for “producing a 214-page report by including personal opinions” from a small sample of industry staff, advisors and patrons who were resistant to the technology. “This is not evidence-based,” the AHA declared.
ClubsNSW Warns of Job Losses, Venue Closures
ClubsNSW, another influential industry body, accused the panel’s executive committee of advocating for a mandatory scheme despite “significantly low uptake” during the cashless gaming trial. They assert that the committee failed to conduct “economic modelling” to assess the impact of making such a system compulsory.
“A mandatory scheme could result in tens of thousands of job losses and venue closures right across NSW,” ClubsNSW cautioned in their section of the report.
The group pointed to the mere “14 genuine and active users” who participated in the trial as grounds for a more “cautious, measured, voluntary approach” rather than a rapid, sweeping rollout of account-based gambling.
Supporters Say Reforms Don’t Go Far Enough
On the other side of the debate, advocates like Wesley Mission and the NSW Council of Social Service (NCOSS) are backing the mandatory transition but argue the proposed changes fall short. They expressed disappointment that the committee did not recommend reducing late-night operating hours for poker machines, despite research warning of “significant negative consequences” for gamblers playing after 2am.
“Considering significant evidence that shutdowns during the early hours of the morning, starting from midnight, contribute to the reduction of gambling harm, it is shocking that there is no recommendation that the minimum shut down period be extended,” NCOSS stated.
Government Signals Caution Amid ‘Significant Complexities’
Responding to the dueling reactions, NSW Gaming Minister David Harris acknowledged that many of the panel’s recommendations involve “significant complexities.” He indicated the government would carefully deliberate before embracing any reforms.
“We will not rush our response,” Minister Harris pledged, evidently sensitive to the political and economic reverberations of any gambling overhaul in a state where the industry wields substantial power and influence.
Ending Anonymity to Combat Dirty Money
The mandatory account-based gaming system lies at the heart of the controversy. Supporters, including the NSW Crime Commission, contend that abolishing anonymous gambling is crucial to combating the billions of dollars in “dirty money” funneled through pokies in pubs and clubs.
By requiring players to register and use a dedicated account, authorities would gain greater visibility into poker machine use, potentially flagging signs of criminal proceeds being laundered. Industry opponents counter that this would be a privacy violation that punishes recreational gamblers.
“The vast majority of people who enjoy poker machines are not criminals,” one club manager, speaking on condition of anonymity, told us. “This is a massive overreach that will drive away customers and send clubs broke.”
A Clash Over Evidence and Consequences
As the NSW government weighs the conflicting demands of the gaming industry and reformers, the dispute over evidence looms large. Mandatory account advocates argue the cashless trial, while small in scale, proves the viability and necessity of ending anonymity to tackle gambling-related crime and harm.
Industry groups maintain the research is far too tenuous and the negative economic fallout of any mandatory scheme would dwarf the social gains. With venue closures and job losses on the line, they are urging a go-slow approach that preserves voluntary anonymity.
Reformers counter that the social cost of gambling addiction and criminality already vastly outweighs any economic pain from tighter regulation. They want the government to call the industry’s bluff and prioritize public welfare over the protests of a well-resourced lobby.
A Decisive Moment for Gambling and Governance
As the battle lines harden, NSW finds itself at a crossroads over the future of gambling, the role of government regulation, and the balance between industry, criminal justice, and harm reduction imperatives. The result will ripple far beyond the state, setting a precedent for the nation.
In a sector where daylight can be elusive, one thing is clear: the outcome of this fierce contest over poker machine reform will reveal much about the power dynamics shaping 21st-century Australian governance. For now, all bets are off as NSW mulls its next move in this high-stakes political gamble.
