Cashless gaming card debate stirs up NSW Parliament

By JOHN MOYLE

It’s been a turbulent past couple of weeks in NSW parliament, and all for the right reasons, as independent MP for Sydney, Alex Greenwich pushed for the introduction of a cashless gaming card to be implemented across NSW. 

Backed by the Greens and fellow independents Greg Piper and Joe McGirr, this call put the Perrottet government and the Labor opposition on the spot as there are only nine sitting days left this year before a state election in March 2023. 

The calls came as the NSW Crime Commission was about to hand down its report into an extensive inquiry into money laundering through Electronic Gaming Machines (EGMs) in NSW pubs and clubs. 

“The lack of traceable data collected by EGMs means the exact scale of this criminal activity is impossible to determine, but it is clear from our investigations that it involves many billions of dollars a year,”  NSW Crime Commissioner Michael Barnes said. 

The report was made with the input of the Independent Liquor and Gaming Authority NSW, AUSTRAC and the Australian Criminal Intelligence Commission. 

NSW currently has 95,800 poker machines, the highest number in Australia and globally second only to Las Vegas. 

Approximately $95 billion in cash is gambled annually in NSW pubs and clubs, making them “effectively mini casinos, and as such they need to be controlled,” Alex Greenwich said. 

ClubsNSW pushes back on cashless gaming cards

Despite calls for gambling reform across many years, it has always been stymied by the efforts of ClubsNSW, a body representing over 1200 clubs across the state, and has been one of the most effective lobby groups in the state which has a MOU with both major parties that effectively means that they will not oppose the industry. 

Records show that in 2020 the group donated nearly $50,000 to political parties, including $33,000 to federal Labor. 

In 2021 ClubsNSW gained access to then Deputy Premier John Barilaro 13 times in an eight month period, while in the same year, Victor Dominello was ousted from his gambling portfolio after running afoul of ClubsNSW. 

ClubsNSW have threatened to campaign against any side of parliament who opposes their aims and are also highly litigious, having threatened a defamation suit against Andrew Wilkie and later sued former employee Troy Stolz for breaching the confidentiality clause of his contract when he released information that 95 per cent of registered clubs were not compliant with money laundering laws. 

Way back in 2004 former Labor MP Peter Garrett recalled that before the election he was contacted by a representative of ClubsNSW and handed a large envelope. 

ClubsNSW were contacted for this article but did not respond. 

“The NSW Government takes the findings of this report very seriously,” Spokesperson NSW Government said. 

The spokesperson then went on to outline the trialing of a digital wallet on 36 gaming machines at West Newcastle that “allows for a Bluetooth connection between a patron’s mobile phone and the machine. 

This will let patrons transfer money directly from the gaming wallet on their phone onto the machine.” 

This technology can be useful for a problem gambler but it doesn’t do much to deter money laundering or criminals having a large cash splash in the clubs.

The other suggestion is for the introduction of facial recognition software.  

“Poker operators are so scared of a mandatory gambling card that they’ve turned to invasive and inconsistent facial recognition technology instead,” Cate Faehrmann, Greens, NSW Legislative Council said. 

“ClubsNSW is desperately attempting to appear as though they’ve solved the problem plaguing their industry without having to undergo genuine reform.” 

Alex Greenwich agrees, calling facial recognition a “red herring” and saying “clubs already have surveillance in their venues”. 

Shortly after the release of the report and facing a private members bill from Greenwich, with the support of the Greens and other independents, Premier Dominic Perrottet did an about face and said he would push for a cashless gaming card to be introduced by the next election. 

“I am very clear that should the government not act this year I will look at a private members bill in the next parliament,” Greenwich said. 

Through all of this, Labor’s Chris Minns has been rather muted in his response and has vacillated on the subject. 

Chris Minns was contacted for comment but did not respond. 

That three independents and the Greens can bring about a shift in the premier is heartening but also a sign that the major parties are facing a very different landscape at the coming election that will be even more amplified by the expected wave of teal candidates. 

Both major parties have had many years to address this issue and have done nothing that is effective, while they have introduced perceived harm minimisation laws such as the “lock outs” to protect society. 

“Any society that is relying on gambling addiction and the proceeds of crime is a very troubled place,” Greenwich said.