An independent panel established by the New South Wales (NSW) government has released a comprehensive roadmap to reform the state’s gaming sector, recommending that a statewide account-based gaming system should become mandatory by 2028.

Industry stakeholders, while acknowledging the potential for harm minimization, stressed the need for a hybrid approach, allowing both cash and digital systems to coexist.

Independent Panel for Gaming Reform Chairperson Michael Foggo highlighted the panel’s ambitious recommendations, developed over 16 months, to explore the feasibility of cashless gaming technologies in NSW clubs and hotels.

Foggo noted that the trial of these technologies provided valuable insights into their benefits and challenges, informing recommendations aimed at managing gambling harm and money laundering risks.

Developed after a trial of cashless gaming technology, the roadmap presented by the Independent Panel for Gaming Reform focuses on reducing gambling harm and minimizing money laundering risks in pubs and clubs.

The digital gaming wallet trial, conducted in 2024, explored the feasibility of transitioning from cash-based gaming systems to a digital model that links players’ accounts to their bank details.

The trial involved 14 venues and 2,388 gaming machines, however despite initial hopes, the report states that uptake among patrons was low, with only a small number of users adopting the technology. Patrons cited privacy concerns, complex sign-up processes, and a preference for cash as key deterrents.

The NSW government believes the cashless gaming trial demonstrated the technology’s feasibility despite limited patron participation, with key barriers including privacy concerns, apprehension about government oversight, and a strong preference for cash transactions among some users.

Mandatory account-based gaming by 2028

The plan includes several harm minimization initiatives, such as default spending limits, improved education on gambling harm, and strict restrictions on gaming machine advertising. It also emphasizes accountability by incorporating technological tools like exclusion registers and facial recognition systems to address money laundering concerns.

Proposed regulatory and legislative changes include modernizing the Gaming Machines Act 2001, revising entitlement trading schemes, and simplifying local impact assessment processes. These updates aim to streamline the regulatory framework while maintaining public health protections.

The roadmap outlines a phased transition to mandatory account-based gaming, with milestones for infrastructure development, stakeholder education, and legislative updates. A AU$100 million ($64.9 million) Harm Minimisation Fund will support these initiatives, financing system development, public education campaigns, and harm reduction programs.

The panel’s recommendations include a phased transition to mandatory account-based gaming by 2028. Proposed measures focus on harm minimization, such as default spending limits and improved educational initiatives, while tackling anti-money laundering through enhanced accountability and technological integration.

However, the trial’s findings highlighted barriers to adoption, particularly among older patrons and casual gamblers, who found the digital system cumbersome and intrusive.

In their feedback report on the new plan, industry representatives, including ClubsNSW and the Australian Hotels Association NSW (AHA NSW), criticized the roadmap, labeling the trial results as inconclusive.

They argued that the panel failed to consider the broader economic impacts, infrastructure costs, and employment implications, and both groups suggested further analysis before implementing a statewide mandatory system.

AHA NSW even described the research findings of the cashless gaming trial as “embarrassing and not credible”, calling for an additional trial in a controlled region to better assess the technology’s impact.

Despite criticism, in a different evaluation report gambling harm advisors and public health experts supported the recommendations, comparing the reform to public health measures like mandatory seatbelt laws.

They highlighted the potential for technology to normalize protective measures, such as spending limits and self-exclusion tools, which could empower patrons to manage their gambling habits.

This system will link players’ gaming activities to verified accounts, enhancing traceability and harm prevention. The implementation will begin with voluntary adoption before transitioning to a mandatory model.

Industry stakeholders will be responsible for ongoing costs, such as maintaining facial recognition systems.

The reforms seek to balance public health objectives with the economic sustainability of the gaming industry, particularly considering the impact on revenue and employment in regional venues.