Mandatory cashless systems and more training could stop suspected billions in "dirty cash" being funnelled through NSW pubs and clubs, an investigation recommends.
NSW Crime Commissioner Michael Barnes says the machines are one of the last "safe havens" for criminals to clean cash.
The scale is impossible to determine due to the lack of traceable data.
"But it is clear from our investigations it involves many billions of dollars every year," he said.
"It is a deeply concerning peculiarity that in the largely cashless digital economy in which we live, that gambling in NSW pubs and clubs remains a $95 billion a year information black hole," Mr Barnes said.
The NSW Crime Commission report from a multi-agency inquiry, released on Wednesday, notes laundering through pokies is inefficient and not a widespread practice.
ClubsNSW chief executive Josh Landis said that proves allegations criminal gangs were allowed to launder substantial sums are baseless and vindicates clubs and their employees.
Some recommendations were proposed by ClubsNSW, including improvements to risk controls and the banning of criminals from venues, he said.
"We believe this measure, together with the introduction of facial recognition technology announced by clubs and pubs last week, will make it near impossible for a criminal to enter a club in the future," Mr Landis said.
Better regulations and data collection, the exclusion of suspected launderers, and legal compliance training are also recommended in the report along with the mandatory cashless system.
They are basic reforms to prevent vast sums of cash, primarily from drug dealing, going through machines, Mr Barnes said.
"I'm sure venues won't argue they should keep receiving that," he said.
Australian Hotels Association (AHA) NSW chief executive John Whelan says getting rid of cash is an unjustified overreach.
"We have an industry on its knees post-COVID now being told to introduce an unproven, untested, un-costed and unnecessary cashless system which treats every patron like a criminal," Mr Whelan said.
The government should not be monitoring recreational spending, and criminals - who clubs don't want in their venues either - make up a small percentage of the population, he said.
The AHA would however support limits on how much cash people can load into a machine.
Upper house independent MP Justin Field called on Premier Dominic Perrottet and Opposition Leader Chris Minns to back the cashless recommendation.
"It's time for a bipartisan response to ensure poker machines are regulated in the public interest to reduce money laundering and address the significant harm caused by these machines," Mr Field said.
He also called on ClubsNSW and the AHA to support it.
"They have been significant beneficiaries of gambling losses derived from drug and other crimes and that comes at huge social cost which must be addressed," Mr Field said.
A three-month trial of cashless gaming machines at a Newcastle venue began earlier this month.
A spokesperson told AAP the NSW government takes the report's findings seriously, will closely review them and respond to the recommendations.
A Labor spokesperson told AAP the party will consider the report and consult with the sector in the lead up to finalising its policies ahead of the March election.
The Greens said the government must stand up to industry pressure.
"Ex-Gambling Minister Victor Dominello's proposal for a cashless gambling card is two years old. It could have been rolled out to every pub and club in the state by now but instead he was stripped of the gambling portfolio and the card delayed until 2023," Greens MP Cate Faehrmann said.
