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The Guardian - AU
The Guardian - AU
National
Henry Belot

NSW gambling scheme relies on ‘embarrassing and not credible’ research, clubs and hotels warn

File photo of people playing poker machines
Pubs and clubs groups have urged the NSW government not to abolish anonymous gambling as recommended by an independent panel on gaming reform. Photograph: Dan Peled/AAP

The politically powerful clubs and hotels industry has warned the New South Wales government against introducing a mandatory scheme to abolish anonymous gambling, despite sitting on a panel whose leaders recommended one.

The three executive committee members of the NSW government’s independent panel on gaming reform have recommended an “account-based gaming system” become mandatory from 2028 to monitor everyone using poker machines.

The proposal echoes a 2022 recommendation from the NSW Crime Commission, which said ending anonymous gambling would help reduce the billions of dollars in “dirty” money being gambled in pubs and clubs.

But the panel’s executive committee told the state government it should still allow a set amount of cash to be used on poker machines after 2028, provided it was uploaded to an account that could identify who was gambling.

Other panellists, including ClubsNSW, the Australian Hotels Association (AHA) and Leagues Club Australia, dismissed calls for the mandatory scheme. They argued it relied on flawed analysis of a cashless gaming trial that had 32 only participants.

“The research findings of the cashless gaming trial are embarrassing and not credible,” said the AHA in a dissenting section of the three-volume report.

“The researcher has produced a 214-page report by including the personal opinions of 70 industry, venue staff and gambling harm advisors, and 15 patrons who did not want to use the technology. This is not evidenced based.”

ClubsNSW accused the executive committee of recommending a mandatory scheme despite “significantly low uptake” during the cashless gaming trial and “no economic modelling” on its impact if made mandatory.

It said a mandatory scheme could result in “tens of thousands of job losses and venue closures right across NSW”.

“With only 14 genuine and active users participating in the trial, such a low adoption should necessitate a cautious, measured, voluntary approach to implementation of account-based gaming, rather than a short timeframe for a statewide, mandatory rollout,” ClubsNSW said in a section of the report.

The NSW gaming minister, David Harris, said many of the recommendations raised “significant complexities” and the government would not rush its response.

Other panellists, including Wesley Mission and the NSW Council of Social Service, supported the mandatory account-based system and criticised the executive committee for not doing enough to reduce harm.

As first revealed by Guardian Australia, the committee recommended operating hours for poker machines across the state remain unchanged. That is despite government-commissioned research warning people gambling after 2am were “experiencing significant negative consequences”.

NCOSS told the panel that it was “shocking” the executive committee did not call for a reduction in operating hours.

“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 said in the report.

Wesley Mission said it was “surprised and disappointed that there is not a recommendation for at least a 2am shutdown”.

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