As the cashless debate wages on in New South Wales (NSW), a recent compliance “blitz” conducted by Liquor and Gaming NSW (LGNSW) has shown that nearly 20 percent of bars and clubs in the state may be in violation of various gaming laws, most of which are centered around cash handling, problem gaming and harm minimization.
The impromptu inspection encompassed 300 venues over a two-week period, and was inspired by a similar operation from last year that identified four venues as being in violation of ATM-related regulations.
Overall, more than 50 violations were cited, such as: placing ATMs in and around gaming floors; failing to properly display information for counseling and treatment services; and non-compliant signage and entry points.
LGNSW posted the results of the investigation in its December 2022 newsletter, with more details expected to be released any day now.
With regards to the illicit ATMs, the agency said in its report, “ATMs must not be located in a part of a hotel or club in which gaming machines are located. This means that ATMs must be completely separate to gaming rooms or any other area containing gaming machines, even if the internal design or fit-out of the area acts to screen the ATM.”
The recent findings could represent a huge blow to bar and club owners’ effort to fend off cashless reform, as the general sentiment echoed by the industry has been that additional regulations were not needed.
The state’s gaming industry has been somewhat thrown into chaos ever since the NSW Crime Commission released a damning report in October of last year alleging that billions of dollars are being laundered and gambled through poker machines by criminals on a yearly basis.
At the time, the commission recommended the mandatory implementation of cashless gaming throughout the state, and Premier Dominic Perrottet has backed these sentiments wholeheartedly ever since, even though he has yet to implement or propose any legislation regarding the switch.
However, he and his cabinet are reportedly working on a proposal ahead of the state’s upcoming elections in March—in a recent interview with radio station 2GB, Perrottet did confirm that he plans to advocate for spending limits as part of the transition.
“You can’t have a cashless system without limits,” Perrottet said. “That’s exactly what we’re going to do.”
Lawmakers, operators, venue owners and trade bodies have all chosen sides on the issue in recent months. Of all the parties involved, the trade organizations, such as ClubsNSW and the Australian Hotel Association, as well as bar and club owners have been the most outspoken against the new technology, with many calling it a governmental overreach that would be extremely expensive for all involved.
Casino operators, such as Star Entertainment and Crown Resorts, have supported the switch, but for the most part they have no choice; both have already signed pledges to go cashless after being hit with fines and license suspensions from previous suitability inquiries.
Additionally, casinos only account for less than 10 percent of the total number of machines in the state, with the bulk coming from bars and clubs. Last month, Star told the Sydney Morning Herald that it supported cashless, mainly because the current state of limbo is not good for anyone involved.
“Unless cashless is embraced industry-wide and in a timely fashion, how can the government address the issues and achieve the results it has outlined?,” the company posited.
