A large-scale, multi-agency inquiry in New South Wales (NSW) surrounding the proliferation of money laundering in the region’s electronic gaming machines (EGMs) has resulted in eight recommendations, with mandatory cashless play being chief among them.
The inquiry, which was headed by the NSW Crime Commission (NSWCC), found that for years, criminals have extensively used EGMs as a means to “clean” dirty money, and as a pastime, using the proceeds of crime to essentially gamble for free.
The NSWCC worked in conjunction with the financial watchdog agency AUSTRAC, as well as the Australian Criminal Intelligence Commission and the Independent Liquor and Gaming Authority NSW to complete the investigation.
It’s impossible to calculate the exact amount of dirty money being run through the machines, but officials say it could be billions of dollars. As a result, they believe that cashless technology and enhanced data collection procedures are necessary to fight these practices moving forward.
Michael Barnes, crime commissioner of NSW, told Asia Gaming Brief that as of now, “serious offenders can enter NSW pubs and clubs, sit down next to patrons in gaming rooms, and openly feed large sums of cash from their crimes into poker machines with no real fear of detection.”
As a result, the illegal practices are unabated, meaning that they involve “many billions of dollars every year,” per Barnes. He and others feel that the proposed regulations will “help exclude vast sums of dirty cash that are primarily the proceeds of drug dealing.”
According to the NSWCC, the agency used its authority to question witnesses, keep tabs on suspected persons of interest and analyze data and surveillance records over the course of the investigation.
Casino, club and hotel owners were also noted as not having the proper awareness of such practices—staff members were often unaware or untrained to spot such activities.
AUSTRAC CEO Nicole Rose told AGB that it is important for pubs and clubs to “take their anti-money laundering obligations seriously. The year-long investigation has increased collective understanding of the threat, and renewed vigilance around pubs and clubs will limit the opportunity for criminal infiltration.”
The recommendations also included the implementation of player data collection and management, expanded rights for property owners with respect to excluded patrons, enhanced anti-money laundering training protocols for staff members, the ability for government agencies to recommend the cancellation or revocation of gaming licenses and more.
