As part of its plan to combat money laundering and problem gambling, the prime minister of the most populous state in Australia announced on Monday that all poker machines would be cashless within five years, kicking off an intense political battle ahead of its state election in May.
In New South Wales’s Premier Dominic Perrottet’s statement, he said that by 2028 all poker machines will be cashless and his government will offer interest-free loans to pubs and clubs in order to buy these machines so that players will only be able to play using money from their bank accounts.
There is no doubt that NSW poker machines are the most commonly made in Australia. In fact, the NSW poker machines industry has the most poker machines of any other state outside Nevada, and its powerful pubs and clubs lobby have significant influence over the state’s political leaders.
The former state treasurer revealed that he had been uncomfortable in his previous role as state treasurer where he had profited off other people’s misery by raising taxes on poker machines. He said the proposal he had proposed “solves problem gambling, solves money laundering and protects jobs and industries”.
According to the Australia Institute, of the world’s 1 million legal poker machines, one-fifth are located in Australia which is home to 25 million people and is home to more than half of them, the NSW. Australia is home to more than half of the legal poker machines.
After a series of inquiries in 2020, it became clear that casino operators failed to prevent money laundering and problem gambling in a number of instances, driving the industry’s influence over NSW politics into the spotlight.
Government officials say their proposals would mean people would be able to limit the amount of money they are allowed to spend on a poker machine, and that they would only be able to gamble money that they had set aside in a bank account, making it harder for criminals to use poker machines to launder money.
In a statement on Friday, Labor state opposition leader Maggie Daley said the party would oppose the introduction of mandatory cashless poker machines, but said it would support a limited trial of such machines.
