The NSW government’s cashless gaming trial, which ran with a $3.4 million budget, has drawn mixed reactions after its conclusion. The trial aimed to test whether a statewide account-based gaming system could reduce gambling harm and money laundering. But with only 14 “genuine and active” participants, critics are questioning its credibility. Despite this, the trial’s final report recommends a mandatory cashless gaming system by 2028, which could drastically change the gambling landscape in New South Wales.

The Cashless Gaming Trial: What Happened?

The trial, launched as part of a broader effort to tackle gambling harm, was expected to engage a large number of participants. However, only 14 of the original 243 sign-ups were deemed to be active and consistent users of the technology. According to the report from the Independent Panel on Gaming Reform, these 14 participants were the only ones who used the cashless system for more than two days, providing enough data for analysis.

This low participation rate has sparked significant criticism. The Australian Hotel Association (AHA) NSW called the trial’s findings “embarrassing and not credible,” arguing that the trial’s small sample size doesn’t justify the push for a statewide, mandatory system.

Why Is This Trial So Controversial?

While the NSW government invested $3.4 million into the trial, the small number of active participants made it difficult to draw clear conclusions. The report acknowledges that the trial’s limited scope meant it was insufficient to make statistically robust conclusions about the impact of cashless gaming on users.

Despite the low engagement, the Independent Panel behind the trial insists that the results should not be dismissed. They believe the trial highlighted key benefits, especially in terms of tackling money laundering and reducing gambling harm. The panel’s main recommendation is that by 2028, all gaming in NSW should be linked to account-based systems, with players still able to use a limited amount of cash.

What’s Next for Cashless Gaming in NSW?

The NSW government will now consider the 30 recommendations made in the report, which include the mandatory introduction of the account-based gaming system. The panel suggests that this system would improve accountability and reduce illicit activities, such as money laundering, in the gambling industry.

Michael Foggo, the chair of the Independent Panel, noted that a voluntary system would not be effective enough to address the issues the government aims to solve. He argued that if the system is not mandatory, patrons simply won’t use it, leading to a lack of meaningful reform.

But the idea of a mandatory system by 2028 doesn’t come without its challenges. The trial faced pushback from patrons due to concerns about privacy and cybersecurity, with some fearing that banks would track their gambling habits. To make the transition smoother, the report suggests keeping a limited amount of cash in the system—likely through linked accounts—to help bring users on board.

Cashless Gaming: A Workable Solution or a Step Too Far?

Despite the criticism, some experts are backing the trial’s findings. NSW Council of Social Service CEO Cara Varian expressed her full support for the move toward mandatory account-based gaming, saying it is essential for addressing gambling harm and improving the state’s ability to fight money laundering.

The report also suggests that patrons will still be able to use cash to top up their accounts, but only up to a certain limit. The NSW government will decide on this cash deposit threshold as part of the final implementation plan.

But critics like the AHA NSW warn that a rushed rollout could lead to disruptions in the gambling industry. They argue that a voluntary approach would allow for better engagement with the technology and avoid forcing patrons into a system they might not want to use.

What Does the Future Hold for Gambling Reform in NSW?

As the NSW government reviews the report’s findings and recommendations, the key question remains: will a mandatory cashless gaming system work, and is it the right move for the future of gambling reform?

For now, the government has committed to considering all recommendations carefully. Premier Chris Minns supported the trial as part of a broader commitment to reduce gambling harm, especially in the wake of a 2023 report by the NSW Crime Commission, which found that poker machines were being used to funnel billions of dollars in dirty cash.

In the coming months, the government will decide on the next steps, including the possibility of introducing a nationwide system. If the recommendations are implemented as planned, we could see a major shift in how gambling is regulated in the state.

Conclusion: Is Cashless Gaming the Future?

The cashless gaming trial may have had its critics, but it also highlighted some key issues that could shape the future of gambling reform. Whether it’s the push to reduce money laundering or the drive to tackle gambling addiction, cashless gaming remains a contentious but necessary reform for NSW.

As the state government ponders whether to roll out the mandatory system by 2028, one thing is clear: the future of gambling in NSW could look very different. How the government handles these recommendations and addresses the concerns of the public and industry stakeholders will determine whether cashless gaming becomes a mainstream solution or remains a controversial experiment.

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