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NSW clubs and pubs reject gaming reform plan

By Aimee Chanthadavong 3 December 2024

Leading industry bodies, including ClubsNSW, Leagues Clubs Australia (LCA), and the Australian Hotels Association (AHA) NSW, have strongly rejected recommendations from the executive committee of the Independent Panel for Gaming Reform. These recommendations were handed to the NSW government as part of the panel’s gaming reform report.

All industry bodies were part of the advisory panel; however, their responses to the report indicates significant dissent over key proposals.

Central to the debate is the executive committee’s recommendation for the NSW government to introduce a mandatory statewide “account-based gaming system” by 2028. This system, envisioned as a phased rollout with initial voluntary adoption, would link players to a centralised database with common standards for user interfaces, daily cash deposit thresholds determined by the state government, and data collection requirements. It would also integrate with technologies such as a statewide exclusion register and facial recognition technology. Under the proposal, all players would need to be identified and linked to a play account.

The Independent Panel on Gaming Reform was established by the NSW Government in July 2023 to oversee a cashless gaming trial conducted between March and September 2024. The panel’s executive committee comprises Michael Foggo, a former commissioner of NSW Liquor, Gaming and Racing; Dr Ursula Stephens, a former NSW Labor senator; and Niall Blair, a former deputy leader of the NSW Nationals.

According to chairperson Michael Foggo, the recommendations reflect “challenging and complex work” informed by cashless gaming trial data, expert advice, and real-world testing.

Yet, this data has drawn sharp criticism from industry representatives.

“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 stated.

The association expressed concerns that the recommendations might mislead stakeholders into believing the report is based on robust evidence and analysis.

ClubsNSW also warned of potential job losses and venue closures, citing parallels with challenges faced by Crown and The Star casinos.

“To expect a small regional club to implement this technology in the same timeframe is simply not feasible. For example, Crown slashed over 1,000 jobs after introducing mandatory account-based play in Melbourne,” the association stated.

AHA NSW described the trial’s research findings as “embarrassing and not credible.” It highlighted that the study relied on a survey of just two players and the interview of one player, and neither of the two surveyed players used the proposed mandatory account-based technology.

“This is not evidence-based,” AHA NSW said.

LCA also voiced apprehensions about the financial and operational burden on venues, particularly smaller and regional establishments.

“These venues may struggle to afford the infrastructure upgrades necessary for a transition to account-based gaming, potentially leading to workforce reductions, reduced services, or closures. Without economic modeling to gauge the costs, these changes risk destabilising businesses critical to local economies,” the organisation warned.

Meanwhile, the Gaming Technologies Association (GTA) supported the concept of a centralised player database for ID verification and limit-setting but cautioned against centralised funds management, labelling it “a significant overreach”.

The GTA emphasised the need for player-centric designs that preserve individual autonomy.

“Limit setting should be left to the user if they choose to set them,” the GTA stated.

While recognising the need for harm minimisation, the GTA “strongly advised” the NSW government to “engage directly with technology providers, independent technical experts as well as industry on all matters relating to the design and rollout of future digital technologies in venues”.

Other recommendations put forward by the executive committee panel also included simplifying existing gaming regulations, reducing the number of gaming machine entitlements, and reviewing loyalty programs in gaming venues.

According to Foggo, the review underscored the broader objectives of the reform.

“The trial learnings, advice from experts, research and evidence have informed the recommendations and safeguards to manage gambling harm and money-laundering risks and inform reasonable implementation timeframes to minimise impacts on industry,” he said.

The NSW government has acknowledged the report but has stated it will not rush its response.

The report can be viewed here.

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