NSW Premier Mr Perrottet unveiled his $344 million pokies election promise reform policy recently in response to a damning report from the NSW Crime Commission, which found billions in dirty cash were being funnelled through gaming machines every year.
Under the proposal cashless gaming will begin on 2000 machines of the state's 90,000 plus poker machines this year, rolling out to all machines by the end of 2028. All new cash-enabled machines from July will have $500 feed-in limits lasting seven days, mandated breaks, no credit or automatic top-ups and players will be tied to a single bank account.
The package also has pre-commitment limits, a ban on "VIP lounge" signs and a promise of a statewide exclusion register for players and their families.
ClubsNSW, which represents the registered clubs operating 64,000 pokies statewide, raised concern about the "significant costs and technical challenges" of turning pokies cashless.
"We're particularly concerned about the implications for small, regional clubs and the impact this will have on jobs across the industry," ClubsNSW said.
A disappointed deputy chair of the ClubsNSW board, Sallianne Faulknerv said they would work with whoever formed government following the March 25 election to deliver "sensible" reform for the industry.
"Reform that is informed by evidence and ensures long-term industry viability for our communities, our staff and our club members," Ms Faulkner said.
Local licenced clubs along the Murray have expressed their concerns that the reforms could immediately wipe 30 per cent off their current revenues, forcing some to be unviable and possibly close and others struggling to continue spending money on their facilities, making significant community donations alongside certain job losses.
A transition taskforce made up of regulators, police, the privacy commissioner, and industry will help guide the reform, with a status update every six months.
Pubs and clubs will be incentivised to diversify away from pokies with no-interest loans and one-off grants of $50,000 to invest in new income streams such as live music, food and bowling greens. Extra money will be set aside for regional and small venues.
Corowa RSL Club CEO Peter Norris said the proposed reforms “are of significant concern for our industry and should be for our small community”.
“Should the reforms be passed, our ability to continue to support our community at the same level we do now would be impossible,” Mr Norris said.
“The Flood Relief Grants, concerts and other contributions simply wouldn’t happen as our profitability would be hit significantly. Notwithstanding that, our ability to reinvest back into our business and the wider community would also be heavily impacted.
“I would also have serious concerns for the recreational facilities both at our venue and the smaller clubs around us as these are heavily subsidised from our ability to generate revenue from our traditional business model.”
Mulwala Water Ski Club CEO Peter Duncan said the changes would cut the club’s revenue streams significantly by up to 30 per cent and like the Corowa RSL Club, would severely impact the club’s ability to financially contribute to the Yarrawonga Mulwala communities, sponsor events, continue upgrading their club facilities and support local goods and service suppliers.
Mr Duncan said three local clubs had become an integral part of the Yarrawonga Mulwala community for decades contributing millions of dollars back into the local economy in many different ways.
“What these reforms are proposing will immediately cost local jobs and a great deal of community support programs including schools, hospitals, emergency services, sporting clubs and the like,” he said.
Local Member for Albury Justin Clancy has been reported supporting the premier’s reforms saying the reform “sets the path over a reasonable time frame and recognises the role clubs play in our region.”
Mr Clancy said at a local level he is conscious of cross border impacts and the need to work with clubs.
NSW Premier Perrottet is also urging Victoria to follow suit and embrace his plan to transition NSW to cashless poker machines to curb harm and reduce money laundering.
While he had not read the NSW government's plan for cashless poker machines, Victorian Premier Daniel Andrews said he sympathised with Mr Perrottet's comments calling pokies a tax on misery.
“The Victorian government had no plans to implement cashless gaming,” Mr Andrews said.
"For a percentage of the community, a small percentage of the community, there is misery in that, there is real harm, and that's why they've always been our focus," Mr Andrews said last week.
"But for others it's a legitimate form of recreational activity and a highly regulated form of recreational activity.
"People are free to make their own choices but for those for whom there is a real problem, a wicked problem, we have to support them."
Labor’s reform trial
NSW Labor leader Chris Minns backs some of the government's measures, including banning VIP signs and a government plan to buy back 2000 machines over five years.
This would add to the opposition's plan to cut the number of machines in NSW by 7500 over five years.
Labor also backed a statewide exclusion register and banning political donations from pubs and clubs but resisted a full implementation of cashless gaming without a trial.
Mr Minns said his government would run a 12-month trial from July 1and that would include over 500 poker machines across the state in both metro and regional areas. Minns said a trial would help assess how pubs and clubs could afford the new technology.
Defending Labor's position to hold a 12-month trial, Mr Minns said evidence suggested cashless gaming without spending limits could increase gambling harm.
"We want to make sure that any changes or reforms don't adversely affect or in fact, increase the amount of problem gambling in the state," he said.
