Labor’s planned trial of 500 cashless poker machines would not have any effect on gambling behaviour because patrons would move to venues not included in the trial, the independent agency charged with scrutinising the cost of election promises has said.
With pokies reform shaping as a key issue ahead of Saturday’s election, on Monday the Parliamentary Budget Office (PBO) released its assessment of Labor’s policy to only trial the cashless gaming technology the Coalition has promised to implement across NSW by 2028.
NSW Labor says it won’t be changing its policy on cashless gaming machines.Credit:Flavio Brancaleone
The trial on 500 of the state’s 86,640 poker machines has been criticised by gambling reform advocates as weak and likely to fail.
In its newly released assessment, the PBO said Labor’s policy would have no impact on state’s revenue from gaming taxes because it concluded “patrons who would be deterred from gaming as a result of cashless gaming would undertake their gaming activity at locations not included in the trial.”
NSW Treasurer Matt Kean claimed Labor’s alternative gambling policy was “written by the gambling industry for the gambling industry” and said the Coalition was offering the superior reform option.
“We’ve got our policy, it’s costed,” he said. “That’s the policy recommended not only by the Crime Commission here in NSW, but all the community groups that are … standing up against the gaming companies.”
Opposition spokeswoman for customer service Yasmin Catley argued suitable trial locations would be chosen to ensure people could not just move to venues with machines that accept cash.
“The 12-month trial is meant to provide an evidence base for solutions to reduce problem gambling and criminal activity – rather than being the solution itself,” she said. “That is why a mandatory trial is important, instead of a voluntary one.”
Shadow minister for customer service Yasmin Catley and Labor leader Chris Minns. Credit:Dominic Lorrimer
Sally Gainsbury, the deputy director of the gambling treatment and research clinic at the University of Sydney, said the trial was effectively voluntary if users could still choose to play cash machines. She said the evidence from Victoria, which has offered voluntary cashless gambling card and ticket options since 2019, showed that voluntary schemes are not effective in curbing individual gambling losses.
“I do not think a trial of 500 machines will provide an accurate evaluation of patron behaviour,” she said. “Given that carded play has been implemented in Victoria, we already have research showing that a voluntary system is likely to be ineffective in minimising harms as people simply will not use it.”
The PBO said Labor’s plan for gaming reform in NSW would not have an impact on the budget bottom line, assuming they reallocate the $173 million set aside for gaming reform by the current Coalition government.
Labor’s policy also includes banning political parties from accepting donations from clubs with gaming machines, outlawing “VIP lounge” signage outside gaming rooms, and cap feed-in limits for new machines at $500. The PBO said the restrictions on new machines would not curb gaming losses because patrons would move to older machines with a higher limit.
“In addition, it would not prevent patrons from repeatedly feeding in $500 into multiple machines.”
Replacing the state’s 86,640 poker machines with a cashless system will be a key budget expense for whoever forms government after Saturday’s election, with the PBO estimating the transition to cost taxpayers $266.7 million over the next four years.
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