NSW gambling reforms labelled 'hokey pokies' as critics slam lack of bite

The package, detailed by the Minns government this week, introduces a series of what it describes as 'targeted' measures to reduce gambling harm. These include a voluntary opt-in cashless card trial, stronger harm minimisation signage in venues, and increased penalties for venues that breach responsible gambling obligations. However, for anti-gambling advocates who had campaigned for a mandatory, statewide cashless gaming system — as recommended by the landmark 2023 NSW Crime Commission report into money laundering through poker machines — the reforms represent a profound disappointment.

Michael McGowan, a leading journalist covering gambling policy, described the outcome as 'the hokey pokies' — a play on the dance song that suggests a step forward, then a step back. In a widely syndicated column, McGowan argued that 'true believers wanted serious gambling reform' and that the government's response was a 'victory for political timidity'.

Critics point to the voluntary nature of the cashless card trial as a fatal flaw, arguing that problem gamblers are unlikely to opt for a system that restricts their spending. They also note that the trial will be limited to a small number of venues in regional NSW and may not capture the high-volume metropolitan clubs and pubs where the most harm occurs.

The Minns government has defended its approach as 'practical and evidence-based'. A government spokesperson stated that a mandatory, statewide cashless system would be overly complex, costly, and could drive gambling underground or to unregulated online platforms. The government has also emphasised that it is 'not done yet' and will evaluate the trial before considering next steps.

The reform package arrives after years of advocacy from community groups, unions and crossbench MPs, and follows the 2023 NSW Crime Commission report which found that poker machines were being used to launder hundreds of millions of dollars. The report recommended a mandatory cashless gaming card as a key measure to combat money laundering. The government's decision to opt for a voluntary trial has been seen by many as a compromise with ClubsNSW, the powerful industry lobby group, which had heavily opposed mandatory measures.

The outcome has reignited debate over the influence of the gambling industry in NSW politics. The government received significant donations from clubs and pubs during the last election cycle. While the government denies any connection between donations and policy decisions, critics argue the outcome speaks for itself.

Why This Matters

The NSW gambling sector is the largest in Australia, with over 86,000 poker machines, and problem gambling affects an estimated 500,000 people. Weak reforms mean the status quo continues, with substantial social and economic costs.
The package tests the Minns government's commitment to tackling money laundering and gambling harm. If the voluntary trial fails to deliver meaningful change, pressure for mandatory measures will intensify.
The outcome sets a precedent for other states and territories watching NSW's approach to gambling reform. A half-measure could undermine momentum for national coordination.

Background

The push for serious gambling reform in NSW dates back decades, but gained new urgency after the 2023 NSW Crime Commission report revealed poker machines were a major conduit for dirty money. The Perrottet government had been inching towards a cashless gaming mandate before losing the 2023 election. Labor under Chris Minns campaigned on a platform of 'harm minimisation' without committing to a mandatory card. Since taking office, the government has faced sustained lobbying from ClubsNSW and the hotel industry, who argued a mandatory system would hurt regional venues. The issue became a lightning rod for broader concerns about political donations and industry influence.

Key Perspectives

[Anti-gambling advocates and public health experts]: The reforms are a major disappointment. They argue that only a mandatory, universal cashless system with pre-commitment limits can effectively reduce harm and money laundering. The voluntary trial is seen as a delaying tactic that will not help problem gamblers. [The Minns government and ClubsNSW]: The government defends its incremental approach as politically feasible and less disruptive. ClubsNSW supports the voluntary trial but maintains that the industry is already heavily regulated and that mandatory measures would unfairly penalise responsible gamblers and hurt community clubs. [Independent crossbench MPs and some Labor backbenchers]: Many are critical of the soft approach. Some threaten to introduce private members' bills to force stronger action, potentially creating a parliamentary showdown.

What to Watch

The scope and duration of the voluntary cashless card trial: which venues participate and what metrics will be used to judge success.
Any moves by the NSW upper house to amend or strengthen the government's package when legislation is introduced.
The reaction from the federal government, which has shown interest in national reform, and whether the NSW outcome affects its approach.
The next NSW budget: will the government allocate additional funding for gambling counselling and support services to offset the limited regulatory action?

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