Curbing the Problem Gambler !

 Gambling was once a serious sin and was frowned on by the churches. The refusal of a casino license in Sydney has again brought the issue of crime in the gambling world to the fore, but the debate is also moving to the vexing question of poker machines and money laundering.

The illicit drug trade sold on the streets is a cash trade that generates vast volumes of cash money.  Banking and other laws bring it to police attention unless the crime syndicates can find ways to show it has been legitimately obtained, and so the money laundering trade flourishes.

We have thousands of poker machines scattered through pubs and clubs in New South Wales and these are watched over by the Independent Liquor and Gaming Authority which records the activity on every  gaming machines at fifteen minute intervals.  This supervision reveals constant suspicious play turning " dirty money " into freshly laundered cash.

In one glaring instance $ 1485.79 was put into a poker machine and that same amount was taken out just one minute later without a single reel being turned.   Theoretically, that withdrawal would have been made by cheque from the cashier's booth and as such would be regarded as legitimate " winnings ".

Originally, poker machines were played with coin in twenty cent, ten cent and five cent denominations. The player inserted coins to allow the handle to be pulled to set the symbols rolling, but today the machines only accept dollar coins, or banknotes of any denomination which they convert  to the players " bank " within the machine.  Linked machines allow multi dollar bets on each roll of the symbols.

Pressure is building to convert poker machine play to " digital wallets " in place of either coin or banknotes.  Players would need to pre-load their card with a cash deposit and play would be limited to the amount on that card.  It is hoped that this would make reckless gamblers more aware of their losses and less likely to chase illusionary jackpots by putting their entire wages through the machines.

This move is being resisted by the clubs and pubs that own the poker machines.  They claim it will stop play by the thousands of people who enjoy the cheap meal they provide and put the change in the poker machines. This spontaneous act would no longer be possible and most patrons would not be carrying a digital wallet.  Only dedicated gamblers would come to a club or pub with a  digital wallet that enabled them to play poker machines

Legislation to achieve that purpose would need to be enacted by the state parliament, and the government would be very aware of the tax it collects from poker machine turnover.   Saving people from the folly of gambling could be equally detrimental to both the club and pub industries and the government tax office.

For a very long time most forms of gambling were against the law in this state.  Gambling on horse races could only be undertaken with a licensed bookmaker at  a scheduled racing event and this led to illegal SP bookies operating in the back bar of most pubs.  Eventually, the government decided to share in this profitability by licensing the TAB.

This " digital wallet " idea is receiving consideration, but the financial outlay of combatting the coronavirus makes immediate acceptance unlikely..  Gambling - in its many forms - is an integral form of state revenue. It regards money laundering as a Federal problem.