The Future of Payment Services for Gaming in NSW

The RBA’s 2022 CPS found cash payments accounted for only 16 per cent of all transactions, and 72 per cent of Australians were classed as low-cash users. The survey also revealed that ATM withdrawals per person halved to approximately eight per year and there was a significant increase in the number of people with no cash in their wallets.

This societal shift to digital payments has meant electronic payment services have become crucial to the continued viability of clubs. Due to regulation in NSW, digital payments for gaming are extremely limited — “Ticket-In, Ticket-Out” (TITO) was added to the NSW technical standards in 2010 and carded play was added in 2013. 

While these systems require the loading of physical cash onto either tickets or player cards, once substituted, patrons could use EGMs without the need to load physical cash onto EGMs at multiple intervals. 

Technological advancements have made digital gaming the next frontier for the gambling industry, where this technology can work alongside cash payments. 

The Minns Government established a 16-member Independent Panel on Gaming Reform earlier this year. In addition to other gaming-related reforms, the Panel will oversee cashless gaming trials, review the outcomes and develop recommendations for the Government. 

The review will consider the infrastructure investments required, the impact on employment and industry, options to further reduce gambling harm and the impact of reducing the risk of money laundering. The panel has been overwhelmed with applications to participate in trials with over 5000 EGMs put forward.

Digital payments are payments conducted through digital or online modes, with no exchange of physical cash. While on the surface, it may take only a few clicks or a tap, the digital payments ecosystem has several intermediaries that work seamlessly to facilitate a successful transaction. The entities involved in the end-to-end processing of a digital payment transaction include the merchant (payee), the consumer (payer), the bank, and the payment network. 

The Independent Panel will have a lot to consider, including the role of physical cash in any future payment system. The key demographic for NSW clubs is older Australians. According to the CPS, only nine per cent of consumers aged 65 and over made a mobile payment during a week. 

Since the shutdown of the 2G network and the introduction of 5G, smartphone penetration levels in Australia have grown to roughly 80 per cent of the population. However, 50 per cent of older users have low smartphone literacy and therefore are not confident using online payment capabilities. This has a significant impact on the accessibility of a digital wallet scheme. 

ClubsNSW will continue to contribute to the work of the Independent Panel, with CEO Rebecca Riant representing the industry alongside other gaming providers and manufacturers. The Panel issues regular communiques, which can be viewed here.

If you have any questions, please contact ClubASSIST on 1300 730 001 or [email protected].