Cashless gaming resisted by NSW industry

NSW politicians are caught between the hospitality industry and a recommendation to introduce mandatory cashless gambling arising from an investigation into money laundering.

'Washing' money - unlike gambling - is obviously illegal. Companies don't advertise its merits in newspapers or on television - not even with disclaimers to 'launder responsibly'.

Efforts to limit or even manage the impact of money laundering, though, aren't being universally supported.

Some proposals put forward last week by the NSW Crime Commission have been backed by pubs and clubs but its recommendation of a mandatory cashless system wasn't warmly received.

A commission inquiry found evidence drug dealers use illicit profits to gamble, which is not money laundering but is illegal, and some venues do not do enough to deter it.

Pokies are one of the last safe havens for criminals, according to commission head Michael Barnes. While the scale of the problem is unclear, he says it involves billions of dollars and a harder line is needed.

ClubsNSW CEO Josh Landis told AAP the hospitality sector has been singled out over the issue.

"Everyone knows criminals spend money around the economy on cars, jewellery, clothing ... they don't recommend the mandatory cashless approach for other purchases," he said.

"They've identified a utopian approach to drive criminal behaviour to zero that is disproportionate from the risk identified and would have a disproportionate impact on law abiding citizens."

Industry groups representing thousands of venue owners are sensitive about proposed changes to laws governing pokies, something explained on the NSW government's GambleAware website.

"Poker machines are there to make money for venue owners, not provide wins for players," it declares.

Neither Premier Dominic Perrottet nor Opposition Leader Chris Minns have committed to going cashless on gambling but have pledged to work with the industry.

Customer Service Minister Victor Dominello announced plans to introduce the concept in 2020 but they stalled and he is no longer in charge of the portfolio area.

Three dozen machines are being trialled in Newcastle using technology from pokies manufacturer Aristocrat, allowing people to load money onto machines from a digital wallet on their phone.

Like other schemes, including one beginning in Tasmania, the main focus is on problem gamblers.

Three other manufacturers have been approved for cashless technology and an application from another is being assessed.

"The trials will explore different technologies and solutions to enable cashless gaming play in NSW and trial important harm minimisation measures which will help individuals take greater control of their gambling," Hospitality and Racing Minister Kevin Anderson said.

Mr Landis said the trial should be allowed to finish so its findings can be examined.

"The reason we're trialling it is because the law does not allow payments on poker machines other than with cash. The government has to change the law," he said.

ClubsNSW would support digital payments, such as with a debit card or smartphone requiring people to have already deposited clean, traceable money with a bank.

Mr Landis said they've been calling for it for years but prefer it to be optional.

However the Crime Commission says options defeat the purpose because criminals will just choose cash.

The Australian Hotels Association won't address specific questions about implementing digital payments. Liquor and policing director John Green instead told AAP it is focused on "measures which will actually work".

The Crime Commission reported laundering money through pokies is high risk, inefficient and not widespread.

Mr Landis suggested authorities were under pressure to do "something" and picked "something" through the cashless recommendation.

"The better approach is to say 'how can we target this measure?'" he said.

"We're not saying do nothing. Do something that makes sense, that is proportional and effective."

Forcing everyone onto a cashless card would not be, he said.