A significant regulatory shift for New South Wales (NSW) casinos has been postponed. The new rule that would have limited daily cash transactions to AU$1,000 per player is now delayed by a year. This decision, affecting major players like The Star Sydney and Crown Sydney, comes amid ongoing challenges related to the implementation of cashless gaming technology.
Background on the New Regulation
Initially set to take effect on August 19, the new regulation aimed to curb cash transactions at casinos in NSW. The regulation was part of broader reforms introduced following inquiries into the operations of Crown and The Star, which found both companies unsuitable to hold casino licenses in the state due to breaches of the Anti-Money Laundering and Counterterrorism Financing Act. The AU$1,000 cash cap was intended to enhance transparency and reduce the risk of money laundering and other illicit activities.
Implementation Challenges
Both Crown Sydney and The Star Sydney have faced significant hurdles in rolling out the necessary cashless gaming technology. The shift to a cashless system requires extensive upgrades to existing infrastructure and systems, which has proven more complex and time-consuming than anticipated.
Technical Difficulties
The Star Entertainment Group recently experienced issues with electronic gaming machines (EGMs) and electronic table games (ETGs) at its Australian casinos. The company had to shut down these machines temporarily due to “system performance issues” linked to the new cashless gaming technology. Although these machines were gradually brought back online, the incident highlighted the technical difficulties involved in the transition.
Request from The Star’s CEO
The postponement also follows a request from The Star’s newly appointed CEO, Steve McCann. McCann’s request for an extension reflects the need for additional time to address the practical challenges of implementing the new technology and to ensure a smooth transition for both the casino operators and their patrons.
Cash Limits Extended
The AU$1,000 cash limit per player per day will now not come into effect until August 2025. Until then, The Star Sydney and Crown Sydney will be allowed to accept up to AU$5,000 per player per day.
Mandatory Carded Play Delayed
The requirement for mandatory carded play at The Star Sydney will also be postponed by a month. The new implementation date is now set for October 19, 2024. This delay will allow The Star to better prepare for the transition and address any issues related to the new carded play system.
Operational Adjustments
The delay in the cash limit regulation and carded play requirements means that both casinos have additional time to adjust their operations. For The Star, this involves addressing the technical challenges related to cashless gaming and carded play. For Crown Sydney, which does not operate EGMs, the focus will be on ensuring compliance with the new rules in other areas.
Customer Experience
The extended allowance for cash transactions and the delay in mandatory carded play may impact the customer experience at these casinos. Patrons will continue to be able to use cash more freely, which might influence their gaming behavior and overall satisfaction.
Regulatory Compliance
Both casinos are expected to use the additional time to ensure full compliance with the new regulations. This includes addressing any remaining issues with cashless technology and preparing for the eventual implementation of carded play.
Regulatory Pressure
The delays and ongoing challenges highlight the increasing regulatory pressure on casinos to enhance their transparency and anti-money laundering measures. The extended timeline may provide a temporary relief but underscores the need for the industry to adapt quickly to regulatory changes.
Technology Integration
The difficulties faced by The Star and other operators in implementing cashless gaming technology reflect a broader challenge in the industry. As casinos worldwide increasingly adopt cashless solutions, the ability to integrate these technologies effectively will be crucial for maintaining operational efficiency and regulatory compliance.
Future Developments
The extended timeline for implementing these regulations may prompt other jurisdictions to reassess their approaches to cash limits and cashless gaming. Observing how NSW casinos navigate these changes could provide valuable insights for regulatory bodies and casino operators elsewhere.
The postponement of the AU$1,000 cash limit and mandatory carded play for NSW casinos provides both a reprieve and a challenge. While the delay offers casinos additional time to address technical and operational issues, it also emphasizes the need for effective adaptation to new regulatory requirements. As the industry moves towards increased transparency and cashless operations, the experiences of The Star Sydney and Crown Sydney will be closely watched as a barometer for future regulatory changes and technological advancements in the gaming sector.