Anti-gambling advocates have welcomed a trial of cashless pokies in Newcastle but say a proposed $1000 limit on punters' accounts is too high.
Alliance for Gambling Reform chief advocate Reverend Tim Costello said the trial at Wests New Lambton from September was a first step towards all but eliminating money laundering via poker machines.
Rev Costello said a new cashless app developed by gaming machine maker Aristocrat could reduce gambling harm, but the alliance was mindful of heavy industry involvement in the trial.
"They cannot be dictating terms or design," he said.
Customer Service Minister Victor Dominello announced the trial in Newcastle on Monday, two months after telling a parliamentary estimates hearing that he was "very much against" introducing a government-issued gambling card.
The Aristocrat app will allow gamblers to set limits on how much they spend and how long they play.
The world-first app would require links to a player's bank account and identity documents, making it harder for organised crime to exploit.
Mr Dominello and Liquor & Gaming NSW provided few details of how the voluntary trial will work, but the alliance said it had been told the app could have a $1000 "load limit", a figure Rev Costello labelled "too high".
The existing cash load limit for pokies is $7500 in NSW, significantly higher than in all other states and territories except the ACT.
Crown and Star casinos have agreed to phase out cash from their venues after an inquiry by former Supreme Court judge Patricia Bergin found they were hotbeds for money laundering.
Most of the elements of the trial look right, but we will ensure they stay on track.
Reverend Tim Costello, Alliance for Gambling Reform
Independent MP Andrew Wilkie told federal Parliament last year that Clubs NSW was "running a protection racket" for the gambling industry, which he said was not complying with anti-money laundering laws.
Anti-laundering consultants say criminals deposit large sums of cash in pokies, play briefly then withdraw the "cleaned" money.
Hunter pubs and clubs raked in more than $250 million in poker machine profits in the six months to November 30 last year.
Government figures show Wests New Lambton had the 18th highest gaming machine net profit in the state from June to November last year and the highest outside Sydney.
"Gambling is a significant public health issue being exacerbated by having thousands of poker machines available almost everywhere in NSW," Rev Costello said.
"When you consider the myriad public health intersections with gambling harm, you realise how critical it is to address this issue.
"Industry freewheeling has led us to this absurd situation where successive governments from both major sides of politics have allowed poker machines to become effective washing machines for money laundering."
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He described Mr Dominello's "stand" as "important" and "principled".
The alliance said it would monitor the trial to ensure it had no harmful consequences and that the industry did not "manipulate the trial and set it up to fail".
"Done wrong, you may as well set up direct debits to people's bank accounts and sign over their mortgages. It could be that dangerous," Rev Costello said.
"Presently, most of the elements of the trial look right, but we will ensure they stay on track."
Former gambler Anna Bardsley said she would like to see cashless gaming introduced around Australia.
"When people have low load limits on a card that is needed to gamble, we know that helps to reduce gambling harm," she said.
"Having to take a break and step away from a machine which is designed to addict you ... is a powerful circuit breaker. It helps people take stock of how much they are losing.
"I'm pleased people will be able to set time limits, too. I am cautiously hopeful this will go well."
Pubs and clubs made more than $2.5 billion in pokies profits across NSW in the six months to November and paid almost $1 billion in tax on that revenue.
