The Victorian premier, Jacinta Allan, has faced a backlash from “really upset” Labor MPs after her government delayed key reforms designed to reduce gambling harm from poker machines, with one MP confronting her at a caucus meeting.
Last year, the government introduced a bill to parliament to set up cashless gaming, with a trial to begin at 40 venues in mid-2025, but it has stalled for months.
The delayed action will ensure the state government receives more money from poker machines across the state next financial year, with Victorians already losing more than $3bn to pokies each year.
Multiple Labor sources have confirmed the issue was raised at a caucus meeting on Tuesday morning, with one MP telling the premier the changes were “good policy that would improve the lives of Victorians”. Labor MPs have also separately raised concerns the state’s budget appears increasingly reliant on gambling revenue.
“This is not a political issue, it’s a moral one,” said one Labor MP who was at the caucus meeting on Tuesday.
“Caucus members from across factional lines are really upset to see that not only has the cashless trial has been delayed but that we are also going to see an increase in revenue from poker machines over the forward estimates.
“They are very upset and they are raising their concerns, including in front of the premier.”
Last week’s budget confirmed “a forecast increase in gaming taxation revenue estimates”. The state is expected to receive $5.9bn in taxes from poker machines over the next four years.
“Growth in electronic gaming machine revenue is expected to slow as gambling harm minimisation measures take effect in hotels and clubs,” the budget paper said.
It comes after the bill enabling the government to launch a trial of cashless or card-based play – already in use at Crown Casino – was introduced to parliament in November and was scheduled to begin at 40 venues in mid-2025 before it became mandatory in 2027.
But the trial has been delayed, as the bill has stalled in parliament. It passed the lower house in March, with debate only beginning in the upper house on Tuesday – despite support from the “progressive crossbench”, including the Greens, the Animal Justice party and Legalise Cannabis.
The former chair of Victoria’s gambling regulator, Fran Thorn, said she was “very disappointed” by the delay and that it was “impossible to think of a reasonable rationale” for it. Thorne was chair of the Victorian Gambling and Casino Control Commission until late 2024.
Those at Tuesday’s meeting said the gaming minister, Enver Erdogan, explained the trial had been delayed due to issues with the technology and the government was seeking to “find a better way to roll it out”.
Erdogan, who has been approached for comment, reportedly told the party room that the technology – based on the government’s voluntary pre-commitment system, YourPlay, first introduced in December 2015 – was “out of date”.
An MP at the meeting said Erdogan wanted to set up a more efficient system before its introduction.
This was confirmed by a Victorian government spokesperson, who said they wanted the reforms to “stand the test of time by using the best and latest technology”, which had “evolved significantly” since 2023.
“We will pass the bill and implement these reforms – because too many Victorians are experiencing gambling harm,” the spokesperson said.
A Labor MP, who declined to be named, said the objections raised over the delay were not prompted by anger, but “a feeling of genuine disappointment” among colleagues, several of whom represent outer suburban and lower socioeconomic areas and are deeply concerned about soaring gambling losses among their constituents.
Another Labor MP told Guardian Australia that gambling losses in their electorate had doubled post-Covid.
“We have a responsibility to try to minimise harm for those most vulnerable in our community,” they said.
The former state and federal Labor MP Kelvin Thomson, who has spent decades campaigning for tougher regulation on poker machines, was unhappy with the delay.
“It’s very disappointing that these reforms have not proceeded and gambling harm remains a major problem for the Victorian community and the government needs to act swiftly to reduce this,” Thomson said.
Tim Costello, the chief advocate for the Alliance for Gambling Reform, said the state government was willing to fast-track a ban on machetes, but not measures to limit gambling harm.
