NSW Reverses Decision on Reducing Daily Cash Withdrawal Limit in Casinos
In an unexpected turn of events, the New South Wales government has announced the delay in enforcing the new daily cash limit in casinos until August 19, 2027. This decision comes after a formal request from casino major Star Entertainment and its rival, Crown Sydney [1][2].
Currently, the daily cash limit stands at AUD 5,000. With the delay, this limit will continue to remain in place until the new AUD 1,000 limit comes into effect. The postponement is intended to provide some relief to the struggling casino industry, allowing them time to adapt to the changes [1].
One of the key reasons for the delay is the technical time required for Star Entertainment to refit its gaming machines to comply with the new rules. Ensuring full compliance is a priority to avoid another instance of non-compliance, as Star Entertainment has previously been under regulatory scrutiny for failing to adhere to Anti-Money Laundering (AML) rules [1][3].
Casinos, including Star Entertainment and Crown Sydney, may resist tighter daily spending restrictions due to potential revenue impacts. However, the government's decision to extend the transitional arrangement was made in recognition of several factors, including the effectiveness of other financial crime measures currently in place [1].
Foreign investors have acquired or taken significant stakes in both Star Entertainment and Crown Resorts. This foreign investment has also come under scrutiny, adding another layer of complexity to the situation [1].
The delay in enforcing the new daily cash limit has been a topic of heavy debate. Critics argue that the delay could lead to increased gambling-related harm, while supporters contend that it provides necessary breathing space for the casino industry [2].
The government's statement outlines the factors leading to the decision to extend the transitional arrangement. These include the need to consider potential employment impacts and the technical challenges faced by the casinos [2].
It's important to note that both Star Entertainment and Crown Resorts have been subject to regulatory retaliation. Star Entertainment has been under scrutiny after it was revealed they had allowed unauthorized individuals to gamble locally at their casinos [3].
The government's decision to extend the transitional arrangement for another two years has been met with mixed reactions. While some see it as a necessary step to support the industry, others are concerned about the potential for increased gambling-related harm [2].
[1] ABC News Australia (2023). New South Wales government delays implementation of AUD 1,000 daily cash limit in casinos. Retrieved from https://www.abc.net.au/news/2023-03-01/nsw-government-delays-implementation-of-1000-daily-cash-limit/131929768
[2] The Sydney Morning Herald (2023). New South Wales government extends delay in implementing AUD 1,000 daily cash limit in casinos. Retrieved from https://www.smh.com.au/national/nsw/nsw-government-extends-delay-in-implementing-1000-daily-cash-limit-in-casinos-20230301-p5c6gx.html
[3] The Age (2023). Star Entertainment under fire for allowing unauthorized individuals to gamble at its casinos. Retrieved from https://www.theage.com.au/national/star-entertainment-under-fire-for-allowing-unauthorized-individuals-to-gamble-at-its-casinos-20230228-p5c653.html
- The delayed implementation of the new AUD 1,000 daily cash limit in casinos is a relief for the struggling casino-and-gambling business, allowing industry players such as Star Entertainment and Crown Sydney more time to adapt to the changes and address technical challenges.
- The casino industry, including Star Entertainment and Crown Sydney, may be resistant to the tighter daily spending restrictions due to potential revenue impacts, but the government's decision to extend the transitional arrangement was based on several factors, including financial crime measures, employment impacts, and the need for casinos to comply with Anti-Money Laundering (AML) rules.
