VICTORIA’S GAMBLE ON REFORM: CARDED PLAY EXPLAINED
Victoria’s Gamble on Reform: The Carded Play Bill Explained
Victoria is at the forefront of a shift in Australian gambling regulations, with the passage of the Gambling Legislation Amendment (Pre-commitment and Carded Play) Bill 2024. This legislation aims to tackle problem gambling while reshaping how Victorians engage with EGMs in pubs and clubs but will also provide an experiential example of the potential future financial impacts that pre-commitment, loss limits and compulsory card based gaming will have on other states. While the reforms are seen as a major public health win, they have sparked significant opposition from industry players, raising concerns about their economic impact, technical challenges, and long-term consequences for recreational gambling.
The Key Reforms: A New Era for Gambling in Victoria
The heart of the reform is the introduction of mandatory carded play, which will apply to all EGMs in Victoria by December 2025. This system requires players to register for a gambling card that tracks their spending in real time, allowing for increased control and monitoring of gambling behaviour. Among the main features of the new system are:
- Spending Limits: Players will have a default loss limit of $50 per session, with the option to increase it after a cooling-off period.
- Cash Input Cap: The maximum amount of cash that can be inserted into a machine will drop to $100, down from the current $1,000 limit.
- Slower Gameplay: Spin intervals will be extended from 2.3 seconds to 3 seconds, slowing the pace of gambling and reducing its intensity.
- Mandatory Registration: All players will need to register before using pokies, which will enable pre-commitment settings and allow for gambling behaviour monitoring across different venues.
The rollout will begin with a pilot program in 40 venues in mid-2025, followed by full implementation across the state’s 27,000 gaming machines.
The Rationale Behind the Reform
The government’s push for these changes stems from the 2021 Royal Commission into Crown Casino Melbourne, which uncovered significant flaws in gambling harm prevention, particularly at casinos. While the inquiry focused on the casino industry, the government has opted to extend the reforms to all pokies across pubs and clubs in Victoria.
Problem gambling is a serious issue in the state, with an estimated 30% of regular EGM users experiencing gambling-related harm. The carded play system aims to reduce this by helping players set limits, slow down their gameplay, and provide more tools for self-regulation.
Industry Pushback: Economic Concerns and Operational Hurdles
While the reforms are welcomed by public health advocates, they have met with fierce resistance from the gambling industry. Industry groups, such as AHA Victoria and Community Clubs Victoria, argue that these changes will hurt gaming revenue, potentially leading to a 10-15% drop. Smaller venues, especially those in regional areas, are particularly vulnerable, as they rely heavily on pokies for income.
Industry voices are also concerned about the technical challenges of implementing the new system. Upgrading thousands of machines, training staff, and ensuring compliance will come with significant costs. For smaller venues, which lack the resources of larger corporations like Crown Resorts, these expenses could be insurmountable. Critics argue that the financial strain, combined with the risk of alienating casual gamblers who may be put off by the need to register for a gambling card, could drive people toward unregulated gambling options or online platforms.
Moreover, the state’s reliance on gambling tax revenue, which brought in $1.1 billion in 2023-2024, raises concerns about potential reductions in funding for public services and community organisations if gambling revenues decline.
Privacy and Data Concerns
The new carded play system will involve tracking sensitive gambling behaviour, raising serious privacy and data security issues. Ensuring that personal information is protected while maintaining a smooth user experience will be a major challenge. The registration process must be user-friendly enough to avoid deterring casual gamblers while robust enough to support the reforms’ goals of harm minimization and accountability.
Broader Implications: A National Shift in Gambling Regulation
Victoria’s move is part of a broader trend across Australia, where states have been increasingly tightening gambling regulations in recent years. The carded play bill aligns with ongoing efforts to curb problem gambling, with measures like advertising bans, machine limits, and harm minimization programs becoming more common.
While these changes are framed as necessary steps to protect consumers and prevent money laundering, critics argue that they may push people toward unregulated markets, causing more harm than good. For instance, NSW recently abandoned a plan to reduce the number of pokies due to its impracticality and high costs.
The Road Ahead: Challenges and Uncertainties
While the VIC government frames the legislation as essential for protecting vulnerable gamblers, industry leaders fear it could devastate businesses, especially smaller venues that rely on pokies for survival. Critics argue that the reforms risk alienating patrons and driving gamblers to less regulated or online alternatives, undermining the local gambling economy.
The outcome of this debate will have far-reaching implications, not just for Victoria but for gambling regulation across the country. The question remains: how far can regulation go before it begins to harm the very businesses it seeks to protect? The success or failure of this reform could set a significant precedent for the future of gambling regulation in Australia and beyond.
