Introducing a mandatory pre-commitment system on gaming machines in Australia could drive players away from land-based casinos to online gaming providers, it has been claimed.

Under the government’s proposals, gaming machines will only operate if a player uses a valid pre-commitment card and sets an expenditure limit. This system will require identity verification of every player.

On reaching their selected expenditure limit, the machine will lock up and the player will be barred from playing any machine in their state for a specified time period, after which they can return to any venue and resume playing with a new limit if they wish.

These proposals – championed by independent MP Andrew Wilkie – have divided opinion.

During the company’s AGM on Thursday, Crown CEO Rowen Craigie raised concerns over the government’s plans.

“It is unclear how mandatory pre-commitment will reduce the expenditure of players who may be problem gamblers or at risk of becoming problem gamblers, as they will be able to set as high a limit as they like,” he said. “We believe such persons will typically set high limits in order to avoid hitting that limit and being locked out from further play.”

When they return they will simply set a new higher limit to avoid being locked out of the system again. This, he said, will not solve their problem but “merely defer it.”

“We believe there needs to be a more personalised approach involving direct assistance to players who may be problem gamblers rather than hoping a central computer will automatically solve their problem.”

Craigie warned that for large casinos, such as Crown Melbourne and Burswood, introducing a mandatory pre-commitment regime would make registration of recreational and occasional players, many of which are international visitors, very difficult. Many will either be unwilling to wait or lack the necessary identification to register.

Those concerned with the privacy issues associated with having their details stored on a state-wide database, meanwhile, may choose to no longer play gaming machines, reduce their play or switch to online gaming, he said.

“There has been no assessment undertaken by the federal government on the likely impact of mandatory pre-commitment on the playing behaviour of problem gamblers or recreational players. Neither has there been any attempt to quantify the impact on revenue, employment or investment in the industry or its many stakeholders.  

“There is no current proposal from the government to trial mandatory pre-commitment to see if it is effective in reducing problem gambling or to measure the extent of the consequential revenue and job losses. This should be an essential first step in any plan to introduce mandatory pre-commitment considering the casino industry plays such an important role in investing in Australia’s tourism industry and given that it employs many tens of thousands of young Australians.”