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Edited by Kitu11 at 22-12-2023 01:39 PM
Endeavor Group's CEO, Steve Donohue, welcomed the introduction of cashless poker machines by Australia's largest electronic poker operator. According to reports in the Sydney Morning Herald, Donohue stated that the regulatory changes regarding cashless poker machines in Australia are a natural progression for the industry.
The CEO views cashless gaming as a natural evolution, mentioning that the DB industry in the past has undergone several regulatory reforms, and future changes are no exception. Donohue emphasized that due to Australia's shift towards digital payments, transitioning away from cash is a growing trend. He downplayed the risks of cashless DB reforms for over 300 pubs and 900 clubs in Australia, expressing his company's willingness to collaborate with both financial institutions and regulatory agencies to facilitate the transition to cashless DB for other aspects of the hospitality experience, including gaming.
Endeavor Group's DB business generates approximately AUD 220.5 million (USD 153.6 million) in revenue, accounting for nearly one-fourth of its total revenue before interest. In the first half of 2022, Endeavor Group's profits soared, with after-tax net profit increasing by 17% to AUD 364 million (USD 253.6 million), and pre-tax group profits rising by 15.8% to AUD 644 million (USD 448.6 million). Sales increased to AUD 6.5 billion (USD 4.5 billion), growing by 2.6%. As pandemic restrictions were lifted, the demand for hotel services continued to rise, while revenue from the retail sector declined by 9.3%. However, the revenue from the hotel business more than doubled.
The introduction of cashless poker machines faced criticism, with some bar and club operators criticizing the proposed reform plan for eliminating all non-cash poker machines by December 31, 2028. They claimed that the state government was unaware of the full cost of its comprehensive DB reform. Initially, the New South Wales Crime Commission reported on money laundering associated with Electronic Gaming Machines (EGMs) in bars and clubs and suggested cashless card solutions. However, some stakeholders questioned the findings of the report, while others were more cautious in their statements. Crime experts in New South Wales criticized those who disregarded the importance of the report's conclusions.
Representative industry organization Clubs NSW expressed dissatisfaction with the proposal. According to them, these cards would have adverse effects on customers and would not address the fundamental issue of anti-money laundering. While not entirely against cashless cards, the Labor Party proposed expanding the trial scope to include bars and clubs to gather stronger evidence. However, the plan of New South Wales Premier Dominic Perrottet received unanimous support during last Sunday's cabinet meeting. Perrottet insisted that the testing phase had concluded, and it was now time for implementation. |
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Post time 20-9-2023 20:44:48