Cyberattack halts groundbreaking NSW Cashless Gaming trial

In a setback for the Australian state of New South Wales (NSW), its pioneering cashless gaming trial has been abruptly halted after falling victim to a cyberattack.

Aristocrat, a renowned slot machine giant, had launched the trial at Wests Newcastle leagues club last October, but the initiative came to an unexpected halt this week when the trial’s digital partner, Banktech, discovered a data breach.

The cyberattack targeted the lines of communication between digital wallets and bank accounts, resulting in the encryption of sensitive information belonging to approximately 40 club members.

However, a spokesperson from Aristocrat assured the public that the personal information of trial participants remained secure and unaffected by the attack.

Acting swiftly, Banktech promptly shut down all relevant servers and engaged an independent expert to conduct a comprehensive forensic assessment.

Aristocrat emphasized its commitment to safeguarding personal information and stated that it is closely collaborating with Banktech to ensure compliance with relevant laws, including appropriate assessment and reporting guidelines.

While the trial was originally slated to conclude next week, Independent MP Alex Greenwich expressed concerns about the suspicious timing of the cyberattack. He urged the government to share any relevant information with the NSW Crime Commission as part of its ongoing investigation into organized crime and money laundering in the region.

Greenwich emphasized the known involvement of organized crime in similar data breaches and ransomware attacks, suggesting that the implementation of cashless gaming could potentially impede their ability to launder money effectively.

The cyberattack is currently under investigation by Cyber Security NSW, the Australian Cyber Security Centre, and NSW Police. NSW Gaming and Racing Minister David Harris reiterated the government’s commitment to ensuring robust privacy and data protection measures in any cashless gaming trials.

He announced plans to establish an independent panel of experts responsible for overseeing future trials and ensuring the implementation of adequate safeguards.

The cashless trial at Wests Newcastle, which commenced in October 2022, aimed to mitigate the risks associated with gambling and enhance anti-money laundering controls. Over 200 club members were granted access to this innovative technology during the trial phase.

The launch followed a series of regulatory inquiries conducted across Australia, including two in NSW, which found Crown Resorts and Star Entertainment Group unsuitable to hold casino licenses for Crown Sydney and The Star Sydney, respectively. Consequently, both companies agreed to transition toward cashless gaming. In September, new regulations were introduced, imposing a daily limit of $1,000 (US$690) on cash transactions per patron in NSW casinos, while mandating mandatory carded play.

A recent NSW Crime Commission report, based on a thorough multi-agency investigation, recommended the enforcement of mandatory cashless gaming across all pubs and clubs in the state.

The report highlighted the alarming flow of billions of dollars in illicit funds through NSW hospitality venues annually. Although the recently elected state government has yet to commit to mandatory cashless gaming, it had previously indicated its intention to conduct independent trials to evaluate the efficacy of this technology.

The termination of the cashless gaming trial underscores the need for robust security measures in such initiatives. As stakeholders regroup and assess the impact of the cyber attack, the future of cashless gaming in NSW remains uncertain.

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