The first trial of cashless gaming technology to be run in the Australian state of New South Wales has been terminated after a cyberattack saw the data of some participants compromised.
The Sydney Morning Herald reports that the trial – launched at Wests Newcastle leagues club last October by slot machine giant Aristocrat – was cut short this week when its digital partner Banktech detected the data breach. It added that around 40 club members have been affected by the cyberattack, which saw hackers encrypt the lines between the digital wallets and the bank accounts of those members.
However, an Aristocrat spokesperson told the media outlet that the attack did not compromise the personal information of any trial participants and that Banktech had immediately shut down all relevant servers while engaging an independent expert to conduct a forensic assessment.
“As a further precaution, working with Banktech and Wests, Aristocrat ensured the swift deactivation of all relevant digital wallet functionality in the venue and has ended the digital wallet trial,” the spokesperson said.
“Aristocrat takes its obligations, including the protection of personal information, very seriously and we are working closely with Banktech to ensure that Banktech follows appropriate assessment and reporting guidelines under applicable laws.”
While the trial had been due to end next week anyway, Independent MP Alex Greenwich described the timing of the attack as suspicious.
“This data breach is deeply suspicious and I think it would be important for the government to refer any information that they have to the NSW Crime Commission in the context of their investigation into organized crime and money laundering in NSW,” Greenwich said.
“We know organized crime is engaged in these kinds of data breaches and ransomware attacks, and we know that organised crime has a lot to lose should we be implementing cashless gaming in NSW to prevent their ability to money launder.”
NSW Gaming and Racing Minister David Harris added that Cyber Security NSW, the Australian Cyber Security Centre and NSW Police were investigating the incident.
“The NSW government strongly believes any cashless gaming trial must have secure privacy and data protections in place,” he said.
“The NSW government is committed to the establishment of an independent panel of experts to oversee its broader cashless gaming trial.”
As reported by IAG, the launch of the cashless trial at Wests Newcastle in October 2022 saw around 200 members given access to the new technology, aimed at reducing the risk of gambling harm and bolstering anti-money laundering controls.
The trial was launched in the wake of multiple regulatory inquiries held across Australia, including two in NSW, which found Crown Resorts unsuitable to hold a casino license for Crown Sydney and Star Entertainment Group unsuitable to hold a license for The Star Sydney.
Both Crown and Star reached an agreement with the state’s gaming regulator last year to transition towards cashless gaming as part of efforts to ensure suitability, while new regulations which came into effect in September set a daily limit of $1,000 (US$690) on cash transactions for each patron at the state’s casinos and require mandatory carded play.
A NSW Crime Commission report has since recommended the introduction of mandatory cashless gaming in all pubs and clubs across the state following a multi-agency investigation which found that billions of dollars of dirty money is being funnelled through the state’s pubs and clubs each year.
The recently elected state government has not yet committed to mandatory cashless gaming but said before the March election it would run its own trials to determine the effectiveness of the technology.
