An ACT government investigation has found that clubs are bypassing the $250-a-day limit on ATM withdrawals by installing eftpos machines that allow gamblers to withdraw thousands of dollars of cash a day.
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Gaming Minister Gordon Ramsay has described the findings as "troubling" and is now considering new ways to limit access to cash.
The $250 limit on ATMs was introduced in 2013 to help problem gamblers, but the government was warned barely a year later that clubs were installing eftpos machines to circumvent the limit.
In 2015, the government accepted a voluntary code of practice from clubs about the use of eftpos machines, but Mr Ramsay said on Friday that had not worked.
In April, in the wake of a complaint from problem gambler Laurie Brown, who says she withdrew thousands of dollars a night from the Raiders club in Belconnen in the depths of a gambling addiction in 2015 and 2016, Mr Ramsay asked Access Canberra to investigate cash withdrawals.
Officials visited 33 clubs. Thirty-two had eftpos machines. The other one had two ATMs that were not subject to the $250 a day limit because they were not technically on the premises. The ATMs were accessed through a glass door beside the reception.
In eight of the clubs, the ATM or eftpos machines were just one to five metres from the nearest poker machine.
Seven had signs near the ATM machines telling people how to get more cash out though eftpos.
At two clubs people could withdraw $500 through ATMs because there were two machines. Those clubs are now being investigated.
Some limited eftpos withdrawals to $1000 a day; others had no limits.
All clubs required staff interaction to use eftpos machines, but at some interaction was minimal, with the staff member only turning on the machine and swiping the card; at others the staff member swiped the card and handed out the cash.
The Access Canberra report said compliance with the $250 limit for ATMs was high, but there was limited compliance with the intent of the law.
"It appears that licensees are enabling the bypassing of the ATM restrictions by providing an alternative to patrons through cash out from eftpos facilities with either very high or no limits applied," it said.
"It is concerning that some venues advise patrons where extra cash may be obtained and other venues display signage above eftpos facilities promoting its location."
Mr Ramsay said the unlimited cash withdrawals were "disturbing".
"It is evident that the voluntary code of practice which had been developed to ensure eftpos transactions were not undermining ATM restrictions has not worked," he said.
"I would ask all clubs and venues to have a thorough look at what arrangements they have in place."
Greens leader Shane Rattenbury said it was clear self-policing had not worked and the law must change. The government had all the evidence it needed but had been far too slow to act, he said.
"Clubs are supposed to be there for their communities, not to fleece them," he said. "The Greens reject the claim that this is a matter of personal responsibility. We know that poker machines are addictive and are deliberately designed to extract excessive amounts of money from vulnerable people – it is not the fault of the individual user."
The 2015 code of practice said a staff member should handle either the cash or the card, which clubs argued would enable them to identify and speak with problem gamblers. But Prof Brown said she withdrew thousands of dollars a night at eftpos machines without staff intervention.
At the Hellenic Club in Woden, this reporter witnessed one gambler return twice within the space of a few minutes to withdraw hundreds of dollars in cash from the machines placed next to the darkened poker machine room, with a large sign advertising its presence. The gambler asked staff at the bar for access but was not questioned when he quickly returned for a second withdrawal.
Clubs ACT chief executive Gwyn Rees said the report found that the vast majority of clubs had complied with the law and that patron, must talk with a staff member "to access their own money", as required.
"However times change and the club industry is firmly committed to working with government to strengthen harm minimisation practice," he said.
