State governments have done an effective job in getting dirty money out of casinos but the money laundering free-for-all continues in the 87,839 poker machines scattered around NSW clubs and hotels.

An egregious example was captured by Harriet Alexander’s Herald story on Club Marconi in Bosley Park, which has a high roller’s room requiring patrons to turn over at least $500,000 a year on poker machines to qualify for entry.

One patron, Patricia Zalavros, a 62-year-old pensioner who lives nearby in Department of Housing accommodation, has played the pokies until 4am six or seven nights a week in the Diamond Suite since its opening a decade ago.

The apparent disparity between Zalavros’ income and spending is known to Club Marconi. Her de facto partner, club director Angelo Ruisi, has had his membership recently suspended following an alleged altercation, but been allowed to continue to sit on the board.

Club Marconi reported $46 million in revenue last financial year – about 95 per cent from poker machines. The club has been the subject of several complaints over the conduct of executives and directors, some of whom have business relationships with the club.

Zalavros’ Diamond Suite spree is not unusual. Mounties, one of Australia’s largest club groups, last April admitted allowing 13 customers to launder up to $226 million through poker machines.

After decades of controversy over money laundering, NSW casinos had their own moment of truth when reforms resulted in board restructures, prosecutions and oversight by a new regulator, the NSW Independent Casino Commission. The casinos are also obliged to be mindful of ASX corporate governance principles that stress the importance of an effective board. Their directors are required to avoid real or perceived conflicts of interest.

That said, they continue to display the lack of ethics common in gambling organisations: the state’s casino regulator on Wednesday fined Sydney’s Crown and The Star a combined $2.25 million for allowing a 16-year-old boy to gamble tens of thousands of dollars using a fake ID.

But registered clubs, whose business models are underpinned by gambling, are not held to the same scrutiny as casinos and have not been forced to undergo any cultural change.

The Minns government has yet to respond to a recommendation by Adam Bell, SC, in his 2022 review of The Star, to consider extending harm minimisation obligations imposed on the casino to all gambling venues, or the NSW Crime Commission’s recommendation to introduce mandatory cashless gambling to pubs and clubs to prevent money laundering.

Nor has there been a formal response to the 2024 NSW Independent Panel on Gaming Reform report recommending mandatory cashless gaming and stronger harm minimisation. However, last month’s state Labor conference unanimously called for its implementation.

Stopping the use of poker machines to launder money would be a start. Government recognised the nefarious practice in casinos but incredulously allow dirty money, coupled with poker machines, to wreak harm on the lives of many in NSW.

Reforms cannot come soon enough.