Contrary to the wishes of the labor government, New South Wales’s coalition state government is removing the limitation on blackjack gaming machines.

Current regulations only permit NSW clubs to install a limited number of casino-type gaming machines, hosting games such as blackjack card games and roulette. This prevented the clubs from offering consumers a full array of options and, likewise, restricted the number of patrons who can enjoy these games at any given time.

Now, state opposition leader Barry O’Farrell has signed a memorandum of understanding which effectively “removed limitations on installing multiple terminal gaming machines in clubs”.

While this document could currently be considered more of a gentleman’s agreement than legally binding, it is part of a larger deal which will cut “pokie taxes”, a tax on slot machines, and require the state coalition to pay millions to Sydney’s Star City casino as compensation.

The Labor government opposes this play, asserting that coalition is attempting to create “mini casinos” throughout New South Wales. Premier Kristina Keneally characterized the plan as leading to “an explosion of electronic roulette and blackjack gaming in NSW suburbs”.

The reality is that this “explosion” is already taking place, with or without a plan to liberalize these machines. Countless casinos are online. Netbook betting and mobile phone gambling are growing throughout Australia, providing easy access to online blackjack, poker, slots, and other games wherever anyone has a laptop or an even an Apple iPhone. Of course, when players are using these devices, not only government revenues but also club owners are cut out of the action.