Every poker machine in NSW will be cashless within five years under an ambitious plan to overhaul the gaming industry, which is warning of potential job losses and significant costs.

The controversial package passed a snap meeting of state cabinet on Sunday.

“It’s not about being a wowser, this is about looking after the vulnerable,” NSW Premier Dominic Perrottet told business leaders on Monday.

“This is about stopping money laundering and at the same time ensuring our nightlife in the city and our pubs and clubs thrive with entertainment and live music.”

Pubs and clubs will be incentivised to diversify away from pokies with no-interest loans and one-off grants of $50,000 to invest in new income streams such as live music and food.

A team headed by Department of NSW Premier and Cabinet secretary Michael Coutts-Trotter will implement a plan to remove cash from pokies between 2024 and 2028.

Gamblers will have self-imposed spending limits, which can be altered and the implementation team will consider daily limits.

No personal data will be collected or retained by the government or pubs and clubs.

The plan was welcomed by key independent crossbencher Alex Greenwich.

“Now is the moment,” he said.

“I’m looking forward to the full release of the government’s plan, and hope the opposition will join this multi-partisan push for reform.”

But the body representing registered clubs – which operate 64,000 pokies – raised concern about the “significant costs and technical challenges” of turning pokies cashless.

“We’re particularly concerned about the implications for small, regional clubs and the impact this will have on jobs across the industry,” ClubsNSW said.

The industry group said it remained committed to tackling problem gambling and keeping criminals out of venues.

Charity Wesley Mission was disappointed at the timeline to implement the cashless pokies policy.

“We still believe that, based on both evidence and expert advice, the full implementation of mandatory cashless gaming is possible in the next parliamentary term (before April 2027),” chief executive Stu Cameron said.

Problem gambling has become a major election issue after a NSW Crime Commission report found billions of dollars in dirty money was being laundered through machines every year.

Two in every five poker machines globally were in NSW after the previous Labor government turned pubs and clubs into “mini-casinos”, Mr Perrottet said.

“That transition will be difficult, but I’ve committed completely with industry that I’ll work very closely to get that done,” he said.

“A sign of any great society is how it looks after its most vulnerable people.”

Labor has promised to introduce mandatory trials for 500 of the state’s 95,000 poker machines, with leader Chris Minns cautious about implementing mandatory change without more evidence it will work.

– AAP