ClubsNSW says mandating cashless gaming cards is not a workable solution as debate about the technology intensifies ahead of the state election in March.
The powerful gaming group's chairman George Peponis has accused media and anti-gambling advocates of misrepresenting its position on digital technology
"We are not convinced that an untested mandatory cashless card is the way to go," Dr Peponis said on Thursday.
"The international experience demonstrates that forcing players to use cards drives recreational players to other forms of gambling, in particular to unregulated online casinos, and can exacerbate problem gambling."
A damning 2022 report from the NSW Crime Commission found billions of dollars in dirty cash was among the $95 billion being funnelled through the machines each year.
It recommended removing cash from the mix to improve the situation.
But Dr Peponis said the commission's recommendation was based on curbing money laundering, not reducing problem gambling.
He referred to ClubsNSW's 2018 memorandum of understanding with the government to "explore modern payment technologies" as an example of the gaming body's commitment to a digital wallet.
The state's first cashless gaming trial got underway in Newcastle in October, with players able to connect their digital wallet via Bluetooth to 36 poker machines, setting spending or time limits.
NSW Premier Dominic Perrottet has committed to introducing cashless gaming if he wins the election.
"There is a problem, we need to fix it," the premier told reporters on Tuesday.
"We'll protect jobs on the way through and make sure we don't have money laundering here in NSW.
Meanwhile, former ClubsNSW official turned whistleblower Troy Stolz has announced he will run on a pokie reform platform in the state seat of Kogarah.
Labor leader Chris Minns holds the seat by 0.1 per cent following a redistribution.
Mr Minns wants to expand a voluntary trial of cashless cards, such as the one in Newcastle, before considering any statewide mandate.
Australian Associated Press