An extensive investigation by Liquor & Gaming NSW has resulted in a massive fine and closure penalty for ALH after two of its NSW venues were found to have provided free drinks to gaming patrons.
Australian Leisure & Hospitality, 75 per cent owned by Woolworths, has been fined $172,692 over what is described as systemic breaches of the Gaming Machines Regulation 2010, which prohibits the supply of free or discounted drinks to persons playing gaming machines.
Ballina’s Westower Tavern and the South Tweed Tavern were fined and banned from operating their EGMs for two weeks, with licensees Andrew Wyeth and Rachel Watts found to have engaged in “conduct that had encouraged, or is likely to encourage, the misuse and abuse of gambling activities”.
L&G’s investigation also found manager Morgan Bensley not a “fit and proper” person, fining him $3,500 and banning him from working in the industry in NSW for five years.
It is said staff were encouraged to seek out regular and high-bidding gamblers for incentivising. The process was documented and managed through reports and staff emails.
“A system whereby gamblers were given free liquor ‘shouts’ was captured in daily reporting targets and tied to gaming profits and staff performance,” said L&G executive director of investigations and enforcement Valerie Griswold.
“This practice illegally used alcohol to boost gambling and what it does, essentially, is reduce a person’s control of their gambling.”
ALH has offered that the investigation was in relation to hotel operations at select NSW venues in 2017. The group has explained it became aware of the issue some time later and commissioned a full review into practices at its venues.
“We took a number of significant steps to enhance our responsible gaming practices, improve training for our venue leadership teams and preclude the service of complimentary alcohol in gaming rooms.”
The matter became public after a whistleblower-style pronouncement by anti-gaming Tasmanian MP Andrew Wilkie in 2018, forcing liquor regulators to pay heed and ALH to backpedal.
In early 2019 L&G announced its initial investigation of more than 50 ALH pubs, with accusations by another whistleblower the instructions on treating valuable gaming patrons were widespread amongst venues and known at all levels of management. Four NSW pubs went on to be formally investigated.
L&G acknowledged the work done by ALH in discontinuing the practices, but notes there were allegations of this nature at its venues in three states, suggesting NSW was simply the first to take action, and that the fines and penalties reflected the seriousness of the breach.
