The Independent Liquor and Gaming Authority (ILGA) has emerged victor in a battle over its jurisdictional powers and gaming regulations at a series of pubs owned by Knox Hotels.
In 2021, Jim Knox’ group applied to increase the poker machine threshold at its Area Hotel in Griffith, purchased in 2019, and Whitebull Hotel in Armidale, bought mid-2021.
The application was approved by ILGA on condition that the Whitebull maintained an incident register on any potential problem gambling behaviour, and employed a dedicated Responsible Gambling Officer to monitor the room between midnight and 4am. The Area Hotel was required to have a Responsible Gambling Officer at all times the machines were open for use.
Knox objected to the conditions, and took the matter to the Supreme Court. In June of this year the Court’s Justice Sarah McNaughton ruled in favour of the pubs, saying the Authority’s use of the Liquor Act to impose conditions was misplaced and that ILGA had overstepped its powers.
ILGA said it would comply with the Court orders, but that the judgment impacted its decision-making processes and powers, immediately filing an appeal. The ruling threatened to throw doubt on conditions already placed on pubs’ gaming rooms by the regulator.
In deference to local losses in gaming, Riverina-based MPs Joe McGirr and Helen Dalton have expressed they are in favour of gaming reforms to help minimise harm caused by problem gambling.
The debate drew the usual anti-gaming pundits and misreporting, such as claims that NSW has “more [gaming] machines per person than anywhere in the world”.
The total number of EGMs in NSW pubs and clubs is close to 87k, amongst a population of 8.1 million, amounting to 362 people per machine.
By comparison, Japan’s population of $125.4 million people share 4.6 million EGMs, meaning only 27 people per machine. Similarly, the United States, with 333 million people but limited places where poker machines are allowed, has 886,386 gaming machines, which is a figure across the entire country of 376 people per machine.
Citing its hamstrung powers pending the outcome of its appeal, in July ILGA announced it would be deferring consideration of matters that may be impacted.
The matter has now been heard before the NSW Court of Appeals, and Justices Meagher, Kirk and Griffiths ruled against Justice McNaughton and have overturned the original judgement.
The three justices believe McNaughton “erred” in determining that the Liquor Act could not be used to regulate gaming machines, finding the argument by Knox Hotels’ solicitors “unpersuasive” and asserting that the operation of gaming machines could certainly amount to social harm.
“[ILGA] is required, when exercising its functions under the Liquor Act, to have due regard to the need to ensure that the operation of licensed hotels and clubs does not detract from the amenity of community life.”
The decision has been welcomed by the Authority, and firmly establishes that it is within its authority to impose conditions by means of the Liquor Act.
“This decision affirms ILGA’s decision-making powers to consider the impact of gaming machines (pokies) on the community when it considers applications under the Gaming Machines Act,” relayed an ILGA spokesperson.
Knox Hotels has not proffered whether or not it will proceed with the original judgement, to increase the number of EGMs at the venues, with conditions.
Since its election in March, the Minns’ NSW Government has introduced new measures to reduce the impact of gaming, including reducing the number of entitlements available by more than 3k.
Read the Court of Appeal’s full decision HERE.