ALH fined $500K for Victorian gaming breaches

Australian Leisure and Hospitality Group, which is owned by Endeavour Group, has been fined $550,000 after an investigation found it was running 220 gaming machines without installing the mandatory harm reduction technology YourPlay.

The group was investigated after an anonymous tip, with the investigation finding that hundreds of poker machines were operating at Victorian venues in breach of gambling rules.

YourPlay enables players to voluntarily set time and loss limits.

ALH Hotels is Australia’s largest operator of electronic gaming machines. The Victorian Gambling and Casino Control Commission (VGCCC) fined the company for breaches at 62 of its Victorian venues including pubs in Hallam, Sandringham, Narre Warren, Mulgrave, Laverton and Cheltenham.

The group made an early guilty, with the Melbourne Magistrates’ Court noting its co-operation with the investigation.

ALH was facing a maximum penalty of $1.35 million. It will be forced to pay the commission’s legal costs of $50,000 on top of the $500,000 fine.

An Endeavour Group spokesperson said the company “acknowledged our shortcomings on this serious matter and have taken steps to seek to improve our compliance management”.

“We will continue to work constructively with the VGCCC,” the spokesperson said.

ALH operates more than 80 venues across Victoria including the Young & Jackson hotel, the Brighton Beach Hotel and Richmond’s Royal Oak.

In 2018, an investigation was launched in New South Wales following allegations by a whistleblower that staff were directed to provide complementary drinks to slot machine players to encourage extended gambling. Subsequently, the company discontinued its free alcohol service in gaming rooms across its operations."

“Gambling providers need to pay close attention to their obligations because the consequences for getting it wrong can be significant,” VGCCC chief executive Annette Kimmitt said.

Victorian gambling establishments are bracing for tighter regulations in the upcoming months. This follows Premier Daniel Andrews' announcement last month of a comprehensive strategy aimed at curbing daily losses on poker machines. Additionally, these venues will be mandated to halt their gaming operations for a minimum of six hours daily.

In a statement made in July, Premier Andrews asserted that these changes would position Victoria at the forefront of stringent gambling regulations and anti-money laundering protocols, not only in Australia but potentially on a global scale. However, details regarding the exact timeline for the rollout of these reforms remain undisclosed.

Jonathan Jackson, 28^th August 2023