Aussie Pub Receives AU$100K Fine over Incitements for Gambling

A pub in Australia was fined last week after an investigation discovered the venue offered incentives for visitors that gambled.

Former GM Tips Regulator

A disgruntled general manager at the Rose and Crown Hotel in Parramatta, Greater Western Sydney, Australia tipped the regulator about malpractice at the venue. The tip resulted in an investigation led by the NSW Police in collaboration with the Independent Liquor and Gaming Authority (ILGA). Besides monetary penalties, ILGA handed out reprimands after finding breaches of the Liquor Act and the GM Act.

Samantha Glynn, formerly a general manager of the hotel allegedly manipulated the payout systems for a poker machine. This allegedly helped her misplace AU$400,000 ($290,000) by issuing fake credit tickets. Once the venue uncovered the scheme, she was suspended before being fired in 2018. However, once she was fired, Glynn tipped the regulator about the malpractice allegedly conducted at the venue.

Investigation Uncovers Gambling Incitements

According to ILGA’s chair, Phil Crawford, the investigation found that the pub was “essentially facilitating cash advances for gambling via a system of fake transactions and this is an obvious risk for problem gambling.” Moreover, he explained that the pub staff was making “phantom transactions” that masked cash withdrawals which were used for gambling incitements.

Crawford added that at some point, the venue even gave loans from their money safe to gamblers. An example which he pointed out included a manager that took AU$8,000 ($5,800) from the pub’s safe to give to a gambler that was playing slots. Another similar case involved a security guard that loaned AU$800 ($580) to a gambler that visited the pub.

ILGA Hands Out Fines, Reprimands

Due to the breaches related to incentivizing visitors to gamble, ILGA ordered RC One Pty Ltd, the licensee of the pub, to pay a fine of AU$107,358 ($78,000). In a statement released last week, ILGA imposed the penalty ordering the licensee to pay the fine to the Secretary of the Department of Customer Service (DCS). RC One Pty Ltd was given 28 days from receiving the notification to comply.

On the other hand, the regulator introduced a handful of reprimands and other fines. Paul Camkin, a manager a part of the Marlow Hotel Group (MHG) that was tasked by RC One to manage the hotel received a reprimand. His colleague, Jason Marlow, director at MHG received an AU$10,000 ($7,300) fine along with 12 months disqualification from being a licensee or manager of licensed premises. Damian Kelly, an associate of the business also received a reprimand from ILGA. Last but not least, the regulator ordered Camkin, Marlow, and Kelly to pay DCS an AU$30,000 ($22,000) fine covering the costs for the investigation.