In a significant regulatory action, the Australian Leisure and Hospitality Group (ALH), the largest operator of pubs across Australia, has been fined $177,500 for permitting underage gambling at several of its establishments. This penalty follows admissions of guilt to 24 charges related to underage gambling violations and supervisory failures over electronic betting terminals.

Widespread violations across multiple venues:

As the Australian Associated Press reports, from September 2022 to October 2023, ALH was found in breach of laws designed to protect minors from gambling exposure. Specific incidents included multiple instances where a teenager was allowed to gamble at five of their Melbourne locations: Albion Charles Hotel in Northcote, Cramers Hotel in Preston, Doncaster Hotel, Excelsior Hotel in Thomastown, and Rose Shamrock & Thistle Hotel.

Moreover, ALH faced scrutiny for another severe oversight at Westside Taverner in Laverton, where an eight-year-old child, accompanied by an adult, was not prevented from entering a poker machine area—a clear violation of Victoria’s strict gambling regulations. Although the staff eventually intervened and the episode was reported to the Victorian Gambling and Casino Control Commission (VGCCC), the incident highlighted significant lapses in venue management and child protection protocols.

The Melbourne Magistrates Court’s ruling included not just the fine but also an additional $45,000 in costs to be paid to the VGCCC, reflecting the seriousness of the offenses and the legal proceedings involved. ALH’s acknowledgment of these breaches has led to a broader examination of its practices and raised concerns about the effectiveness of existing controls in preventing similar incidents across the industry.

Regulatory commentary and industry impact:

VGCCC chief executive Annette Kimmitt strongly condemned the breaches, emphasizing the heightened risk of harm that gambling poses to minors. “It is well established that minors who gamble are more likely to experience severe harm from gambling as adults,” Kimmitt stated in the VGCCC’s press release, underscoring the importance of stringent legal and ethical standards to protect young individuals.

Kimmitt also praised the staff at Westside Taverner for their response once the oversight was recognized but stressed that it was unacceptable for minors to access gambling areas at any time. Her comments reflect a zero-tolerance stance towards regulatory non-compliance, especially involving vulnerable populations.

These incidents and the subsequent fines are part of a larger crackdown by Victorian authorities aimed at tightening gambling regulations and enhancing protective measures for minors across the state. This case follows previous penalties levied against other operators, including a significant fine against Tabcorp, which faced a $370,417 penalty for similar underage gambling infractions.

The actions taken by the VGCCC signal a robust regulatory response to infractions that could lead to more stringent oversight and possibly new regulations to further safeguard minors and ensure that gambling environments adhere to the highest standards of operational integrity and social responsibility.

The Victorian government and the VGCCC are likely to continue their vigilant oversight of gambling activities, with an emphasis on preventing underage access and enhancing the overall safety of gambling environments. This case serves as a cautionary tale for other operators within the industry, highlighting the need for rigorous adherence to legal standards and the potential financial and reputational repercussions of failing to do so.