Gaming Compliance Reminder: Offences Cost Sydney Venues Over $150,000

These penalties highlight the regulator’s continued focus on ensuring venues meet their legislative obligations and associated harm minimisation requirements.

What Went Wrong?

The venues were penalised for allowing prohibited features on gaming machines and failing to meet mandatory harm minimisation requirements, undermining responsible gambling practices and exposing their venue to enforcement action.

In the first instance, the Concourse Hotel at Wynyard was fined $110,000 for repeatedly allowing patrons to play its 29 gaming machines between 8:00am and 10:00am from March to November 2023. The hotel has 24-hour trading but is required to comply with the standard 4:00am to 10:00am gaming machine shutdown period each day of the week.

In the second case, the Olympic Hotel at Paddington was fined $44,000 after L&GNSW inspectors found that three gaming machines were not connected to the CMS, which monitors all gaming machine operations in NSW and calculates relevant taxes. Additionally, the inspectors also found that an ATM on the premises had dispensed $16,000 from credit card accounts. 

Why Clubs Should Take Note

Although these cases involved hotels, the same obligations apply to clubs. Regulators are actively monitoring compliance across the industry, and penalties of this scale demonstrate zero tolerance for non-compliance.

To protect your club and uphold community trust:

• Audit Gaming Machines Regularly – Ensure prohibited features are disabled and configurations meet legal standards.
• Gaming Machine Shutdowns – Enforce the mandatory 4:00am–10:00am shutdown period daily, regardless of trading hours.
• CMS Connectivity – Confirm all machines are always connected to the CMS.
• ATM Restrictions – Ensure ATMs do not allow withdrawals from credit card accounts.
• Record Keeping – Document compliance checks and machine settings for accountability.
• Stay Ahead of Changes – Subscribe to L&GNSW updates and industry alerts to keep policies current.

Compliance isn’t just about avoiding fines. It’s about safeguarding your licence, reputation, and commitment to responsible gambling. 

Scheduled Compliance Inspections

Planned compliance inspections will focus on shutdown hour breaches, especially at regional clubs. The mandatory 4:00am–10:00am shutdown period applies every day, regardless of trading hours or location, unless your club has an authorised variation. Clearing machines outside approved hours may be considered a breach.

If you have any questions, please contact ClubASSIST on 1300 730 001 or [email protected].