ALH fined $177k, Crown $2m, by VGCCC for gambling-related breaches

Over the past two days, the Victorian Gambling and Casino Control Commission has fined ALH Group $177,500 and Crown Melbourne $2 million for different gambling related breaches.

The first incident saw Endeavour Group’s on-premise business division ALH Group plead guilty to 24 different charges yesterday. According to a VGCCC media release, these included allowing a minor to gamble and a minor to be within a poker machine area, and failing to ensure electronic betting terminals were reasonably supervised at all times.

“It is well established that minors who gamble are more likely to experience severe harm from gambling as adults,” said Annette Kimmitt, CEO of the VGCCC.

“All venues therefore have a legal and social obligation to protect children from that risk… We have zero tolerance for operators that flout the law, especially when children are involved.”

The 24 charges applied to two individual incidents and six venues between September 2022 and October 2023.

For the first incident, ALH Group was fined $175,000 for allowing a teenager to gamble on multiple occassions at five Melbourne venues, including Albion Charles Hotel, Cramers Hotel, Doncaster Hotel, Excelsior Hotel and the Rose Shamrock & Thistle Hotel.

The second incident, for which ALH Group was fined $2,500, involved an eight year old minor being allowed to enter the poker machine area at Westside Taverner. According to a media release issued by the Commission, staff at the venue spoke to the adult accompanying the child to ask them to leave and then reported the incident to the VGCCC.

“While I commend the staff at Westside Taverner for intervening when they became aware there was a minor in the poker machine area, it is never acceptable for a child to gain access to a venue’s gambling area,” added Kimmitt.

The VGCCC prosecution formed part of a larger suite of actions against Victorian venues and Tabcorp for allowing a minor to gamble. In addition to Tabcorp’s $370,417 fine, Preston Hotel was fined $25,300, Parkview Hotel was fines $5,220, The Brunswick Club was fined $8,720, The Olympic Hotel was fined $8,820, Northcote TAB Agency in Northcote was fined $9,960, and Edwardes Lakes Hotel in Reservoir was fined $9,900.

Announced today, Crown Casino was fined $2 million by the VGCCC for allowing 242 people who had self-excluded from gambling to place bets at the casino over an 8-month period up to May 2024.

“It is an offence under the Casino Control Act 1991 (Vic) to allow an excluded person, including anyone who has self-excluded, to enter, remain or gamble in the casino,” said Fran Thorn, Chair of the VGCCC.

“It also contravenes Crown Melbourne’s obligation to protect people at risk of gambling harm… By allowing people who have self-excluded to enter the casino and gamble, Crown has put them at risk of experiencing further gambling harm.”

The self-exclusion breaches were detected through VGCCC’s ongoing monitoring of the casino’s operations and have been described in today’s press release as a result of system and control failures rather than deliberate or egregious disregard by Crown of its regulatory obligations.

“It is also clear that a number of these self-excluded patrons are going to considerable lengths to avoid detection and break their exclusion requirements,” said Thorn.

“Accordingly, the Commission has issued a direction to Crown to engage an independent expert to assess the effectiveness of, and make recommendations for improving, the management of its self-exclusion program. In due course, Crown will be required to implement the independent expert’s recommendations.”

In April this year, it was decided that Crown Melbourne should be allowed to continue trading after the full Commission unanimously agreed that Crown Melbourne had addressed the failings highlighted in the 2021 Royal Commission.

“Despite the enormity of its findings, the Finkelstein Royal Commission recommended Crown be permitted to continue operating under stringent independent oversight conditions for two years, determining it had the will and capacity to transform itself to again become suitable, which would be to Victoria’s benefit,” said Fran Thorn, who was Chair of the 2021 Royal Commission.

“During our investigations, we observed a different Crown Melbourne emerging with a clear understanding of the privilege and obligations of holding the Melbourne Casino Licence.

“Crown Melbourne must continue to seek to rebuild and earn public trust by demonstrating the good character, honesty and integrity that are necessary to remain a suitable casino operator.”