$750k was withdrawn from this ATM. It’s landed a NSW pub an $11k fine

1 week ago 3

A NSW pub owned by Craig Laundy’s hospitality group has been slapped with an $11,000 fine in a crackdown on ATMs located too close to poker machines, and dozens of other venues have been put on notice for similar breaches.

A compliance blitz by NSW liquor and gaming regulators has landed 70 pubs and hotels with penalty notices for breaching new laws requiring ATMs to be located at least five metres away from electronic gaming machines.

A photo of the ATM at the Northlakes Tavern.

The Northlakes Tavern in Charmhaven on the state’s Central Coast, operated within the Laundy Hotel Group, was last month issued the fine after an investigation by the Independent Liquor and Gaming Authority found a cash machine located next to the pub’s entrance had the potential to promote gambling harm.

The investigation revealed more than $750,000 had been withdrawn from the ATM via credit cards over a seven-year period from 2016 – including $45,000 withdrawn during the hours of midnight to 3am.

The venue, which trades until 3am Monday to Saturday and 10pm on a Sunday, in a submission to the gaming regulator told the watchdog it had “no reason to think that any functionality of the ATM might in any way be in breach of the law” and that the ATM was “operated fully outside the hotel”.

But the authority’s disciplinary committee chair Jeff Loy found “the total amount of cash withdrawn (from the ATM) was significant” and the machine risked encouraging the “misuse and abuse” of gambling activities.

NSW is home to half of all gaming machines operating in Australia.

“An ATM at the hotel that permits the withdrawal of cash from a credit card account allows patrons to gamble beyond their means and has the potential to create an environment of problem gambling,” he said.

The Northlakes Tavern submission to the regulator stated it took action to have the ATM’s credit withdrawal function switched off after becoming aware of the regulatory concerns and was “committed to the responsible conduct of gaming principles”.

Craig Laundy, in a statement to the Herald, said: “Laundy Hotels was part of a consortium that purchased the Northlakes Tavern in 2016 but has never had any involvement in day-to-day operations of the hotel. They are handled by another partner.”

“We were alerted to the breach, and had it explained to us that it refers to an external ATM that the previous owner of the hotel had installed and was run by a third party completely independently to the venue (and was) there to service customers of a pretty busy strip shopping centre – and the operator was unaware of the rules applying to licensed venues,” he said.

Craig Laundy said the ATM is now compliant.

“We have been informed the ATM is now compliant.

“Whilst the mistake was completely inadvertent, it is our understanding that the operating partner intends to pay the fine.”

The statewide crackdown on venues comes after regulations were tightened in January, requiring cash machines to be located at least five metres away from gaming rooms and out of sight of pub and hotel patrons.

Figures obtained by this masthead show 70 venues across NSW have been issued fines for breaching those requirements during 1385 inspections by gaming inspectors since January.

The figures follow an audit of gaming regulations which found the total number of poker machines in NSW has increased by 958 over the last two years.

Across NSW, there are now more than 87,700 machines in operation – more than half the combined number of all machines operating across Australia.

Wesley Mission chief executive officer Reverend Stu Cameron said the ease and ability for punters to withdraw cash near poker machines presented an “ongoing catalyst for harm”.

“I’m having conversations with people who are withdrawing their entire weekly pensions on poker machines, and it’s a particular problem in disadvantaged communities,” he said.

“There can be a lot of shame associated with it – people can often feel too embarrassed to seek help or even tell family members about what’s happening.

“Having ATMs near venues just makes it easier for people to enter that cycle.”

A NSW Liquor and Gaming spokesman said while the results of recent compliance action demonstrate that “most venues are doing the right thing, [it] will continue to monitor and take enforcement action where required to ensure compliance and reduce gambling harm.”

Other recent reforms in NSW also include a ban on signage near pubs and clubs. Liquor and Gaming inspectors handed out 18 fines for breaches since July 2024.

Separate data this week showed $2.3 billion was lost by NSW residents on poker machines between April and June this year, equating to almost $25 million a day, or more than $1 million per hour.

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