‘Extremely serious’: Billionaire’s pub among Sydney venues found flouting laws

The jewel in the hospitality portfolio of Australia’s richest gambling tsar and second-most profitable hotel in NSW by gaming revenue repeatedly flouted gambling laws by allowing patrons to withdraw cash on credit.

NSW Independent Liquor and Gaming Authority (ILGA) ordered the Wentworth Hotel in Homebush West on Wednesday to pay the maximum penalty of $22,000 for permitting cash to be withdrawn on credit and engaging in conduct likely to encourage the abuse of gambling, among three major fines issued this week.

The Wentworth Hotel in Homebush West is the second-most profitable hotel in NSW by gambling revenue.Credit: Flavio Brancaleone

It followed a $110,000 fine issued to the Concourse Hotel in Wynyard, the third-largest penalty issued by the authority since it was established in 2007, and a $44,000 fine to the Olympic Hotel in Paddington.

The Concourse had allowed its patrons to play the pokies during the mandatory shutdown period from 4am to 10am, and the Olympic had disconnected three of its poker machines from the central monitoring system that is used to calculate tax.

Liquor and Gaming NSW executive director Dimitri Argeres said the size of the fine issued to the Concourse Hotel reflected the seriousness of the offence. ILGA has issued larger fines only to Dee Why RSL, which was found in 2020 to have engaged in practices that contributed to the suicide of a patron, and the ALH group for giving patrons free alcohol to encourage gambling.

Loading

“The frequent and repeated operation of gaming machines during the six-hour shutdown period over eight months is an extremely serious breach of laws aimed at reducing gambling harm,” Argeres said.

“Providing patrons with access to gaming machines during the shutdown period increases the risk of gambling harm.”

Greens MP Cate Faehrmann said fines were inadequate and the hotels should be stripped of their poker machines and licences, or gaming laws should be reformed to increase penalties.

“These clubs have deliberately and callously flouted lawful measures put in place to reduce gambling harm,” Faehrmann said.

“The government needs to make an example of them. They would have to have known that the revenue made by breaking the law far outweighs the maximum fine they can be charged and that’s why they’ve done it.”

The Wentworth Hotel is owned by billionaire Sam Arnaout, a former panel beater whose hospitality group Iris Capital holds more than 30 pubs in NSW.

Loading

ILGA found that the hotel’s ATM was used to withdraw $221,000 over a seven-month period between 2022 and 2023, and $80,000 was withdrawn between midnight and 6am, when harmful gambling is most likely to occur.

“Providing patrons with ready access to cash from a credit card account significantly increases the risks of patrons gambling beyond their means,” ILGA found.

“The hotel consistently ranks in the top 10 hotels in the state by net gaming profit per
machine and should be held accountable.”

Wentworth Hotel removed the ATM’s credit facility in 2023.

Cut through the noise of federal politics with news, views and expert analysis. Subscribers can sign up to our weekly Inside Politics newsletter.

Most Viewed in National

Loading