The NSW regular is taking a strict stance on the new laws around ATMs in clubs and pubs, issuing scores of penalty notices, including a hefty fine for Northlakes Tavern.
Liquor & Gaming NSW (L&G) has been conducting inspections and taking enforcement action against licensed venues found to have breached the rules governing the use and placement of ATMs, introduced to help mitigate gambling harm.
ATMs within clubs and pubs are not permitted to allow cash withdrawals from credit accounts. In 2023, L&G issued seven penalty notices regarding this, across five venues.
Laws banning signage inside clubs and pubs that directs patrons to ATMs came into effect 1 July 2024. Since then L&G has inspected 945 venues and issued 18 warnings to those (1.9 per cent) found to be in breach.
On 1 January 2025 rules commenced prohibiting ATMs from being positioned within five metres of a gaming room entrance or exit, and from being visible inside gaming rooms. In the eight months to date inspectors have carried out 1,385 inspections and issued 70 penalty notices, representing five per cent of venues.
“While these results demonstrate that most venues are doing the right thing, L&GNSW will continue to monitor and take enforcement action where required to ensure compliance and reduce gambling harm,” explained a spokesperson.
An inspection took place at the Northlakes Tavern in Charmhaven on 4 July 2023. L&G officers found an ATM deemed on the premises had facilitated withdrawal of over $750K from credit cards over the previous seven years, which included $45K withdrawn during the hours of midnight and closing time, 3am.
Northlakes Tavern was purchased in 2018 by a consortium led by Laundy Hotels, along with multiple investors, including hotelier Mark Malloy. Ms Tegan Devlin has been licensee since early 2019 and was present during the inspection.
In June 2024, L&G lodged a disciplinary complaint with ILGA (Independent Liquor & Gaming Authority) regarding the permitting of cash withdrawals from a credit account at the pub.
Devlin and other stakeholders entered a joint submission to the Authority in November outlining their defence.
It was suggested that the ATM in question was located outside of the hotel’s licensed area, servicing customers of a shopping centre, and had been there since at least 2013, which pre-dates the change of ownership.
Devlin proffered that there had been multiple L&G inspections at the hotel in the ten years she had worked there, and the issue of the ATM outside allowing credit withdrawals had not been raised. She also tendered that there was no evidence of any ‘misuse or abuse’ of gambling activities under her tenure.
ILGA ruled in favour of L&G and the Tavern was issued a fine of $11K in August. Disciplinary committee chair Jeff Loy found that they were satisfied Devlin contravened the Act (section 47C) by permitting an ATM capable of providing cash from a credit card account to be in use, and that despite the machine being outside, it was the hotel’s responsibility.
“We are also satisfied that Ms Devlin engaged in conduct that has encouraged, or was likely to encourage, the misuse and abuse of gambling activities in the hotel.
“Having 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.”
Finding headlines for their part in its ownership, Laundy group issued a statement explaining that they were never involved in day-to-day operations at the Northlake Tavern, and that the ATM, installed by the previous owner, was operated independently by a third party, and that it is “our understanding that the operating partner intends to pay the fine”.
