A boutique hotel in Australia has been fined after being found to have breached local gambling laws by requiring guests to exit the property via a gaming room featuring a range of casino slot machines.

The Mortdale Hotel in Sydney has been penalized by Liquor & Gaming New South Wales to the tune of some $1,500 for contravening the Gaming Machines Act of 2001, which states patrons must not be compelled to pass through a gaming room to enter or leave a venue or gain access to other areas.

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Scheduled Scrutiny

Liquor & Gaming New South Wales revealed it conducted a routine inspection of the 18-room facility in August of 2023 and found the exit doors to its main bar temporarily locked. 

The regulator explained this setup had compelled visitors wishing to leave the 94-year-old property to do so via its gaming room.

The holder of the Mortdale Hotel’s gaming license, Paul Whitehead, admitted to violations of the Gaming Machines Act of 2001 at Downing Centre Local Court last week before agreeing to pay the financial penalty. 

Severe Scolding

The Regulatory Operations Executive Director for Liquor & Gaming New South Wales, Jane Lin, described the Mortdale Hotel’s infringement as ‘a serious breach of the state’s gaming laws’, which have been designed ‘to reduce the risks of gambling harm’.

“Apart from breaking the law, the licensee put patrons at potential risk of harm by compelling them to walk through the gaming room to leave the venue,” Lin said. 

“As this case shows, licensees who fail to abide by gaming machine regulations can expect to be caught and prosecuted.”

Distinct Destination

Opened in the southern Mortdale district of Australia’s largest city in 1930, the Mortdale Hotel is a popular stop-off among locals and those wishing to enjoy a unique experience only 30 minutes from downtown Sydney. 

Colloquially known as ‘The Morty’, the three-story suburban venue located on the corner of Pitt Street and George Street features an interwar architectural style and additionally hosts a restaurant, a sports bar, a function room and a sportsbook.