Rye Hotel slapped with $80,000 fine

The owner of one of Mornington Peninsula’s largest venues has been fined $80,000 and directed to sell the multimillion-dollar property after being caught falsifying pokies records.

The Rye Hotel’s long-time owner Peter Houghton has been fined $80,000 over integrity breaches. Picture: Josie Hayden

The owner of one of Mornington Peninsula’s largest venues has been slapped with a hefty fine and ordered to sell the property after falsifying records and concealing misconduct.

The Victorian Gambling and Casino Control Commission announced on Monday they had fined the Rye Hotel’s long-time owner Peter Houghton $80,000 over the integrity breaches.

The commission first launched an investigation after receiving a complaint from a member of the public in February 2022.

The first incident involved senior staff at the hotel falsifying records to cover up a cash payment of $2039 to a patron.

Venues are required to pay any winnings over $2000 by cheque or EFT.

The commission launched an investigation after receiving a complaint in February 2022.

In another incident in March 2023, the venue issued a cheque to an ineligible person at the request of a winning patron who could not produce ID to collect their winnings.

Venues are required to ensure they only process payments to the person playing the electronic gaming machine and ensure the appropriate identity checks are undertaken.

In addition to the fine, the commission demanded the owner sell the hotel and exit the gambling industry.

The Houghton family has owned the 1927-built hotel since 1954. They also own other retail shops and a supermarket in the coastal region.

Situated on about 1.4ha of land near Rye Beach, the hotel includes 43 accommodation suites, the Main Sail Bar, the Verve Cocktail Bar, conference and gaming facilities.

The Houghton family has owned the 1927-built hotel since 1954. Picture: Rye Hotel's website

The hotel is situated on about 1.4ha of land near Rye Beach. Picture: Rye Hotel's website

It was revealed in June last year that negotiations were underway to sell the hotel to pub, liquor and gaming giant Endeavour Group.

Details around the price Endeavour has agreed to pay remain confidential, but it is understood it could be worth as much as $50m.

The group, which also owns Dan Murphys and BWS, already owns a BWS liquor outlet nearby.

In December last year, the Australian Competition and Consumer Commission announced they will not oppose Endeavour’s proposed acquisition of the hotel.

Commission chief executive Annette Kimmitt said the decision sends a clear message to the industry about compliance with integrity measures.

“Venue operators and owners need to understand the full extent of consequences for falsifying records and concealing misconduct” Ms Kimmitt said.

“We know that honest mistakes happen. However, venue operators that attempt to cover up breaches will be caught and face serious repercussions.”

Mr Houghton declined to comment.