Minns axes VIP Lounge signage for pubs and clubs

Pubs and clubs will have to remove all external gambling signage promoting VIP Lounges or players’ rooms within three months or face hefty fines as the state government cracks down on venues flouting laws.

NSW Labor vowed to remove external signage as part of its gambling reform package, which was released in response to a damning NSW Crime Commission report that found criminals were using poker machines to wash dirty money in clubs.

Sydney’s pubs have long used the phrase “VIP Lounge” as code for poker machines.Credit: Oscar Colman, Flavio Brancaleone

The commission’s main recommendation was a cashless gaming card, which the then Coalition government committed to implement in all 90,000 machines across the state by 2028.

However, Labor resisted and instead agreed to a trial of 500 machines to ensure a cashless card would not cause job losses across the hospitality industry.

In the lead-up to the election, key independent MPs Alex Greenwich, Greg Piper, Joe McGirr and Helen Dalton – who was targeted for her support of a cashless card by the powerful lobby group ClubsNSW – said they would pursue a cashless gaming card as a priority.

One of Labor’s first legislative moves after its election win was to ban political donations from registered clubs, given the significant profits that clubs make are largely a result of poker machine revenue.

NSW will have a 500 machine cashless trial after Labor won government.Credit: Flavio Brancaleone

The government is also finalising the make-up of its advisory panel, which will oversee the 500-machine trial.

However, new research from Wesley Mission revealed there was still “widespread and ongoing community concern” about the need for more extensive poker machine reform in NSW.

A survey of 1000 NSW residents conducted a month after the March 25 election revealed 70 per cent of voters did not believe the government was doing enough about poker machines and gambling reform.

Venues will from next week be formally told that all external gambling-related signage will need to be removed, altered or concealed before September 1.

Liquor & Gaming NSW has developed a position paper that outlines its enforcement approach and transition period. As part of this, venue operators have three months to remove all gaming related signage.

Where venues can demonstrate delays in removing their signage that are outside their control, they will be afforded a further three months to comply. Following this period, a zero-tolerance approach will be adopted.

Names such as VIP Room or Lounge, Golden Room and Prosperity Lounge will be among those banned, as well as images of dragons, coins or lighting motifs.

Minister for Gaming and Racing David Harris said the removal of the signage was an election promise.

“The facades of pubs and clubs across the state are littered with signs such as ‘VIP Lounge’ to alert those walking or driving by that they have gaming machines,” Harris said.

“Some of these signs are extremely prominent and can be seen by children and members of the community who are at risk of gambling harm.”

Harris said laws were already in place banning gaming related signage but venue operators had “circumvented these by advertising VIP Lounges”.

“We are putting an end to this loophole for the health and wellbeing of our communities,” Harris said.

Harris said the government would work with industry associations and venues across NSW during the transition period. The maximum penalty for venues that fail to remove their signs and breach the act is $11,000 per offence.

The latest Liquor and Gaming data revealed pubs and clubs last year raked in a record $8.1 billion in poker machine profits.

Gamblers in NSW clubs lost $4.6 billion on poker machines, $642 million more than the previous record pre-COVID high of 2018.

Pubs also made record profits from gamblers, beating their previous high from 2019 by $841 million, bringing in $3.5 billion.

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