A Financial Crime Compliance Test Any Club Could Face

In this matter, a club member alleged disability discrimination after being asked to leave the premises. 

It followed a meeting about alleged conduct that breached the club’s gambling policy, specifically linked to financial reporting and gaming regulatory obligations, and subsequent membership suspension. 

Anti‑Discrimination NSW investigated the complaint, but it was dismissed, leading to an appeal to the Tribunal.

The Facts

• On 5 May 2025, a club member inserted $4300 into a roulette multi-terminal gaming machine and withdrew the funds with minimal play.
• The transaction was flagged in accordance with the club’s financial crime reporting and gaming regulatory obligations.
• On 16 May 2025, the club convened a meeting with the member to advise that the conduct was inconsistent with the club’s gaming bylaws, and that possible suspension of membership was being considered.
• The meeting was intended to notify the member of the issue and provide an opportunity to respond.
• A heated exchange occurred during the meeting, after which the member was asked to leave the club’s premises.
• The member subsequently lodged a disability discrimination complaint with Anti‑Discrimination NSW, which was investigated and declined as lacking in substance.
• The matter was referred to the Tribunal for a leave application, where the club maintained that its actions were taken in accordance with its financial crime, gaming and regulatory obligations.

What Good Looks Like

The Tribunal’s decision highlights several examples of sound club governance and process:

• Gaming bylaws were published on the gaming floor to assist patrons in understanding their obligations.
• The club adopted a measured and proportionate approach by convening a meeting rather than taking immediate disciplinary action.
• The club documented the meeting and surrounding events.
• Club processes were followed, including notifying the member of the alleged incident and offering an opportunity to respond.
• All relevant gaming, financial and regulatory reporting obligations were completed, including incident logging, transaction and any other relevant reporting.

Other Best‑Practice Actions Noted by the Tribunal

The Tribunal also identified practical steps that can further strengthen a club’s position:

• Providing members with copies of the club bylaws and policies, including gaming policies, at the time of joining or during relevant meetings.
• Having meeting attendees sign written meeting records.
• Retaining CCTV footage, internal records, staff logs and complaint files as evidence and in the event the Tribunal grants access to this material.

Key Takeaways and Why This Matters to Members

This public decision highlights the importance of clear policies, consistent processes and careful documentation, particularly in relation to gaming activities where financial crime risk may be present (that led to the subsequent suspension of the member). 

The club did not disclose any specific potential financial reporting directly to the member.

Club policies exist to protect members, the club and the broader community by ensuring gaming is conducted responsibly and in line with strict regulatory requirements. 

While most members will never be affected by these processes, clubs are legally required to act when certain gaming activities are identified, even if they are unintentional or misunderstood. 

In this context, the Tribunal confirms that members must always comply with club bylaws and policies, and that failure to do so may result in the loss of membership privileges, regardless of a member’s awareness of the rules or their status as a frequent customer.

Handled properly, strong governance is not only compliant but also defensible.

If you have any questions, contact ClubAssist on 1300 730 001 or [email protected].