The video poker (pokies) operations of Australian retail giant Woolworths have been penalized by New South Wales regulators for plying customers with free booze in a bid to keep them gambling.

On Thursday, the New South Wales Independent Liquor & Gaming Authority (ILGA) announced a AU$172,692 (US$118,600) penalty against Australian Leisure and Hospitality Group (ALHG), which is majority owned by Woolworths, for plying pokies players with complimentary alcohol at two of its NSW hotels.

The ILGA received a complaint against ALHG in June 2019 alleging that the Woolworths-owned Westower Tavern and South Tweed Tavern were violating NSW laws regarding “the supply of free or discounted liquor as an inducement to gaming machine players.” The suspect activity in question dates back to 2017.

The ILGA subsequently inspected 50 venues operated by ALHG, Australia’s third-largest pokies operator, leading to a formal investigation of four venues. The ILGA concluded that the Westower and South Tweed pubs were employing “tactics specifically designed to encourage gambling,” including offering free booze to “regular and high-bidding gamblers” to keep them seated at the machines.