Australian supermarket giant Woolworths, recently slammed as the “worst” pokies operator in Australia for over-serving alcohol to gamblers to keep them playing, has announced it will divest of its pubs and pokie operations.
According to the Australian Financial Review, Woolworths will unload its drinks and pubs businesses, Endeavour Drinks and ALH Group; the latter is one of Australia’s largest poker machine operators. The merged company, to be known as the Endeavor Group, will be sold via a demerger, IPO or trade sale, reported Asia Gaming Brief. Woolworths may retain a minority share of the group, which will own around 1,500 liquor shops and 327 ALH hotels, which own around 12,000 poker machines.
“The board believes that a merger of Endeavour Drinks and ALH followed by a separation, is in shareholders’ best interests and will benefit customers and team members of both groups,” said Woolworths Chairman Gordon Cairns. “The decision has been taken after consideration of the future prospects of both businesses and how they can be best realized,” he said.
Last month, the Sydney Morning Herald reported that the company faces substantial fines and possibly revocation of some of its gaming licenses due to the practice of over-serving gamblers, which seems to have been widespread across dozens of shops.
A former staff member blew the whistle on ALH, claiming that workers were ordered to keeping players at the machines for “as long as possible.” ALH faces fines of up to $110,000, the Herald reported.
