Club CEO Scrutinized Over $1.7M Contract to His Private Company While Advocating Against Gambling Reliance
West HQ's chief executive Richard Errington awarded his private company R.J. Errington & Associates a $1.7 million contract for hotel design and development services, which is now under regulatory review by Liquor and Gaming NSW. Errington has publicly campaigned against clubs' over-reliance on gambling revenue, yet West HQ still derives more than half its revenue from poker machines despite his stated 2017 goal to reduce gambling income to 50 percent. The case highlights potential conflicts of interest in the club industry as venues attempt to diversify revenue streams.
West HQ, a registered club based in Rooty Hill, awarded a $1.7 million consulting contract to R.J. Errington & Associates, a company solely owned and operated by chief executive Richard Errington and his wife Melinda, to provide goods and services for designing and developing a new hotel. The contract was disclosed in the club's annual report as a key management personnel transaction, and Liquor and Gaming NSW confirmed it is making enquiries into the matter. Registered clubs are generally prohibited from entering into contracts with top executives' companies unless board-approved, with a maximum penalty of $11,000. Errington has been a vocal advocate for reducing clubs' gambling dependence, even quitting the industry lobby group ClubsNSW in 2023 over its practice of pegging membership fees to gambling profits. However, Herald analysis suggests West HQ still derives approximately 70 million dollars annually from gambling machines—more than half its total revenue—contradicting Errington's 2017 projection that the theatre would reduce gambling revenue to 50 percent. The article also notes broader irregularities in club financial arrangements, including another club's use of an unusual cost-plus contracting arrangement with a builder lacking significant industry experience.
What's missing
The article does not specify whether the board formally approved the R.J. Errington & Associates contract before it was awarded, which is a key regulatory requirement. Additionally, no statement from Errington or the board explaining the rationale for the contract or its competitive procurement process is provided beyond their declining to comment.
What different sources said
- Sydney Morning HeraldCenter
The crusading club boss and his $1.7m side hustle
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