A controversial Auckland pub with a lengthy violent record, which includes knife attacks, manslaughter, brawls, aggravated robbery, a drug arrest and even a nunchuck assault, will stop selling alcohol – but remain open.
But the Edinburgh Castle's owner says he intends to keep his pokie machines open – leading to the possibility it could become a 24-hour gaming operation.
It will also keep its hotel rooms, which operate as emergency housing accommodation.
Stuff reported last weekend how the pub, in inner-city Newton, was due before the Auckland District Licensing Committee on October 30 to argue for a renewal of its liquor licence – against opposition from police, the Medical Officer of Health, the licensing inspector and 24 locals, including residents, neighbouring businesses and the Uptown Business Association.
But, on Thursday, the pub withdrew its application – immediately losing the right to sell alcohol.
The pub's owner, 'Samson' Xin Xin, said: "We are not selling alcohol, we have already stopped. We will close the pub and run the hotel because it has a 150-year history."
When asked if he would look to sell the pub, Xin said "not at this stage".
He said he would consider re-applying for an alcohol licence in the future, but "not immediately, it would be difficult".
He refused to comment on the pub's record of violent incidents.
Xin's lawyer, John Young, said: "We reviewed the police and the inspector's evidence and the decision was made that perhaps it would be safer and better to trade without alcohol."
Young said they could continue to sell food, non-alcoholic beverages and run the gaming room.
A gaming industry source said the Castle, which has 18 pokie machines with gaming trust BlueSky, was a high-banking venue and would likely turn over a weekly gaming machine profit of $50,000 to $60,000 – meaning a return to the landlords of about $6,500 to $7,500 a week.
The source said: "The reasons why the pub has given up its licence are exactly the reasons why they shouldn't be suitable to have gaming machines. This is precisely the sort of place which shouldn't have machines."
David Hay, organiser of pressure group Feed Families not Pokies, said his group would write to the Department of Internal Affairs (DIA) to ask if the Edinburgh Castle was able to continue operating machines.
He said while legally, pokie venues did not have to have alcohol licences, "the question in our minds is whether the owner is a suitable person to supervise Class 4 gambling [pokies], given the circumstances?"
The DIA said they could "confirm there was an investigation. However, as it is in progress we are unable to discuss details or provide further comment, so as to not jeopardise the investigation".
In what police called an "astonishing number" of incidents, inside a four-year period, one patron was stabbed in the back, puncturing a lung; a man leaving the pub lunged at a passer-by with a long knife; a patron attacked another with a knife at the pokies in an attempt to steal cash; there was an aggravated robbery in which a member of bar staff faces trial; police arrested a patron in possession of meth; police made arrests when patrons left the pub and headed to a nearby car park for a brawl.
Promising UFC fighter Fau Vake was also killed outside the pub in an unprovoked late-night attack by a group of drinkers who had just left the venue.
Weeks later, the pub advertised televised martial arts with a poster reading "experience every punch and pour with UFC at our bar", which licensing inspector Tim Court attacked as "tasteless" and "tone-deaf".
Locals who objected to the licence also complained of noise, public urination, witnessing drug deals and prostitutes soliciting, fights, litter, graffiti and aggressive behaviour.
The Edinburgh Castle had previously used lawyers to argue that they could operate their pokie room 24 hours a day, but had been told to close it between 4.30am and 6am, the hours when alcohol couldn't be served.
In theory, that meant they could now go back to round-the-clock opening.
Pokie licences are not legally tied to liquor licences, but in practice usually are.
Venues cannot have poker machines as their 'primary activity', so Xin would have to convince the DIA that the hotel accommodation was now the principal reason to stay open.
Getting the beer taps turned back on would be difficult.
His decision to withdraw the liquor application means that what's known as the pub's underlying licence to sell alcohol lapses.
That meant anyone taking on the pub can't simply trade on a temporary licence – but instead apply for a full licence.
That process would take about six weeks if there was no opposition, and considerably longer if there was.
In a statement, the police said they "acknowledge" the decision but had no comment.
Auckland Council declined an interview with the licensing inspector, but provided a statement from Mervyn Chetty, their manager of licensing and environmental health, who said they were pleased with the outcome.
"Our inspector gathered extensive evidence of breaches of the Sale and Supply of Alcohol Act 2012 by the licensee, along with various other incidents which had a clear negative impact on the surrounding community.
"While the premises can still operate, we are pleased that alcohol has now been taken out of the equation."