Hearing: Mr Hardeep Multani for the Internal Review Applicant

Decision: The Commission has determined to set aside the decision of the delegate and, in substitution, grant a renewable limited licence subject to the conditions as set out in Appendix A

1. On 8 July 2024, liquor consultant, Mr Bruce Lowe of PAJ Liquor, on behalf of VR Entertainment Pty Ltd (Applicant) applied to the Victorian Liquor Commission (Commission) under the Liquor Control Reform Act 1998 (LCR Act)0F[1] for a renewable limited licence (RLL) for premises located at 5/7 Garretty Road, Caroline Springs (Premises), trading as VR Theme Park (Original Application).
2. The Premises is a virtual reality arcade and is regularly used for hosting children's birthday parties and other similar functions. The patrons are mainly young children with parents or guardians and teenagers or young adults.
3. Within the Premises, is a separate, enclosed function room (Proposed Licensed Area). The Proposed Licensed Area covers the Premises' function room space only. The storage space for liquor would be outside the Proposed Licensed Area.
4. The space of the Proposed Licensed Area can accommodate up to 100 patrons.
5. The reason for making the Original Application was because the Applicant wanted to expand the nature of events hosted at the Premises from primarily children's parties to also weddings, engagement parties, family functions, and corporate events from within the Proposed Licensed Area.
6. The proposed trading hours were any day between 12 pm and 1 am (the following day), with the Applicant proposing to host private and pre-booked functions twice each week for up to five or six hours (depending on customer demand).
7. The range of liquor proposed to be supplied was broadly described as beer, wine and spirits.
8. On 18 September 2024, the Applicant clarified that liquor would be stored either off-site or in a locked storeroom located on the Premises but nevertheless outside the Proposed Licensed Area.
9. Food was proposed to be made available at all times liquor would be supplied and security would be provided, if required.
10. In accordance with section 33(4), a copy of the Original Application was given to the Chief Commissioner of Police and the local licensing inspector1F[2] (together, Victoria Police) and the Melton City Council (Council) on 19 September 2024. On 21 October 2024, Victoria Police informed the Commission that they did not object to the grant of the Original Application. No objection was received from the Council.
11. On 14 March 2025, an authorised delegate of the Commission assessed the Original Application and refused it (Original Decision). In summary, the delegate was not satisfied as to the scale and scope of the proposed supply of liquor being sufficiently limited for the purposes of section 26(1). On the material before the delegate, this was entirely understandable.

1. On 4 April 2025, in accordance with section 153, the Applicant lodged an application for internal review of the Original Decision (Review Application).
2. Specifically, the Applicant sought to have the delegate's decision set aside and the Commission grant an RLL.
3. Following a directions hearing on 13 May 2025, the Applicant was tasked with providing the Commission with photographs of the Proposed Licensed Area, a curriculum vitae for each the Applicant's directors, and all written submissions sought to be relied on as to the proposed scale and scope of the supply of liquor at the Premises.
4. On 20 May 2025, Mr Lowe informed the Commission in written submissions on behalf of the Applicant:

(a) liquor would only be supplied at private pre-booked functions, which are proposed to be held on any day of the week, between 6pm and 10pm;

(b) approximately 50 to 70 functions are proposed to be hosted each year;

(c) the functions would have up to approximately 50 to 80 guests;

(d) liquor would be limited to 2-3 varieties of red and white local wines, local beers and domestic lagers, and basic spirits;

(e) food would accompany service of liquor at the functions;

(f) minors can only attend these functions accompanied by a parent or guardian;

(g) liquor would be stored in a locked room on the Premises; and

(h) there will be no live music at the functions but there may be background music played through speakers.

1. The Commissioners visited the Premises and the surrounding area on 16 June 2025.

1. A hearing was held before the Commission on 19 June 2025 (Hearing), the Applicant confirmed that liquor would be stored in a locked storeroom located outside the Proposed Licensed Area, and/or within the kitchen's refrigerators, which are not publicly accessible.
2. Additionally, the Applicant informed the Commission that it would install a separate bar console inside the Proposed Licensed Area and liquor for the functions would be kept in the console during functions with no public access.
3. The Applicant also confirmed that there would always be at least one RSA-trained staff member inside the Proposed Licensed Area and approximately two or three extra staff for the purpose of serving food and clearing tables. Other RSA-trained staff members would be present, if relief is needed for staff working in the Proposed Licensed Area.
4. During functions, the doors would be closed, and staff would ensure that liquor did not leave the Proposed Licensed Area. Staff would also monitor the Proposed Licensed Area entrance to ensure that only those on the guest list could enter.
5. In the Hearing, the Applicant submitted the following proposed conditions, if a RLL were to be granted (Amended Original Application):

(a) events must be pre-booked and private;

(b) food must be provided throughout the functions;

(c) the liquor range must be limited to 3 red wines, 3 white wines, 3 beers, and 3 types of spirits;

(d) the functions can occur on any day of the year and at any time of the day but with the finishing time not exceeding 11pm;

(e) no more than 6 functions could be hosted per calendar month;

(f) the functions can run for a maximum of 4 hours;

(g) the maximum number of guests at functions is 80 for seated events or 100 for cocktail style events; and

(h) if more than 50 people were expected to attend an evening event, at least 2 RSA staff would be required in the Proposed Licensed Area during the function.

1. The Commission on review had before it, and considered, all the materials before the delegate. The Commission also received and considered the following materials:

(a) the Original Decision and reasons of the delegate dated 14 March 2025;

(b) the Review Application dated 4 April 2025;

(c) the Applicant's submissions dated 20 May 2025;

(d) the curriculum vitae for the directors of the Applicant;

(e) photographs of the Proposed Licensed Area and storage space;

(f) a venue management plan dated 1 July 2025 and 7 July 2025;

(g) a plan of the proposed floor plan with a bar console in the Proposed Licensed Area.

1. Division 2 of part 9 governs internal review applications. Under section 152, the Original Decision is a reviewable decision.
2. The Applicant is considered an eligible person to apply for review of the Original Decision.
3. Pursuant to section 157(1), the specific task for the Commission with respect to the Review Application is to make a fresh decision that:

(a) affirms or varies the Original Decision; or

(b) sets aside the Original Decision and substitutes another decision that the Commission on review considers appropriate.2F[3]

1. In effect, the Commission on review stands in the shoes of the original decision maker and must make a fresh decision with respect to the Amended Original Application. In this case, the Commission must decide whether to:

(a) grant the Amended Original Application and, if so, whether to do so subject to conditions;3F[4] or

(b) refuse to grant the Amended Original Application.

1. Under the LCR Act, an application for a licence may be contested or uncontested. Pursuant to section 3(1), an uncontested application is defined as:

an application for the grant, variation, transfer or relocation of a licence or BYO permit in respect of which no objection is received under Division 5 of Part 2 within the period set out in that Division for that objection (or that period as extended under section 174).

1. The Original Application was uncontested, as no objections were received under Division 5 of Part 2 within the period set out in that Division for that objection (or that period as extended under section 174).
2. Pursuant to section 44(2), the Commission may refuse to grant the Amended Original Application on certain grounds, including that:

(a) the granting of the application would detract from or be detrimental to the amenity of the area in which the premises to which the application relates are situated;4F[5] and

(b) the granting of the application would be conducive to or encourage harm.5F[6]

1. For the purposes of the LCR Act, the amenity of an area is defined as being the quality that the area has of being pleasant and agreeable.6F[7] Factors that may be taken into account in determining whether granting a licence would detract from or be detrimental to the amenity of the area include:

(d) the possibility of nuisance of vandalism;

(e) the harmony and coherence of the environment;

(f) any other prescribed matters.7F[8]

1. However, the definition of "amenity" for the purposes of the LCR Act is not limited by these factors.8F[9]
2. Section 44(4) provides that, before granting or refusing an uncontested application under subsection (1), the Commission:

(a) may have regard to any matter the Commission considers relevant; and

(b) may make any enquiries the Commission considers appropriate.

1. Sections 172D(3) and 172U(3)(b) require the Commission, in exercising its internal review power, to have regard to the objects of the LCR Act and any decision-making guidelines in respect of the regulation of liquor issued by the Minister.
2. The objects of the LCR Act are set out in section 4(1) as follows:

(a) to contribute to minimising harm including by -

(i) providing adequate controls over the supply and consumption of

(ii) ensuring as far as practicable that the supply of liquor contributes to, and does not detract from, the amenity of community life; and

(iii) restricting the supply of certain other alcoholic products; and

(iv) encouraging a culture of responsible consumption of alcohol and reducing risky drinking of alcohol and its impact on the community; and

(b) to facilitate the development of a diversity of licensed facilities reflecting community expectations; and

(c) to contribute to the responsible development of the liquor, licensed hospitality and live music industries; and

(d) to regulate licensed premises that provide sexually explicit entertainment.

It is the intention of Parliament that every power, authority, discretion, jurisdiction and duty conferred or imposed by this Act must be exercised and performed with due regard to harm minimisation and the risks associated with the misuse and abuse of alcohol. 9F[10]

harm _means harm arising from the misuse and abuse of alcohol, including - _

(a) harm to minors, vulnerable persons or communities, including groups within communities; and

(b) family violence; and

(c) anti-social behaviour, including behaviour that causes personal injury or property damage.

1. In exercising the internal review power, the Commission:

(a) must consider all the information, material and evidence before the original decision maker;10F[11] and

(b) may consider further information, material or evidence.11F[12]

1. The Commission considers that, while the grounds of refusal outlined in section 44(2) are relevant considerations, the determination of an uncontested application is ultimately to be made pursuant to sections 44(1) and 157(1) at the discretion of the Commission, with reference to the objects of the LCR Act.
2. Under section 49, the Commission may impose any condition it thinks fit on the grant of an application.

1. Section 44(4) provides that the Commission may have regard to any matter it considers relevant and make any enquiries it considers appropriate. The Commission is not required to give any person an opportunity to be heard concerning the Review Application.
2. Section 172W(3) provides that the Commission is not bound by the rules of evidence but may inform itself in any way it thinks fit and is bound by the rules of natural justice.

1. A limited licence may be a temporary limited licence or a RLL. Pursuant to section 14(1B), a RLL authorises the licensee to supply liquor at the times determined by the Commission and specified on the licence, and it may be renewed in accordance with the LCR Act. A limited licence may further be subject to any conditions determined by the Commission and specified on the licence.
2. Section 26 provides that the Commission may grant a limited licence only if it is satisfied that the scale and scope of the supply of liquor the subject of the licence is limited in nature (Scale and Scope Requirement).

1. Under section 22(1)(ca), the Commission must not grant a licence or BYO permit in respect of premises that, in the opinion of the Commission, are intended by the occupier of the premises to be primarily used by people under the age of 18 years, unless the Commission is satisfied that the grant of a licence or permit would not present a specific risk of supply of liquor to a person under the age of 18 years.
2. Section 22(3A) states:

For the purposes of section 22(1)(ca), factors that the Commission may consider include but are not limited to -

(a) Whether the proposed licence or permit authorises supply of liquor at a time when the premises will not be primarily used by persons under the age of 18 years; and

(b) Whether the proposed licence or permit provides that any person under the age of 18 years must be accompanied by a responsible adult at all times, during which the proposed supply of liquor is to occur.

1. In making its decision on review, the Commission must determine the following central issues:

(a) whether the Scale and Scope Requirement is met;

(b) whether the grant of a licence would present a specific risk of supply of liquor to a person under the age of 18 years for the purposes of section 22(1)(ca);

(c) whether the granting the Amended Original Application would detract from or be detrimental to the amenity of the area in which the Premises is situated;12F[13]

(d) whether granting the Amended Original Application would be conducive to or encourage harm; and

(e) having considered the previous issues, whether the Amended Original Application should be granted or reused, having regard to the objects of the LCR Act.13F[14]

1. Each of the above issues are discussed in turn.

1. As stated above, the Commission may only grant a RLL if it is satisfied that the Scale and Scope Requirement is met. That is, the scale and scope of the supply of liquor is limited in nature.14F[15] There are no statutory signposts which prescribe specific factors for the Commission to consider in determining whether the Scale and Scope Requirement is met. On previous occasions, the Commission has considered "the nature, location, duration or frequency of hours of operation of the licence in question" as relevant to the Scale and Scope Requirement.15F[16]
2. At the Hearing, the Applicant submitted that it intended to supply liquor in a notably reduced manner than was initially proposed in the Original Application. Specifically, the Applicant intended to supply liquor in the manner specified in its proposed licence conditions set out in paragraph 21 above.
3. The Commission notes that the Applicant's proposed supply under the RLL would be relatively modest given that the supply would be no more than 24 hours (total) across a whole month. It would be limited by time, to pre-booked functions only (and not to members of the public), and by the number of lines of liquor.
4. Overall, subject to the conditions set out in Appendix A, the Commission considers that the nature of the proposed supply of liquor would be sufficiently limited in scale and scope and would therefore satisfy the requirements in section 26.

1. As stated above, while the Premises is open to people of all ages, it attracts a younger demographic, and a significant number of children attending with parents or guardians.
2. It is clear that the Applicant's main business is offering virtual reality experiences, arcade games, interactive sports, and hosting children's birthday parties and other similar functions.
3. As stated above, pursuant to section 22(1)(ca), the Commission must not grant a licence or BYO permit in respect of premises that, in the opinion of the Commission, are intended by the occupier of the premises to be primarily used by people under the age of 18 years, unless the Commission is satisfied that the grant of a licence or permit would not present a specific risk of supply of liquor to a person under the age of 18 years.
4. It is not the whole of the Premises that is proposed to be licensed; rather, the application is for a licence with respect to a separate function room within the Premises. The application is not for the grant of a licence in respect of the whole of the Premises; accordingly, the Commission does not consider section 22(1)(ca) applies.
5. Overall, the Commission is satisfied from all information received that the Applicant would have suitable procedures and controls in place to ensure that the supply of liquor for consumption in the Proposed Licensed Area at the Premises under a licence would not present a specific risk of supply of liquor to a person under the age of 18 years. The Commission also notes that Victoria Police did not raise any concerns in this regard. Additionally, the Commission has had regard to the Applicant's evidence regarding liquor being stored in a locked storeroom on the Premises and a separate bar console being installed in the Proposed Licensed Area with no public access.
6. The Applicant has also advised that hosts for functions will be informed and required to acknowledge their obligations to their guests, ensuring liquor does not leave the Proposed Licensed Area and minors must not be served liquor.
7. Subject to the conditions in Appendix A, the Commission is satisfied that granting the RLL would not present a specific risk of supply of liquor to a person under the age of 18 years for the purposes of section 22(1)(ca).

1. The Commission must also determine whether the grant of a RLL would detract from or be detrimental to the amenity of the area in which the Proposed Licensed Area are located, which may give rise to a ground of refusal under section 44(2).
2. As noted above, the Commissioners visited the Premises and the surrounding area on 16 June 2025. This visit confirmed not only the quality of the building for the proposed operations but also the limited amenity impacts on what is otherwise an industrial area and shopping precinct.
3. The Proposed Licensed Area is said to be soundproofed, and the Applicant informed the Commission that there would be no live music in the Proposed Licensed Area.
4. There have been no objections received from Victoria Police or the Council to the grant of an RLL.
5. The proposed final trading hour under the Amended Original Application has been reduced to 11pm (from 1am) to minimise any potential impact to amenity that may be associated with patrons leaving functions.
6. Overall, the Commission is satisfied that the grant of a RLL subject to the conditions detailed in Appendix A would not detract from or be detrimental to the amenity of the area.

1. As stated above, an application may be refused if granting the application would be conducive to or encourage harm. Victoria Police did not raise any concerns in this regard.
2. The Commission considers that the Applicant's service of food with the supply of liquor during the pre-booked and private functions assists in the responsible service of alcohol and should minimise any risks associated with excessive alcohol consumption at the functions.
3. Additionally, the Commission notes from the Applicant's evidence that liquor for the functions will be stored in a locked storage room and that there would always be at least one RSA-trained staff member inside the Proposed Licensed Area. In the event that there are more than 50 guests, the Applicant advised that there will be two RSA-trained staff members present in the Proposed Licensed Area.
4. The Commission has considered there is a risk of secondary supply of liquor to minors in light of the Premises' offering more generally, and that minors may enter and exit the Proposed Licensed Area during a function. It is necessary that the Applicant implements its understanding of the importance of complying with responsible service of alcohol requirements and continued vigilance during functions. To this end, the Applicant will be required to adopt and comply with a venue management plan that includes key measures to reduce the risk of harm to minors (particularly by way of secondary supply), including with respect to training of staff, appropriate signage and provision of information to guests about minimising the risk to minors.
5. Overall, subject to that requirement and the conditions in Appendix A, the Commission is satisfied that granting the RLL would not be conducive to or encourage harm.

1. Although the Commission is satisfied that the Amended Original Application meets the requirements of section 26 and that no grounds for refusal exist under section 22(1)(ca) or section 44(2), the Commission must exercise its discretion whether or not to grant an RLL.

With the imposition of the conditions in Appendix A, the Commission is satisfied that adequate controls will exist over the supply and consumption of liquor at the Proposed Licensed Area and that any harm should be minimised. Accordingly, the Commission considers that the grant of a licence in this instance would not be contrary to the LCR Act's objects concerning harm minimisation.

1. Finally, the Commission also considers that granting the RLL would facilitate the development of a diversity of licensed facilities reflecting community expectations in furtherance of the object outlined in section 4(1)(b).

1. In contrast to the position before the delegate at which stage there was a distinct and critical lack of information and based on all the matters set out above, the Commission on review has decided to set aside the delegate's decision and, in substitution, grant a RLL for the Proposed Licensed Area subject to the conditions set out in Appendix A.

The preceding 72 paragraphs are a true copy of the Reasons for Decision of Mr John Larkins (Chair), Mr Steven Brnovic (Commissioner), and Ms Sue Timbs (Commissioner).

Any reference to the Liquor Regulator below is a reference to the Victorian Liquor Commission, or any successor statutory office, body or officer however named, under the Liquor Control Reform Act 1998 (LCR Act) or successor legislation, that has powers and carries out regulatory functions equivalent to the Victorian Liquor Commission.

This licence is a renewable limited licence and subject to the conditions specified in this licence authorises the licensee to supply liquor for consumption on the licensed premises during the trading hours and in the manner specified below.

The licensee will not cause or permit undue detriment to the amenity of the area to arise out of or in connection with the use of the premises to which the licence relates during or immediately after the trading hours authorised by this licence.

The licensee must develop, implement, maintain and comply continuously with a Venue Management Plan with respect to the licensed premises and must include matters for the purposes of minimising harm arising from misuse and abuse of alcohol and risk to minors, including with respect to:

(a) signage internal and external to the licensed premises when there is a private function. Signage to advise that liquor must not leave the licensed premises.

(b) house rules and function host acknowledgement of their responsibility regarding consumption of liquor.

(c) minimum of one RSA trained staff required at all functions serving liquor. In the event that there are more than 50 guests attending a function, a minimum of 2 RSA trained staff are required to be present in the function room.

The licensee must conduct and supervise all aspects of the management of the licensed premises in accordance with the licensee's venue management plan, as amended from time to time. The venue management plan must be retained on the licensed premises in the possession of the licensee, nominee, manager or other person in charge.

The venue management plan must be available to an authorised member of Victoria Police, or a person authorised in writing by the Commission if requested.

In the event there is any inconsistency with the venue management plan and the licence, the conditions in this licence will prevail.

Up to 6 pre-booked functions may be held on the licensed premises per calendar month. Such functions will be held for a maximum duration of 4 hours.

The Licensee is required to maintain a register of the pre-booked functions to which this licence applies with the register detailing the date, time, number of guests, and name of the function organiser which must be available to an authorised member of Victoria Police or a person authorised in writing by the Commission if requested.

The supply of liquor for pre-booked functions shall be limited to no more than 3 types of red wine, 3 types of white wine, 3 types of beer, and 3 types of spirits.

For the avoidance of doubt, the supply of liquor under this licence is limited to no more than for supply of liquor for pre-booked functions only.

If liquor is stored outside the licensed premises, the liquor must be stored in an area that is out of public view and locked or inaccessible to the public except when accessed to stock functions on the licensed premises.

Food must be available at all times that liquor is being supplied.

There must be at least one RSA staff member on the licensed premises at all times for a pre-booked function. Where there are more than 50 guests attending a pre-booked function, at least 2 RSA staff members are required on the licensed premises at all times for a pre-booked function.

The licensee must produce any RSA certificates kept by the licensee for inspection which must be available to an authorised member of Victoria Police or a person authorised in writing by the Commission if requested.

[1] All references to legislation are references to the LCR Act unless stated otherwise.

[2] As to the meaning of "licensing inspector", see section 3.

[8] LCR Act_,_ section 3A(2). Until a legislative amendment in 2018, the following factors were also included as evidencing detriment to the amenity of the area: (a) the presence (or absence) of parking facilities; (b) traffic movement and density; (c) noise levels.

[10] See further Kordister Pty Ltd v Direction of Liquor Licensing [2012] VSCA 325, which confirms that harm minimisation is the primary regulatory object of the LCRA and therefore the primary consideration in liquor licensing decisions (although not to the exclusion of the other objects).

[14] LCR Act, sections 4 and 172D(3). The Commission notes that, in determining this matter, it has also considered each of the grounds set out in section 44(2).

[16] See decision of Fynix Pty Ltd at 36A Vickers Street, Sebastapol premises (Liquor-Internal Review)