The owner of a Victorian hotel has been fined $80,000 and will be forced to sell the business after staff tried to cover up an illegal gambling payout.

Senior staff at the Rye hotel on the Mornington Peninsula falsified records to cover up an erroneous cash payment of $2,039 to a patron, Victoria’s gambling watchdog has said.

The venue also issued a cheque to a non-winning pokie player who did not produce identification, in a separate integrity breach.

An investigation was launched by the Victorian Gambling and Casino Control Commission after it received a complaint from a member of the public.

Under Victorian law, venues must pay any winnings above $2,000 by cheque or eftpos and can only process payments to a pokies player after an identity check.

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As well as the hefty fine, the commission has required an undertaking from the owner to sell the hotel and exit the gambling industry.

The hotel has 30 pokies and wagering facilities such as TAB and Keno.

The penalty sends a clear messages to venue operators and owners on the consequences of falsifying records and concealing misconduct, the watchdog’s chief executive, Annette Kimmitt, said.

“We know that honest mistakes happen,” she said.

“However, venue operators that attempt to cover up breaches will be caught and face serious repercussions.”