An earthquake killed at least 10 people and injured 122 yesterday in the southeastern city of Newcastle, the first time in recorded history that a tremor has caused deaths in Australia. Police confirmed eight people died in the Newcastle Workers' Club where two floors loaded with gambling machines crashed through into the basement.

An Australian Seismological Center spokesman said the epicenter of the quake, measuring 5.5 on the open-ended Richter scale, was about three miles west of Newcastle. It shook buildings in Sydney, about 95 miles south, and was felt in Melbourne, 625 miles away.

Newcastle, Australia's eighth largest city, has a population of around 140,000.

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