Summary of Amendments to the Gaming Machine Act 2004

Notified 6 September 2012

COMMENCEMENT

• most amendments commence on 1 January 2013;

• ATM restrictions commence on a date determined by the Minister but must be within 12 months of Act amendment (6 September 2013).

CAP AND POOLING ARRANGEMENTSCap• the amendments outline an intention to reduce the

number of machines to 4,000 while keeping a pool of up to 150 machines for initial (new) licences (s 34A, 35, 36, 36A);

• reduction in the Cap is only by surrender or cancellation of machines;

• once the 4,000 cap is reached a per-capita system will be established after a review;

• maximum number = starting number less (number surrendered +

number cancelled)

(expected) = 5,024 on 1 January 2013

• the current cap of 5,024 will only be reduced when there is 150 machines in the pool.

Pooling Arrangements• number in pool = maximum number less number

allocated = 5,024 less 4,986

• Therefore the 38 currently unallocated machines are expected to be the initial number in pool (see s36A);

• machines are allocated from the pool (up to the maximum in the pool) to reserve machines under an in-principle approval for an initial (new) licence or under an approval for an initial licence (s 36A, 38F, 10A).

GAMING MACHINE LICENCE ARRANGEMENTSInitial Licences• initial licence applications only available to non-

licensees (s 10A);• machines allocated from the pool of up to 150

machines (s 35,36A);• assessment criteria on the number of machines

includes numbers of members and the extent to which a club has contributed, or is likely to contribute, to the community and supported and benefited the community (s 12(5)(c)).

Licence Transfers• unchanged by the amendments (s 32).

Licence AmendmentsDecrease in Machines• relates to a reduction (surrender) of gaming

machines by a licensee (s 22(1)(a)).Structural Change• relates to the approval of a significant change to

existing premises (s 22(1)(b)).

Temporary Storage of Machines

• relates to the removal of some or all gaming machines from a gaming area for a good reason, such as a renovation (s 22(1)(c));

• allows removal of 10% of machines for up to 12 months for no particular reason – 3 year sunset clause (s 26(3)&(4)).

Venue Relocation

• relates to the relocation of the gaming machine licence to a new location;

• Social Impact Assessment and ballot of members required (s 22(1)(d)).

Machine Relocation (group licensees only) small-scale machine relocation (s 22(1)(e))• allows an application for 10 machines or 10% of total

machine numbers (whichever is the smaller) to be relocated from one venue owned by the licensee to another venue owned by the licensee;

• must be accompanied by a plan of the premises where the machines are to be located – size and layout must be suitable;

• may require a Social Impact Statement (SIS) or Social Impact Assessment (SIA) if the Commission is concerned that there may be a significant social impact of the proposal;

• SIS (s 26B and Regulation Part 3A) has reduced SIA criteria to be addressed and does not include public consultation; it involves an objective assessment of the impact of the proposal on the local community along with a population risk profile and consideration of the current harm minimisation measures used by the applicant;

• Commission may approve a smaller number of machines, and if so, only that number of machines will be amended on the two licences.

• Policy Paper to be issued by the Commission outlining the considerations that will be given in deciding whether an SIS or SIA will be required – examples include:

- harm minimisation strategies may not be sufficient or best practice; - multiple previous small-scale relocations have already occurred; - the local community may be particularly vulnerable due to their profile; - relocation is concentrating machines in the local area;

• the Commission will issue guidelines for preparing an SIS and an SIA and will have as much data as possible available to assist licensees.

large-scale machine relocation (s 22(1)(f))• allows an application for an unlimited number of

machines to be relocated from one venue owned by the licensee to another venue owned by the licensee;

• requires an SIA, a ballot of members, subject to ‘needs’ or usage analysis and a plan of the premises where the machines are to be located – size and layout must be suitable;

• Commission may approve a smaller number of machines, and if so, only that number of machines will be amended on the two licences.

New Venue• relates to the establishment of a new venue by an

existing licensee where machines are transferred from an existing venue or venues to the new venue (s 22(1)(g));

• assessment criteria on the number of machines includes numbers of members and the extent to which club has contributed, or is likely to contribute, to the community and supported and benefited the community (s 12(5)(c));

• requires an SIA, a ballot of members and a plan of the premises where the machines are to be located – size and layout must be suitable.

Technical Amendments• relates to technical changes to machines, such

as the schedule of machine specifications including percentage payout, stake denomination (s 22(1)(h)).

IN-PRINCIPLE APPROVALS• a new system of in-principle approvals apply to initial

licence applications, venue relocation applications and new venue amendment applications (Part 2A);

• the intention is to allow applicants to be able to purchase (or bid on) blocks of land for a club site with the confidence of knowing the number of gaming machines that they will be able to install into their new premises;

• in-principle approval is provided prior the purchase of land, plans of the venue are drawn up and members have voted in a ballot;

• in-principle approval is for three years but can be extended;

• an approval holder cannot acquire machines, install machines or operate machines;

• the application must identify the land and conduct an SIA;

• an in-principle approval cannot be for more than the number of machines that are available in the pool (in relation to initial licence applications);

• there can be more than one in-principle approval issued to different applicants for the same block of land reserving the same machines;

• in-principle approval can be amended or updated;• if no machines in the pool, a certificate of suitability

is issued until a decision made or machines available;• in-principle approval can be converted into a licence

or licence amendment when outstanding criteria are met, for example, when the block of land is purchased, plans are lodged and accepted and ballot conducted with a positive result.

ATM RESTRICTIONS• a licensee will commit an offence if there is an ATM at the

licensed premises that allows a person to withdraw more than $250 per gaming day from a debt or credit card. The withdrawal limit is per card not per ATM (s 153A);

• licensed premises includes in or on an exterior wall;

• exemptions apply to: clubs with 20 machines or less (covers 16 clubs) venues with Class B machines (all hotels and taverns – covers 10 venues); temporary ATMs at the racecourse on race day;

• if the Federal Government introduces its own legislation in relation to ATMs (as it has indicated) then the Federal legislation will over-ride the ACT legislation to the extent of any inconsistency (including the exemptions).

Legislative Corrections Requiredrelevant number for a small-scale machine

relocation

- section 22(2)(a) – currently specifies 20 as the relevant number, should be 10

ATM withdrawal limits exemptions

- section 153A(2)(b) – currently specifies 10 as the exemption limit, should be 20

Legislation available at: www.legislation.act.gov.au

- link to Gaming Machine Act and view uncommenced amendments under Gaming Machine Amendment Act 2012