Part 4Regulation of betting operations

Part 4—Regulation of betting operations Division 1—Major betting operations and on-course totalisator betting operations 41—Approval of rules, systems, procedures and equipment (1) It is a condition of a major betting operations licence or an on-course totalisator betting licence that the following must be approved by the Commissioner: (a) the rules governing the betting operations conducted under the licence; and (b) systems and procedures for monitoring and enforcing compliance with those rules and for reporting and dealing with any non-compliance; and (c) other systems and procedures, or equipment of a kind, that the Commissioner determines from time to time to be subject to this section. (2) Without limiting the matters dealt with by rules, the rules must, for a form of betting in which the actual amounts payable on winning bets are not pre-determined, clearly set out— (a) the method of calculation of winnings; and (b) the proportion of money invested that will be retained by the licensee. (3) It is a condition of a major betting operations licence or an on-course totalisator betting licence that the licensee must ensure— (a) that the rules are published in a manner approved by the Commissioner; and (b) that the operations under the licence conform with the rules and the systems and procedures approved under this section; and (c) that equipment of a kind that must be approved by the Commissioner is not installed or used unless so approved or contrary to any instructions of the Commissioner. (4) Before the Commissioner makes a determination for the purposes of subsection (1)(c), the Commissioner must— (a) give written notice to the licensee concerned of the proposed determination; and (b) consider any representations made by the licensee about the proposed determination within 14 days after the notice is given or a longer period allowed in the notice. 42—Location of off-course totalisator offices, branches and agencies (1) It is a condition of the comprehensive licence that the licensee must not establish an office, branch or agency at which the public may attend to make bets with the licensee without obtaining the Commissioner's approval of the location of the office, branch or agency. (2) The Minister may give the Commissioner binding directions preventing or restricting the approval of the location of offices, branches or agencies. 43—Prevention of betting by children (1) It is a condition of a major betting operations licence or an on-course totalisator betting licence— (a) that the licensee must not accept or offer to accept a bet from a child; and (b) that the licensee must have systems and procedures approved by the Commissioner designed to prevent bets from being made by children in the course of the licensee's betting operations; and (c) that the licensee must ensure that the operations under the licence conform with the systems and procedures approved under this section. (2) In approving systems and procedures under this section, the Commissioner must have regard to any relevant requirements in the gambling administration guidelines for systems and procedures designed to prevent bets from being made by children in the course of betting operations conducted by telephone, Internet or other electronic means. 44—Prohibition of lending or extension of credit It is a condition of a major betting operations licence or an on-course totalisator betting licence that the licensee must not— (a) accept a bet unless the licensee has received the amount of the bet; or (b) in connection with the making of a bet, lend money or anything that might be converted into money or extend any other form of credit. 45—Cash facilities not to be in certain areas staffed and managed by comprehensive licensee It is a condition of the comprehensive licence that the licensee must not provide, or allow another person to provide, a cash facility within a part of premises that is staffed and managed by the licensee and at which the public may attend to make bets. 46—Player return information (1) It is a condition of the comprehensive licence or an on-course totalisator betting licence that the licensee must, in accordance with determinations made from time to time by the Commissioner, provide information relating to player returns at places at which the public may attend to make bets with the licensee, on betting tickets issued by the licensee and otherwise as required by the Commissioner. (1aa) It is a condition of a limited licence that the licensee must, in accordance with determinations made from time to time by the Commissioner, provide information relating to player returns on bets made with the licensee by persons who were located in South Australia at the time of making the bet and otherwise as required by the Commissioner. (1a) The information provided under subsection (1) or (1aa) may relate to average or minimum player returns across all forms of betting with the licensee in which the actual amounts payable on winning bets are not pre-determined. (2) Before the Commissioner makes a determination for the purposes of this section, the Commissioner must— (a) give written notice to the licensee concerned of the proposed determination; and (b) consider any representations made by the licensee about the proposed determination within 14 days after the notice is given or a longer period allowed in the notice. (3) In this section— player return means the money that will be returned to persons making bets with the licensee in a form of betting in which the actual amounts payable on winning bets are not pre-determined. 47—Systems and procedures for dispute resolution It is a condition of a major betting operations licence or an on-course totalisator betting licence— (a) that the licensee must have systems and procedures approved by the Commissioner for the resolution of disputes about bets or winnings arising in the course of the licensee's betting operations; and (b) that the licensee must ensure that the operations under the licence conform with the systems and procedures approved under this section. 48—Advertising code of practice It is a condition of a major betting operations licence or an on‑course totalisator betting licence that the licensee must ensure that advertising by the licensee conforms with the applicable advertising codes of practice. 49—Responsible gambling code of practice It is a condition of a major betting operations licence or an on‑course totalisator betting licence that the licensee must ensure that operations under the licence conform with the applicable responsible gambling codes of practice. 51—Alteration of approved rules, systems, procedures or equipment (1) The Commissioner may, by written notice to a licensee, require approved rules, systems, procedures or equipment to be altered as set out in the notice. (2) Before the Commissioner makes a requirement under subsection (1), the Commissioner must, unless the Commissioner considers it contrary to the public interest to do so— (a) give written notice to the licensee concerned of the proposed requirement; and (b) consider any representations made by the licensee about the proposed requirement within 14 days after the notice is given or a longer period allowed in the notice. (3) It is a condition of a major betting operations licence or an on-course totalisator betting licence that the licensee must ensure that all alterations required to be made under subsection (1) are made in accordance with the notice given under that subsection. Division 2—Bookmaking operations 53A—Bets by telephone, Internet or other electronic means (1) It is a condition of a bookmaker's licence that the licensee must not accept bets made by telephone, Internet or other electronic means unless the licence is endorsed with an authorisation to do so. (2) An endorsement may be expressed generally so as to authorise the acceptance of bets by all forms of electronic communication or may be limited to particular forms of electronic communication. (3) The Minister may give the Commissioner binding directions about the granting of licences endorsed with an authorisation to accept bets made by telephone, Internet or other electronic means. 54—Places at which bets may be accepted by bookmakers (1) It is a condition of a bookmaker's licence that the licensee may only accept bets (not being bets made by telephone, Internet or other electronic means)— (a) at a racecourse on a day on which a licensed racing club is authorised to conduct on-course totalisator betting within that racecourse; or (c) at a place of a class declared by the Commissioner by notice in the Gazette (and in accordance with any other conditions specified in the declaration). (2) The Commissioner may, by subsequent notice in the Gazette, vary or revoke a declaration under subsection (1)(c). 60—Prevention of betting with children by bookmaker or agent (1) It is a condition of a bookmaker's licence— (a) that the licensee must not accept or offer to accept a bet from a child; and (b) that the licensee must have systems and procedures approved by the Commissioner designed to prevent bets from being made by children in the course of the licensee's betting operations; and (c) that the licensee must ensure that the operations under the licence conform with the systems and procedures approved under this section. (1a) In approving systems and procedures under this section, the Commissioner must have regard to any relevant requirements in the gambling administration guidelines for systems and procedures designed to prevent bets from being made by children in the course of betting operations conducted by telephone, Internet or other electronic means. (2) The Commissioner may, by written notice to a licensed bookmaker, require approved systems and procedures to be altered as set out in the notice. (3) Before the Commissioner makes a requirement under subsection (2), the Commissioner must, unless the Commissioner considers it contrary to the public interest to do so— (a) give written notice to the licensee concerned of the proposed requirement; and (b) consider any representations made by the licensee about the proposed requirement within 14 days after the notice is given or a longer period allowed in the notice. (4) It is a condition of a bookmaker's licence that the licensee must ensure that all alterations required to be made under subsection (2) are made in accordance with the notice given under that subsection. (5) It is a condition of an agent's licence that, in acting as the agent of a licensed bookmaker, the licensee— (a) must not accept or offer to accept a bet from a child; and (b) must ensure that the betting operations conform with the systems and procedures of the licensed bookmaker approved under this section. 60A—Advertising code of practice It is a condition of a bookmaker's licence that the licensee must ensure that advertising by the licensee conforms with the applicable advertising codes of practice. 60B—Responsible gambling code of practice It is a condition of a bookmaker's licence that the licensee must ensure that operations under the licence conform with the applicable responsible gambling codes of practice. 61—Prohibition of certain information as to racing or betting (1) Subject to this section, a person must not communicate for fee or reward to any other person information or advice as to the probable result of a race or approved contingency in relation to which a bookmaker is to accept bets. (2) Subsection (1) does not apply to information or advice published in a newspaper or broadcast by radio or television. (3) Except with the approval of the Commissioner, a person who is, or was, within a racecourse or other place during a period when bookmakers are, or were, accepting bets on races or approved contingencies must not, before the end of that period, communicate (whether or not for fee or reward) to a person who is outside the racecourse or other place information or advice as to the betting with bookmakers at that racecourse or place. (4) The Commissioner may, on granting an approval for the purposes of subsection (3), attach conditions to the approval. (5) The Commissioner may, by written notice to the holder of an approval under this section— (a) vary or revoke a condition attached to the approval or attach a further condition; (b) revoke the approval. communicate means to communicate by any means either directly or indirectly, and includes to cause to be communicated. 62—Rules relating to bookmakers' operations (1) The Commissioner may make rules— (a) regulating the betting operations of licensed bookmakers; and (b) requiring an applicant for a bookmaker's licence to give security for compliance with this Act and any conditions attached to the licence; and (c) providing for the keeping of records by licensed bookmakers, the inspection of such records and the furnishing of returns by licensed bookmakers; and (d) regulating advertising by licensed bookmakers; and (e) dealing with any other matters contemplated by this Division or necessary or expedient for the purposes of this Division; and (f) prescribing penalties not exceeding $5 000 for breach of a rule. (2) The rules may provide that a matter or thing in respect of which rules may be made is to be determined according to the discretion of— (b) the Commissioner; or (c) a race steward; or (d) a person of a prescribed class. Division 3—Interstate betting operations 62A—Prevention of betting by children An authorised interstate betting operator— (a) must not accept or offer to accept a bet from a child in this State; and (b) must have systems and procedures that are designed to prevent bets from being made by children in this State in the course of betting operations conducted by telephone, Internet or other electronic means and that conform with the requirements in the gambling administration guidelines for systems and procedures designed for that purpose. 62B—Advertising code of practice An authorised interstate betting operator must ensure that advertising in this State by the operator conforms with the applicable advertising codes of practice. 62C—Responsible gambling code of practice An authorised interstate betting operator must ensure that the operator's betting operations in this State conform with the applicable responsible gambling codes of practice. 62D—Notification If criminal or disciplinary proceedings are commenced against an authorised interstate betting operator, or a close associate of the operator, in relation to the operator's betting operations, the authorised interstate betting operator must give written notice to the Commissioner setting out details of the proceedings within 14 days after the commencement of the proceedings. Division 4—Betting operations relating to racing 62E—Integrity agreements and contribution agreements (1) A person (the operator) must not conduct betting operations in relation to a race held in this State by a racing club (SA race betting operations) unless the operator has entered into an integrity agreement and a contribution agreement with the relevant racing controlling authority conforming with the requirements of this section and both agreements are in force. Maximum penalty: $25 000 or imprisonment for 1 year. (2) Subsection (1)— (a) applies whether the SA race betting operations are conducted wholly within or outside the State or partly in the State and partly outside the State; and (b) does not apply in relation to betting operations conducted by a licensed racing club under an on-course totalisator betting licence in relation to a race held by the club. (3) Without limiting the matters that may be included in an integrity agreement, the agreement must include— (a) provisions requiring the operator to provide to the racing controlling authority on request information about the operator's SA race betting operations (which may include information relating to trade secrets or business processes, financial information and information identifying or relating to persons making bets), verified, if the controlling authority so requires, by statutory declaration; and (b) provisions requiring the operator to implement specified measures to identify potential issues of probity in relation to the operator's SA race betting operations and report identified issues to the racing controlling authority; and (c) provisions requiring the operator to inform the racing controlling authority of any criminal or disciplinary proceedings commenced against the operator, or a close associate of the operator, in connection with any betting operations; and (d) provisions requiring the operator to facilitate investigations or inquiries into the conduct of the operator's SA race betting operations; and (e) provisions establishing a dispute resolution procedure; and (f) other provisions prescribed by regulation. (4) Without limiting the matters that may be included in a contribution agreement, the agreement must include— (a) provisions requiring the operator to make contributions to the relevant racing controlling authority in respect of the operator's SA race betting operations and setting out how those contributions are to be calculated and the terms for payment; and (b) provisions requiring the operator to provide to the relevant racing controlling authority such information as is reasonably required for the purposes of calculating the contributions due to the controlling authority, verified, if the controlling authority so requires, by statutory declaration; and (c) provisions requiring the operator to provide to the relevant racing controlling authority an annual report verifying that contributions have been made as required by the agreement prepared by the auditor of accounts that the operator is required to keep under the Corporations Act 2001 of the Commonwealth, as in force from time to time, or some other registered company auditor; and (d) provisions establishing a dispute resolution procedure; and (e) other provisions prescribed by regulation. (5) If a person seeks to negotiate an agreement with a racing controlling authority under this section, the controlling authority must negotiate with the person in good faith subject to and in accordance with legal requirements (including, without limitation, the requirements relating to authority to conduct betting operations in this State under the Lottery and Gaming Act 1936 and this Act and the requirements of section 92 of the Constitution of the Commonwealth). (6) An integrity agreement or contribution agreement may be varied by a later agreement between the parties. (7) Contributions payable under a contribution agreement are recoverable as a debt due to the racing controlling authority. (8) If the operator holds a licence under this Act, it is a condition of the licence that the operator must perform its obligations under an integrity agreement and contribution agreement. (9) For the purposes of subsection (1), the racing distribution agreement will be taken to be a contribution agreement entered into by the holder of the major betting operations licence with each of the racing controlling authorities. (10) The following is, subject to conditions and limitations prescribed by regulation, authorised for the purposes of section 51 of the Trade Practices Act 1974 of the Commonwealth, as in force from time to time, and the Competition Code of South Australia: (a) entering into or giving effect to an agreement by racing controlling authorities, Racing SA Pty Ltd (ACN 095 660 058) and any other agents of racing controlling authorities (or any combination of those persons and bodies) following negotiations conducted for the purposes of a racing controlling authority entering into, giving effect to or enforcing an integrity agreement or contribution agreement; (b) entering into, giving effect to or enforcing an integrity agreement or contribution agreement by racing controlling authorities, Racing SA Pty Ltd (ACN 095 660 058), any other agents of racing controlling authorities (or any combination of those persons and bodies) acting collectively; (c) entering into, giving effect to or enforcing an integrity agreement or contribution agreement by a racing controlling authority acting alone. (10a) Subsection (10) applies to action whether taken before or after the commencement of that subsection. (11) Subsection (10) applies only in relation to provisions required by this section to be included in an integrity agreement or contribution agreement. (12) If an operator conducts SA race betting operations when a contribution agreement is not in force, the relevant racing controlling authority may— (a) recover as a debt due to the controlling authority by the operator contributions in respect of the betting operations calculated in accordance with the regulations; and (b) by written notice to the operator, require the operator to provide to the controlling authority such information as is reasonably required for the purposes of calculating the contributions, verified, if the controlling authority so requires, by statutory declaration. (13) In this section— entering into an agreement means entering into or negotiating an agreement, including acting collectively or in combination with others in or with respect to the negotiation of an agreement; giving effect to an agreement includes complying with an obligation or exercising a right or power under the agreement; relevant racing controlling authority, in relation to a race, means— (a) in the case of a horse race—the racing controlling authority for horse racing; (b) in the case of a harness race—the racing controlling authority for harness racing; (c) in the case of a greyhound race—the racing controlling authority for greyhound racing. 62F—Supreme Court review (1) On an application by a person who is a party to an agreement under section 62E or is seeking to negotiate such an agreement, the Supreme Court may, if satisfied that the racing controlling authority's conduct or proposed conduct constitutes or would constitute a contravention of section 62E, make 1 or more of the following orders: (a) if an agreement has been entered into—an order setting aside the agreement (with effect from a specified date which may be a date earlier than the date of the application); (b) an order requiring the controlling authority to refrain from specified action or to take specified action or to remedy any adverse consequence of the controlling authority's conduct; (c) any other order the Court thinks fit. conduct includes a failure to act. 62G—Contributions for betting operations on races held on or after 1 September 2008 and before commencement of section 62E (1) If a person who conducted betting operations in relation to a designated race (the operator) enters into a contribution agreement on or within 3 months after the commencement of section 62E, the agreement will, subject to any express provision in the agreement to the contrary, be taken to include the following terms: (a) the operator must pay to the relevant racing controlling authority within 1 month after the agreement is entered into the following contributions: (i) in the case of totalisator betting on designated races—1.5% of the gross turnover of the betting operations; and (ii) in the case of other forms of betting on designated races—20% of the gross proceeds of the betting operations; (b) the operator must, at the written request of the racing controlling authority, provide to the controlling authority such information as is reasonably required for the purposes of calculating the contributions, verified, if the controlling authority so requires, by statutory declaration. (2) If a person who conducted betting operations in relation to a designated race (the operator) has not entered into a contribution agreement within 3 months after the commencement of section 62E, the relevant racing controlling authority may— (a) recover as a debt due to the controlling authority by the operator the following contributions: (i) in the case of totalisator betting on designated races—1.5% of the gross turnover of the betting operations; and (ii) in the case of other forms of betting on designated races—20% of the gross proceeds of the betting operations; and (b) by written request, require the operator to provide to the controlling authority such information as is reasonably required for the purposes of calculating the contributions, verified, if the controlling authority so requires, by statutory declaration. (3) This section does not apply in relation to betting operations conducted by— (a) the holder of the major betting operations licence; or (b) a licensed racing club under an on-course totalisator betting licence in relation to a race held by the club. (4) The Governor may, by regulation, declare that an amount of a particular class is or is not to be included in the calculation of gross turnover or gross proceeds of betting operations for the purposes of this section. (5) In this section— designated race means a race held in this State by a racing club on or after 1 September 2008 and before the commencement of section 62E; relevant racing controlling authority has the same meaning as in section 62E. 62H—Disclosure of information and confidentiality (1) If a person defaults in providing information to a racing controlling authority as required by an integrity agreement or contribution agreement or by this Division, the controlling authority may apply to the Supreme Court for an order requiring the disclosure of the information. (2) On an application, the Supreme Court may make such orders as it thinks fit to remedy the default and to prevent recurrence of similar defaults. (3) A racing controlling authority may provide information obtained under this Division— (a) to an agency or instrumentality of this State, the Commonwealth or another State or a Territory of the Commonwealth for the purposes of the performance of its functions; and (b) to any of the following for purposes connected with an investigation or inquiry into, or other functions relating to, the conduct of a race or betting on a race: (i) other racing controlling authorities; (ii) licensed racing clubs; (iii) race stewards; (iv) racing appeals tribunals; (v) other persons with responsibilities for regulating the conduct of a race or betting on a race; (vi) any person or body in another State or a Territory of the Commonwealth corresponding to a person or body referred to in a preceding subparagraph. (4) A racing controlling authority must not divulge information relating to trade secrets or business processes, financial information or information tending to identify a person obtained under this Division except— (a) as authorised by or under this Act or any other law; or (b) with the consent of the person from whom the information was obtained or to whom the information relates; or (c) for a purpose connected with the payment of contributions under a contribution agreement or this Act; or (d) for the purpose of legal proceedings arising under this Act or in relation to an agreement under this Act. Maximum penalty: $10 000. (5) Information that has been disclosed under this section for a particular purpose must not be used for any other purpose by— (a) the person to whom the information was disclosed; or (b) any other person who gains access to the information (whether properly or improperly and whether directly or indirectly) as a result of that disclosure. Maximum penalty: $10 000. 62I—Prosecution requires Commissioner's consent (1) A prosecution for an offence against this Division may only be commenced with the consent of the Commissioner. (2) In legal proceedings, an apparently genuine certificate certifying that the Commissioner consented to the commencement of a prosecution for an offence against this Division will, in the absence of proof to the contrary, be accepted as proof of that consent.