The Act uses several key concepts to structure regulation. A gaming machine is defined broadly as a device (wholly or partly mechanically or electronically operated) designed for playing a game of chance or mixed chance and skill, operated by inserting a token, coin or banknote or electronically transferring credits, and from which winnings may become payable (s 3(1)). A gaming machine entitlement is a right to operate one gaming machine under a gaming machine licence or the casino licence (s 3(1)); these entitlements are registerable and transferable through an approved trading system (ss 27A(3), 27B). The fit and proper person test is central: a person is not fit and proper if they have been convicted of prescribed offences, are members of prescribed organisations (including declared criminal organisations), are close associates of such persons, or are insolvent under administration (s 4A(1)-(2)). The Commissioner may also consider corporate structure, financial background, reputation, character of close associates, and any representations by the Minister (s 4A(3)). A designated application is one that triggers the community interest assessment: it includes applications for a gaming machine licence and any other application the Commissioner determines to be designated under the community impact assessment guidelines or another provision of the Act (s 17A(4)). The Commissioner must apply the community impact assessment guidelines when determining a designated application and must have regard to the harm that gambling may cause, cultural and social impacts, and the amenity of the locality (s 17A(2)). The Act also distinguishes between different categories of licence conditions for the gaming machine licence: conditions set out in Schedule 1 are statutory and cannot be revoked by the Commissioner (s 27(1), s 27AA(3)). The concept of responsible gambling agreements appears: a licensee must enter into a responsible gambling agreement with an approved industry body (Sch 1 para (h)). There is also a prohibition on links between dealers and other licensees: a person cannot simultaneously hold a gaming machine dealer’s licence and another licence class under the Act or the Casino Act 1997, nor be associated with a licensee of another class (s 44A(1)). The Act creates a special club licence (Club One) which acts as agent for other licensees and is jointly and severally responsible for compliance (s 24A).

The Act directly affects several categories of persons and entities. First, licensees: holders of gaming machine licences (hotels and clubs holding the relevant liquor licence), the special club licence (Club One), gaming machine dealer’s licences, the gaming machine monitor licence (currently the Independent Gaming Corporation, see s 25), and gaming machine service licences (s 14). Applicants for these licences must satisfy the Commissioner of their fitness and propriety (s 19). Second, persons in positions of authority: directors, members of governing bodies, trustees, and beneficiaries of trusts that hold licences must be approved by the Commissioner (ss 3(2), 38). Third, gaming managers and gaming employees appointed by licensees must carry prescribed duties (ss 48, 49), wear identification (s 50A), and may be prohibited by the Commissioner (s 44AA). Fourth, minors: the Act prohibits minors from entering gaming areas (s 56) and from being employed in gaming operations (s 55). Fifth, credit providers and financiers: the Act permits the Minister to grant exemptions from certain provisions to enable financing arrangements for gaming machine acquisitions (s 76A), and credit providers who repossess machines must give notice and store machines securely (s 76A(4)). Sixth, members of the public: they may make written submissions in relation to advertised applications for licences, transfers, removals, or designated applications (ss 44D, 44G). The Commissioner of Police may intervene in proceedings and make submissions on fitness and propriety and public interest (s 31). The Gamblers Rehabilitation Fund is used for programs to minimise harm from gambling (s 73BA), and industry bodies and training providers are affected by approval requirements (ss 40B, 40C). The Act also binds the Crown (s 4(3)), but does not apply to the casino except as specifically provided (s 4(1); the casino has its own entitlement system under ss 27AAB, 27AAC).

Licensees have numerous duties under the Act. A gaming machine licensee must not possess more machines than the number of entitlements held (Sch 1 para (ca)), must use only approved machines and games (Sch 1 para (a)), must conduct gaming only within designated gaming areas (Sch 1 para (c)), and must not operate outside specified hours (Sch 1 para (g)); the Commissioner must ensure at least six hours per day without gaming and no operations on Christmas Day or Good Friday (s 27(7)). Licensees must keep proper accounts of gross gaming turnover and net gambling revenue, preserve them for six years, and furnish monthly returns within seven days (s 73(1)-(3)). They must pay gaming tax monthly (s 72A(3)). Licensees must not allow cash facilities (except EFTPOS) within gaming areas (s 51A(1)), and any cash facility on the premises must not allow more than $250 per card per 24-hour period (s 51B(2)). Lending or extending credit for gaming is prohibited (s 52). A gaming manager must be present at all times when gaming is conducted (s 48(3)). Licensees must ensure that only approved gaming machine technicians install or repair machines (Sch 1 para (j)), and that machines are sealed (s 64(3)-(4)). The licensee must operate a facial recognition system if 30 or more machines accept banknotes (Sch 1 para (ka)). Rights include the ability to apply for transfer of a gaming machine licence and entitlements (s 28), to sell entitlements through the approved trading system (s 27B(1)(f)), and to seek a certificate of approval for proposed premises (s 17C). A licensee may also apply for voluntary suspension of the licence for up to 12 months (s 32). The Commissioner may approve systems such as cashless gaming systems, automated risk monitoring systems, and facial recognition systems (ss 40A, 40D). Gaming managers and employees have a duty to wear identification (s 50A). Persons aggrieved by withholding of winnings may apply to the Commissioner for review (s 76(2)). The Act also confers a right on persons to make written submissions on certain applications (s 44G). The Commissioner of Police has a right to intervene (s 31). Club One must provide an annual report on its financial affairs to the Minister by 30 September (s 24A(4)(b), (5)). There is a statutory objective to reduce the number of gaming machines in the State to a number prescribed by regulation (s 27E(1)).

The Act prescribes substantial penalties for a wide range of offences. Unlicensed possession of a gaming machine carries a maximum penalty of $35,000 or imprisonment for two years (s 45(1)(a)). Breach of a licence condition by a gaming machine licensee is categorised: a category A offence (breach of Schedule 1 statutory conditions) carries $20,000; category B $10,000; category C $5,000; category D $2,500 (s 46(2)). The holder of the gaming machine monitor licence faces up to $50,000 or four years imprisonment for breach of conditions (s 46(1)(a)). Selling or supplying games without an approved contract or with inducement attracts $35,000 or two years (s 47A). Interference with a gaming machine with intent to gain a benefit carries $50,000 or four years (s 62). Manufacturing or possessing an interference device also attracts the same maximum (s 63(1)). Bribery of a licensee or gaming manager carries $50,000 or four years (s 79). Lending or extending credit for gaming carries $35,000 or two years (s 52). The prohibition on linked jackpots carries $35,000 or two years (s 53). Breach of the maximum bet ($5) and minimum payout (87.5%) provisions each carries $35,000 (s 53A(4), (7)). Providing a machine that may be operated by a credit or debit card or a cashless payment system (other than approved) carries $35,000 (s 53A(3)). A minor entering a gaming area faces $2,500; the licensee and gaming manager on duty each face $10,000 (s 56(1)-(2)). Knowingly assisting a minor to enter a gaming area carries $10,000 (s 56(4a)). Making a false statement in a return for gaming tax carries $10,000 or two years, and the court may impose an additional fine of twice the amount of tax underpaid (s 73(4)-(5)). Vicarious liability provisions make persons occupying positions of authority in a body corporate liable for prescribed offences unless they prove due diligence; for other offences the prosecution must prove knowledge and failure to exercise due diligence (s 85(1)-(1a)). Gaming managers are also vicariously liable unless they prove due diligence (s 85(1c)). The Commissioner may suspend or revoke a licence for non-payment of gaming tax after ten days default (s 72B(2a)). The Commissioner may also suspend or revoke a gaming machine licence if no gaming machine entitlements are held or if gaming operations are not being undertaken (s 34A). The Commissioner may give directions to secure gaming machines left on vacated premises; non-compliance carries $35,000 (s 53B). The Commissioner has an unqualified discretion to revoke approvals, but must give 21 days notice to show cause (s 44). Prosecutions for summary offences must be commenced within five years (s 84). Evidentiary presumptions assist enforcement: an allegation that a person is the holder of a licence or that premises are licensed is accepted as proved in the absence of proof to the contrary (s 86).

The Act expressly provides that it is to be read together with the Gambling Administration Act 2019 as a single Act (s 3A). That Act contains provisions about inspectors, disciplinary action, review of decisions, codes of practice, and general administration. The Commissioner under the Gaming Machines Act 1992 is the same office as under the Gambling Administration Act 2019 (s 3(1) definition). The Act does not apply to gaming machines operated in the casino premises except as specifically provided (s 4(1)); the casino has its own licensing regime under the Casino Act 1997, but the Gaming Machines Act does assign the casino 995 gaming machine entitlements (s 27AAB) and allows the casino to participate in the approved trading system (s 27AAC). The Act interacts with the Liquor Licensing Act 1997: eligibility to hold a gaming machine licence is tied to holding a general and hotel licence, club licence, or on premises licence under that Act (s 15(1)). If a liquor licence is surrendered, revoked or suspended, the corresponding gaming machine licence is taken to be surrendered, revoked or suspended (s 34). A transfer of a general and hotel licence or on premises licence can trigger a transfer of the gaming machine licence (s 28(1)). The Liquor Licensing Act 1997 also provides for removal of liquor licences, and the Commissioner may approve removal of a gaming machine licence only if the liquor licence removal has been approved (s 27F(1)(a)). The Act also interfaces with the Family and Community Services Act 1972 regarding who may direct funds from the Charitable and Social Welfare Fund (s 73B(3)) and the Gamblers Rehabilitation Fund (s 73BA(3)). The Corporations Act 2001 (Cth) definitions are imported for “insolvent under administration”, “close associate” (related bodies corporate), and “substantial holding” (s 4A(5)). The Security and Investigation Industry Act 1995 is referenced in the definition of “authorised person” (s 3(1)). The Tobacco and E-Cigarette Products Act 1997 is referenced: the gaming area must be an enclosed area as defined by that Act (s 15(5)(a)(viii)). The Recreational Greenways Act 2000 identifies the Minister responsible for the Sport and Recreation Fund (s 73A(7)). The Act also interacts with the Serious and Organised Crime (Control) Act 2008 and the Criminal Law Consolidation Act 1935 for definitions of prescribed organisations (s 4A(4)). The Act notes that it binds the Crown (s 4(3)), and Commonwealth law is recognised in that the Governor may apply provisions of the Act to persons who are not required to hold a gaming machine licence because of a Commonwealth law (s 4(1a)).

The Act was originally enacted as the Gaming Machines Act 1992 (Act No 49 of 1992), assented on 17 September 1992 and commenced on 1 July 1993. It has been amended extensively. Significant amendments include: Gaming Machines (Miscellaneous) Amendment Act 1996 which introduced requirements for six hours closure per 24 hours and prohibited gaming on Christmas Day and Good Friday; the Gaming Machines (Gaming Venues in Shopping Centres) Amendment Act 1997 which inserted section 15A forbidding gaming venues under the same roof as shops or within shopping complexes; the Gaming Machines (Gaming Tax) Amendment Act 2002 which restructured the gaming tax rates into progressive thresholds; the Gaming Machines (Miscellaneous) Amendment Act 2004 which introduced gaming machine entitlements, the special club licence (Club One), the approved trading system, and provisions for devolution of licensee’s rights; the Statutes Amendment (Gambling Regulation) Act 2001 which introduced cash facility limitations and the prohibition on lending credit; the Gaming Machines (Miscellaneous) Amendment Act 2010 which introduced community impact assessment principles and social effect certificates; the Statutes Amendment (Gambling Reform) Act 2013 which substituted the definition of gaming machine, introduced the $5 maximum bet and 87.5% minimum payout, prohibited automatic play devices, restricted audio devices, and introduced the gaming manager and gaming employee categories; the Statutes Amendment (Gambling Measures) Act 2015 which amended the appointment and notification provisions for gaming managers and employees; the Liquor Licensing (Liquor Review) Amendment Act 2017 which updated references from “hotel licence” and “general facility licence” to “general and hotel licence” and “on premises licence”; the Statutes Amendment and Repeal (Budget Measures) Act 2018 which abolished the Independent Gambling Authority and transferred its functions to the Commissioner; and the two Bills passed on 12 December 2019: the Gambling Administration Act 2019 and the Statutes Amendment (Gambling Regulation) Act 2019. The 2019 amendments comprehensively restructured the Act: they deleted old Parts 2, 6, and 7, introduced section 3A (interaction with Gambling Administration Act 2019), replaced the community impact assessment provisions (ss 17A, 17B, 17C), inserted the new approval system for cashless gaming, automated risk monitoring, training courses, responsible gambling agreements and facial recognition (ss 40A-40D), and added new Part 4B on applications and submissions. They also inserted sections on forfeiture and cancellation of entitlements (s 27CA), removal of licences (ss 27F-27G), club amalgamations (ss 27H-27K), and new offences and evidentiary provisions. The Legislative History table shows numerous uncommenced provisions; practitioners should always check the version in effect.

The Act does not itself refer to any specific case law. However, the Act provides for the Licensing Court of South Australia to hear and determine certain applications referred by the Commissioner (s 44J). The Commissioner may refer any application under Part 4B for hearing and determination by the Court, and a person who has made written submissions becomes a party to the proceedings (s 44J). The Act also gives the District Court a role in certain circumstances: where a lease pre-dates the commencement of Division 3A and a licensee wishes to sell a gaming machine entitlement, the licensee may apply to the District Court for an authorisation if the parties to the lease do not agree (s 27B(5)(b)); the Court may impose conditions and alter the lease (s 27B(6)). Similarly, for removal of a gaming machine licence under Division 3B, if the lease was entered into before commencement, the licensee may apply to the District Court for an authorisation (s 27F(3)(b)(ii)). The same applies for applications under Division 3C (club provisions) regarding premises held under a lease (s 27K(b)(ii)). The Act also provides for internal review of certain decisions: for example, a system provider or a body representative of licensees may apply to the Minister for a review of a decision to refuse, vary or revoke an approval under section 40A (s 40A(5)-(6)). The Minister may determine the application and require the Commissioner to publish the outcome in the Gazette (s 40A(6)). The Act also includes a privative clause: the Commissioner’s decision on a review of a decision to withhold winnings is not reviewable (s 76(3)). The evidentiary provisions (s 86) create presumptions that assist enforcement, including that an allegation that a person is or is not the holder of a licence is accepted as proved in the absence of proof to the contrary. There is also an exclusion of compensation provision: no right to compensation arises from the 2004 amendments or from cancellation or lapse of a gaming machine entitlement (s 88). While no cases are named in the Act, the structure anticipates litigation primarily through the Licensing Court and the District Court on lease-related disputes.

Several provisions in the Act contain traps for the unwary. The cash facility limitation in section 51B(2) restricts the amount of cash obtainable by any one debit or credit card to $250 in a 24-hour period, but the prohibition applies to the licensee “providing or allowing” such cash facilities; non-compliance is an offence and there is no defence of ignorance. The prohibition on linked jackpots (s 53) is absolute; even linking machines for a small progressive element is prohibited unless an approved system is used. Section 53A(1) requires that any gaming machine that may be operated with an account based cashless gaming system must also be connected to an approved automated risk monitoring system and a pre-commitment system prescribed by regulation. Section 53A(4) sets a maximum bet of $5, but this applies per game; a player might still stake large amounts by rapid play. Section 53A(4a) prohibits operation of a game by insertion of a banknote if the credit balance is $100 or more; this is designed to force cash-out but can catch licensees if machines are not properly configured. The prohibition on audio devices (s 53A(6)) prevents any earphone or headset that is not primarily for hearing impairment; even a patron using personal headphones plugged into a machine is a breach. Section 53A(7) requires that the return to player rate shall be not less than 87.5%; this is a minimum, but the machine must be set to deliver that over time; there is no provision allowing a lower rate for certain denominations. Under section 56(5), a minor who operates a gaming machine forfeits all winnings to the Commissioner for the Gamblers Rehabilitation Fund; the licensee cannot pay out a minor. Section 76AA provides that winnings not collected within 24 hours are forfeited to the Commissioner and paid into the Gamblers Rehabilitation Fund; this imposes a strict time limit. The requirement for a responsible gambling agreement (Sch 1 para (h)) means a licensee cannot lawfully operate without having entered into such an agreement with an approved industry body. The requirement to operate a facial recognition system (Sch 1 para (ka)) applies only to licensees authorised to operate 30 or more gaming machines that accept banknotes; such licensees must also not allow a person to enter a gaming area unless the facial image has been recorded. The prohibition on profit sharing (s 68) is broad: an unlicensed person cannot participate in proceeds or profits, be remunerated by reference to proceeds, or conduct or manage the business. Exceptions exist only for persons in positions of authority in the licensee trust or corporate entity, or arrangements approved by the Commissioner (s 68(2)). The provision on unclaimed winnings (s 76AA) may be below a prescribed amount (exempted by regulations). Section 76A allows the Minister to grant exemptions for financing arrangements, but the credit provider must give notice to the Commissioner within seven days of repossession, and must store the machine with a dealer or service licensee. Section 87 regulation-making power allows the Governor to fix penalties up to $10,000 and expiation fees up to $1,200 for regulatory offences; these can be significant for minor breaches.

Compliance with the Act requires a systematic approach. Applicants for a gaming machine licence must first obtain the relevant liquor licence (general and hotel, club, or on premises licence) (s 15(1)). The applicant must satisfy the Commissioner that the proposed gaming area is suitable, security arrangements are adequate, operation will not unduly disturb the vicinity, the character of the premises will not be undermined, minors will not be specially attracted, and the gaming area is enclosed under the Tobacco and E-Cigarette Products Act 1997 (s 15(5)(a)). The applicant must also satisfy the Commissioner that the grant is in the community interest, assessed against the community impact assessment guidelines (ss 17A, 17B). These guidelines require the applicant to provide documents, take consultation steps, and demonstrate social and economic impacts. Once licensed, the licensee must comply with the statutory conditions in Schedule 1 and any additional conditions imposed by the Commissioner (s 27, Sch 1). Key operational steps: maintain only approved machines and games (Sch 1 para (a)); keep the number of machines equal to or less than the entitlements held (Sch 1 para (ca)); ensure machines are sealed (s 64(3)-(4)); connect all machines to the approved monitoring system (Sch 1 para (k)); enter into a responsible gambling agreement (Sch 1 para (h)); appoint gaming managers and employees, notify the Commissioner within 14 days of appointment and cessation (Sch 1 para (ma)); ensure gaming staff complete approved training (Sch 1 para (mb)); operate a facial recognition system if 30+ banknote-accepting machines (Sch 1 para (ka)); ensure gaming areas are not open on Christmas Day or Good Friday and are closed at least six hours per day (s 27(7)); prohibit cash facilities (except EFTPOS) within gaming areas (s 51A(1)); limit cash facility withdrawals to $250 per card per 24 hours (s 51B(2)); prohibit lending credit (s 52); set machines to a maximum bet of $5 and minimum payout rate of 87.5 per cent (s 53A(4),(7)); disable automatic play (s 53A(8)); remove any audio devices (s 53A(6)); keep proper accounts and lodge monthly returns within seven days (s 73); pay gaming tax monthly (s 72A(3)); report any change of prescribed particulars within 14 days (s 46A); and deal with unclaimed winnings within 24 hours (s 76AA). For those seeking to transfer a licence or entitlements, the transfer must be consented to by the Commissioner, who must be satisfied that the applicant is fit and proper (s 28(3)). The approved trading system established by regulations governs sale of entitlements (s 27B). Lease restrictions apply: if the lease pre-dates the entitlement system, the licensee may need a District Court order to sell or remove (ss 27B(5), 27F(3), 27K). Club One must submit an annual report to the Minister by 30 September (s 24A(4)(b)). Finally, all licensees must pay recoverable administration costs annually as notified by the Commissioner (s 86A). Practitioners should also note that the Act is read with the Gambling Administration Act 2019, which contains additional compliance obligations regarding codes of practice, disciplinary action, and review mechanisms.