Div 3AGaming machine entitlements

Division 3A—Gaming machine entitlements 27AAB—Gaming machine entitlements in respect of casino (1) On the commencement of this section, the Commissioner is to assign the holder of the casino licence 995 gaming machine entitlements in respect of the gaming areas (within the meaning of the Casino Act 1997). (2) Despite any other provision of this Act, the gaming machine entitlements assigned by the Commissioner under subsection (1) are not transferrable under section 27B. 27AAC—Application of Division to casino (1) Subject to this section, this Division applies to and in relation to a gaming machine entitlement held by the holder of the casino licence. (2) The approved licensing agreement under the Casino Act 1997 may make provision in relation to participation by the holder of the casino licence in the approved trading system established under this Division and, in particular— (a) may specify targets relating to the obtaining of gaming machine entitlements (other than the entitlements assigned under section 27AAB) by the holder of the casino licence; and (b) may impose or provide for the imposition of requirements on the holder of the casino licence in relation to meeting the targets specified in paragraph (a); and (c) may provide that if— (i) the holder of the casino licence satisfies the requirements referred to in paragraph (b); but (ii) a target referred to in paragraph (a) is not met by a specified day, the Commissioner must, on payment of an amount determined in a manner agreed, in writing, by the parties to the agreement (whether or not set out in the agreement), assign the holder of the casino licence a specified number of gaming machine entitlements. (3) Despite any other provision of this Act, a gaming machine entitlement assigned by the Commissioner in accordance with provisions of the approved licensing agreement referred to in subsection (2)(c)— (a) is not transferrable under section 27B; and (b) only relates to a premium gaming area (within the meaning of the Casino Act 1997). 27A—Gaming machine entitlements (2) A gaming machine entitlement may be held only by— (a) a licensee holding a gaming machine licence who has an approval from the Commissioner to operate on the licensed premises a number of gaming machines equal to or exceeding the number of gaming machine entitlements held by the licensee; or (b) Club One; or (c) the holder of the casino licence; or (d) a person who is entitled to hold gaming machine entitlements under an arrangement approved by the Commissioner under section 27B(1)(c); or (e) the Commissioner. (3) The Commissioner must— (a) keep a register of gaming machine entitlements; and (b) cause the register to be published on a website to which the public has access free of charge. (4) The Commissioner must record on the register— (a) the number of gaming machine entitlements held by each licensee and the holder of the casino licence; and (b) the premises to which the gaming machine entitlements relate; and (c) the number of gaming machine entitlements temporarily held by the Commissioner; and (d) any other matters in relation to the approved trading system as prescribed by the regulations. 27B—Transferability of gaming machine entitlements (1) A gaming machine entitlement is transferable as follows: (a) if a gaming machine licence is transferred, the transferor may transfer together with the licence all gaming machine entitlements held by the transferor immediately before the transfer; (b) a non-profit association that holds a gaming machine licence may transfer, absolutely or for a limited period, a gaming machine entitlement to Club One under an arrangement approved by the Commissioner; (c) a non‑profit association that holds a gaming machine licence may transfer, absolutely or for a limited period, a gaming machine entitlement to another non‑profit association that holds a gaming machine licence under an arrangement approved by the Commissioner; (ca) a non‑profit association that holds a gaming machine licence may transfer, absolutely or for a limited period, a gaming machine entitlement to the Commissioner under an arrangement approved by the Commissioner; (d) if a person is authorised by or under Part 3 Division 4A to carry on the business of a licensee— (i) at the commencement of the period of authorisation, the licensee's gaming machine entitlements vest in the authorised person; and (ii) at the conclusion of the period of authorisation, any entitlements still held revert to the person in whom they would (apart from this paragraph) have been vested; (e) if a person holds a temporary licence under Part 3 Division 4A, the former licensee's gaming machine entitlements vest in the holder of the temporary licence and then— (i) if the temporary licence is converted into an ordinary licence—any such entitlements still held at the time of the conversion vest, on the conversion, in the holder of the ordinary licence; or (ii) if the temporary licence is not converted into an ordinary licence—any such entitlements still held at the conclusion of the temporary licence revert to the person in whom they would (apart from this paragraph) have been vested; (f) the holder of gaming machine entitlements may (subject to this section) sell 1 or more of the entitlements under the approved trading system. (2) The approved trading system is a system established by the regulations. (3) The regulations establishing the approved trading system may include the following: (a) provisions dealing with the eligibility of intending sellers and purchasers to participate in the system; (ab) provisions dealing with advertising of gaming machine entitlements for sale on a website maintained by the Commissioner that is able to be accessed by intending sellers and purchasers in the system; (b) conditions and restrictions on the sale of gaming machine entitlements (such as, for example, a condition providing that a gaming machine entitlement formerly held by the holder of a particular type of liquor licence may only be purchased by the holder of a liquor licence of a similar type); (d) a provision requiring the purchaser of a gaming machine entitlement to acquire and operate a gaming machine under the entitlement within a specified period and providing that, if the purchaser fails to do so, the entitlement is to lapse; (e) a provision requiring an intending seller of gaming machine entitlements to surrender a proportion of its entitlements to the Commissioner and prescribing how the Commissioner is to deal with entitlements so surrendered; (f) a provision for the payment of a commission to the Crown on sale of a gaming machine entitlement under the approved trading system; (g) a provision for the payment of fees by participants in the approved trading system; (h) provisions dealing with any other aspect of the approved trading system. (4) Any commission on the sale of a gaming machine entitlement is to be paid into the Gamblers Rehabilitation Fund. (5) If a gaming machine entitlement relates to premises that are (or were) held by the licensee under a lease, the right to sell the entitlement under the approved trading system is qualified as follows: (a) if the lease is entered into after the commencement of this section, the lease may exclude or limit the right of sale; (b) if the lease was entered into before the commencement of this section, the right may only be exercised if— (ii) the District Court, on application by the holder of the entitlement, determines that it is fair and equitable to authorise its sale and gives its authorisation accordingly. (6) If the District Court gives an authorisation under subsection (5)(b), it may exercise either or both of the following powers: (a) it may impose conditions, such as a condition that the proceeds of the sale be shared between the parties on a fair and equitable basis; (b) it may make a consequential alteration to the terms of the lease. (7) If the holder of a gaming machine entitlement makes an application for an authorisation under subsection (5)(b) and, before the proceedings are determined— (a) the applicant is required under the terms of a lease to transfer the entitlement to someone else; or (b) the entitlement vests in someone else on conversion of a temporary licence into an ordinary licence under Part 3 Division 4A, the District Court may order the sale of the entitlement under the approved trading system and the payment of the net proceeds of sale to the applicant or the division of the net proceeds of the sale between the applicant and another or others in proportions the District Court considers fair and equitable. (8) No liability to stamp duty arises in relation to a transfer of gaming machine entitlements under subsection (1)(b), (c) or (f) executed after the commencement of this subsection. (9) The Commissioner may determine that gaming machine entitlements held under a gaming machine licence that is to be transferred, or that is suspended, or has been surrendered or revoked, may be held temporarily by the Commissioner on the basis that the entitlements will, by the Commissioner's subsequent approval or determination— (a) vest in the licensee or another person; or (b) be allocated to licensed premises, or a gaming area within the meaning of the Casino Act 1997; or (c) be forfeited to the Commissioner and cancelled under section 27CA. 27C—Premises to which gaming machine entitlements relate (2) The following provisions apply on the transfer of a gaming machine entitlement to a person other than the Commissioner: (a) if the entitlement is transferred together with a gaming machine licence, it will upon transfer relate to the same licensed premises; (b) if the entitlement is transferred by a non-profit association under an arrangement approved by the Commissioner, it will upon transfer relate to premises nominated in the arrangement; (c) if the entitlement is sold under the approved trading system, it will relate to premises nominated by the purchaser and approved by the Commissioner as part of the trading process. (3) However, the Commissioner may approve the acquisition of gaming machine entitlements by Club One on the basis that the entitlements will be subsequently allocated to licensed premises, or to a gaming area within the meaning of the Casino Act 1997, with the Commissioner's approval. (4) The Commissioner may approve the re-allocation by Club One of gaming machine entitlements from 1 set of licensed premises to another or to a gaming area within the meaning of the Casino Act 1997 (but gaming machine entitlements allocated to premises in respect of which Club One itself holds a gaming machine licence cannot be re-allocated under this subsection). 27CA—Forfeiture and cancellation of gaming machine entitlements (1) If the Commissioner— (a) revokes a gaming machine licence (whether under this Part or as a result of disciplinary action against a former licensee); or (b) accepts a surrender of a gaming machine licence under section 33, the Commissioner must determine whether all or any of the gaming machine entitlements held by the former licensee should be forfeited to the Commissioner (and any entitlements so forfeited must be cancelled by the Commissioner accordingly). (2) If the Commissioner cancels gaming machine entitlements, any gaming machines to which the entitlements related may be dealt with under section 16(5) or in the manner prescribed by the regulations. 27D—Effect of this Division on obligations under a lease or mortgage If— (a) a lease, mortgage or related agreement was entered into before the commencement of this Division; and (b) the licensee is required by the lease, mortgage or related agreement to maintain a certain number of gaming machines in operation on the licensed premises; and (c) the number exceeds the number of gaming machine entitlements assigned to the licensee on the commencement of this Division, the lease, mortgage or related agreement will be construed as if it required the licensee to maintain a number of gaming machines in operation on the licensed premises equivalent to the number of gaming machine entitlements assigned to the licensee on the commencement of this Division. 27E—Statement of Parliamentary intention to reduce gaming machine numbers etc (1) It is Parliament's intention to reduce the number of gaming machines that may be operated in the State to a number to be prescribed by regulation (the statutory objective). (2) The Minister must cause a review to be undertaken of the operation of the approved trading system established under section 27B(2) with a view to determining how it should be modified in order to meet the statutory objective and a written report on the review to be prepared and submitted to the Minister. (3) The review under subsection (2) must seek and consider written submissions from the holder of the casino licence, a body representative of licensees and Club One. (4) The review and the report must be completed after the first but before the second anniversary of the day on which the Statutes Amendment (Gambling Regulation) Act 2019 is assented to by the Governor. (5) The Minister must cause a copy of the report submitted under subsection (2) to be tabled in both Houses of Parliament within 12 sitting days after its submission.