Gaming Machines Regulations 2020

The regulations are structured around a set of core concepts that determine who can do what, how transfers occur, and how technical and operational risk is managed.

• Prescribed gaming machine components (regulation 4). The regulations define components that are subject to licensing or contract form requirements. Two tiers appear: components declared for the licensing and contract-form provisions (software packages that control any part of a gaming machine and devices containing that software, regulation 4(1)), and a wider list used for other Act provisions (including cabinets, cabinet doors, artwork, reel tapes and mechanisms, hoppers and parts, bank note acceptors and devices that print or issue tickets, regulation 4(2)). The distinction affects which statutory obligations attach to particular items.

• Prescribed duties (regulation 5). The regulations list actions treated as prescribed duties for the purposes of section 49 of the Act. They include paying out winnings, issuing or redeeming tokens, opening secure areas of machines and assisting users of cashless gaming systems and pre-commitment systems. Those tasks are thus singled out for licensing and control attention.

• GMEX and trading system (regulations 6-14, Schedule 1). The Commissioner must establish GMEX, an electronic system accessible by “registered persons” (regulation 7). Registered persons must be approved by the Commissioner (regulation 8). Offers, expressions of interest and trade agreements for gaming machine entitlements must be made on GMEX in the form and with the content determined by the Commissioner, and accompanied by prescribed fees (regulation 9; regulation 10 sets trade agreement content and approval requirements). Schedule 1 prescribes the mapping between entitlements purchased, entitlements offered for sale and entitlements cancelled when transfers are approved. The Commissioner maintains a publicly accessible GMEX register listing details of offers, expressions of interest and approved trade agreements (regulation 13).

• Technical approvals and monitoring (regulation 23, regulation 23A). The regulator prescribes that gaming machines and games must be certified by the holder of the gaming machine monitor licence as compatible with the monitoring system (regulation 23(1)). Machines or games must comply with the Australian/New Zealand Gaming Machine National Standard 2016 (or later version) as modified by the relevant Appendix unless it is not economically viable to modify an already approved machine (regulation 23(2)-(3)). Approval of facial recognition systems is separately prescribed with accuracy and security requirements (regulation 23A).

• Pre-commitment and voluntary code (regulation 26 and Schedule 3). Regulation 26 makes operation of a pre-commitment system by the licensee a requirement for a gaming machine under section 53A(1)(d) of the Act. Schedule 3 sets detailed functional, registration, language, limits-setting, variation, notification, recordkeeping and reporting requirements for the Voluntary Pre-commitment Code.

• TITO system rules (regulation 27). The holder must not provide a machine operable by ticket insertion unless the TITO system complies with Gambling Administration Act 2019 guidelines and additional restrictions set out in the regulation (no promotional material on tickets, credit meter limit of $149.99 contribution from a ticket, maximum ticket credit value $5,000, redemption time limits, and a threshold-based obligation to remit the total credit value of unredeemed tickets to the Commissioner for the Gamblers Rehabilitation Fund if at the start of a month the total unredeemed ticket liability is $750 or more).

• Facial recognition operation and data handling (regulation 28). The regulations limit access to data from approved facial recognition systems, ban use for certain commercial and cross-venue identification purposes, require notices at gaming area entrances and impose a 72-hour retention limit for images or identifying data of non-barred persons.

• Enforcement, fees and discretion. The Commissioner has multiple discretionary powers: approving registered persons and trade agreements, revoking registrations and notifying affected persons (regulation 8); refunding fees on refusal of approval (regulation 11(2)); maintaining and publishing the GMEX register (regulation 13); and having discretion to waive, reduce or refund fees under Part 2 (regulation 14). The Minister has explicit powers to grant exemptions in a range of contexts (regulation 19).

These concepts allocate regulatory control across system design (technical and monitoring standards), market structure (GMEX trading and forced cancellation mapped in Schedule 1), consumer protection interventions (pre-commitment, TITO limits and facial recognition safeguards) and administrative safeguards (indemnities, bonds and register transparency). The Commissioner and the Minister play distinct roles; the former runs GMEX and makes operational approvals, the latter can grant tailored exemptions.

The regulations identify multiple classes of persons and entities that either bear obligations or may be beneficiaries of regulatory permissions.

• Licence-holders and applicants. Holders of gaming machine licences and gaming machine service licences are the primary subjects of operational duties. They must comply with identification card rules while on duty (regulation 17), operate pre-commitment systems (regulation 26 and Schedule 3), ensure TITO systems meet the prescribed requirements (regulation 27), lodge indemnities and in some cases bonds with applications (regulation 21), and may apply to the Commissioner for exemptions from cash facility limits (regulation 25). The holder of the gaming machine monitor licence has duties relating to certification that machines are compatible with monitoring systems (regulation 23(1)).

• Eligible persons, registered persons and vendors/purchasers of entitlements. Eligible persons (those who hold, or are entitled to hold, gaming machine entitlements, regulation 6) participate in the GMEX market. A registered person is someone the Commissioner approves under regulation 8 to use GMEX. Vendors and purchasers of gaming machine entitlements must transact via GMEX and follow the Commissioner’s required forms and fees (regulations 9-11), and vendors must notify the Commissioner on receipt of payment (regulation 12(1)). Club One is treated as a special class under regulation 10(4), with restrictions on its buyers and a carve-out from certain Schedule 1 requirements.

• Casino and Club One. The GMEX register must identify purchasers who are holders of the casino licence or Club One, and whether purchasers are non-profit associations with gaming machine licences (regulation 13(1)(c)(viii)). Club One has bespoke restrictions: it may only sell entitlements to non-profit associations holding a gaming machine licence and is exempt from the Schedule 1 matching requirements for its sales (regulation 10(4)).

• Approved gaming machine technicians and service providers. Regulation 19 creates Ministerial exemption power to allow training providers and approved technicians to possess, transport and work on machines, subject to conditions including Commissioner approval and notice requirements (regulation 19(1)-(9)). Approved technicians must wear identification cards while carrying out duties on licensed premises (regulation 17(3)).

• Private owners and ocean going passenger vessel operators. A narrow exemption exists for certain private owners who had possession of a machine at home immediately before the commencement of the Act, subject to notification and residency conditions (regulation 20). A separate exemption applies for games located on ocean going passenger vessels on designated journeys, with conditions about non-operation during the designated journey, restrictions on acquisition or disposal without prior written approval from the Commissioner and inspection access by inspectors (regulation 20A).

• Commissioners, the Minister and authorised officers. The Commissioner is charged with establishing and operating GMEX, approving registered persons and trade agreements, maintaining a public register and making discretionary fee and exemption decisions (regulations 7, 8, 11, 13, 14, 25). The Minister may grant exemptions under the specified categories in regulation 19. Authorised officers have enforcement power under conditions attached to exemptions (regulation 19(8)).

• System providers and data handlers. Operators or providers of facial recognition systems and TITO systems must ensure the systems meet the technical, security and privacy requirements set out in regulations 23A, 27 and 28. System providers are explicitly referenced in the facial recognition rules, including limits on who may access collected data and prohibited uses (regulation 28(1)).

• The public. The GMEX register is to be made publicly available on a website determined by the Commissioner (regulation 13(2)), so members of the public and third parties such as journalists and researchers gain access to transaction data recorded on GMEX.

Financial impacts will fall on licence-holders and applicants: prescribed fees for registration, offers and trade agreements, possible bond payments ($10,000 bonds stated in regulation 21(5) for certain applicants), indemnity obligations and potential costs certified as “prescribed costs and expenses” (regulation 21(7)). The Commissioner may, however, in absolute discretion waive or refund fees under Part 2 (regulation 14). The regulatory interventions change behaviour for purchasers, vendors and operators by centralising entitlement trading on GMEX, by imposing pre-commitment and TITO operational constraints, and by limiting uses of facial recognition data.

The regulations allocate explicit duties to licence-holders, registered persons, system providers and other actors, and they also create rights or entitlements such as the ability to apply for approvals, exemptions and fee waivers.

Duties

• Registration for GMEX and accurate offers. Persons who wish to use GMEX must be approved as registered persons by the Commissioner (regulation 8). Offers for sale and expressions of interest must be made by registered persons in the form and with the information determined by the Commissioner, and accompanied by prescribed fees (regulation 9(1)).

• Trade agreement content and approval. Trade agreements must be in the manner and form determined by the Commissioner, include specified content such as vendor and purchaser names, sale price (including GST), payment method prescribed by the Commissioner, other required information, prescribed fees and must be approved by the Commissioner before effect (regulation 10(2)-(e); regulation 11(1)).

• Notification and vesting process. Vendors under approved trade agreements must notify the Commissioner upon receipt of required payment (regulation 12(1)-(2)). The Commissioner vests entitlements and cancels others as prescribed by Schedule 1 once satisfied that payments have been made (regulation 12(3)).

• Identification cards. Holders of gaming machine licences, holders of gaming machine service licences, approved technicians and employees of monitoring licence-holders must wear identification cards in the approved form and be clearly visible while carrying out duties or while in gaming areas that are open for business (regulation 17(1)-(3)). Maximum penalty $2,500 for breach.

• Non-delegatable tasks. Holders of gaming machine licences or gaming managers must not allow others to exercise powers or perform functions or duties specified in a Commissioner-prescribed code of practice to be undertaken by a gaming manager, or exercise the power to withhold winnings in the prescribed circumstances (regulation 18). Maximum penalty $2,500.

• Indemnity and bonds with applications. Certain licence and approval applications must be accompanied by an indemnity protecting the Commissioner and the Police Commissioner against prescribed costs and expenses, and some applicants must pay a $10,000 bond at the time of lodging the indemnity (regulation 21(1)-(6)). The Commissioner may require additional bonds (not exceeding $10,000) if likely costs exceed the amount paid (regulation 21(6)).

• System and machine standards. Machines and games must be certified by the monitor licence-holder as compatible with the monitoring system (regulation 23(1)) and, subject to economic viability exceptions, comply with the Australian/New Zealand Gaming Machine National Standard 2016 as modified by the relevant Appendix (regulation 23(2)-(3)). Facial recognition systems must be able to account for physical variances, prevent unauthorised access and be operable to technical and security requirements determined by the Commissioner (regulation 23A).

• Pre-commitment and Schedule 3 compliance. Regulation 26 requires gaming machines to be operated in connection with a pre-commitment system compliant with Schedule 3. The Schedule imposes registration, limit-setting, notification, recordkeeping, language, and reporting obligations on licence-holders. Defaults, application procedures for limit variation, and timing constraints for increasing limits are prescribed (Schedule 3 items 6-9).

• TITO constraints and financial remittances. TITO systems must comply with Gambling Administration Act 2019 guidelines, not issue promotional tickets, limit credit meter impacts and ticket values, enforce redemption timelines and trigger a remittance obligation of the total credit value of unredeemed tickets to the Commissioner for the Gamblers Rehabilitation Fund if the unredeemed total at the start of a month is $750 or more (regulation 27(2)-(7)).

Rights and entitlements

• Access to GMEX. Eligible persons can apply to be registered persons and use GMEX to offer or express interest in entitlements and to submit trade agreements for approval (regulations 7-8, 10-11).

• Right to withdraw and fee consequences. A registered person can withdraw an offer or expression of interest on GMEX before expiration (regulation 9(2)), but the prescribed fee paid on lodgement will be retained if the offer is withdrawn (regulation 9(3)).

• Right to seek exemptions. Licence-holders can apply to the Commissioner for exemptions from the two-year post-transfer sale prohibition (regulation 10(6)), for exempting limits on cash facilities (regulation 25), and the Minister can grant exemptions under regulation 19 for specified training, technician and storage activities.

• Commissioner and Minister discretion. The Commissioner may, in absolute discretion, waive, reduce or refund fees payable under Part 2 (regulation 14). The Commissioner also decides form, manner and content requirements repeatedly referred to in the regulations, signifying administrative discretion over many procedural elements (see e.g. regulations 8(2)(a), 9(1)(a), 10(2)(a), 11(1)).

Process protections

• Refund on refusal. If the Commissioner refuses to approve a trade agreement, the prescribed fee paid is to be refunded (regulation 11(2)(b)).

• Withdrawal limitations. A party to a trade agreement may withdraw before Commissioner approval (regulation 11(3)), but cannot withdraw from an approved trade agreement without the Commissioner’s permission (regulation 11(4)).

• Public register disclosure. The GMEX register is public and must include detailed information about approved trade agreements, including sale price per entitlement, number vested and cancelled and purchaser type (regulation 13(1)). This creates transparency rights for third parties.

Taken together, the regulations create a combination of operational duties for licence-holders and applicants, market-process duties for vendors and purchasers on GMEX, technical and data-protection duties for system providers, and discretionary administrative rights for the Commissioner and the Minister.

The regulations set out discrete maximum monetary penalties and create enforcement pathways through Commissioner actions, Ministerial exemptions and authorised officer powers.

Monetary penalties

• Identification and delegation offences. Regulation 17 contains a maximum penalty of $2,500 for failure by a licensee, service licence holder, approved technician or monitor licence employee to wear an approved identification card visibly while on duty or in a gaming area that is open for business (regulation 17(1)-(3)). Regulation 18 carries a maximum penalty of $2,500 for allowing others to perform specified gaming manager functions or withhold winnings in prescribed circumstances.

• Private owner notification. Regulation 20(2) imposes a maximum penalty of $250 for failing to notify the Commissioner of a change of address by a private owner exempted under regulation 20.

The regulations do not set out a broad range of pecuniary penalties for other breaches. Instead, many compliance points are enforced administratively (see below). Practitioners should note that the Act itself likely contains further offence provisions and penalties referenced (the regulations often operate “for the purposes of” particular Act provisions).

Administrative enforcement mechanisms

• Commissioner decision functions. The Commissioner is empowered to approve, refuse and revoke registrations, approve or refuse trade agreements, maintain and publish the GMEX register, require forms and fees to be paid, and require notification of payment under trade agreements (regulations 7-13). The Commissioner’s refusal to approve a trade agreement triggers a refund of the prescribed fee (regulation 11(2)(b)). Revocation of an approval must be notified to affected persons (regulation 8(4)).

• Bonds and indemnities. Applicants for key licences and approvals must lodge indemnities covering prescribed costs and expenses of inquiry, and certain applicants must provide a $10,000 bond on lodging the indemnity; the Commissioner may require additional bond amounts up to $10,000 where costs are likely to exceed the bond (regulation 21(1)-(6)). Those indemnities effectively secure the Commissioner and Police Commissioner against investigative costs before a licence is granted. Enforcement in this respect is preventative and financial.

• Authorised officers and exemption conditions. In the context of Ministerial exemptions for storage of casino-owned machines, the regulations condition exemptions on Commissioner approval of premises, pre-notification for transfers and disposal, and provide that an authorised officer may exercise powers to ascertain compliance as if exercising powers under the Act, with a range of attendant offences for obstruction, failure to answer, non-compliance and abuse (regulation 19(8)). Those authorised officer powers provide on-site enforcement capability.

• Fee discretion. The Commissioner may waive, reduce or refund fees in respect of Part 2 in the Commissioner's absolute discretion (regulation 14). That discretion operates as both a compliance incentive and a remedial tool.

• Trade agreement control. A party may withdraw from a trade agreement before approval; withdrawal after approval requires Commissioner permission (regulation 11(3)-(4)). Vendors must notify the Commissioner when payment is received (regulation 12(1)), and transfers only take effect when the Commissioner is satisfied payments have been made and issues notice of the time of vesting or cancellation (regulation 12(3)-(4)). These requirements create choke points where the Commissioner can refuse to give effect to a transfer until compliance is demonstrated.

• Public register and transparency. The GMEX register's publication (regulation 13(2)) allows public scrutiny that can facilitate external enforcement pressure (for example from local government, media or competitors).

Operational compliance and remedial consequences

• Remittance to Gamblers Rehabilitation Fund. Regulation 27(7) creates a specific financial compliance obligation: if total unredeemed tickets on a premises on the second day of a month are $750 or more, the holder of the gaming machine licence must, before the last day of that month, pay an amount equal to that total to the Commissioner who must pay it to the Gamblers Rehabilitation Fund. That obligation transfers ticket liabilities into a statutory fund if the threshold is met, with financial consequences for licence-holders.

• Certification and technical approval. The requirement that machines be certified by the monitor licence-holder and comply with prescribed standards (regulation 23) means non-compliant machines may be refused approval under the Act, producing an operational bar rather than a fine.

Practical enforcement risk stems from the concentration of administrative powers in the Commissioner (approvals, revocations, fee waivers, register control, notification of vesting) and the Minister’s exemption power. Many obligations depend on Commissioner-determined forms, content and timing, which creates administrative control points where enforcement or conditionality will be exercised. For practitioners advising clients, the indemnity and bond regimes (regulation 21) and the Commissioner’s absolute discretion over fees (regulation 14) are immediate financial enforcement mechanisms to plan for.

The regulations are regulatory instruments subordinate to the Gaming Machines Act 1992 (the Act) and repeatedly operate “for the purposes of” specific Act provisions. They also reference other statutes and standards, embedding the regulations in a wider legal framework.

Interaction with the Gaming Machines Act 1992

• Implementing Act provisions. Many regulations explicitly state they are prescribed for purposes of particular sections of the Act. Examples include:
  • Regulation 4’s modules and components are declared “for the purposes” of Act provisions requiring licences to manufacture, sell or supply prescribed gaming machine components and regulating contract form.
  • Regulation 5 prescribes duties “for the purposes of section 49 of the Act.”
  • Regulation 23 prescribes certification and standards for the purposes of section 40(2)(b) and (4)(c) of the Act.
  • Regulation 23A prescribes facial recognition system approval requirements “for the purposes of section 40D(2) of the Act.”
  • Regulation 24 prescribes jurisdictions for purposes of section 42(7) and (8) of the Act.
  • Regulation 26 makes pre-commitment operation a requirement “for the purposes of section 53A(1)(d) of the Act.”
  • Regulation 27 prescribes requirements for the operation of machines by insertion of a ticket “for the purposes of section 53A(3)(c) of the Act.”
  • Regulation 27A prescribes amounts “for the purposes of section 76AA(3) of the Act.”
  • Regulation 28 prescribes requirements under Schedule 1 paragraph (ka) of the Act.

Thus the regulations supply much of the operational detail that gives effect to the Act’s licensing, approval, technical, and enforcement functions.

Interaction with other statutory instruments and standards

• Gambling Administration Act 2019. The TITO system must comply with gambling administration guidelines issued under section 17 of the Gambling Administration Act 2019 (regulation 27(2)). This cross-reference makes TITO compliance depend on an external guidelines instrument and links gaming machine operations to that Act’s administrative rules.

• Australian/New Zealand Gaming Machine National Standard 2016. Regulation 23(2) prescribes compliance with that national standard (or subsequent versions) as modified by the relevant Appendix, subject to economic viability exceptions (regulation 23(3)). That reference imports technical standard-setting developed outside this instrument. The “relevant Appendix” is defined to include the latest South Australian Appendix or the latest Appendix of a jurisdiction prescribed in regulation 24.

• Lotteries and gaming laws. Regulation 28(1)(b)(iii) excludes use of facial recognition data for a lottery within the meaning of Lottery and Gaming Act 1936 or the Lotteries Act 2019, linking the facial recognition rules to lottery legislation.

• Casino Act 1997. Regulation 19(7) contemplates exemptions that allow casino-owned machines to be stored by persons who do not hold a licence under the Act and contemplates conditions to control that storage, requiring Commissioner approval. That reference ties operational exemptions back to the Casino Act 1997 by recognising casino licence-holders under another statute.

Administrative interface

• Commissioner-determined forms and website publication. Many procedural elements are left to the Commissioner, for example the manner and form of applications and offers (regulations 8(2)(a), 9(1)(a), 10(2)(a), 11(1)), and the Commissioner also determines the website for publication of the GMEX register (regulation 13(2)). These delegations create administrative interplay between the Act’s statutory powers, the regulations’ procedural details and the Commissioner's implementation.

• Ministerial exemptions. Regulation 19 gives the Minister power to issue exemptions from provisions of the Act and the regulations to permit training, technician activities, research or storage, and to grant class-wide exemptions by Gazette notice. That creates a political-administrative interface where statutes, regulations and Ministerial instruments interlock.

Practical consequences for regulated parties

• Compliance is multi-instrumental. Operators must satisfy not only the Act and these regulations but also national standards, Commissioner-prescribed forms and guidelines under the Gambling Administration Act 2019. For TITO systems and facial recognition, compliance requires satisfying technical guidelines and security and privacy standards determined by the Commissioner or by referenced statutes.

• Cross-jurisdictional certification. Regulation 24 prescribes New South Wales, New Zealand, Queensland and Victoria as jurisdictions relevant to section 42 of the Act, which bears on certification and approval approaches where a machine or game may have been approved elsewhere. Practitioners should check the operation of section 42 alongside regulation 24.

• Evidence chain for approvals. The monitor licence-holder’s certification, Commissioner approvals, and compliance with national standards form the approvals chain for machines and games under regulation 23, so technical compliance must be demonstrated by documentation and certification compatible with these instruments.

Overall, these regulations are implementation-focused subordinate instruments that operationalise multiple sections of the Act and interlock with national standards and other statutes to create a multi-layer compliance environment.

The legislative history appended to the instrument records the creation of the Gaming Machines Regulations 2020, the revocation of the Gaming Machines Regulations 2005 and a number of variations and insertions across 2020 to 2024.

Key milestones recorded in the Legislative history

• Initial instrument and commencement. The Gaming Machines Regulations 2020 (No 50) were published in the Gazette on 30 April 2020, with a commencement notice indicating r 2 took effect on 1 June 2020 (Legislative history entries).

• Subsequent variations in 2020. Two further instruments appear in 2020 (Nos 248 and 249), with entries indicating commencement on 30 July 2020 and 3 December 2020 respectively. The history registers a number of specific operational changes effected by these instruments, for example:

  • Regulation 23A (approval of facial recognition systems) was inserted by 248/2020 (30.7.2020).
  • Various amendments to the content and application of Part 3 were made by 249/2020, including the insertion of several provisions such as regulation 16 (statutory objective), r19 variations, r20A (exemption for ocean going passenger vessels, inserted by 249/2020 r13 with effect 3.12.2020), and insertion of rr 28 and 29.

• 2021 variation. Instrument No 181 (Gazette 9.12.2021 p4333) took effect 9.12.2021. That instrument inserted regulation 27A prescribing unclaimed winnings amounts (regulation 27A inserted by 181/2021 r 5) and varied TITO unredeemed ticket definitions and thresholds (r27(7) and r27(8) were varied by 181/2021 r4).

• 2024 substitution of Part 2. A major structural change appears in 2024: instrument No 116 (Gazette 5.12.2024 p4557) substituted Part 2 and inserted Schedule 1, with commencement on 10 February 2025 (116/2024 r3 and r4). The legislative history shows that Pt 2 was reworked (Pt 2 substituted by 116/2024 r3, effective 10.2.2025) and Schedule 1 was inserted by 116/2024 r4 (10.2.2025). That indicates a substantive redesign of the approved trading system, including the mapping table in Schedule 1 specifying how entitlements purchased, offered and cancelled interrelate.

• Revocation of earlier regulations. The Gaming Machines Regulations 2020 revoked the Gaming Machines Regulations 2005 (Legislative history note).

Documented variations and provision-level changes

• The history provides a provision-by-provision table summarising how specific clauses have been varied, deleted, substituted or inserted across the instruments listed. Examples include the deletion of earlier versions of Part 2 before substitution by 116/2024 and the insertion of new regulatory provisions such as 23A, 27A and 28.

• The history notes transitional regulations (Schedule 4) that provided a temporary regime for TITO and facial recognition system approvals until 3 December 2020, showing a staged approach to implementing these new system requirements.

Practical effect for advisers and compliance officers

• Dates matter. Several variations have commencement dates different from Gazette dates and practitioners must map specific obligations to their relevant commencement dates. For example the 116/2024 substitution of Pt 2 only commences on 10 February 2025, so pre-10.2.2025 advice should reference the earlier Pt 2.

• Prior versions retain relevance. The Legislative history lists historical versions (30.7.2020, 3.12.2020, 9.12.2021). For disputes or transitional compliance, the text applicable on a given date must be checked; regulators may apply different rules depending on when an agreement was made or an application lodged.

• Structural shifts. The insertion of Schedule 1 and substitution of Pt 2 indicate a reallocation of entitlements and a new approved trading mechanics. Entities engaged in buying, selling or structuring trade agreements should review the new Schedule 1 mapping and Commissioner-determined forms post-10.2.2025.

• Transitional provisions. Schedule 4 operated as a temporary measure to permit notified TITO and facial recognition requirement compliance until 3 December 2020. Any historical approvals or transitional compliance should be checked against those transitional clauses.

The legislative history in the document is the authoritative record of variations listed. Practitioners should map each relevant regulatory obligation to its commencement date and, where regulatory discretion or Commissioner-determined forms matter, verify whether accompanying Commissioner notices or guidelines have been issued or updated following the listed amendments.

The text of the Gaming Machines Regulations 2020 provided does not record any cases, judicial reviews, or tribunal determinations. There is no litigation history entry in the instrument itself. Accordingly the instrument does not cite any judicial interpretation or litigation outcomes that would shed light on the construction of its provisions.

Implications of an absence of litigation in the instrument

• No judicially supplied interpretive guidance is recorded here. Where the regulations rely on Commissioner-determined forms or on standards set by other bodies (for example the Australian/New Zealand Gaming Machine National Standard 2016), the absence of reported decisions in the instrument means that policy and practical interpretation will be shaped primarily by administrative practice and any external guidelines rather than by precedent contained in the text.

• Administrative decisions will be key early sources of interpretation. Given multiple discretionary administrative gates (for example approval of registered persons, approval of trade agreements, fee waivers and bond requirements), the Commissioner’s published forms, guidelines, decisions and any reasons provided for refusals, approvals, revocations or fee waivers are likely to be the first place where practical interpretive content emerges. Those administrative materials could later form the factual foundation for any judicial review challenge.

• Risk management focus for clients. In contexts where statutory duties are new or technical (for example the pre-commitment code in Schedule 3, TITO financial remittance obligations in regulation 27(7), and facial recognition data retention rules in regulation 28), regulated parties should assume that initial enforcement will be administrative and evidential: recordkeeping, audit trails, certifications by the monitor licence-holder and compliance with Commissioner-prescribed forms will be the practical determinants of whether enforcement action follows.

• Monitor for future decisions. Because the instrument creates public registers (GMEX register, regulation 13) and centralised administrative processes, litigation is possible in due course but the text provides no cases. Practitioners should track Commissioner determinations, published reasons for statutory decisions and any tribunal or judicial challenges to those decisions for emerging law.

If litigation arises in relation to these regulations, a practitioner will need to source decisions externally from courts and tribunals and to tie any judicial reasoning back to the explicit terms of the Act and these regulations, paying particular attention to delegated discretion, the content of Commissioner forms and guidelines, and the interplay with standards referenced in regulation 23.

This section flags specific provisions that create practical traps, financial exposures or operational constraints which often surprise clients when the details are applied.

• Fee retention on withdrawal. If a registered person withdraws an offer or expression of interest on GMEX before expiry, the prescribed fee lodged with the offer is retained (regulation 9(3)). There is no automatic refund unless the Commissioner exercises discretion under regulation 14. Practitioners should plan fees into transaction budgeting.

• Commissioner-determined forms and substantial administrative discretion. Many procedural elements require adherence to “manner and form” and information “determined by the Commissioner” (see regulations 8(2)(a), 9(1)(a), 10(2)(a), 11(1), 12(2)). This creates regulatory uncertainty about exact submission formats, timing and required evidence until Commissioner forms and directions are published. Parties should confirm the Commissioner’s current published forms before lodging offers or trade agreements.

• Schedule 1 cancellation mapping. When an approved trade agreement is processed, the Commissioner vests entitlements in the purchaser and cancels other entitlements according to the Schedule 1 mapping (regulation 12(3)(b) and Schedule 1). That mapping can result in a larger number of entitlements being offered for sale than are eventually vested, with specified cancellations of entitlements surrendered to the Crown. Parties must check Schedule 1 to understand the net effect of a transaction on the installed entitlement pool for a premises.

• Club One special rules. Club One is uniquely constrained: it must not sell entitlements to any eligible person other than a non-profit association holding a gaming machine licence, and the Schedule 1 matching requirement does not apply to its sales (regulation 10(4)). For counterparties, Club One’s special treatment may limit available buyers and alter market dynamics.

• Two-year resale prohibition and Commissioner exemption. An eligible person who acquires a general and hotel licence must not, within two years, enter into a trade agreement to sell entitlements held in relation to those premises (regulation 10(5)). The Commissioner may exempt on application but the exemption process requires forms, information and fees (regulation 10(6)). Parties should account for potential holding-period constraints post-transfer.

• Indemnities and bonds. Applications for certain licences and approvals must be accompanied by an indemnity and, for some applicants, a $10,000 bond (regulation 21(1)-(6)). The Commissioner may require further bonds if costs exceed the bond amount (regulation 21(6)). This creates upfront capital requirements for applicants and potential further calls.

• TITO liabilities and the Gamblers Rehabilitation Fund. If on the second day of any calendar month the total credit value of all unredeemed tickets at a premises is $750 or more, the licence-holder must pay that total to the Commissioner who must place it in the Gamblers Rehabilitation Fund (regulation 27(7)). That provision effectively converts ticket liabilities into an immediate outflow at a relatively low threshold and creates cash-flow risk, particularly for venues that operate large TITO volumes. Operators must reconcile unredeemed ticket exposure monthly.

• Ticket value and credit meter constraints. TITO tickets cannot cause a machine’s credit meter to exceed $149.99 when redeemed, and tickets cannot have credit value more than $5,000 (regulation 27(4)-(5)). Systems must enforce those caps; failure to do so may result in breach of regulation and potential refusal of machine approvals.

• Short data retention for facial recognition. The facial recognition rules limit retention of a non-barred person's facial image or identifying data to 72 hours (regulation 28(2)(b)). There are strict limitations on permitted uses of the data and access rights (regulation 28(1)). Operators must ensure system logs, retention policies and deletion routines meet the 72-hour rule and restrict access to specified personnel only.

• Public GMEX register. The Commissioner must publish the GMEX register on a Commissioner-determined website (regulation 13(2)). Approved trade agreements will expose sale prices, number of entitlements vested and cancelled, and purchaser type to public view (regulation 13(1)(c)). Parties that may have wished to keep prices confidential should account for this public disclosure.

• Pre-commitment default and limit increases. The Voluntary Pre-commitment Code sets a default daily expenditure limit of $100 if a registering customer does not specify one (Schedule 3 item 7). If a customer has played since registering, a requested increase to an expenditure limit only takes effect after 24 hours and following confirmation that the customer still wishes the increase (Schedule 3 item 8.3). Systems and staff must be able to enforce these temporal rules, and licence-holders must capture and store the evidence of confirmations and requests.

• Retained Commissioner discretion on fee waivers. Regulation 14 gives the Commissioner absolute discretion to waive, reduce or refund fees payable under Part 2. While helpful for some, it also means there is no statutory right to relief and applicants must treat fee obligations as potentially fixed unless a waiver is secured.

• Delegation prohibition. Regulation 18 makes some manager tasks non-delegable. Licence-holders must be careful about tasking third parties or unapproved staff, especially for duties prescribed in Commissioner-issued codes of practice or powers to withhold winnings.

These “gotchas” are concrete compliance and commercial risks embedded in the regulations. They tend to be administrative or technical rather than doctrinal, but they can have material financial and operational consequences if overlooked.

This section outlines practical steps a licence-holder, applicant or purchaser/vendor should take to comply with the regulations, mapping actions to specific regulatory provisions.

1. Understand classification of components and duties.

   • Review regulation 4 to determine whether items you supply or contract in relation to are “prescribed gaming machine components.” If you manufacture, sell or supply software packages that control any part of a gaming machine or devices containing that software, expect licensing and contract-form obligations under the Act to apply (regulation 4(1)). For other items listed in regulation 4(2), confirm which Act provisions apply and ensure any required approvals or licences are obtained.

2. Register for GMEX and follow Commissioner forms.

   • If you are an eligible person intending to offer, purchase or arrange trades in gaming machine entitlements, apply to be a registered person under regulation 8. Ensure applications are in the manner and form required by the Commissioner, specify the registered premises, include any required information if acting on another’s behalf and are accompanied by the prescribed fee (regulation 8(2)(a)-(d)).
   • Expect and check the Commissioner’s published forms and website. Because many procedural requirements are specified by Commissioner-determined forms, confirm the latest forms and submission process before lodging.

3. Making offers, expressions of interest and trade agreements.

   • Make offers and expressions of interest on GMEX using the form and content determined by the Commissioner and accompany them with the prescribed fee (regulation 9(1)). Note that withdrawing an offer retains the prescribed fee (regulation 9(3)).
   • For trade agreements, ensure the agreement sets out vendor and purchaser names, sale price per entitlement including GST, payment method in the Commissioner’s required manner, and any other information required (regulation 10(2)(b)(i)-(iii), (d)). Lodge the trade agreement for approval on GMEX as required (regulation 11(1)). Parties may withdraw prior to approval but cannot withdraw after approval without the Commissioner’s permission (regulation 11(3)-(4)).

4. Plan for Schedule 1 effects and timing.

   • Review Schedule 1 carefully to understand how many entitlements will be vested in the purchaser and which entitlements will be cancelled when a trade agreement is approved and payments are made (regulation 12(3) and Schedule 1 table). Ensure transaction structuring accounts for cancellations and vesting outcomes. Ensure vendors notify the Commissioner as soon as they receive required payment under the agreement (regulation 12(1)) and make that notification on GMEX in the required form (regulation 12(2)).

5. Technical approvals and monitor certification.

   • Before deploying machines or games, obtain certification from the holder of the gaming machine monitor licence that the machine or game can be operated compatibly with the monitoring system (regulation 23(1)). Ensure machines meet the Australian/New Zealand Gaming Machine National Standard 2016 as modified by the relevant Appendix, or document economic non-viability to modify where that exception is relied upon (regulation 23(2)-(3)).

6. Implement a compliant pre-commitment system.

   • Operate each gaming machine in connection with a pre-commitment system compliant with Schedule 3 (regulation 26). The Schedule requires:
     • multiple registration pathways and customer consent (items 1-5);
     • customer ability to set and vary expenditure and time limits, with default daily limit $100 if not set (items 6-9);
     • system display and notification behaviour, language support and staff notifications (items 10-12);
     • communication requirements every 6 months, periodic and on-demand activity statements with specified content, and de-identified data disclosure to the Commissioner on request (items 13-19).
   • Ensure staff are trained to accept registration requests, process variations, and to make and retain evidence of confirmations and changes in line with items 6-9.

7. TITO system operation and ticket lifecycle controls.

   • If providing machines operable by insertion of tickets, ensure the TITO system complies with Gambling Administration Act 2019 guidelines (regulation 27(2)) and the specific restrictions in regulation 27(3)-(6): no promotional material on tickets, credit meter cap from ticket redemption to not exceed $149.99, ticket maximum credit $5,000, redemption timelines of 30 days for redemption via TITO and 12 months for redemption by other means.
   • Reconcile unredeemed ticket liabilities monthly. If total unredeemed tickets at a premises on the second day of a calendar month is $750 or more, pay that total to the Commissioner before the end of the month for transmission to the Gamblers Rehabilitation Fund (regulation 27(7)).

8. Facial recognition systems: approval and operation.

   • Obtain Commissioner approval for a facial recognition system and ensure it satisfies the prescription in regulation 23A: accuracy for physical variances in facial features, design to prevent unauthorised access, and operability to the Commissioner’s technical and security requirements.
   • Operate the system in compliance with regulation 28: restrict access to collected data to system provider, licensee, gaming manager or gaming employee (regulation 28(1)(a)); do not use data for prohibited purposes such as encouraging gambling or customer loyalty programs (regulation 28(1)(b)); display notices at each entrance to the gaming area in a Commissioner-approved manner (regulation 28(2)(a)); and delete facial images and identifying data of non-barred persons after 72 hours (regulation 28(2)(b)).

9. Indemnities, bonds and financial provisioning.

   • Lodge indemnities as required with applications listed in regulation 21(2). Where applicable, lodge the $10,000 bond at the time of the indemnity (regulation 21(5)), and be prepared for the Commissioner to require an additional bond up to $10,000 if costs are expected to exceed the bond (regulation 21(6)).

10. Identification card and delegation controls.

    • Ensure identification cards are issued in the form approved by the Commissioner and are worn visibly by licence-holders, service licence-holders, approved technicians and monitor licence employees as prescribed (regulation 17).
    • Do not permit others to exercise non-delegable functions listed in regulation 18 (functions specified by a Commissioner-prescribed code of practice to be undertaken by a gaming manager, and the power to withhold winnings in prescribed circumstances). Review any Commissioner-prescribed codes of practice to identify those non-delegable functions.

11. Apply for Commissioner or Minister exemptions where needed.

    • Use the Commissioner’s or the Minister’s exemption procedures where provided. For example, if a two-year resale prohibition applies under regulation 10(5) and a sale is needed, apply to the Commissioner for exemption (regulation 10(6)). For training, technician activities, storage or research, seek a Ministerial exemption under regulation 19. Ensure exemption applications follow the form and content requirements prescribed and pay any associated fees.

12. Maintain records and be audit-ready.

    • Keep detailed records to demonstrate compliance: GMEX offer and trade agreement documents, payment notifications, monitor licence-holder certifications, system logs for pre-commitment and TITO transactions, facial recognition logs showing deletion after 72 hours, customer confirmations for limit increases, activity statements provided to customers, lodgement of indemnities and evidence of bonds paid. Be ready to provide de-identified pre-commitment data to the Commissioner when requested (Schedule 3 item 19).

13. Plan for public disclosure and civil/commercial consequences.

    • Recognise that details of approved trade agreements will be publicly available via the GMEX register (regulation 13(1)-(2)). If price or counterparty confidentiality is a concern, plan accordingly and assume that sale prices and purchaser types will enter the public domain.

14. Engage early with the Commissioner.

    • Given the extensive Commissioner discretion over forms, fees, waivers (regulation 14) and approvals, early consultation with the Commissioner’s office (or their published guidance) will reduce the risk of procedural rejections or delays. Confirm the current website and the forms required for GMEX submissions and public notices in line with regulation 29.

Following these steps will align operational practice with the regulatory text. The recurring practical theme is that many core obligations hinge on Commissioner-determined form and content and on certification by the monitor licence-holder, so maintaining documentary evidence of regulatory interactions and certifications is essential.