Key employee. The regulation expands the Act’s definition to capture a broad range of personnel (section 8). A person is a key employee if they manage or supervise totalizator conduct for a licensee; make operational decisions about the totalizator; take bets; calculate, determine or declare dividends; undertake financial or accounting tasks including handling invested money; design, construct, create, operate, repair or maintain devices, equipment or software used in or affecting the totalizator; or provide security. The scope is wide enough to include senior managers, tellers, systems administrators, software developers, maintenance technicians and security guards. The category applies “whether or not appointed under a contract of service”, capturing contractors and outsourced service providers. The Minister can issue a written notice exempting a person or class, providing a release valve, but the default is inclusion. This matters because key employees are subject to probity assessment and may trigger licensing conditions, and changes in key employees must be notified under Schedule 1.

Prohibited shareholding interest and disregarding relevant interests. Under the Act, a person cannot have a prohibited shareholding interest in a totalizator licensee. Section 9 of the regulation creates an important carve‑out for passive institutional investors. An authorised trustee corporation (as defined under the old Corporations Law) or a responsible entity for a registered scheme (under the Corporations Act 2001 (Cth)) can hold shares without those shares being counted toward the prohibited threshold, provided: the shares are held in a trustee capacity under an approved deed; the trustee or custodian (or a related body corporate) does “not decide the way in which voting rights attached to the shares are exercised”. Similarly, a registered scheme’s responsible entity qualifies if it does not decide voting rights. This preserves the ability of managed funds and estate planning structures to invest in totalizator licensees without triggering probity or divestiture requirements. However, any arrangement where the trustee or responsible entity influences voting will bring the shares back within the Act’s restrictions.

Notification of changed circumstances. Section 10 and Schedule 1 impose an ongoing duty to notify Liquor & Gaming NSW of a range of changes. Unlike the one‑off licence application process, this is a continuous disclosure obligation. Changes include: business contact details; board composition; register of members; commencement or conclusion of civil or criminal proceedings (including those involving key employees); judgments, charges or repossessions; Commonwealth tax‑assessment amendments; changes in key employees; winding‑up, voluntary administration, or compromises with creditors; and appointment of receivers or managers. The required particulars are detailed , for example, for proceedings involving a key employee, the licensee must provide the nature of proceedings, names and addresses of other parties, dates, and outcome (unless disclosure is prohibited). This imposes a significant administrative burden on licensees to maintain internal monitoring systems and promptly escalate changes to the regulator.

Penalty notice regime. Schedule 2 creates a fining system for 16 offences. An authorised officer can issue a penalty notice instead of prosecuting the matter in court. The amounts are set by regulation, not at the officer’s discretion. For serious responsible‑gambling breaches (sections 80, 80A, 80AA, 80B) the penalty notice amount for corporations is $13,750, five times the individual amount. Other regulatory offences (e.g., failing to notify a changed circumstance) attract $550 for both individuals and corporations. The schedule also includes section 34(4) of the Gaming and Liquor Administration Act 2007 as applied by the Act, with a uniform $1,100 penalty. Paying a penalty notice does not constitute an admission of guilt but does finalise the matter without a criminal record, provided the amount is paid within the specified time.

Remedial orders. Section 12 prescribes certain offences for which the Secretary may apply to a court for a remedial order under section 103A of the Act. The prescribed offences are: sections 80(1), (4) and (5) (failure to display or include advisory statements), 80B (failure to comply with condition restricting advertising), 81(1), 82(1) and 84(3) (various conduct prohibitions), and sections 5(1) and 6(1)(a) and (b) of this regulation (brochure and notice display failures). A remedial order can require a licensee to take specified action to remedy the breach, such as installing signage or ceasing certain conduct. This provides a flexible enforcement tool that does not depend on criminal conviction.

Fixed tax reduction apportionment. Section 11 sets the share of the tax reduction under section 70 of the Act among the three principal racing bodies: 77.3% for thoroughbreds, 12.7% for harness, 10% for greyhounds. These percentages are not linked to each code’s relative contribution to totalizator turnover or to any formula. They are a legislative allocation that might lag behind changes in industry structure, but they give the racing bodies certainty of revenue share independent of annual negotiation.

Responsible gambling practices (Part 2). The regulation imposes four main operational duties: (1) display the prescribed advisory statement on entry forms and betting tickets (section 7); (2) make problem‑gambling information brochures available in each betting area, positioned to be noticed, and provide foreign‑language brochures on request (section 5); (3) display a counselling notice in each betting area (section 6(1)(a)); (4) display a gambling help notice on each ATM and EFT facility (section 6(1)(c)). The notices and brochures must be approved by the Secretary and published on the Liquor & Gaming NSW website. The duty extends to ensuring the copies are positioned so that a person in that part of the premises would be “reasonably likely” to be alerted. A breach of any of these duties carries a maximum penalty of 50 penalty units, and schedule 2 allows penalty notices of $550 for each breach.

Totalizator licensees and their contractors. Anyone holding a licence under the Totalizator Act 1997 to conduct totalizator betting , typically the racing industry bodies themselves or commercial operators , is subject to every part of the regulation. Contractors who conduct totalizator betting on behalf of a licensee are also captured, including by the notification obligations in Schedule 1 (the schedule uses “licensee or contractor” throughout). Licensees bear the primary compliance cost: printing brochures, ordering approved notices, programming printer systems to include the advisory statement on tickets, training staff, monitoring key employee changes, and maintaining a notification system.

Key employees themselves. Although the regulation imposes duties on licensees, key employees are indirectly affected because their appointment, changes to their status, and any legal proceedings they are involved in must be notified. The broad definition means that many workers who would not think of themselves as “gaming industry employees” , such as contract software engineers who maintain the totalizator system , may be treated as key employees unless exempted by the Minister. This could affect their employment terms and may require them to undergo probity checks.

Racing industry bodies. Racing New South Wales, Harness Racing New South Wales and Greyhound Racing New South Wales receive the prescribed shares of the tax reduction amount (section 11). The percentage split directly affects their revenue and, by extension, their funding of prizemoney and infrastructure. A shift in betting patterns between codes does not alter the allocation unless the regulation is amended.

Institutional investors. Authorised trustee corporations, responsible entities of registered schemes, and their related bodies corporate benefit from the share‑interest disregard provision. Without it, many managed funds and trustee companies that hold shares in totalizator licensees as part of diversified portfolios would risk violating the Act’s ownership limits. The exemption protects passive investment but imposes record‑keeping and structural requirements (non‑involvement in voting decisions). It affects how custodians and fund managers structure their shareholdings.

Punters and the general public. Indirectly, the responsible gambling provisions aim to increase the visibility of help services. Punters will see the advisory statement on every ticket and entry form, and will encounter brochures and counselling notices on betting premises and at ATMs. While the effect on gambling behaviour is uncertain, the provisions impose a small time and attention cost on all bettors by creating signage that must be noticed.

Liquor & Gaming NSW and the Secretary of the Department of Enterprise, Investment and Trade. The regulation designates Liquor & Gaming NSW as the administrative arm and the Secretary as the decision maker for approving brochures and notices, issuing exemption notices regarding key employees, and applying for remedial orders. The regulation expands the regulator’s enforcement toolkit by creating penalty notice amounts and specifying remedial‑order offences.

Foreign‑language speakers. Section 5 creates a right for any person to request a foreign‑language problem‑gambling brochure. Licensees must provide it “as soon as possible” after the request, but only if the brochure has been approved by the Secretary and published on the website. If no approved foreign‑language brochure exists for a given language, the licensee has no duty. The provision therefore creates a contingent obligation that depends on the regulator’s choices.

Licensee duties. The regulation imposes the following principal duties on a licensee:

• Display a prescribed advisory statement on each entry form and betting ticket (section 7). This is a per‑ticket obligation: every ticket issued must carry the help information.
• Ensure copies of a problem‑gambling information brochure are available in each part of the premises where totalizator betting is conducted (section 5(1)(a)).
• Position those brochures so that a person in that part of the premises would reasonably be expected to be alerted to them (section 5(1)(b)).
• On request, provide a foreign‑language version of a problem‑gambling information brochure in the language requested, as soon as possible (section 5(1)(c)).
• Display a counselling notice in each part of the premises where totalizator betting is conducted, positioned so that a person would reasonably be expected to be alerted to its contents (section 6(1)(a) and (b)).
• Display a gambling help notice on each ATM and EFT facility on the premises where totalizator betting is conducted (section 6(1)(c)).
• Notify Liquor & Gaming NSW of the changes specified in Schedule 1, providing the particulars listed in the corresponding entry (section 10).
• Ensure that persons performing roles that fall within the key employee definition are properly recognised and changes in key employee status are notified (section 8, Schedule 1).
• Abide by the remedial‑order regime: if the Secretary obtains a remedial order for a prescribed offence, the licensee must comply with the court’s directions.

Licensee rights. Licensees may:

• Apply to the Minister for a written notice exempting a person or class from the key employee definition (section 8(2)). This allows a licensee to argue that a particular role (e.g., an external security contractor with limited access) does not warrant probity treatment.
• Rely on the share‑interest disregard provision (section 9) to avoid prohibited‑shareholding consequences when shares are held passively through an authorised trustee corporation or registered scheme.
• Pay a penalty notice as an alternative to court prosecution for offences listed in Schedule 2 (section 1 of that schedule).
• Continue to rely on things done under the old 2012 regulation (savings provision, section 13), such as existing approved notice placements or key employee designations.

Rights of individuals (punters and employees). A person on the premises has the right to request a foreign‑language problem‑gambling brochure (section 5(1)(c)) and to receive it as soon as possible. A key employee has no explicit right under the regulation to be notified of their designation, but the licensee’s notification duty under Schedule 1 (item 8) means that a person who becomes or ceases to be a key employee must be reported to the regulator, implying the licensee must identify and record that status internally.

Minister’s and Secretary’s powers. The Minister may issue exemption notices from the key employee definition. The Secretary approves the form and content of counselling notices, gambling help notices, problem‑gambling information brochures and foreign‑language brochures, and publishes them on the Liquor & Gaming NSW website. The Secretary may also apply to a court for a remedial order for prescribed offences. Liquor & Gaming NSW (as the administrative body) receives notifications and issues penalty notices.

The regulation establishes a multi‑tiered enforcement framework.

Maximum court penalties. Several provisions create a maximum penalty of 50 penalty units (section 5(1), section 6(1), section 7). Under the Crimes (Sentencing Procedure) Act 1999, a penalty unit is currently $220 for an individual, so the maximum court‑imposed fine is $11,000 per offence for an individual. For corporations, the maximum may be higher because some Acts multiply penalty units for corporate offenders, but the regulation does not specify a higher amount , the general criminal law applies. Breaches of these provisions (e.g., failing to display a counselling notice) can result in prosecution and a criminal conviction.

Penalty notice amounts. Schedule 2 provides a cheaper, administrative alternative. For the three regulation offences (sections 5(1), 6(1) and 7), the penalty notice amount is $550 for both individuals and corporations. This is well below the maximum court penalty, making it likely that regulators will issue penalty notices for minor or first breaches rather than prosecute. For equivalent Act offences (e.g., section 80 , failure to include advisory statement) the penalty notice amounts are significantly higher: $2,750 for individuals and $13,750 for corporations. The disparity signals that the regulator views the underlying Act obligations (such as the credit betting ban) as more serious.

Remedial orders. Section 12 prescribes 11 offence types for which the Secretary may apply for a remedial order. A remedial order is a court order directing a person to take specified action to remedy the contravention , for example, to display a missing notice, to cease unlawful advertising, or to install the advisory statement on tickets. It is a civil remedy, not a criminal penalty, but failure to comply with a court order can lead to contempt proceedings. Remedial orders are available for the most serious responsible‑gambling breaches and for the regulation’s display duties, giving the regulator a tool that can compel compliance without relying solely on fines.

Enforcement bodies. Liquor & Gaming NSW (a part of the Department of Enterprise, Investment and Trade) administers the regulation. The Secretary can delegate powers under the Act and regulation to authorised officers. The regulation does not create new investigative powers beyond what the Act provides.

Defences and limitations. The regulation does not itself provide statutory defences. The Act and general criminal law defences (such as reasonable mistake) would apply. For penalty notices, the recipient can elect to have the matter heard in court, where they can contest liability. The notification duty under section 10 and Schedule 1 is not subject to a materiality threshold , any change of the specified kind must be notified, even if trivial, unless it falls outside the listed categories.

Interaction with criminal sanctions. Many of the prescribed offences are strict liability (e.g., failure to display a notice). The penalty notice regime is designed for these strict liability offences. For more culpable conduct, such as fraud or operating without a licence, the Act provides higher penalties not addressed by this regulation.

The regulation sits entirely under the Totalizator Act 1997. Every provision is made “for the Act” or “for a section of the Act”. This means the regulation cannot expand the Act’s scope , it only supplies detail that the Act leaves to regulation. If the Act is amended, the regulation’s references to specific sections may need updating.

The regulation interacts with several other laws:

Corporations Act 2001 (Cth) and the Corporations Law. Section 9 relies on definitions from Commonwealth corporations legislation: “authorised trustee corporation” (as it existed under the Corporations Law before the Managed Investments Act 1998), “registered scheme”, “related body corporate”, and “responsible entity”. The regulation also refers to “approved deed” under Part 7.12 Division 5 of the Corporations Law as continued under the Corporations Act 2001. This means that any amendment to Commonwealth corporations law that alters those definitions could change the application of the share‑interest disregard provision without a corresponding amendment to this regulation.

Gaming and Liquor Administration Act 2007. Schedule 2 includes penalty notice amounts for section 34(4) of the Gaming and Liquor Administration Act 2007 as applied by section 91E of the Totalizator Act. That section deals with obstructing or hindering an authorised officer. The regulation therefore incorporates by reference enforcement provisions from the broader gaming administration framework.

Casino Control Act 1992. Section 5 of this regulation defines the “Responsible Gambling Fund” by reference to the fund established under section 115 of the Casino Control Act 1992. The problem‑gambling brochures must include the telephone number for GambleAware, which is funded from that fund. This creates a cross‑dependency: if the Responsible Gambling Fund ceases to operate or is renamed, the regulation’s definition may become stale.

Subordinate Legislation Act 1989. This regulation is made under the Subordinate Legislation Act 1989 and replaces the 2012 regulation, which was repealed on 1 September 2022 under section 10(2) of that Act.

Interpretation Act 1987. The note to section 3 reminds readers that definitions and interpretive provisions in the Interpretation Act 1987 apply. This affects how terms like “premises”, “person”, and “written notice” are construed.

Federal taxation law. Schedule 1 requires notification of any amendment to the licensee’s “assessment under taxation legislation of the Commonwealth”. That includes income tax, GST, and other federal tax amendments. The regulation does not create a taxpayer right or duty, only a notification obligation to the state regulator.

The Totalizator Regulation 2022 is a new instrument that replaced the Totalizator Regulation 2012 on 1 September 2022. The old regulation was repealed automatically under section 10(2) of the Subordinate Legislation Act 1989 on that date. No amending regulations have been noted in the text provided. The savings provision (section 13) means that “an act, matter or thing” done under the 2012 regulation continues to have effect under the new regulation , so existing approved brochures, notices, key employee designations and notifications remain valid without renewal.

The regulation does not include an amendment history schedule. Based on the version provided (as at the filing date), no amendments have been made since commencement. However, the regulation may be amended periodically as the Act is updated or as policy changes in responsible gambling or tax apportionment occur. Practitioners should check current versions for any amendments that may have been made after the version supplied. The regulation’s commencement date (1 September 2022) means it is relatively recent and likely to remain stable for several years, but the fixed percentage distribution for the tax reduction amount (section 11) could become a target for industry lobbying if market shares shift appreciably.

No litigation history is recorded in the regulation text. As a subordinate instrument that prescribes administrative details and penalty amounts, it is unlikely to be litigated directly. Challenges would more likely be directed at the Act itself. However, the regulation’s provisions could be tested collaterally: for example, a court might need to interpret the scope of the key employee definition (section 8) in a prosecution under the Act, or consider whether a penalty notice was validly issued for a regulation offence. The share‑interest disregard provision could also be relevant in proceedings about prohibited shareholdings. The absence of recorded case law specific to this regulation does not mean it will not generate disputes; the broad key‑employee definition in particular may prompt argument about whether certain contractors or software developers fall within the prescribed categories.

Positioning requirements are subjective. Sections 5(1)(b) and 6(1)(b) require brochures and notices to be positioned so that it is “reasonable to expect a person in that part of the premises would be alerted”. This is an objective standard, but what is “reasonable” may vary with the layout of the premises, the presence of competing signage, and the typical behaviour of bettors. Licensees cannot simply put brochures behind a counter; they must place them where a person would likely see them without active searching. A regulator could argue that a brochure hidden behind a display stand or placed in an obscure corner does not meet the standard.

Foreign language brochure duty is open ended. Section 5(1)(c) requires the licensee to give a copy of a foreign‑language brochure “as soon as possible after receiving the request”. There is no safe harbour period. If a person requests a brochure in a language for which an approved brochure exists, the licensee must provide it promptly. Licensees should keep a stock of commonly requested foreign‑language brochures (if approved and published) to avoid delay. If no brochure is approved for that language, the licensee has no duty, but they may still want to point the person to the GambleAware number.

ATMs and EFT facilities must have notices. Section 6(1)(c) requires a gambling help notice on each ATM and EFT facility on the premises. This includes ATMs operated by third‑party banks or independent providers. The licensee is responsible for the notice on those machines, even if they do not own or control the machine. Compliance may require negotiating with the ATM provider or affixing a sticker. The regulation allows the notice to be a “permanently visible light emitting display” (e.g., a digital screen that cycles the message), but if the machine has no such display, a sticker or decal must be used.

IT contractors may be key employees. The definition in section 8 includes persons whose duties include “designing, constructing, creating, operating, repairing or maintaining a device, equipment or software used in, or that otherwise affects, the conduct of the totalizator”. This covers external software developers who build the betting platform, network engineers who maintain the system, and even IT support staff who troubleshoot issues. Licensees who outsource these functions must still monitor those contractors’ status and notify changes under Schedule 1. The Minister can exempt classes, but until an exemption is granted, the broad definition stands.

Notification of key employee proceedings is broad. Schedule 1 requires notification of civil or criminal proceedings to which a key employee is a party, “of which the licensee or contractor is aware”. This creates an asymmetry: the licensee must report proceedings it knows about, but has no duty to proactively investigate whether its key employees are involved in litigation. However, the qualifier “of which the licensee … is aware” still imports imputed knowledge , if a manager knows of a key employee’s court case and does not notify, it is a breach. Licensees should institute a system for key employees to self‑report involvement in legal proceedings.

Notification of proceedings includes “commencement, settlement, discontinuance or finalisation”. Each event triggers a notification obligation. If a single proceeding passes through all four stages, the licensee must notify four times, with the required particulars for each stage (nature, parties, dates, outcome, unless disclosure is prohibited). This is a significant administrative load.

Tax reduction apportionment is fixed, not formula based. Section 11 sets the percentages in stone: 77.3%, 12.7%, 10%. If a racing code’s share of totalizator turnover changes dramatically (e.g., if greyhound racing is banned or shrinks), the distribution will not adjust automatically. That could produce a mismatch between who generates the tax and who receives the reduction benefit. A licensee that conducts totalizator betting on multiple codes might find that the apportionment does not reflect the actual contribution of each code to the tax base.

Penalty notice amounts for corporations are generally the same as for individuals for regulation offences. For sections 5(1), 6(1) and 7, the penalty notice amount is $550 for both individuals and corporations. However, for the Act offences (e.g., section 80), the corporate penalty is five times the individual amount ($13,750 vs $2,750). This means that a corporate licensee breaching a regulation provision (e.g., failing to display a notice) pays the same penalty as an individual, but breaching an Act provision triggers the multiplier. Licensees structured as corporations should be especially careful about Act‑level obligations.

Remedial orders can be sought for regulation offences. Section 12 includes sections 5(1) and 6(1)(a) and (b) as prescribed offences for which a remedial order may be sought. This means a simple failure to display a brochure or notice can lead to a court order compelling specific performance, rather than just a fine. The cost of complying with a court order (including legal fees and potential supervision) may exceed the maximum court penalty.

A licensee should take the following practical steps to comply with this regulation:

1. Appoint a compliance officer responsible for monitoring regulatory requirements, maintaining the register of key employees, and managing notifications to Liquor & Gaming NSW.

2. Obtain and install approved signage and brochures. Download from the Liquor & Gaming NSW website the counselling notice, gambling help notice, problem‑gambling information brochure (English and any available foreign‑language versions). Print sufficient copies. Place the counselling notice in each betting area, positioned at eye level where bettors are likely to see it (e.g., near the betting counter). Place the gambling help notice on every ATM and EFT facility , if the machine has a digital screen, use a light‑emitting display if possible; otherwise, affix a durable sticker. For problem‑gambling brochures, put a dispenser or pile in each betting area, clearly visible.

3. Review all entry forms and betting tickets that the licensee produces or uses. Ensure that every ticket and entry form (including digital tickets and online betting slips) includes the exact prescribed advisory statement: “Help is close at hand / www.gambleaware.nsw.gov.au / 1800 858 858”. Work with the ticket printing system vendor or software developer to embed this text into the template. For paper tickets, verify the printer settings produce the text legibly.

4. Identify all key employees in accordance with section 8. Conduct a review of all staff and contractors who manage operations, take bets, calculate dividends, handle money, design or maintain software/hardware, or provide security. Document each person’s role and whether it falls within the definition. For any persons who are key employees, record their names, addresses, and commencement dates. Maintain a register of key employees and their changes.

5. Consider seeking Ministerial exemptions for any persons or classes of persons who arguably fall within the definition but whose duties are so peripheral or low‑risk that including them is disproportionate. For example, a contractor who only provides occasional security monitoring from a remote location might be a candidate for exemption. The Minister can issue a written notice under section 8(2). The exemption request should be prepared with legal advice.

6. Establish a notification procedure that tracks the changes listed in Schedule 1. Assign responsibility to the compliance officer to monitor: changes to business name, address, email, phone, and website; board membership changes (new director’s name, address, date of birth); changes in the register of members; commencement and outcome of civil or criminal proceedings involving the licensee or any key employee (to the extent known); judgments, charges, or repossessions; amendments to federal tax assessments; changes in key employees (new or departing); winding‑up or voluntary administration; compromises with creditors; appointment of receivers or managers. For each change, the notification must include the particulars specified in the schedule. Create a template notification form for each type of change to ensure all required information is captured. Send notifications promptly , the regulation does not specify a time limit, but “changed circumstances” implies notification should occur as soon as reasonably practicable after the change.

7. Train frontline staff on the location of brochures and notices so they can direct bettors to them. Train staff how to handle a request for a foreign‑language brochure: they must know where to find approved foreign‑language brochures (if any) and how to obtain a copy quickly. If the language is not available, they should explain that the GambleAware number on the English brochure still works.

8. Review passive shareholdings if the licensee is a company that has authorised trustee corporations or registered schemes as shareholders. Ensure that those shareholders meet the conditions of section 9: shares held in a trustee capacity under an approved deed, and no decision on voting rights by the trustee, custodian or related body corporate. If the arrangement changes (e.g., the trustee starts voting the shares), the shares will count toward the prohibited shareholding limit and may require divestiture.

9. Budget for penalty notices. Despite best efforts, minor breaches may occur (e.g., a notice falls down, a batch of tickets prints without the advisory statement). The penalty notice amounts are low relative to court penalties: $550 for regulation offences, $550 to $13,750 for Act offences. Licensees may decide to accept a penalty notice and pay it rather than litigate, but should also remedy the underlying breach immediately to avoid repeat offences that could lead to prosecution or remedial orders.

10. Maintain continuity with the old regulation. Review any acts, matters or things carried out under the Totalizator Regulation 2012 , such as approved signage placements or key employee designations , and confirm they still comply with the new regulation. The savings provision (section 13) preserves their effect, but only if they were valid under the old law. This is a good opportunity to update documentation and ensure the new regulation’s exact wording is used.