Lotteries Bill

Second Reading

The Hon. R.I. LUCAS (Treasurer) (12:25): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation and the detailed explanation of clauses inserted in Hansard without my reading them.

Leave granted.

The Lotteries Bill 2019 seeks to consolidate the licensing and regulation of lotteries and trade promotion lotteries in the State under a new Act and repeals the relevant equivalent provisions under the Lottery and Gaming Act 1936.

The introduction of this Bill contributes to the Government's gambling reform agenda, which began last year, following the consolidation of all gambling regulatory and policy functions within Consumer and Business Services and the appointment of the Liquor and Gambling Commissioner as South Australia's sole gambling regulator in December 2018.

Following this change to the gambling regulatory framework, the Government began seeking views from industry, the non-Government sector and affected Government stakeholders on the future of gambling regulation in South Australia, with a view to ensuring that the regulatory landscape moving forward is contemporary and meets the expectations of industry and the broader community.

The feedback received throughout this process has informed the drafting on this Bill and associated Gambling Administration Bill 2019 and Statutes Amendment (Gambling Regulation) Bill 2019. These Bills will be introduced shortly.

The existing Lottery and Gaming Act 1936 and Lottery and Gaming Regulations 2008 establish the framework to distinguish between unlawful and lawful gaming and for the licensing of certain lottery products (instant scratch tickets, bingo, fundraiser lotteries, home lotteries etc) and trade promotions (lotteries promoting the sale of goods or service).

Fundraiser lotteries are an important way for groups to raise funds to support their community minded and charitable objectives, and trade promotions are popular activities for businesses to promote their products and services.

As part of the broad review of gambling in South Australia and feedback received from stakeholders it has become apparent that the regulation of lotteries (which includes Trade Promotions) in South Australia is outdated and does not adequately reflect contemporary trends in the industry and developing technologies.

In order to simplify and modernise lottery legislation in South Australia it is proposed to repeal the relevant lottery provisions from the existing Lottery and Gaming Act 1936, and to introduce a new legislative regime to better regulate lottery and trade promotion products under a modern framework applying modern drafting standards. The existing provisions governing, for example, what constitutes unlawful gaming will remain in the current Lottery and Gaming Act 1936.

Key changes included in this Bill include:

allowing the Commissioner to exempt a lottery or class of lotteries from specified provisions of the Act;

providing for the nomination of a person who will be responsible for complying with requirements under the Act for licence applications made by an unincorporated association;

allowing for the renewal of licences;

allowing the Commissioner to add, vary and revoke licence conditions;

requiring licensees to notify the Commissioner of change to their particulars;

introduction of expiations fees for a breach of lotteries regulations; and

renaming the Lottery and Gaming Act 1936 as the Gaming Offences Act 1936.

Furthermore, it is proposed that the enforcement of lotteries regulation by CBS inspectors will form part of the associated Gambling Administration Bill 2019. These changes, along with the proposal to introduce expiation fees, will allow a more balanced approach to enforcement, proportionate to the differing levels of any potential offending.

This Bill is the first step to modernising lotteries regulation in South Australia. It will establish a footing to review and update the regulations which provide the mechanism to permit and licence certain classes of lotteries and prescribe relevant conditions and rules for conducting such lotteries.

I commend this Bill to the House and seek leave to insert the explanation of clauses into Hansard without my reading it.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

These clauses are formal.

3—Objects

This clause sets out objects of the measure.

4—Interpretation

This clause defines terms used in the measure.

5—Interaction with Gambling Administration Act 2019

This Act and the Gambling Administration Act 2019 will be read together as a single Act.

6—Meaning of lottery

This clause defines a lottery for the purposes of the measure.

7—Prohibited goods and services

The Commissioner may, by notice in the Gazette, prohibit particular goods or services from being the prize in a lottery or otherwise offered or promoted as part of a lottery.

8—Position of authority in trust or corporate entity

This clause defines what constitutes a position of authority in a trust or corporate entity.

9—Application of Act

The Act will apply to any lottery in which persons resident in this State can participate and also binds the Crown.

Part 2—Unlawful lotteries

10—Conducting unlawful lotteries

This clause creates the central offence underpinning the licensing regime. The offence of conducting or assisting in conduct of unlawful lotteries is punishable by a maximum fine of $10,000. In addition, it will be an offence to pay money or provide goods connected to an unlawful lottery punishable by a fine of $5 000 or an expiation fee of $315.

11—Participating in unlawful lotteries

This clause creates the offence of participating in unlawful lotteries, punishable by a maximum fine of $2,500 or an expiation fee of $210.

12—Advertising and promoting unlawful lotteries

This clause creates the offence of advertising or promoting unlawful lotteries or proposal of unlawful lotteries, punishable by a maximum fine of $5,000 or an expiation fee of $315.

13—Tickets etc for unlawful lotteries

This clause creates offences of printing or publishing tickets, or selling or supplying tickets, for an unlawful lottery, punishable by a maximum fine of $5,000 or an expiation fee of $315.

14—General defence

It is a defence to an offence against the Part if the defendant proves that the defendant believed on reasonable grounds that the lottery was a licensed lottery or a permitted lottery.

Part 3—Licensed lotteries

15—Application for licence

This clause provides for the grant of lottery licences.

16—Licence may be conditional

A licence may be subject to conditions. Contravention of or failure to comply with a condition of a licence is an offence, punishable by a maximum fine of $5,000 or an expiation fee of $315.

17—Nomination of responsible person for compliance

An unincorporated association or group of unincorporated associations, must in their application, nominate a person or group of persons to the Commissioner, who will be responsible for compliance. A nomination is not effective unless the Commissioner approves it.

18—Term of licence

A licence has effect for a period specified by, or determined in accordance with, the regulations or determined by the Commissioner and specified in the licence, (if there is no such provision in the regulations). A licence of a prescribed class may be renewed in accordance with regulations.

19—Variation of licence

This clause allows applications for the variation of a licence to be made to the Commissioner.

20—Cancellation, suspension or surrender of licence

This clause provides for the cancellation, suspension or surrender of a licence and creates relevant offences to ensure matters relating to the licence are properly finalised.

21—Licensee to notify change of particulars

The holder of a licence must notify the Commissioner, within 14 days, after a change in any prescribed particulars. Failure to do so is punishable by a maximum fine of $2,500 or an expiation fee of $210.

Part 4—Licensing of suppliers of lottery products

22—Interpretation

This clause defines lottery product and supply for the purposes of the Part.

23—Suppliers must be licensed

It is an offence to be an unlicensed supplier of lottery products, punishable by a maximum fine of $10,000.

24—Application for licence

This clause provides for the grant of licences for the supply of lottery products.

25—Licence may be conditional

A licence under the Part may be conditional. Contravention of, or failure to comply with, a condition of a licence under the Part is punishable by a fine of $5,000 or an expiation fee of $315.

26—Term of licence

A licence granted under the Part has effect until the following 30 June, unless it is cancelled, suspended or surrendered before that day. The Commissioner must renew a licence for a period not less than 1 year if a renewal application is made and the prescribed fee is paid.

27—Cancellation, suspension or surrender of licence

The Commissioner may, by written notice, cancel or suspend a licence. A notice of suspension may specify an action to be taken by holder of licence to remedy any breach of this Act or condition of the licence. A licence holder may also, with consent of the Commissioner, surrender a licence.

28—Licensee to notify change of particulars

The holder of a licence must notify the Commissioner, within 14 days, after a change in any prescribed particulars. Failure to do so is punishable by a maximum fine of $2,500 or an expiation fee of $210.

Part 5—Miscellaneous

29—Commissioner may grant exemptions

The Commissioner may exempt a lottery or class of lotteries from specified provisions of the Act. Contravention of, or failure to comply with, a condition of an exemption is an offence punishable by a maximum fine of $5,000 or an expiation fee of $315. It is a defence if the defendant took all reasonable steps to prevent the contravention or failure to which the prosecution relates.

30—Dishonest, deceptive or misleading conduct

A person involved in the conduct or promotion of a lottery that acts in a dishonest, deceptive or misleading manner is guilty of an offence punishable by a maximum fine of $50,000 or 2 years imprisonment.

31—Restriction on sale of lottery tickets by children

A person must not cause or permit a child under 15 years of age to sell lottery tickets without supervision or accompanied by an adult. The offence is punishable by a maximum fine of $5,000 or an expiation fee of $315.

32—Evidentiary provisions

This clause sets out evidentiary provisions for the purposes of the measure.

33—Regulations

This clause is a regulation making power.

Schedule 1—Related amendments and transitional provisions

The Schedule sets out related amendments to the Lottery and Gaming Act 1936 to limit that Act to dealing with unlawful gaming (because lotteries are now to be dealt with by this separate measure). The Schedule also sets out transitional measures.

Debate adjourned on motion of Hon. I.K. Hunter.