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House of Assembly - Fifty-Second Parliament, First Session (52-1)
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GAMING MACHINES (MISCELLANEOUS) AMENDMENT BILL

Introduction and First Reading

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Industry and Trade, Minister for Small Business, Minister for Correctional Services, Minister for Gambling) (12:00): Obtained leave and introduced a bill for an act to amend the Gaming Machines Act 1992; and to make related amendments to the Casino Act 1997, the Independent Gambling Authority Act 1995 and the State Lotteries Act 1966. Read a first time.

Second Reading

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Industry and Trade, Minister for Small Business, Minister for Correctional Services, Minister for Gambling) (12:00): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

This Bill seeks to amend the Gaming Machines Act 1992 to create better responsible gambling environments in South Australia, to reduce the cost and risk associated with regulation, and for a number of administrative improvements.

On 23 June 2010 the Australian Government released the Productivity Commission report on Gambling.

The inquiry was conducted in accordance with terms of reference received by the Productivity Commission on 24 November 2008. At that time, work and consultation on the Bill now before the House was well advanced.

The decision was taken that further consideration of the Bill should be deferred until after the Productivity Commission had released its Final Report. It is important for the community, industry and Parliament to be confident in the amendments proposed. This Bill has now been assessed against the Productivity Commission Report and the Bill is considered to not be inconsistent with the Final Report. Details of the assessment are reported in the Final Policy Position Paper released today and available from the Department of Treasury and Finance website.

Importantly, the steps taken to develop this Bill are consistent with the Productivity Commission's recommendations regarding strengthening consultation processes and the incorporation of stakeholders' views into policy development processes.

The policy that underlies this Bill was developed by extensive public consultation. It included two inquiries by the Independent Gambling Authority, the 2004 Amendments Inquiry and the 2006 Review, and a detailed consultation on the contents of the Bill completed in October 2008. The inquiry reports are available on the Independent Gambling Authority's website. The September 2008 Consultation Paper, the July 2010 Final Policy Position Paper and stakeholder submissions are available on the Department of Treasury and Finance website.

I would like to take this opportunity to thank every person who was involved with the Independent Gambling Authority inquiries and the consultation on this Bill conducted by the Department of Treasury and Finance. While it is often a difficult area, the quality of the submissions was impressive, as was the desire by all participants to improve the regulatory framework for gaming machines in South Australia.

This Bill signals the government's first steps in addressing the recommendations of the Productivity Commission. The South Australian Government will be working in the coming year with other Australian governments on a national response to the Productivity Commission's recommendations.

As noted by the Productivity Commission, this policy development work should involve a strong consultative element and incorporate stakeholder views into the policy development process.

In the last quarter of 2010, the Department of Treasury and Finance will release a Consultation Paper that addresses the changes necessary to gambling legislation to allow a national response to be developed and implemented.

The Consultation Paper will also address:

the recommendations of the Independent Gambling Authority's Barring Inquiry;

the Responsible Gambling Working Party's recommendations on signage; and

other Productivity Commission recommendations that are not part of the national response.

A Bill will be developed following this careful consultation.

It is important that the Bill before us should not be delayed or fundamentally changed to further address the Productivity Commission report. To do so would only delay the implementation of good measures that are well understood by industry and the community sector.

This Bill and the forthcoming Bill are two important pieces in a co-ordinated effort by this government to prevent and tackle problem gambling. Other parts of that effort include: improved gambling help services, new Codes of Practice from the Independent Gambling Authority, the creation of new industry responsible gambling agencies Club Safe and Gaming Care, and pre-commitment trials being evaluated by the Responsible Gambling Working Party.

Nationally, the government is working with other jurisdictions on responsible gaming environments, gaming machine standards and pre-commitment. This is expected to be accelerated with the proposed national response to the Productivity Commission.

Together this work is about creating better responsible gambling environments.

This Bill brings to the mix seven measures that will help.

The first of these is the proposal to remove the fixed price of $50,000 on gaming machine entitlements traded through the approved trading system. This fixed price was identified by the Independent Gambling Authority as the reason why the trading system had failed to deliver the additional reduction in gaming machine entitlements required to achieve the 3,000 target.

The government is committed to achieving this target. Details of the proposed new approved trading system have been released for public consultation and are available on the Department of Treasury and Finance's website. The focus of the trading system is to remove impediments from trade and to make the trading system fair for all types of gaming machine licensees. To that end, the Bill also includes a Stamp Duty exemption on the trades conducted through the approved trading system. This exemption is also available to clubs that transfer entitlements as part of a merger or to Club One.

The government is planning to hold the first trading round under the new approved trading system next year.

The second measure strengthens the Social Effect Test for new venues by providing the Independent Gambling Authority the power to prescribe an inquiry process to be conducted by the applicant, and the power to prescribe principles for assessing the social effect that must be applied by the Liquor and Gambling Commissioner.

This measure is consistent with the recommendation of the Independent Gambling Authority in its 2004 Amendment inquiry report.

As a result of the consultation process, the Bill was amended to allow the Commissioner to apply the Social Effect Test to applications by venues that seek to increase the maximum number of gaming machines and other licence variations, if the Commissioner is of the opinion that the variation may significantly alter the social effect on the local community.

The third and fourth measures formally recognise the solid work of the Independent Gambling Authority, Clubs SA and the Australian Hotels Association in creating Club Safe and Gaming Care responsible gambling agencies. This approach is about working with venues to create the necessary cultural change so that gaming venues have consistently high standards for the responsible delivery of gaming. The Independent Gambling Authority, through its recently released Codes of Practice, created incentives for gaming venues to participate in Club Safe or Gaming Care.

It is proposed in this Bill to formally recognise the industry responsible gambling agencies and to identify the Independent Gambling Authority's powers in relation to them.

Also, the Bill proposes to reinforce the incentive created in the Independent Gambling Authority's new Codes of Practice by imposing longer closing hours on those gaming venues which do not have a responsible gambling agreement with an industry responsible gambling agency. Those venues will be required to close from midnight to 10 am on weekdays and between 2 am and 10 am on weekends. This was recommended in the 2006 Inquiry Report.

For those venues that sign up to a responsible gambling agreement and have late trading, it is proposed that obligations for training, referrals to gambling help services and restrictions on the use of automatic coin machines be imposed during late trading. These obligations aim to identify and support gamblers who may have problems with gambling at an early stage.

It is considered that these measures together are superior to the Productivity Commission recommendation regarding closing hours.

The fifth measure is the strengthening of the compliance and enforcement provisions.

Compliance and enforcement is an area that occupied a significant part of the submissions received. There is no doubt that the work of the Liquor and Gambling Commissioner, Mr Paul White, in changing the approach to compliance and enforcement will address many of these concerns.

The draft Bill proposed a relatively complicated system of civil penalties. Given the submissions received and advice from the Commissioner, the Bill has adopted a simpler system of expiation notices for minor offences which can be issued on-the-spot by South Australian Police and authorised officers. The approach adopted is broadly consistent with the Liquor Licensing Act which is also administered by the Commissioner.

The penalty provisions have been reviewed and certain penalties have been increased.

The sixth measure makes it clear that gaming machines must be located in enclosed areas where smoking is not allowed.

The seventh measure provides a mechanism to extend responsible gambling regulation to those venues located on airport land controlled by the Australian Government.

I commend these seven responsible gambling measures to Members.

Reducing red tape is important in all industry sectors. It is also important for clubs and hotels because it can free up the industry to concentrate on implementing better responsible gambling environments. This Bill also includes seven measures aimed at reducing the cost and risk associated with the gaming machine regulatory framework.

The first measure goes hand in hand with the responsible gambling measure to strengthen the social effect test. It is proposed to create a social effect certificate, the purpose of which is to bring forward the assessment of the social effect of a proposed gaming venue so that it can occur before the costs associated with development and liquor licensing approvals have been incurred.

This will avoid unnecessary costs from being incurred by the proponent if the venue is ultimately determined to fail the social effect test.

The second and third measures bring in concepts implemented in the Liquor Licensing Act to the Gaming Machines Act. These are conciliation of contested applications and the proposed premises certificate. These measures have been successful in lowering cost and risk to applicants and objectors.

The fourth measure seeks to clarify the arrangements regarding gaming machine entitlements as collateral in finance arrangements by holders of gaming machine licences. It replaces existing exemptions made under the Gaming Machine Regulations to provide the industry and financiers with greater certainty.

The fifth measure responds to concerns that some clubs have had over the provisions that allow the transfer of gaming machine entitlements to facilitate club mergers or amalgamations. It is a minor change that allows the club to de-merge if the objectives of the merger are not met.

The sixth measure removes the requirement that a government inspector be present at the installation of a gaming machine to seal the machine. This allows the Liquor and Gambling Commissioner to better allocate the Office's resources as part of its compliance and enforcement function based on the Commissioner's assessment of risk.

The seventh measure changes the regulatory arrangements regarding the sale and supply of gaming machines. Currently, the State Procurement Board is the only organisation from which gaming machine licensees can procure gaming machines. The role, however, can best be characterised as an intermediary between sellers and buyers of gaming machines for which an additional cost is imposed on the industry.

The current arrangements are not essential to ensuring either integrity or responsible gambling. The proposed arrangements include a series of measures to ensure on-going integrity of gaming machines. In particular, there are new provisions relating to the approval of supply contracts, a new offence for selling gaming machines without an approved supply contract, a new offence for offering or providing inducements to purchase gaming machines and extending existing prohibitions on links between gaming machine dealers and other licensees.

I commend these seven red tape reduction measures to Members.

The Bill also includes a number of proposals to improve the administration of the Act. The proposals include restructuring the Act to better describe the role of the Independent Gambling Authority as a rule maker which includes changes to the review period from 2 years to 5 years and an extension of the consultation period for changes to Codes of Practice from 14 days to 28 days.

The Bill also includes proposals to allow the Commissioner to release non-confidential information and to allow the Commissioner to refer matters to the Licensing Court.

Before I conclude, I would like to make some comments regarding section 15A which requires gaming venues not be located under the same roof as shops or within shopping complexes. Clubs SA raised in its submission a concern that section 15A prevented a gaming venue from being located on a site which had previously been shops, even though there were no shops at the time of application for a gaming machine licence or planned for the future.

The scenario highlighted by Clubs SA was clearly not the intent of the Parliament at the time. To have this arrangement would have placed an unreasonable burden on the club and hotel sector. In response to Clubs SA's submission, section 15A has been considered in detail. It has been concluded that section 15A does not, in general, prevent a gaming venue on a site on which shops had previously been located.

In summary, this Bill is part of a co-ordinated effort. It is not a knee-jerk response to a headline or two. It is well considered and well understood. Some people may not like all of the elements. That is no surprise. In the past the sides of the gambling debate have been diametrically opposed. What has impressed me throughout this process is how the community and industry have found a common ground to work from. This work is occurring in the Responsible Gambling Working Party, Gaming Care and Club Safe and it is evident in the thoughtfulness of the submissions received.

This approach will again be applied by the South Australian Government in the coming year to address a range of issues arising from reports of the Productivity Commission, the Independent Gambling Authority and the Responsible Gambling Working Party.

This Bill currently before the House is but one important step in creating better responsible gambling environments.

I commend the Bill to Members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

3—Amendment provisions

These clauses are formal.

Part 2—Amendment of Gaming Machines Act 1992

4—Amendment of section 3—Interpretation

This clause inserts definitions into the principal Act that are required for the purposes of the measure.

5—Amendment of section 4—Application of Act

Clause 5 proposes to amend section 4 of the principal Act to allow the Governor, by regulation, to apply provisions of the Act to a person who is not required to hold a gaming machine licence because of a Commonwealth law as if the person holds a gaming machine licence. This is designed to address venues on airport land.

6—Amendment of section 7—Conduct of proceedings

Clause 6 proposes to amend section 7 of the principal Act to require the Commissioner to attempt to achieve agreement between an applicant and an objector by conciliation. If agreement is reached, the Commissioner must have regard to the agreement in determining the matter.

7—Amendment of section 7A—Powers to make interim or conditional decisions and accept undertakings from parties

Clause 7 is consequential on the proposal to have a proposed premises certificate and a social effect certificate—see inserted sections 17A and 17B.

8—Insertion of section 8A

Clause 8 inserts new section 8A into the principal Act to provide that the Commissioner may refer to the Court proceedings that involve questions of substantial public importance, a question of law or any other matter that should, in the public interest or in the interests of a party to the proceedings, be heard and determined by the Court.

9—Amendment of section 9—Power to disclose information to certain authorities

Section 9 of the principal Act provides that the Commissioner may disclose information gained in the course of the administration of the Act to certain authorities. Clause 9 proposes to extend the provision to provide that if the information is disclosed in a form that does not identify the person to whom it relates, the Commissioner may disclose the information to any other person, or in any other way, the Commissioner considers appropriate in the public interest.

10—Insertion of sections 10A and 10B

Clause 10 inserts 2 new sections into the principal Act. Proposed section 10A provides that the Independent Gambling Authority may, by notice in the Gazette, prescribe—

an inquiry process that must precede an application for a social effect certificate or, if required by the Commissioner, a variation of a gaming machine licence (a social effect inquiry);

principles for assessing the social effect of the grant or variation of a gaming machine licence (social effect principles);

principles for assessing whether a game is likely to lead to an exacerbation of problem gambling;

an advertising code of practice;

a responsible gambling code of practice;

the form of a responsible gambling agreement.

It is proposed that the Authority may include provisions in the advertising and responsible gambling codes of practice that—

designate a provision of the code as a mandatory provision for the purposes of section 47; and

declare whether contravention of a mandatory provision is a category A, B, C or D offence; and

if the offence is expiable, whether the offence is a category A, B, C or D expiable offence.

The proposed clause further provides that the Authority must review the process, principles, codes and form prescribed under the clause at least every 5 years.

Proposed section 10B provides that the Authority may, by notice in the Gazette, recognise a person as an industry body with whom a licensee may enter into a responsible gambling agreement and recognise a course of training as advanced problem gambling intervention training.

11—Amendment of section 12—Criminal intelligence

Clause 11 is consequential to the inclusion of social effect certificates and proposed premises certificates—see inserted sections 17A and 17B.

12—Amendment of section 14—Licence classes

Clause 12 proposes an amendment to section 14 of the principal Act to remove the gaming machine supplier's licence. This licence is currently held by the State Procurement Board—see section 26 of the principal Act. The proposed amendment would authorise the holder of a gaming machine dealer's licence to sell or supply approved gaming machines, prescribed gaming machine components and gaming equipment to the holder of a gaming machine licence or a gaming machine service licence or to another holder of a gaming machine dealer's licence.

13—Amendment of section 15—Eligibility criteria

Clause 13 inserts the proposed new concepts of a social effect certificate and a proposed premises certificate into section 15 of the principal Act. It provides that a gaming machine licence will not be granted unless the applicant for the licence held a social effect certificate for the site of the premises in respect of which the licence is sought at the time of making the application for the licence. It also allows a gaming machine licence to be granted if the applicant holds a proposed premises certificate for the premises and satisfies the Commissioner that the conditions (if any) on which the certificate was granted have been complied with and that the premises have been completed in accordance with the plans approved in the certificate or a variation of those plans later approved by the Commissioner.

14—Insertion of sections 17A and 17B

Clause 14 proposes 2 new sections be inserted into the principal Act. New section 17A provides that a proposed premises certificate approving plans submitted by the applicant for the certificate will not be granted unless—

the applicant holds a social effect certificate for the site of the proposed premises; and

the applicant satisfies the Commissioner that the eligibility criteria required under section 15(5)(a) will be met in relation to the proposed premises if completed in accordance with the plans and that any approvals, consents or exemptions that are required under the law relating to development to permit the use of the proposed premises for the conduct of gaming operations have been obtained.

Proposed new section 17B provides that a social effect certificate will only be granted if the applicant satisfies the Commissioner that the grant of a gaming machine licence in respect of premises on the site would not be contrary to the public interest on the ground of the likely social effect on the local community and, in particular, the likely effect on problem gambling within the local community. In assessing the social effect of the grant of a gaming machine licence, the Commissioner must apply the social effect principles, and must not have regard to the economic effect that the granting of a gaming machine licence might have on the business of other licensed premises in the relevant locality (except insofar as that economic effect may be relevant to an assessment of the likely social effect of the grant of the licence on the local community) and must take each site in respect of which a social effect certificate is then in force into account as if a gaming machine licence were held for licensed premises on the site.

15—Substitution of heading to Part 3 Division 3

Clause 15 is a drafting amendment necessitated by the inclusion of additional material in the Division.

16—Amendment of section 18—Form of application

Clause 16 is consequential on the proposed new social effect and proposed premises certificates.

17—Insertion of section 23A

Clause 17 inserts a proposed new section 23A into the principal Act to provide that the Commissioner may treat an application for a gaming machine licence for proposed premises as if it were an application for a proposed premises certificate having regard to the extent to which the proposed premises are uncompleted.

18—Repeal of section 26

Clause 18 is consequential on the removal of the gaming machine supplier's licence.

19—Amendment of section 27—Conditions

Clause 19 proposes to amend section 27 of the principal Act to provide that if a licensee has not entered into a responsible gambling agreement, gaming operations cannot be conducted on the premises before 10am on Monday to Friday and between 2am and 10am on Saturday and Sunday.

20—Insertion of section 27AA

Clause 20 proposes a new section 27AA relating to variation of licence, with some provisions that were formerly in section 27 and 3 new subsections. The proposed new subsections provide that the Commissioner may require an applicant for variation of a gaming machine licence to complete a social effect inquiry if of the opinion that the variation of the licence in respect of the premises may significantly alter the likely social effect on the local community and, in particular, the likely effect on problem gambling within the local community.

21—Amendment of section 27A—Gaming machine entitlements

Clause 21 proposes to amend section 27A of the principal Act to provide that the Commissioner must keep a register of licensees holding gaming machine entitlements.

22—Amendment of section 27B—Transferability of gaming machine entitlements

Clause 22 amends section 27B of the principal Act to provide, amongst other things, that no liability to stamp duty arises in relation to a transfer of gaming machine entitlements under section 27B(1)(b), (c) or (f) executed after the commencement of the measure.

23—Amendment of section 29—Certain applications require advertisement

Clause 23 requires advertisement of applications for the new proposed premises certificate and the social effect certificate and for variation of a licence in a case where a social effect inquiry is required.

24—Amendment of heading to Part 3 Division 6

Clause 24 is consequential on the new proposed premises certificate and the social effect certificate.

25—Insertion of section 32A

Clause 25 proposes to insert a new section 32A into the principal Act to provide that the holder of a social effect certificate may, by notice in writing to the Commissioner, surrender the social effect certificate and the certificate will cease to be in force on acceptance by the Commissioner of the surrender. The proposed section also provides that the Commissioner may, by notice in writing to the holder of a social effect certificate, revoke the certificate if satisfied that the holder has ceased to have a proprietary interest in the site to which the certificate relates.

26—Amendment of section 36—Cause for disciplinary action against licensees

Section 36 provides the circumstances in which there is proper cause for disciplinary action against a licensee. The proposed amendment adds the ground of the licensee contravening or failing to comply with the advertising code of practice or the responsible gambling code of practice.

27—Amendment of section 36B—Taking of disciplinary action against licensees

Clause 27 proposes to increase the fine that may be imposed by the Commissioner if satisfied there is proper cause for disciplinary action against a licensee from $15,000 to $20,000.

28—Substitution of section 39

Clause 28 substitutes section 39 of the principal Act. Currently, section 39 deals with the approval of a person to act as an agent of the State Procurement Board. As a consequence of the removal of the gaming machine supplier's licence the section is no longer required. The proposed new section 39 instead deals with the approval of the form of a supply contract. It provides that the Commissioner may approve the form of a contract to be entered into by the holder of a gaming machine dealer's licence and the holder of a gaming machine licence, the holder of a gaming machine service licence or the holder of another gaming machine dealer's licence for the sale or supply of approved gaming machines, prescribed gaming machine components or gaming equipment.

29—Amendment of section 40—Approval of gaming machines and games

Clause 29 amends section 40 of the principal Act to require the Commissioner, when determining whether a game is likely to lead to an exacerbation of problem gambling, to apply the principles prescribed by the Authority—see inserted section 10A.

30—Amendment of section 41A—Applications to be given to Commissioner of Police

Clause 30 is a consequential amendment.

31—Amendment of section 42—Discretion to grant or refuse approval

Clause 31 is consequential on the removal of the gaming machine supplier's licence.

32—Amendment of section 43—Intervention by Commissioner of Police

Clause 32 is a consequential amendment.

33—Amendment of section 44A—Prohibition of links between dealers and other licensees

Section 44A of the principal Act prohibits the holder of a gaming machine dealer's licence from being associated with a licensee of some other class under the Act. Subsection (4) lists the situations where a person is considered to be associated with a licensee. The proposed amendment inserts into that list that a person is associated with a licensee if the person and the licensee are parties to an agreement or arrangement under which one participates in, or is remunerated or paid for something by reference to, the proceeds or profits of the business of the other.

34—Amendment of section 45—Offence of being unlicensed

Clause 34 is a drafting amendment, partly consequential on the removal of the supplier's licence.

35—Amendment of section 46—Offence of breach of licence conditions

Section 46 of the principal Act provides the penalty for a licensee contravening or failing to comply with a condition of his or her licence. The proposed amendment makes the offence expiable if it is constituted of the contravention of or failure to comply with a condition imposed under Schedule 1(o).

36—Substitution of section 47

Clause 36 deletes section 47 of the principal Act and proposes 2 new sections—section 47 and section 47A. The current section 47 deals with the offence of a breach of agency conditions by an agent of the State Procurement Board. As a consequence of the removal of the gaming machine supplier's licence this is no longer required. The proposed new section 47 provides that the holder of a gaming machine licence must not contravene or fail to comply with a mandatory provision of the advertising code of practice or the responsible gambling code of practice. The proposed penalty for such a breach is—

(a) for a category A offence—$10,000;

(b) for a category B offence—$5,000;

(c) for a category C offence—$2,500;

(d) for a category D offence—$1,250.

It also provides expiation fees for such a breach.

(a) for a category A expiable offence—$1,200;

(b) for a category B expiable offence—$315;

(c) for a category C expiable offence—$210;

(d) for a category D expiable offence—$160.

The codes will determine the category of offence. Proposed new section 47A creates 2 offences with maximum penalties of $35,000 or imprisonment for 2 years. It provides that the holder of a gaming machine dealer's licence must not—

enter into a contract to sell or supply a gaming machine, a prescribed gaming machine component or gaming equipment unless the contract is in a form that has been approved by the Commissioner; or

provide or offer to provide any form of inducement to a person to enter into a contract for the sale or supply of a gaming machine, a prescribed gaming machine component or gaming equipment other than a discount that is calculated on a basis that has been fully disclosed in the contract and depends on the number of machines, components or items of equipment to be supplied under the contract.

37—Amendment of section 50A—Approved gaming machine managers and employees must carry identification

Proposed clause 37 amends the penalty provision . Currently, the maximum penalty for an offence against this section is $2,500. The proposed amendment maintains the $2,500 penalty for an offence committed by a licensee, but adds that if the offence is committed by any other person the maximum penalty is $1,250. It also proposes an expiation fee of $210 for an offence allegedly committed by a licensee and $160 in any other case. This amendment brings the clause into line with a similar provision in the Liquor Licensing Act 1997.

38—Amendment of section 51—Persons who may not operate gaming machines

Clause 38 proposes to amend the penalty provision for offences against section 51(1) and (2). Currently both offences have maximum penalties of $10,000 or imprisonment for 6 months. This is maintained for offences committed by the holder of a gaming machine licence or a person who occupies a position of authority in a trust or corporate entity that holds such a licence, but adds that in the case of an offence committed by an approved gaming machine manager or gaming machine employee the maximum penalty is to be $5,000. The amendment also proposes an expiation fee for an offence allegedly committed by an approved gaming machine manager or gaming machine employee of $315.

39—Amendment of section 54—Licences to be displayed

Section 54 of the principal Act creates an offence if the holder of a gaming machine licence does not display a copy of his or her licence. The current penalty provision provides for a maximum penalty of $2,500. It is proposed to amend this to a maximum penalty of $10,000 with an expiation fee of $1,200. This is designed to match comparable offences in the Liquor Licensing Act.

40—Amendment of section 57—Licensee must erect warning notices

Section 57 of the principal Act provides that a licensee who fails to erect a warning notice is guilty of an offence. The current maximum penalty is $5,000. Clause 40 proposes increasing the penalty to $10,000 and adds an expiation fee of $1,200. This is designed to match comparable offences in the Liquor Licensing Act.

41—Amendment of section 58—Powers in relation to minors in gaming areas

Clause 41 is a drafting amendment ensuring section 58 properly reflects the Liquor Licensing Act provisions.

42—Amendment of section 62—Interference with machines, equipment or games

The principal Act provides a maximum penalty of $20,000 or imprisonment for 4 years for an offence against section 62. Clause 42 proposes an increase in the monetary penalty to $50,000. This brings the penalty into line with other penalties in the Act.

43—Amendment of section 63—Interference devices

The principal Act provides a maximum penalty of $20,000 or imprisonment for 4 years for an offence against section 63. Clause 43 proposes an increase in the monetary penalty to $50,000. This brings the penalty into line with other penalties in the Act.

44—Substitution of section 64

Clause 44 proposes to substitute section 64 of the principal Act. Currently, only an authorised officer is permitted to seal or break a seal on any part of a gaming machine. The proposed clause would permit an approved gaming machine technician to also seal or break a seal on any part of a gaming machine.

45—Amendment of section 71—Powers of authorised officers

Section 71 of the principal Act contains the powers of authorised officers. Clause 45 adds to those powers that an authorised officer may require a person who has custody or control of books, papers or documents relevant to a business conducted under a licence to produce them at a specified place for inspection at a specified time or within a specified period, and that an authorised officer may inspect books, papers or documents so produced and retain them for as long as is reasonably necessary for the purposes of copying or taking extracts from any of them.

46—Amendment of section 73A—Sport and Recreation Fund

47—Amendment of section 73B—Charitable and Social Welfare Fund

48—Amendment of section 73BA—Gamblers Rehabilitation Fund

These clauses update references to Ministers and Departments.

49—Amendment of section 74—Annual reports

Clause 49 is a consequential amendment.

50—Repeal of sections 74A and 74B

These provisions are now substantially contained in the proposed new section 10A.

51—Insertion of section 76A

Clause 51 proposes to insert a new section 76A into the principal Act to provide for financing of a licensee's business. This matter is currently dealt with in the regulations. It allows the Minister to grant an exemption from such provisions of the Act as necessary for the purpose of enabling—

the holder of a gaming machine licence or a gaming machine dealer's licence and a credit provider to enter into any arrangements (including leasing arrangements) for the financing of the licensee's acquisition of gaming machines or gaming machine entitlements or otherwise financing the business conducted on the licensed premises; and

a credit provider to exercise rights of repossession and sale over gaming machines, and gaming machine entitlements, subject to any credit arrangement.

52—Amendment of section 77—Certain agreements and arrangements are unlawful

Clause 52 is consequential on the removal of the gaming machine supplier's licence.

53—Amendment of section 79—Bribery

The principal Act provides a maximum penalty of $20,000 or imprisonment for 4 years for an offence against section 79. Clause 53 proposes an increase in the monetary penalty to $50,000. This brings the penalty into line with other penalties in the Act.

54—Repeal of section 86A

Clause 54 is a consequential amendment.

55—Amendment of section 87—Regulations

Section 87 provides for the making of regulations by the Governor. Clause 55 proposes to increase the penalty that may be fixed for breaches of the regulations from $2,500 to $10,000. The clause also proposes to allow for the fixing of expiation fees not exceeding $1,200 for alleged breaches of the regulations.

56—Amendment of Schedule 1—Gaming machine licence conditions

Clause 56 makes technical amendments to the conditions to which a gaming machine licence is subject and requires any licensee conducting gaming operations between 2am and 8am (in accordance with the terms of the licence) to ensure that:

a gaming machine manager or gaming machine employee who has completed advanced problem gambling intervention training is present in the gaming area at all times; and

arrangements are in place under which the gaming machine manager or gaming machine employee may immediately refer a person identified as engaging in problem gambling to a service to address the problem; and

measures are in place that prevent machines designed to change a monetary note into coins and located on the licensed premises from being operated between the hours of 2am and 8am.

Schedule 1—Related amendments and transitional provisions

Part 1—Amendment of Casino Act 1997

1—Amendment of section 41C—Review and alteration of codes

This clause proposes to amend the Casino Act 1997 to bring it into line with the amendments proposed to the Gaming Machines Act 1992 by this measure.

Part 2—Amendment of Independent Gambling Authority Act 1995

2—Amendment of section 15B—Voluntary barring of excessive gamblers

This clause proposes to amend the Independent Gambling Authority Act 1995 to provide that the Authority may bar a person from an area within which gaming machines may be operated under a Commonwealth law.

Part 3—Amendment of State Lotteries Act 1966

3—Amendment of section 13D—Review and alteration of codes

This clause proposes to amend the State Lotteries Act 1966 to bring it into line with the amendments proposed to the Gaming Machines Act 1992 by this measure.

Part 4—Transitional provisions

4—Principles

This clause contemplates continuation of the principles for assessing whether a game is likely to lead to an exacerbation of problem gambling without subjecting them to a disallowance process. Any variations of the principles will be subject to disallowance.

5—Application for gaming machine licence

6—Exemptions

These clauses contain necessary transitional provisions.

Debate adjourned on motion of Hon I.F. Evans.

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