Gambling Legislation Amendment (Transition) Bill 2012 Introduction Print EXPLANATORY MEMORANDUM Clause Notes PART 1—PRELIMINARY Clause 1 sets out the purposes of the Bill. The purposes of the Bill are to amend the Gambling Regulation Act 2003, the Gambling Regulation Amendment (Licensing) Act 2009, the Casino Control Act 1991 and the Gambling Regulation Further Amendment Act 2009. These amendments will extend the types of cash facilities that are captured by the proposed prohibition on automatic teller machines in gaming venues and the casino. The amendments also make further transitional and consequential amendments in relation to the expiry of the gaming operator's licences and the wagering licence, as well as further minor amendments. The Bill will require a person who provides services to a venue operator or monitoring licensee for the installation, service, repair or maintenance of gaming machines to be listed on the Roll of Manufacturers and to employ persons who hold a gaming industry employee's licence. Clause 2 sets out when the provisions of the Bill come into operation. Subclause (1) provides that the provisions of the Bill (except clauses 3 to 7 and 12 to 17 and Part 4) come into operation on the day after the day on which the Bill receives the Royal Assent. Subclause (2) provides that clause 3 and Part 4 come into operation on 1 July 2012. 571207 1 BILL LA INTRODUCTION 18/4/2012 Subclause (3) provides that the remaining provisions come into operation on a day or days to be proclaimed. Subclause (4) provides that if a provision referred to in subclause (3) does not come into operation before 1 September 2012, it comes into operation on that day. PART 2—AMENDMENTS TO THE GAMBLING REGULATION ACT 2003 Clause 3 defines the term alternative cash access facility for the purposes of extending the prohibition of automatic teller machines in gaming venues set out in Part 3 of the Bill. This clause is intended to ensure that any method of accessing cash within a gaming venue requires interaction between a person requesting cash and venue staff. Clause 4 repeals section 3.2.3(1)(a) and (f) of the Act. This section provides the Minister for Gaming with the power to direct the Victorian Commission for Gambling and Liquor Regulation in relation to the maximum permissible number of gaming machines available for gaming in Victoria, and the proportion of gaming machines that each gaming operator is permitted to operate. This power is not required under the gaming industry model which takes effect on 16 August 2012. The number of gaming machines available for gaming will continue to be limited by the number of gaming machine entitlements. Section 3.4A.5 of the Act provides that the Minister must specify the maximum number of gaming machine entitlements the Minister will create. A determination was made in accordance with this section on 7 June 2010, creating a maximum limit of 27 500 gaming machine entitlements. Clause 5 repeals section 3.2.4A of the Act. This section requires the Victorian Commission for Gambling and Liquor Regulation to review its determination on the maximum permissible number of gaming machines available for gaming in capped regions and municipal districts within five years of the previous determination. 2 The requirement to review the maximum permissible number of gaming machine entitlements is set out in the proposed section 3.4A.5A of the Act. This section will be inserted into the Act by section 45 of the Gambling Regulation Further Amendment Act 2009. The default commencement date of section 45 of the Gambling Regulation Further Amendment Act 2009 is 1 September 2012. Clause 6 amends the Act to provide that the authority conferred under section 3.4.5(c) by a listing on the Roll of a person listed in the division of the Roll for suppliers of testing services includes the installation of gaming equipment. Section 8(3) of the Gambling Regulation Amendment (Licensing) Act 2011, which will commence 1 September 2012 if not proclaimed sooner, will amend section 3.4.5(c)(i) of the Gambling Regulation Act 2003 to provide that a person listed as a supplier of testing services may also enter into arrangements with venue operators to service, repair or maintain monitoring equipment. Clause 7 amends section 3.4.61(1)(b) of the Act to remove references to the gaming operators in relation to the provision of services by persons listed on the Roll of Manufacturers, Suppliers and Testers. Clause 8 extends the existing power of the Treasurer to exempt a venue operator from paying a 75 per cent tax on the profit generated by the sale of gaming machine entitlements. Section 3.4A.18 of the Act applies a tax on the transfer of gaming machines entitlements. The Treasurer may exempt the operator from the requirement to pay a tax if he or she is satisfied that the reason for the transfer was that a government agency refused to grant or give a relevant authority in respect of the premises at which gaming was intended to be conducted. The Bill provides that the Treasurer can grant an exemption if the Victorian Commission for Gambling and Liquor Regulation refuses an amendment to the conditions of a venue operator's licence to vary the number of gaming machines permitted in an approved venue. 3 Clause 9 provides for the payment of any money remaining in jackpot special prize pools operated by the gaming operators at the expiry of their licences to the Treasurer for payment to the Responsible Gambling Fund established under the Victorian Responsible Gambling Foundation Act 2011. This section is not intended to limit the payment of money in any jackpot special prize pools by the gaming operators before the expiry of the licences. Payment of money in accordance with this section fulfils the obligation of the gaming operators to pay any money in the jackpot special prize pools to players under section 3.6.1 of the Gambling Regulation Act 2003. The Responsible Gambling Fund is the primary source of funding for the Victorian Responsible Gambling Foundation. The objectives of the Foundation are to reduce the prevalence of problem gambling and the severity of gambling-related harm, and to foster responsible gambling. The gaming operator's licence and the gaming licence expire on 15 August 2012. Clause 10 amends section 3.6.3 of the Act to refer to a new section. Section 3.6.3 of the Act is to be read subject to the new section 3.6.3A, to be inserted by clause 11 of the Bill. Clause 11 inserts a new section 3.6.3A of the Act that applies to the payment of the Health Benefit Levy for the financial year beginning on 1 July 2012 and ending on 30 June 2013. This section is required because of the expiry of the gaming operator's licence and the gaming licence. Section 3.6.3A is intended to provide additional flexibility for the Treasurer to determine when he or she can determine the quantum of the Health Benefit Levy and when the levy is payable. This section is not intended to increase the quantum of the Health Benefit Levy that would have been payable by the gaming operators for the relevant period determined by the Treasurer if the gaming operator's licences had not expired. The gaming operator's licence and the gaming licence expire on 15 August 2012. 4 Clause 12 inserts a new definition, for the purposes of determining if a person needs to hold a gaming industry employee's licence, of a gaming machine services provider. Under the new industry arrangements that commence on 16 August 2012, venue operators and the monitoring licensee will undertake a range of technical functions previously the responsibility of the gaming operators. Third party gaming machine service providers may enter into arrangements with venue operators to service, repair or maintain gaming equipment or monitoring equipment. Certain employees of gaming machine service providers will be required to hold a gaming industry employee's licence (see clause 14 of the Bill). Clause 13 amends section 9A.1.2(1)(a) of the Act to remove a reference to gaming operators and insert a reference to a monitoring licensee and a gaming machine services provider to the authority conferred by a gaming industry employee's licence. The amendment authorises the holder of a gaming industry employee licence to be employed by or work for the monitoring licensee or gaming machine services provider carrying out prescribed technical duties. Clause 14 amends section 9A.1.3(2) of the Act to require the monitoring licensee and a gaming machine services provider must not to employ or use the services of a person to perform any function of a gaming industry employee, or to allocate the performance of any function of a gaming industry employee, unless that person holds a gaming industry employee's licence. Clause 15 removes the term gaming operator from section 9A.1.7(4) of the Act and inserts references to the monitoring licensee and a gaming machine services provider. This section provides that the Victorian Commission for Gambling and Liquor Regulation must notify the gaming operator of the decision of the Commission on an appeal to a decision to refuse to grant a gaming industry employee's licence. 5 Clause 16 amends section 9A.1.16 of the Act to insert necessary references to the monitoring licensee and gaming machine services provider, and remove an obsolete reference to gaming operators in relation to the suspension or cancellation of a gaming industry employee's licence. Section 9A.1.16 provides that a relevant person must, upon receipt of a notice from the Victorian Commission for Gambling and Liquor Regulation that a gaming industry employee's licence has been suspended or cancelled, terminate the employment of the affected employee. Clause 17 amends section 9A.1.18 of the Act to ensure that the holder of gaming industry employee licence and any other person who is employed by a venue operator and who is working in the gaming machine area of an approved venue to complete an appropriate training course and an approved refresher course. Clause 18 replaces the existing power to prescribe regulations with respect to the conduct and sale of club keno conducted under Chapter 6 of the Act with a new power with respect to keno conducted under Chapter 6A of the Act. Club keno ceased operation on 14 April 2012. The keno licence commenced on 15 April 2012. Clause 19 inserts four new transitional provisions. Part 27.1 of Schedule 7 provides that a venue operator that holds a gaming machine entitlement may supply an approved gaming machine acquired by the venue operator from a person listed on the Roll of Manufacturers, Suppliers and Testers, and any restricted component in relation to the gaming machine, to a gaming operator. Part 27.2 of Schedule 7 provides that a gaming operator may obtain an approved gaming machine, and restricted components, from a venue operator that holds a gaming machine entitlement. These provisions are intended to allow the supply of gaming machines by venue operators to the current gaming operators from the commencement of the Bill until the cessation of the gaming operator's licence and the gaming licence, for use to conduct gaming. 6 Part 27.3 of Schedule 7 provides that, despite the expiry of a gaming operator's licence or a gaming licence, the person who held that licence is required to discharge any obligations or liabilities owing to a player and comply with any requirements imposed on the gaming operator before the expiry. Part 27.4 of Schedule 7 provides that, despite the expiry of a wagering licence, the person that held that licence is required to discharge any obligations or liabilities owing to a person who has engaged in wagering and betting with the wagering operator and comply with any requirements imposed on the wagering operator before the expiry. These provisions are intended to ensure that everything necessary to conclude the obligations of the outgoing gambling licensees is done. PART 3—AMENDMENTS TO THE GAMBLING REGULATION AMENDMENT (LICENSING) ACT 2009 Clause 20 amends section 1 of the Gambling Regulation Amendment (Licensing) Act 2009 to update the purpose of that Act to incorporate the extension to the prohibition on automatic teller machines in gaming venues to include alternative cash access facilities (see clause 3 of the Bill for a definition of alternative cash access facility). Clause 21 amends the heading of Division 5 of Part 4 of the Gambling Regulation Amendment (Licensing) Act 2009 to update the heading to incorporate the extension to the prohibition on automatic teller machines in gaming venues to include alternative cash access facilities. Clause 22 amends section 79 of the Gambling Regulation Amendment (Licensing) Act 2009 to update the heading in Subdivision 2 of Division 3 of Part 5 of Chapter 3 of the Gambling Regulation Act 2003 to incorporate the extension to the prohibition on automatic teller machines in gaming venues to include alternative cash access facilities. Clause 23 amends the prohibition on automatic teller machines in gaming venues to be inserted into the Gambling Regulation Act 2003 to include alternative cash access facilities. 7 This amendment will provide that alternative cash access facilities are prohibited from gaming venues not located on racecourses. The default commencement date of section 79 of the Gambling Regulation Amendment (Licensing) Act 2009 is 1 July 2012. Clause 24 amends the prohibition on automatic teller machines in gaming venues to be inserted into the Gambling Regulation Act 2003 to include alternative cash access facilities. This amendment will provide that alternative cash access facilities are prohibited from being located in an area that is less than 50 metres walking distance away from the entrance of the gaming machine area of a venue located on a racecourse. The default commencement date of section 79 of the Gambling Regulation Amendment (Licensing) Act 2009 is 1 July 2012. Clause 25 amends section 79 of the Gambling Regulation Amendment (Licensing) Act 2009 to ensure the proper insertion of section 3.5.33N of the Gambling Regulation Act 2003 by clause 26 of the Bill. Clause 26 inserts a new section to be inserted into the Gambling Regulation Act 2003 by section 79 of the Gambling Regulation Amendment (Licensing) Act 2009 to provide that no compensation is payable by the State to any person in relation the operation of the prohibition on automatic teller machines and alternative cash access facilities in gaming venues. Clause 27 amends section 81 of the Gambling Regulation Amendment (Licensing) Act 2009 to update the amendments made to section 81AAA of the Casino Control Act 1991 to incorporate the extension to the prohibition on automatic teller machines in an area that is less than 50 metres walking distance away from an entrance to the casino to include alternative cash access facilities. PART 4—AMENDMENTS TO THE CASINO CONTROL ACT 1991 Clause 28 defines the term alternative cash access facility for the purposes of extending the prohibition of automatic teller machines in the casino provided by clause 27 of the Bill. 8 This clause is intended to ensure that any method of accessing cash within a gaming venue requires interaction between a person requesting cash and venue staff. PART 5—FURTHER AMENDMENTS AND REPEALS Clause 29 amends section 3.2A.1 of the Gambling Regulation Act 2003 to remove a typographical error in the definition of monitoring licensee. Clause 30 amends section 6A.4.2 of the Gambling Regulation Act 2003 to remove a typographical error in the expression of the duty payable by the keno licensee. Clause 31 repeals section 140 of the Gambling Regulation Further Amendment Act 2009. This section has a default commencement date of 1 September 2012. This section was made redundant by section 78 of the Victorian Commission for Gambling and Liquor Act 2011. Clause 32 provides for the automatic repeal of this Act on the first anniversary of its commencement. The repeal of this Act does not affect in any way the continuing operation of the amendments made by this Act (see section 15(1) of the Interpretation of Legislation Act 1984). 9