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GAMING CONTROL AMENDMENT BILL (NO. 2) 2010
NOTES ON CLAUSES
Clause 1 Short title.
Clause 2 Fixes the date of commencement of the Act on a day or days to be
proclaimed.
Clause 3 Refers to the Gaming Control Act 1993 as the Principal Act.
Clause 4 This clause amends section 3(1) of the Principal Act by:
- omitting the definition of "approved rules", which refers to
rules approved by the Tasmanian Gaming Commission
under section 76ZZF of the Act. This definition is omitted as
the general conditions that will apply to a Tasmanian gaming
licence in section 76XA of the Act provide for matters relating
to the requirement for a licensed provider to have rules in
respect of a gaming activity;
- inserting the definitions of "betting exchange commission",
"broker wagering", "brokered wagering event", "instruct" and
"regulatory Agency", which currently only relate to the
provisions in Division 5 (Betting exchange operations) of Part
4A of the Act. These definitions are required to be included in
section 3(1) of the Act as the conditions relating to a
Tasmanian gaming licence with a betting exchange
endorsement are to be inserted in Division 4 (Tasmanian
gaming licence) of Part 4A of the Act; and
- inserting the definition of "lay bet" to mean the acceptance of
a wager for a contingency not to occur in relation to an
animal, a person or a team.
Clause 5 This clause inserts sections 76XA, 76XB and 76XC in Division 4
(Tasmanian gaming licence) of Part 4A of the Principal Act.
Section 76XA prescribes all of the general conditions that will apply
to any Tasmanian gaming licence with a gaming endorsement.
These provisions previously only related to a Tasmanian gaming
licence holder with a betting exchange endorsement or totalizator
endorsement under sections 76ZDC and 76ZF of the Principal Act.
Section 76XA requires that the holder of a Tasmanian gaming
licence with a gaming endorsement have rules in place in respect of
a gaming activity and allows the Commission to disallow rules in
certain circumstances.
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The licensed provider must ensure that the Commission can inspect
the rules electronically at any time.
The licensed provider must not allow gaming activity under
disallowed rules or in respect of a contingency for which there are
no rules. The licensed provider must also not allow gaming activity
on contingencies relating to competitions, games or events that are
unlawful in Tasmania or that would be unlawful if they were to be
held in Tasmania.
This clause requires that the licensed provider must provide
information to regulatory Agencies as the Commission from time to
time instructs for the purposes of ensuring the integrity of a gaming
activity or other purpose as determined by the Commission.
In addition, section 76XA requires that the wagering funds of
registered players, that is those players entitled to wager in a
gaming activity by means of a telecommunications device, to be
held in trust and deposited with a Tasmanian branch of an
authorised deposit taking institution.
This clause also states that a licensed provider must not allow a
registered player to "lay bet" otherwise than in accordance with a
betting exchange endorsement. This restriction provides that only a
betting exchange can allow its registered players to accept a lay bet.
This provision will not prevent a corporate bookmaker from lay
betting.
Section 76XB prescribes the special conditions that apply to a
Tasmanian gaming licence with a betting exchange endorsement.
These special conditions are in addition to the general conditions
prescribed under section 76XA and any other conditions applicable
to the licensed provider. These special conditions are existing
conditions that have been moved from section 76ZDC of the
Principal Act.
These conditions require that the licensed provider must:
- only broker wagering in respect of registered players;
- hold wagering funds of registered players in trust, or by an
agent of the licensed provider approved by the Commission;
and
- comply with any conditions imposed by the Commission
when taking betting exchange commission.
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Section 76XC states that a Tasmanian gaming licence with a
totalizator endorsement, in addition to the general conditions
prescribed under section 76XA and any prescribed requirements or
other conditions applicable to the licensed provider, is subject to the
condition that, at the request of a racing club, the licensed provider
must conduct programmed race meetings on behalf of the racing
club. However, the licensed provider is not required to conduct more
than 40 meetings in each calendar year for all racing clubs. These
special conditions are existing conditions moved from section
76ZEF of the Principal Act.
Clause 6 This clause amends section 76ZDB of the Principal Act to omit the
definitions that are now prescribed in section 3(1) of the Act.
Clause 7 This clause repeals section 76ZDC of the Principal Act as the
special conditions relating to a Tasmanian gaming licence with a
betting exchange endorsement are prescribed in the new sections
of 76XA and 76XB.
Clause 8 This clause omits the definition of "wagering rules" from section
76ZEB of the Principal Act as there is no longer any reference to
wagering rules in the Act.
Clause 9 This clause repeals section 76ZEF of the Principal Act as the
special conditions relating to a Tasmanian gaming licence with a
totalizator endorsement are prescribed in the new sections of 76XA
and 76XC.
Clause 10 This clause removes the reference to "approved rules" in section
76ZX of the Principal Act as rules are no longer required to be
approved as the Commission has the power of disallowance.
Clause 11 This clause inserts a new section 76ZZF in the Principal Act to
reflect that matters relating to the approval of rules are now dealt
with in sections 76XA, 76XB and 76XC.
Clause 12 This clause amends section 148A(2)(da) of the Principal Act to
decrease the annual fee payable for a Tasmanian gaming licence
with a betting exchange endorsement from 350 000 fee units
($476 000) to 300 000 fee units ($408 000).
This clause inserts a new subsection (6) in section 148A(2) of the
Act to require payment of the annual licence fee in
section 148A(2)(da) in respect of a Tasmanian gaming licence with
a betting exchange endorsement that is granted or renewed for a
five-year period in three instalments.
Subsection (6)(a) requires that the fee for the first three years of the
five-year licence period (900 000 fee units) is payable on the grant
or renewal of the licence. This fee is non-refundable. Subsections
(6)(b) and (c) require two further non-refundable instalments of
300 000 fee units to be paid on the third and fourth anniversary of
the grant or renewal of the licence.
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These payment arrangements have effect for five years from the
date the amendments to section 148A(2) commence.
Subsection (7) states that where a Tasmanian gaming licence with a
betting exchange endorsement, which is granted or renewed within
five years after the subsection takes effect, is surrendered prior to
the expiration of the licence, an instalment of the licence fee in (6)
that was not due and payable at the time of the surrender ceases to
be payable. Therefore, if a licence holder surrenders its licence in
year two, the licence holder is not liable for the two remaining
instalments of 300 000 fee units.
The clause ensures that sections 148A(1) and 148A(2)(g) of the
Principal Act continue to apply. Section 148A(2)(g) caps the total
annual fees payable where a Tasmanian gaming licence is
endorsed with more than the endorsement referred to in subclauses
(a) to (e) of section 148A(2) of the Principal Act.
Clause 13 This clause inserts a new section 150A(7A) in the Principal Act to
provide a uniform tax rate of five per cent of the monthly betting
exchange commission in respect of all brokered wagering events.
This represents a reduction in the tax payable in respect of a betting
exchange from 10 per cent and 15 per cent in respect of brokered
wagering events internationally and in Australia respectively.
Clause 14 This clause repeals section 150AC of the Principal Act to abolish the
20 per cent product levy on betting exchange commission.
Clause 15 This clause omits the transitional and savings provisions contained
in Part 1 of Schedule 5 of the Principal Act that facilitated the
granting of a foreign games permit to Tattersall's in 2002 on the
commencement of new regulatory arrangements in Tasmania in
relation to providers of lotteries and other games of a similar nature
that are licensed in another Australian jurisdiction. The
arrangements in the Schedule expired on 30 June 2010 and
Tattersall's has since been granted a permit under the Principal Act.
Clause 16 Refers to the Gaming Control Regulations 2004 as the Principal
Regulations.
Clause 17 This clause rescinds regulation 5 of the Principal Regulations that
references provisions of the Principal Act that have previously been
repealed. This clause also rescinds Regulation 5A of the Principal
Regulations that relates to the calculation of betting exchange
commission, for the purpose of section 150AC(4A) of the Principal
Act, in order to determine the product levy on betting exchange
commission. This regulation is no longer required as the Bill repeals
section 150AC of the Principal Act.
Clause 18 Clause 18 rescinds outdated and redundant legislation specified in
Schedule 1.
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Clause 19 This clause provides that this Act will be repealed on the ninetieth
day from the day on which all of the provisions of the Act
commence.
Schedule 1 Schedule 1 lists the legislation that is rescinded.