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CASINO AND GAMBLING LEGISLATION AMENDMENT BILL 2014

         Casino and Gambling Legislation
              Amendment Bill 2014

                        Introduction Print


              EXPLANATORY MEMORANDUM


                                 General
This Bill amends the Casino Control Act 1991, the Casino (Management
Agreement) Act 1993 and the Gambling Regulation Act 2003--
            to extend the Melbourne Casino Licence until 18 November
             2050; and
            to ratify the tenth Deed of Variation to the Management
             Agreement for the Melbourne Casino to provide for the
             Melbourne Casino Operator to make further fixed payments to
             the State and other payments contingent on revenue growth and
             taxes paid, to remove additional taxes introduced in 2009, for
             the State not to take certain actions that adversely affect the
             Melbourne Casino Operator and for compensation to be
             payable to the Melbourne Casino Operator in certain
             circumstances if the State takes certain regulatory actions; and
            to allow for an increase in the maximum number of gaming
             machines available for gaming at the Melbourne Casino; and
            to enable the Minister to extinguish certain gaming machine
             entitlements that have not been allocated or have been
             forfeited.




571553                               1       BILL LA INTRODUCTION 3/9/2014

 


 

Clause Notes PART 1--PRELIMINARY Clause 1 outlines the main purposes of the Bill. Clause 2 provides that the Bill comes into operation on the day after the day on which it receives Royal Assent. PART 2--CASINO CONTROL ACT 1991 Clause 3 inserts subsections (2) to (5) in section 18 of the Casino Control Act 1991 to extend the duration of the Melbourne Casino Licence. New section 18(2) provides that the Melbourne Casino Licence is extended until 18 November 2050 unless it is sooner cancelled or surrendered in accordance with the Casino Control Act 1991. New section 18(3) obliges the Victorian Commission for Gambling and Liquor Regulation to amend the Melbourne Casino Licence to reflect the extended duration of the licence. New section 18(4) provides that section 16 of the Casino Control Act 1991, which outlines the process for amendment of conditions to a casino licence, does not apply to the amendment of the Melbourne Casino Licence under new section 18(3). New section 18(5) inserts definitions of Melbourne Casino Licence and Melbourne Casino Operator for the purposes of new section 18 by reference to the Casino (Management Agreement) Act 1993. Clause 4 amends section 62A(2) of the Casino Control Act 1991 to increase the maximum number of gaming machines that may be available for gaming at the Melbourne Casino from 2500 to 2628. PART 3--CASINO (MANAGEMENT AGREEMENT) ACT 1993 Clause 5 amends and inserts definitions in section 4 of the Casino (Management Agreement) Act 1993 as a result of the inclusion of a tenth Deed of Variation to the management agreement for the Melbourne Casino (the Agreement). 2

 


 

Clause 6 inserts a new section 6J into the Casino (Management Agreement) Act 1993. New section 6J(1) ratifies the tenth Deed of Variation to the Agreement and provides that it takes effect as if enacted in that Act. New section 6J(2) provides that the Agreement is amended as provided in the tenth Deed of Variation. New section 6J(3) provides that a reference in clause 2.2(a) of the tenth Deed of Variation to the coming into operation of the Bill is a reference to the commencement of this Bill. Clause 7 amends section 7(2) of the Casino (Management Agreement) Act 1993 to add a reference to new section 6J to ensure that section 7(1) (which provides that a provision of the Agreement prevails over the Casino Control Act 1991), does not derogate from the operation of new section 6J. Clause 8 inserts a new Schedule 11 into the Casino (Management Agreement) Act 1993 which sets out the tenth Deed of Variation to the Agreement. PART 4--GAMBLING REGULATION ACT 2003 Clause 9 amends sections 3.4A.5(3) and 3.4A.5(3A) of the Gambling Regulation Act 2003. Subclause (1) substitutes section 3.4A.5(3) of that Act to require that the Minister must, from time to time, specify the maximum number of gaming machine entitlements under which gaming may be conducted in the State. Subclause (2) amends section 3.4A.5(3A) of the Gambling Regulation Act 2003 by inserting the words "from time to time" in that section to ensure consistency of language with section 3.4A.5(3) as substituted by subclause (1). Clause 10 inserts a new Division 5B into Part 3.4A of the Gambling Regulation Act 2003 which provides for the extinguishment of unallocated or forfeited gaming machine entitlements. Included in the inserted Division 5B are new sections 3.4A.20K, 3.4A.20L and 3.4A.20M. 3

 


 

New section 3.4A.20K provides that the Minister may extinguish any unallocated gaming machine entitlements, including entitlements forfeited to the State under Division 6, 7, 8 or 8A that have not been reallocated. Such an extinguishment will require a Ministerial Order, which may or may not be in addition to a Ministerial Order under section 3.4A.20C of the Gambling Regulation Act 2003. In extinguishing gaming machine entitlements, the Minister is required to take into account certain effects that the extinguishment may have on the distribution of gaming machine entitlements-- The extinguishment must result in at least 20% of all gaming machine entitlements authorising the conduct of gaming being in a region or municipal district outside the Melbourne Statistical Division. The extinguishment must not result in more than 50% of all remaining gaming machine entitlements being in an approved venue in respect of which a pub licence is in force or in an approved venue in respect of which a club licence or racing club licence is in force. New section 3.4A.20L provides that, on the day an Order made under section 3.4A.20K is published in the Government Gazette, the specified gaming entitlements and any interest, right or privilege to which it is subject (other than an interest, right or privilege held by, or in favour of, the State), is extinguished. New section 3.4A.20M provides that no compensation is payable by the State as a result of the making of an Order to extinguish a gaming machine entitlement. PART 5--REPEAL OF AMENDING ACT Clause 11 provides for the automatic repeal of the Bill on the first anniversary of its commencement. The repeal will not affect the operation of the amendments to be made by the Bill (see section 15(1) of the Interpretation of Legislation Act 1984). 4

 


 

 


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