Authorised Betting Operations Act 2000 (SA)

South Australia Authorised Betting Operations Act 2000 An Act to provide for the regulation of totalisator and other betting operations. Contents Part 1—Preliminary 1 Short title 2 Objects 3 Interpretation 3A Interaction with Gambling Administration Act 2019 4 Approved contingencies 4A Fit and proper person 5 Close associates 6 Designation of racing controlling authorities 6A Commissioner may approve staff training courses Part 2—Major betting operations licences Division 1—Grant, renewal and conditions of licences 7 Grant of licences 8 Eligibility to hold licence 9 Authority conferred by licence 10 Term and renewal of licence 11 Conditions of licence Division 2—Agreements with licensee 12 Approved licensing agreements 13 Racing distribution agreements 15 Approved licensing agreement to be tabled in Parliament Division 3—Dealings with licence or licensed business 16 Transfer of licence 17 Dealings affecting licensed business 18 Other transactions under which outsiders may acquire control or influence 19 Surrender of licence Division 4—Approval of designated persons 20 Approval of designated persons Division 5—Applications and criteria for determination of applications 21 Applications 22 Determination of applications Division 6—Investigations by Commissioner 23 Investigations 24 Investigative powers 25 Costs of investigation 26 Results of investigation Division 6A—Notification of change of prescribed particulars 26A Licensee to notify change of particulars Division 7—Accounts and audit 27 Accounts and audit 29 Duty of auditor Division 10—Recovery of administration costs 33A Commissioner to recover administration costs Part 3—Bookmaker's and other licences Division 1—Licences 34 Classes of licences 35 Term of licence 36 Conditions of licences 37 Application for grant or renewal, or variation of condition, of licence 38 Determination of applications 38A Suspension of body corporate licence 38B Licensee to notify change of particulars Part 3A—Authorisation of interstate betting operators 40A Authorisation of interstate betting operators 40AA Interstate betting operator to notify change of particulars Part 3B—Taxation Division 1—Preliminary 40B Interpretation Division 2—Betting operations tax 40C Taxation Administration Act 40D Liability to pay tax 40E Payments to Fund Division 3—Multi-jurisdictional agreements 40F Treasurer may enter into agreements 40G Commissioner of State Taxation must implement agreements Division 4—Regulations 40H Regulations Part 4—Regulation of betting operations Division 1—Major betting operations and on-course totalisator betting operations 41 Approval of rules, systems, procedures and equipment 42 Location of off-course totalisator offices, branches and agencies 43 Prevention of betting by children 44 Prohibition of lending or extension of credit 45 Cash facilities not to be in certain areas staffed and managed by comprehensive licensee 46 Player return information 47 Systems and procedures for dispute resolution 48 Advertising code of practice 49 Responsible gambling code of practice 51 Alteration of approved rules, systems, procedures or equipment Division 2—Bookmaking operations 53A Bets by telephone, Internet or other electronic means 54 Places at which bets may be accepted by bookmakers 60 Prevention of betting with children by bookmaker or agent 60A Advertising code of practice 60B Responsible gambling code of practice 61 Prohibition of certain information as to racing or betting 62 Rules relating to bookmakers' operations Division 3—Interstate betting operations 62A Prevention of betting by children 62B Advertising code of practice 62C Responsible gambling code of practice 62D Notification Division 4—Betting operations relating to racing 62E Integrity agreements and contribution agreements 62F Supreme Court review 62G Contributions for betting operations on races held on or after 1 September 2008 and before commencement of section 62E 62H Disclosure of information and confidentiality 62I Prosecution requires Commissioner's consent Part 6—Power to deal with default or business failure Division 1—Taxation default 73A Disciplinary action for taxation defaults Division 2—Official management 74 Power to appoint manager 75 Powers of manager Division 3—Administrators, controllers and liquidators 76 Administrators, controllers and liquidators Part 8—Miscellaneous 79A Licensees may bet with interstate licensees conducting fixed-odds betting 80 Lawfulness of betting operations conducted in accordance with Act 81 Further trade practices authorisations 83 False or misleading information 84 Offences by bodies corporate 85 Reasons for decision 86 Power of Commissioner in relation to approvals 87 Confidentiality of information provided by Commissioner of Police 89 Evidence 91 Regulations Legislative history The Parliament of South Australia enacts as follows: Part 1—Preliminary 1—Short title This Act may be cited as the Authorised Betting Operations Act 2000. 2—Objects The objects of this Act are— (a) to ensure that those involved in the control, management and operation of authorised betting operations are fit and proper persons to exercise their respective functions and responsibilities; and (b) to ensure that authorised betting operations are conducted responsibly, fairly and honestly, with due regard to minimising the harm caused by gambling; and (c) to prohibit minors from gambling and ensure that minors are not encouraged to gamble; and (d) to ensure that the interest of the State in the taxation of gambling revenue arising from authorised betting operations is properly protected. 3—Interpretation (1) In this Act, unless the contrary intention appears— advertising code of practice means an advertising code of practice prescribed under the Gambling Administration Act 2019; agent's licence—see section 34; approved contingency—see section 4; approved licensing agreement—see section 12; authorised betting operator means— (a) the holder of a licence under this Act; or (b) an authorised interstate betting operator; authorised interstate betting operator—see section 40A(3); betting exchange means a facility, electronic or otherwise, designed to provide a mechanism through which— (a) offers to make bets are regularly made and accepted; or (b) offers or invitations to make bets are regularly made that are intended to result, or may reasonably be expected to result, directly or indirectly, in the acceptance of the offers or invitations, but does not include a facility involved in the activities of a bookmaker or the conduct of totalisator betting; bookmaker's licence—see section 34; cash facility means— (a) an automatic teller machine; or (b) an EFTPOS facility; or (c) any other facility, prescribed by regulation, that enables a person to gain access to his or her funds or to credit; child means a person under the age of 18 years; close associates—see section 5; Commissioner has the same meaning as in the Gambling Administration Act 2019; compliance notice—see section 69; comprehensive licence means the comprehensive major betting operations licence granted under section 7(1); conduct betting operations—a person conducts betting operations if the person conducts totalisator betting, acts as a bookmaker or conducts a betting exchange; contribution agreement—see section 62E; designated person—see section 20; domestic partner means a person who is a domestic partner within the meaning of the Family Relationships Act 1975, whether declared as such under that Act or not; executive officer of a body corporate is— (a) a secretary or public officer of the body corporate; or (b) a person responsible for managing the body corporate's business or any aspect of its business; gambling administration guidelines means the gambling administration guidelines issued by the Commissioner under the Gambling Administration Act 2019; greyhound race or greyhound racing means a race or racing between greyhounds in competitive pursuit of a quarry or lure that is not a live animal; harness race or harness racing means a pacing race or trotting race or pacing or trotting; horse race or horse racing does not include a harness race or harness racing; integrity agreement—see section 62E; interstate betting operator means— (a) a person who holds a prescribed interstate licence (including a licence that is suspended); or (b) a statutory body established under the law of another State or a Territory of the Commonwealth for the purpose of conducting betting operations in that State or Territory; licensed bookmaker means a person who is the holder of a bookmaker's licence; licensed racing club means a racing club that is the holder of an on-course totalisator betting licence; limited licence means a limited major betting operations licence granted under section 7(3); major betting operations licence means the comprehensive licence or a limited licence granted under Part 2; on-course totalisator betting means totalisator betting that takes place within a racecourse, and off-course totalisator betting has a corresponding meaning; on-course totalisator betting licence—see section 34; prescribed interstate licence means a licence or other authority issued under the law of another State or a Territory of the Commonwealth authorising the holder to conduct betting operations in that State or Territory, but does not include a licence of a class excluded by regulation from the ambit of this definition; race or racing means— (a) a horse race or horse racing; or (b) a harness race or harness racing; or (c) a greyhound race or greyhound racing; racecourse means a place where a race meeting is held by a racing club, and includes adjacent land or premises to which persons attending the meeting have access in connection with the meeting; race meeting means a meeting at which horse races, harness races or greyhound races are held; racing club means a club or association that— (a) is a body corporate; and (b) is established for the purpose of holding race meetings; and (c) is unable, because of its constitution or its nature, lawfully to return profits to its members; and (d) — (i) is related to a racing controlling authority through its membership of the authority, or its membership of a body that is a member of the authority; or (ii) is registered by a racing controlling authority, and includes a racing controlling authority that holds race meetings; racing controlling authority—see section 6; racing distribution agreement—see section 13; responsible gambling code of practice means a responsible gambling code of practice prescribed under the Gambling Administration Act 2019; spouse—a person is the spouse of another if they are legally married; taxation default—section 73A; telephone, Internet or other electronic means—see subsection (3); totalisator betting means betting in accordance with a system under which the amount paid out in respect of a bet made on a particular contingency is affected by the total amount bet on that contingency, and totalisator bet has a corresponding meaning; 24 hour sportsbetting licence—see section 34. (2) In this Act, administrator, controller and liquidator have (unless the contrary intention appears) the same respective meanings as in the Corporations Act 2001 of the Commonwealth. (3) In this Act, a reference to telephone, Internet or other electronic means is a reference to a means of communicating at a distance by the use of electronic devices. 3A—Interaction with Gambling Administration Act 2019 This Act and the Gambling Administration Act 2019 will be read together as a single Act (and a reference in a provision of this Act to "this Act" will be taken to include, where relevant, a reference to the Gambling Administration Act 2019). 4—Approved contingencies (1) The Commissioner may approve, for all or specified betting operations— (a) contingencies related to races within or outside Australia (other than races held by licensed racing clubs); or (b) contingencies related to sporting or other events within or outside Australia; or (c) other contingencies. (2) The Commissioner may vary or revoke an approval. (3) Before approving contingencies or varying an approval, the Commissioner must— (a) have regard to— (i) the standards of probity applying in relation to the contingencies; and (ii) available evidence of the past conduct of events to which the contingencies relate (if any); and (iii) the likely nature and scale of betting operations in relation to the contingencies; and (iv) whether betting operations in relation to the contingencies are lawful in another State or a Territory of the Commonwealth; and (v) the appropriateness in other respects of the contingencies for the conduct of betting operations generally or the particular betting operations concerned; and (ab) be satisfied that the betting operations in relation to the contingencies do not allow betting in relation to amateur sporting events or sporting events where the only participants are children; and (b) give prior written notice of the proposal to the Minister. (3a) The Commissioner must, within 14 days after approving contingencies or varying or revoking an approval, publish a notice in the Gazette setting out the terms of the approval, variation or revocation. (4) The Minister may give the Commissioner binding directions preventing or restricting the approval of contingencies. 4A—Fit and proper person (1) A person is not a fit and proper person for a particular purpose under this Act if— (a) the person has been found guilty or convicted of an offence as prescribed by the regulations; or (b) in the case of a body corporate— (i) the body corporate is a body corporate, or is a body corporate of a class, prescribed by the regulations; or (ii) the body corporate is a prescribed organisation; or (c) in the case of a natural person, the person— (i) is— (A) a member of a prescribed organisation; or (B) a close associate of a person who is a member of a prescribed organisation or is subject to a control order under the Serious and Organised Crime (Control) Act 2008; or (ii) is an insolvent under administration within the meaning of the Corporations Act 2001 of the Commonwealth. (2) For the purpose of determining whether a person is a fit and proper person for a particular purpose under this Act the Commissioner— (a) may cause the person's photograph to be taken; and (b) may cause the person's fingerprints to be taken; and (c) may have regard to the following: (i) the corporate structure of the person; (ii) the person's financial background and resources; (iii) the person's reputation; (iv) the character, reputation and financial background of the person's close associates; (v) any representations made by the Minister; (vi) any other matters the Commissioner thinks fit. (3) In this section— prescribed organisation—the following are prescribed organisations: (a) a declared organisation within the meaning of the Serious and Organised Crime (Control) Act 2008; (b) a criminal organisation within the meaning of Division 1 or Division 2 of Part 3B of the Criminal Law Consolidation Act 1935; (c) any other organisation prescribed by the regulations for the purposes of this definition. 5—Close associates (1) Two persons are close associates if— (a) one is a spouse, domestic partner, parent, brother, sister or child of the other; or (b) they are members of the same household; or (c) they are in partnership; or (d) they are joint venturers; or (da) they are related bodies corporate within the meaning of the Corporations Act 2001 of the Commonwealth; or (e) one is a body corporate and the other is a director or executive officer of the body corporate; or (f) one is a body corporate (other than a public company whose shares are quoted on a prescribed financial market) and the other is a shareholder in the body corporate; or (g) one is a body corporate whose shares are quoted on a prescribed financial market and the other has a substantial holding in the body corporate; or (h) one has a right to participate (otherwise than as a shareholder in a body corporate) in, or is remunerated by reference to, proceeds or profits derived from a business conducted by the other; or (i) one is in a position to exercise control or significant influence over the conduct of the other; or (j) a chain of relationships can be traced between them under any one or more of the above paragraphs. (1a) For the purposes of this section, a reference to a parent, brother, sister or child of a person will be taken to include a reference to a step‑parent, step‑brother, step‑sister or step‑child (as the case requires) of the person. (2) In subsection (1)— prescribed financial market means a prescribed financial market within the meaning of section 9 of the Corporations Act 2001 of the Commonwealth; substantial holding in a body corporate has the same meaning as in section 9 of the Corporations Act 2001 of the Commonwealth. 6—Designation of racing controlling authorities (1) The Governor may, by proclamation— (a) designate a body as the racing controlling authority for horse racing; (b) designate a body as the racing controlling authority for harness racing; (c) designate a body as the racing controlling authority for greyhound racing. (2) The Governor may, by subsequent proclamation, substitute the body designated as a racing controlling authority. 6A—Commissioner may approve staff training courses (1) The Commissioner may, on application by a person, approve courses of training to be undertaken by staff involved in betting operations. (2) The Commissioner must not approve a training course under this section unless the course complies with the requirements of any applicable responsible gambling codes of practice or any applicable gambling administration guidelines. (3) The Commissioner may— (a) on the Commissioner's own initiative, by written notice to the training course provider, relevant authorised betting operator and a relevant body representative of licensees or authorised interstate betting operators; or (b) on application by a training course provider, vary or revoke an approval under this section. (4) Before the Commissioner varies or revokes an approval under subsection (3)(a), the Commissioner must— (a) give notice in writing of the proposed variation or revocation to the training course provider, relevant authorised betting operator or relevant body representative of licensees or authorised interstate betting operators; and (b) consider any representations made by the provider, operator or body within 21 days after the notice is given or a longer period allowed in the notice. Part 2—Major betting operations licences Division 1—Grant, renewal and conditions of licences 7—Grant of licences (1) The Governor may grant a comprehensive major betting operations licence. (2) There is not to be more than one comprehensive major betting operations licence in force under this Act at the same time. (3) The Governor may grant any number of limited major betting operations licences. (4) The grant of a licence is to be made, on the recommendation of the Commissioner, to an applicant for the licence. (5) The Governor is not bound to act in accordance with the Commissioner's recommendation. 8—Eligibility to hold licence The holder of a licence must be a body corporate. 9—Authority conferred by licence (1) The comprehensive licence may authorise the licensee— (a) to conduct off-course totalisator betting on races held by licensed racing clubs; (b) to conduct off-course totalisator betting on approved contingencies; (c) to conduct on-course totalisator betting under agreements with licensed racing clubs on races held by licensed racing clubs and on approved contingencies; (d) to conduct other forms of betting on races held by licensed racing clubs or on approved contingencies, in accordance with this Act. (2) A limited licence may authorise the licensee— (a) to conduct off-course totalisator betting on races held by licensed racing clubs; (b) to conduct off-course totalisator betting on approved contingencies; (c) to conduct other forms of betting on races held by licensed racing clubs or on approved contingencies, provided that the following requirements are complied with: (d) the betting must be conducted only by telephone, Internet or other electronic means and otherwise in accordance with this Act; (e) the licensee must not directly or indirectly make available, or in any way facilitate the provision of, a telephone, computer or other device capable of being used for the conduct of betting by telephone, Internet or other electronic means to a person in South Australia for the purpose of encouraging or facilitating such betting. 10—Term and renewal of licence (1) A licence is to be granted for a term fixed under the licensee's approved licensing agreement. (2) If before the end of a term for which a licence has been granted or renewed a new approved licensing agreement and, in the case of the comprehensive licence, a new racing distribution agreement are entered into, the Governor may, on the recommendation of the Commissioner, renew the licence for a term fixed under the renegotiated approved licensing agreement. (3) The Governor is not bound to act in accordance with the Commissioner's recommendation and the licensee is to have no entitlement to, or legitimate expectation of, renewal. 11—Conditions of licence (1) The conditions of a licence consist of— (a) the conditions fixed by this Act; and (b) the conditions (supplementary licence conditions) fixed by or in accordance with the licensee's approved licensing agreement. (2) Subject to the licensee's approved licensing agreement, the Governor may, on the recommendation of the Commissioner, vary supplementary licence conditions. (3) The Governor is not bound to act in accordance with the Commissioner's recommendation. Division 2—Agreements with licensee 12—Approved licensing agreements (1) There is to be an agreement (the approved licensing agreement) between a licensee and the Minister about— (a) the scope and operation of the licensed business; and (b) the term of the licence; and (c) the conditions of the licence; and (d) the performance of the licensee's responsibilities under the licence or this Act. (2) An agreement may deal with other subjects relevant to the licence or the licensed business. (3) An agreement— (a) is to be entered into with a prospective licensee before the licence is granted or with the licensee before renewal of the licence; and (b) is to remain in force for the term of the licence; and (c) must be consistent with the provisions of this Act. (4) If an agreement so provides, specified provisions of the agreement become conditions of the licence. (5) An agreement may require the Minister or the Commissioner to provide information relating to the licensee or the licensee's operations under the licence to a specified person and, if it does so, the information may be provided without breaching any other law. (6) An agreement may contain provisions governing the exercise of powers of the Minister or the Commissioner under this Act or the Gambling Administration Act 2019. (7) An agreement binds— (a) the licensee; and (b) the Minister; and (d) the Commissioner; and (e) if the agreement so provides, any other person who consents to be bound by the agreement, to the extent provided in the agreement. (8) An agreement may contain provisions governing its variation by later agreement, but such a variation must be consistent with the provisions of this Act. (9) An agreement may contain an assurance, on terms and conditions fixed in the agreement, that the licensee's right to conduct specified betting operations in this State will be an exclusive right and not be impugned during a period set out in the agreement. (11) An agreement must contain provisions fixing, for a form of betting in which the actual amounts payable on winning bets are not pre-determined, the maximum proportion of money invested that may be retained by the licensee. (12) Entering into, giving effect to, or enforcing an agreement is, subject to conditions and limitations prescribed by regulation, authorised for the purposes of section 51 of the Competition and Consumer Act 2010 of the Commonwealth, as in force from time to time, and the Competition Code of South Australia. (13) In subsection (12)— entering into an agreement means entering into or negotiating an agreement, including acting collectively or in combination with others in or with respect to the negotiation of an agreement; giving effect to an agreement includes complying with an obligation or exercising a right or power under the agreement. 13—Racing distribution agreements (1) At all times during the term of the comprehensive licence the licensee must have in force an agreement (the racing distribution agreement) with the racing industry about terms and conditions on which the licensee may conduct betting operations on races held by licensed racing clubs. (2) Without limiting the matters that may be included in the agreement, the agreement must include provisions relating to— (a) the arrangement of racing programs and the provision of racing information to the licensee; and (b) the payments to be made by the licensee to the racing industry. (3) The agreement is to be entered into with a prospective licensee before the licence is granted or with the licensee before renewal of the licence. (4) The agreement may be varied by a later agreement between the parties. (5) It is a condition of the comprehensive licence that the licensee must perform its obligations under the agreement. (6) Each racing controlling authority and its related licensed racing clubs are taken to be parties to a contract under seal under which each of the licensed racing clubs agrees to comply with any directions given by the controlling authority for the purposes of enabling the racing industry to perform its obligations and exercise its rights under the agreement. (7) Each racing controlling authority must give directions to its related licensed racing clubs as required for the purposes of enabling the racing industry to perform its obligations and exercise its rights under the agreement. (8) The following is, subject to conditions and limitations prescribed by regulation, authorised for the purposes of section 51 of the Competition and Consumer Act 2010 of the Commonwealth, as in force from time to time, and the Competition Code of South Australia: (a) entering into, giving effect to, or enforcing the agreement in so far as such conduct prevents or restricts the acquisition by the licensee or another person specified in the agreement of racing information from a person other than the person specified in the agreement as the supplier of the information; (b) entering into, giving effect to, or enforcing the agreement in so far as such conduct prevents or restricts the supply by a person specified in the agreement of racing information to a person other than the licensee or another person specified in the agreement; (c) entering into, giving effect to, or enforcing the agreement in so far as such conduct prevents or restricts the supply by the licensee or a person specified in the agreement of racing information received in accordance with the agreement to another person; (d) entering into, giving effect to, or enforcing the agreement in so far as such conduct lessens competition in relation to the conduct of on-course totalisator betting operations; (e) entering into, giving effect to, or enforcing provisions of the agreement prescribed by regulation. (9) In this section— entering into an agreement means entering into or negotiating an agreement, including acting collectively or in combination with others in or with respect to the negotiation of an agreement; giving effect to the agreement, or provisions of the agreement, includes— (a) complying with an obligation or exercising a right or power under the agreement or provisions; and (b) giving or complying with a direction referred to in subsection (6) or (7); racing industry means either or both of the following: (a) the racing controlling authorities; or (b) a body for the time being nominated to the Minister by the racing controlling authorities as a body representative of the racing controlling authorities; racing information means information about races held within the State or elsewhere in Australia; related licensed racing club, in relation to a racing controlling authority, means a licensed racing club that— (a) is related to the racing controlling authority through its membership of the authority, or its membership of a body that is a member of the authority; or (b) is registered by the racing controlling authority. 15—Approved licensing agreement to be tabled in Parliament The Minister must, within 12 sitting days after entering into an approved licensing agreement or an agreement for the variation of an approved licensing agreement, have copies of the agreement laid before both Houses of Parliament. Division 3—Dealings with licence or licensed business 16—Transfer of licence (1) The Governor may, on the recommendation of the Commissioner, approve the transfer of a licence. (3) On a transfer of a licence— (a) the transferee succeeds to all the rights and obligations of the transferor under the approved licensing agreement and, in the case of the comprehensive licence, the racing distribution agreement; and (b) the approved licensing agreement governs the conditions of the licence in the same way and to the same extent as before the transfer. (4) The Governor is not bound to act in accordance with the Commissioner's recommendation. 17—Dealings affecting licensed business (1) A licensee must not enter into any of the following transactions without the approval of the Commissioner: (a) a partnership agreement that relates to betting operations conducted or to be conducted under the licence; (b) an agreement or arrangement under which the licensee conducts or is to conduct betting operations under the licence jointly with another or as the agent of another; (c) an agreement or arrangement under which a person participates in, or is remunerated by reference to, proceeds or profits of the business conducted or to be conducted under the licence; (d) a transaction to mortgage, charge or encumber the licence or assets associated with operations under the licence; (e) an agreement or arrangement under which the licensee disposes of, or grants an interest in, the business conducted under the licence. (2) This section does not invalidate an agreement or arrangement made subject to a condition precedent under which it is not to take effect until approved by the Commissioner. 18—Other transactions under which outsiders may acquire control or influence (1) This section applies to a transaction if it is a transaction (other than one for which the Commissioner's approval is required under this Division) under which a person or a group of persons who are close associates of each other attain a position of control or significant influence over the conduct of a licensee. (2) Within 14 days after a licensee becomes aware of a transaction to which this section applies, the licensee must— (a) inform the Commissioner of the transaction; and (b) provide any information about the transaction that is available to the licensee. Maximum penalty: $50 000. (3) If a licensee is a party to a transaction to which this section applies, and the transaction takes effect before the Commissioner approves it, the licensee is liable to disciplinary action. (4) If a transaction to which this section applies has not been approved or ratified by the Commissioner, the Commissioner may, after allowing the parties to the transaction a reasonable opportunity to be heard, make orders of one or more of the following kinds: (a) an order avoiding the transaction; (b) an order requiring a person who has acquired an interest under the transaction to dispose of that interest within a specified time; (c) an order terminating a contractual or other relationship under which control or influence might be exercised over the licensee; (d) an order preventing or regulating the exercise of power or influence acquired as a result of the transaction; (e) an order (which may include an order for restitution) dealing with any consequential or ancillary issues. (5) The Supreme Court may, if satisfied on application by the Commissioner that there is good reason to do so, registe