New South Wales: Gaming Machines Act 2001 (NSW)

Gaming Machines Act 2001 No 127 An Act to provide for the regulation, control and management of gaming machines in hotels and clubs and for related purposes; to amend the Liquor Act 1982, the Registered Clubs Act 1976, the Casino Control Act 1992 and certain other Acts with respect to gaming machines and other matters; and for other purposes. Part 1 Preliminary 1 Name of Act This Act is the Gaming Machines Act 2001. Note— This Act is part of the gaming and liquor legislation for the purposes of the Gaming and Liquor Administration Act 2007. That Act contains administrative and other relevant provisions that apply in relation to this Act (including investigation and enforcement powers and provisions relating to the probity of officials). 2 Commencement This Act commences on a day or days to be appointed by proclamation. 3 Objects of Act (1) The objects of this Act are as follows— (a) to minimise harm associated with the misuse and abuse of gambling activities, (b) to foster responsible conduct in relation to gambling, (c) to facilitate the balanced development, in the public interest, of the gaming industry, (d) to ensure the integrity of the gaming industry, (e) to provide for an on-going reduction in the number of gaming machines in the State by means of the tradeable gaming machine entitlement scheme. (2) The Authority, the Minister, the Secretary, the Commissioner of Police and all other persons having functions under this Act are required to have due regard to the need for gambling harm minimisation and the fostering of responsible conduct in relation to gambling when exercising functions under this Act. (3) In particular, due regard is to be had to the need for gambling harm minimisation when considering for the purposes of this Act what is or is not in the public interest. 4 Definitions (1) In this Act— approved ancillary CMS service means an additional service that may be provided by a CMS licensee using CMS infrastructure or CMS information and that is approved by the Minister under section 136D. approved gaming machine means a gaming machine declared under section 64 to be an approved gaming machine and includes— (a) any subsidiary equipment approved by the Authority for use in connection with the gaming machine, and (b) any component of the gaming machine (other than a component prescribed by the regulations as not being part of the gaming machine), and (c) any specially approved gaming machine within the meaning of section 141. authorised CMS means a CMS that is operated under the authority of a CMS licence. authorised linked gaming system means— (a) an authorised inter-hotel linked gaming system within the meaning of Part 10, or (b) an authorised inter-club linked gaming system within the meaning of that Part. Authority means the Independent Liquor and Gaming Authority constituted under the Gaming and Liquor Administration Act 2007. Board has the meaning given to it under this section immediately before the substitution of this definition by Schedule 3 to the Miscellaneous Acts (Casino, Liquor and Gaming) Amendment Act 2007. centralised cash control equipment means any equipment or system by means of which, in return for a cash payment made to a hotelier or club, the operation of an approved gaming machine kept in the hotel or on the premises of the club may, without the insertion of money, be commenced and, at least to the extent of the cash payment, continued. centralised monitoring system (or CMS) means a system that— (a) monitors the operation and performance of approved gaming machines, and (b) facilitates the calculation and collection of tax under the Gaming Machine Tax Act 2001 that is payable in respect of approved gaming machines, and (c) is capable of performing other related functions. close associate means a close associate within the meaning of the Gaming and Liquor Administration Act 2007. club means a club that holds a club licence. club licence means a club licence granted under the Liquor Act 2007 and club premises (or premises of a club) means the premises to which any such licence relates. CMS—see centralised monitoring system. CMS information means information acquired in the course of the operation of an authorised CMS (including any mandatory ancillary CMS services) and includes data derived from that information, but does not include information acquired in providing an approved ancillary CMS service unless the information is also acquired, or could be acquired, in the course of the operation of the authorised CMS (including any mandatory ancillary CMS services). CMS infrastructure means any hardware (including computers and cables) or software used for the purposes of providing an authorised CMS. CMS licence means a licence in force under Part 9, and CMS licensee means the holder of a CMS licence. Community Development Fund means the fund established under section 204A. country hotel means a hotel that is not situated in a metropolitan area. dealer's licence means a gaming machine dealer's licence in force under Part 7. exercise a function includes perform a duty. financial institution means— (a) a banking business within the meaning of the Banking Act 1959 of the Commonwealth or a bank constituted under a law of a State or Territory, or (b) a building society within the meaning of the Financial Institutions (NSW) Code or a law of another State, or of a Territory, that corresponds to that Code, or (c) a credit union within the meaning of the Financial Institutions (NSW) Code or a law of another State, or of a Territory, that corresponds to that Code. function includes a power, authority or duty. gaming machine means a device that is designed— (a) for the playing of a game of chance or a game that is partly a game of chance and partly a game requiring skill, and (b) for paying out money or tokens or for registering a right to an amount of money or money's worth to be paid, and includes any subsidiary equipment. gaming machine area, in relation to a club, means any part of the premises of the club in which approved gaming machines are located. gaming machine entitlement (or entitlement) means a gaming machine entitlement that is held in respect of a hotel licence or club licence under Part 3. gaming machine threshold—see section 32. gaming-related licence means any of the following types of licences in force under Part 7— (a) a dealer's licence, (b) a seller's licence, (c) a technician's licence, (d) (Repealed) (e) a testing facility licence. hotel and hotelier have the same meanings as in the Liquor Act 2007, and hotel licence means a hotel licence (other than a general bar licence) under that Act. hotelier's licence has the meaning given to it under this section immediately before the substitution of this definition by Schedule 3 to the Miscellaneous Acts (Casino, Liquor and Gaming) Amendment Act 2007. inspector means an inspector within the meaning of the Gaming and Liquor Administration Act 2007. keep an approved gaming machine includes acquire or possess the gaming machine. links licence means an inter-hotel links licence or inter-club links licence in force under Part 10. liquor has the same meaning as in the Liquor Act 2007. local statistical area means a geographical area defined for the time being as a Statistical Area Level 2 under the Australian Statistical Geography Standard published by the Australian Bureau of Statistics. manager in relation to a hotel has the same meaning as in the Liquor Act 2007. mandatory ancillary CMS service means an additional service that a CMS licensee is directed to provide in accordance with section 136C. metropolitan area means an area described by the regulations as a metropolitan area. new club premises means— (a) club premises that become licensed for the first time under the Liquor Act 2007 (otherwise than because of the operation of clause 93 of Schedule 2 to the Registered Clubs Act 1976), or (b) the premises to which a club licence is removed under the Liquor Act 2007. new hotel means— (a) (Repealed) (b) a hotel that becomes licensed for the first time under the Liquor Act 2007 (otherwise than because of the operation of clause 3 of Schedule 1 to that Act), or (c) a hotel to which a licence is removed under that Act. operate an approved gaming machine includes use or play the gaming machine. permit (when used in or in relation to Part 3) means a permit issued and in force under section 182C of the Liquor Act 1982 before the repeal of that section by this Act. retail shopping centre means a cluster of premises promoted as, or generally regarded as constituting, a shopping centre, shopping mall or shopping arcade, but does not include anything excluded from this definition by the regulations. Secretary means the Secretary of the Department of Enterprise, Investment and Trade. sell includes any of the following— (a) barter or exchange, (b) offer, agree or attempt to sell, (c) expose, send, forward or deliver for sale, (d) cause or permit to be sold or offered for sale, (e) in relation to an approved gaming machine—supply under financial and other arrangements approved by the Authority. seller's licence means a gaming machine seller's licence in force under Part 7. subsidiary equipment means— (a) centralised cash control equipment, or (b) any equipment, device or system (or any component of a system) that affects— (i) the playing or result of any game playable on a gaming machine, or (ii) the meters of a gaming machine, and includes any other equipment, device or system prescribed by the regulations for the purposes of this definition. technician means the holder of a technician's licence. technician's licence means a gaming machine technician's licence in force under Part 7. temporary premises, in relation to a hotel or club premises, means any premises approved by the Authority under section 96 of the Liquor Act 2007. testing facility licence means a gaming machine testing facility licence in force under Part 7. threshold increase application—see section 34. venue means a hotel or the premises of a club. work permit means a work permit issued under section 89. Note— The Interpretation Act 1987 contains definitions and other provisions that affect the interpretation and application of this Act. (2) Notes included in this Act do not form part of this Act. (3) A reference in this Act to a gaming machine entitlement held by a hotel or club, or to a gaming machine entitlement of a hotel or club, is a reference to a gaming machine entitlement held in respect of the hotel or club licence. 5, 6 (Repealed) 7 Lawful keeping and operation of gaming machines Despite anything in the Community Gaming Act 2018, the Unlawful Gambling Act 1998 or any other Act or law (other than this Act), it is lawful— (a) to keep or operate an approved gaming machine in a hotel or on the premises of a club, and (b) to pay or present prizes and bonuses won as a direct or indirect consequence of operating the approved gaming machine, if the approved gaming machine is kept or operated, and the prizes and bonuses are paid or presented, in accordance with this Act. 8 Gaming machines not used for purposes of gambling (1) Nothing in this Act prohibits the keeping or operation of a gaming machine if— (a) the gaming machine is not used for the purposes of gambling, and (b) the gaming machine is used only for such therapeutic purposes as may be approved by the Authority in writing before the machine is so used, and (c) any conditions imposed by the Authority when giving the approval are complied with. (2) Nothing in this Act prohibits the keeping or operation of a gaming machine if— (a) the gaming machine is not used for the purposes of gambling, and (b) the gaming machine is used only for research, educational or cultural purposes or for the purpose of promoting the machine (but not for the purpose of promoting other goods or services), and (c) the Authority has been notified in writing, at least 7 working days in advance, of the kind of use intended and the Authority has not, within that period, refused to allow the use, and (d) any conditions imposed by the Authority within that period are complied with. (3) In a particular case or a particular class of cases, the Authority may waive compliance with the requirement for giving notice under subsection (2) and may impose conditions for operation of the waiver. (4) Nothing in this Act prohibits the keeping or operation of a gaming machine if— (a) the gaming machine is being displayed or promoted at a gaming industry trade show or exhibition, and (b) the gaming machine is not used for the purposes of gambling or the distributing of prizes, and (c) in the case where the gaming machine has not been approved in the State—a notice is attached to the gaming machine indicating that it is not an approved gaming machine. 9 Subsidiary equipment not included in calculation of gaming machine numbers In calculating (for the purposes of this Act) the number of approved gaming machines in a hotel or on the premises of a club, any subsidiary equipment— (a) kept in the hotel or on the premises of the club, and (b) approved by the Authority for use in connection with such gaming machines, is to be disregarded. Part 2 Limitations on gaming machine numbers 10 Overall State cap on gaming machine entitlements (1) The maximum number of gaming machine entitlements is set at 99,000 or such lower number as may be prescribed by the regulations (the overall State cap). (2) The Authority is to review the overall State cap at least once every 5 years following the commencement of this section (as substituted by the Gaming Machines Amendment Act 2008). 11 Limit on number of gaming machines in hotels The maximum number of approved gaming machines that the Authority may authorise under Part 5 to be kept in any one hotel is 30. 12, 13 (Repealed) Part 3 Gaming machine entitlements and permits Division 1 Preliminary 14 Restrictions on number of gaming machine entitlements and permits held (1) The number of gaming machine entitlements held under this Act in respect of hotel and club licences cannot exceed the overall State cap. (2) The number of gaming machine entitlements held in respect of a club licence cannot exceed the gaming machine threshold for the club premises. (3) The number of gaming machine entitlements and permits held in respect of a hotel licence cannot exceed the gaming machine threshold for the hotel. Note— When gaming machine entitlements are leased, the gaming machine threshold for the lessor is reduced by the number of entitlements leased, and the gaming machine entitlements are considered to be held by the lessee during the lease. See Division 2A. Division 2 Tradeable gaming machine entitlement scheme 15–15B (Repealed) 16 Certificate of gaming machine entitlements (1) The number of gaming machine entitlements held in respect of a hotel licence or club licence from time to time is to be specified in a certificate issued by the Authority to the hotelier or club concerned. The certificate may be incorporated in the relevant hotel or club licence. (2) Any such certificate may also specify the gaming machine threshold for the hotel or club premises concerned. 17, 18 (Repealed) 19 Transfer of gaming machine entitlements (1) A gaming machine entitlement held in respect of a hotel licence or club licence is transferable. Note— Division 2A also provides for the leasing of gaming machine entitlements. (2) The transfer of a gaming machine entitlement does not have any effect unless the transfer— (a) is approved by the Authority, and (b) complies with the requirements of this Division and any requirements specified in the regulations. (3) An application for the Authority's approval of the transfer of a gaming machine entitlement must— (a) be accompanied by the fee (if any) prescribed by the regulations, and (b) be accompanied by such particulars or other matter as may be required by the Authority in relation to the proposed transfer, and (c) in the case of an application for the transfer of an entitlement held in respect of a hotel licence—demonstrate, to the satisfaction of the Authority, that the proposed transfer is supported by each person who, in the opinion of the Authority, has a financial interest in the hotel licence, and (d) be in the form and manner determined by the Authority from time to time. (4) (Repealed) (5) For the purposes of subsection (3) (c), a person is taken to have a financial interest in a hotel licence if the person is entitled to receive any income derived from the business carried on under the authority of the licence or any other financial benefit or financial advantage from the carrying on of the business (whether the entitlement arises at law or in equity or otherwise). (6) However, a person is not, for the purposes of subsection (3) (c), to be considered as having a financial interest in a hotel licence by reason only of being the owner of the hotel. (7) (Repealed) 20 General requirements relating to transfer of gaming machine entitlements (1) Gaming machine entitlements held in respect of a hotel licence may only be transferred to another hotel licence. (1A) (Repealed) (2) Gaming machine entitlements held in respect of a club licence may only be transferred to another club licence. (2A) If a hotel licence or a club licence is removed under the Liquor Act 2007 to other premises, any gaming machine entitlements held in respect of the premises from which the licence is removed may only be transferred to the premises to which the licence is removed if they are transferred in accordance with this Division. (3) Subject to this Act, the following requirements (referred to in this Division as the transfer block and forfeiture requirements) apply to the transfer of gaming machine entitlements— (a) a transfer must comprise one or more blocks of 2 or 3 gaming machine entitlements nominated by the transferor (referred to in this Division as a transfer block), (b) from each such transfer block, one of the entitlements must be forfeited to the Authority. (4) A transfer block may comprise gaming machine entitlements that are held in respect of more than one hotel licence or more than one club licence. (5) Section 20A provides exceptions to the transfer block and forfeiture requirements of subsection (3) for country hotels. (6) (Repealed) (7) If the Authority approves the transfer of gaming machine entitlements, the Authority is to decrease, by the number of entitlements transferred, the gaming machine threshold for the hotel or the premises of the club from which the entitlements are transferred. (8) To avoid doubt, the amount by which the gaming machine threshold for the hotel or club premises concerned is to be decreased is to include the number of entitlements that are required to be forfeited under this section because of the transfer. 20A Exceptions for transfers of country hotel gaming machine entitlements (1) A gaming machine entitlement held by a country hotel (the transferring hotel) may be transferred as authorised by this section despite the transfer block and forfeiture requirements of section 20 (3), and those requirements do not apply to a transfer authorised by this section. (2) The transfer of one gaming machine entitlement in any period of 12 months is authorised by this section if— (a) the transfer is to another hotel licence that is held in relation to a country hotel, and (b) the gaming machine threshold for the transferring hotel is not more than 8. (3) The transfer of up to 6 gaming machine entitlements at the one time is authorised by this section if— (a) the gaming machine threshold for the transferring hotel is not more than 6, and (b) the transfers of those gaming machine entitlements are all completed at the same time (whether or not pursuant to separate transactions), and (c) the transfers of those gaming machine entitlements will result in the number of gaming machine entitlements held by the transferring hotel being reduced to zero. (4) The transfer block and forfeiture requirements of section 20 (3) continue to apply in respect of any subsequent transfer of gaming machine entitlements of the transferring hotel in any period of 12 months in which the transferring hotel transfers one gaming machine entitlement as authorised by this section. (5) When a transfer of 2 or more gaming machine entitlements at the same time as authorised by this section reduces the number of gaming machine entitlements held by the transferring hotel to zero, the transferring hotel is not permitted to acquire any gaming machine entitlements for 24 months after the transfer. 21 Other provisions relating to transfer of gaming machine entitlements (1) In the case of a hotel licence that relates to a country hotel, no more than 2 blocks of gaming machine entitlements held in respect of the licence may be transferred in any period of 12 months to a hotel licence held in relation to a hotel that is situated in a metropolitan area. (1A) The forfeiture to the Authority of one gaming machine entitlement per transfer block is not required when gaming machine entitlements held in respect of the premises from which a hotel or club licence is removed under the Liquor Act 2007 are transferred to other premises if— (a) those other premises are situated in the same local statistical area as the previous premises, or (b) those other premises are situated in the same local government area as the previous premises and the classification of the local statistical area in which those other premises are situated is the same as or ranked lower than the classification of the local statistical area in which the previous premises were situated. (2) If, in the case of a club that holds more than one club licence, gaming machine entitlements held in respect of one of those licences are transferred to another one of the club's licences, the forfeiture to the Authority of one entitlement per transfer block is not required. Note— Section 19 (2) of the Liquor Act 2007 provides that each set of premises owned or occupied by a club must be separately licensed under that Act. (3) If— (a) an amalgamated club (within the meaning of the Registered Clubs Act 1976) de-amalgamates in accordance with Division 1B of Part 2 of that Act, and (b) any gaming machine entitlements held in respect of the club licence for the relevant premises (as referred to in that Division) are, in connection with the de-amalgamation, transferred to the club licence held by the de-amalgamated club for those premises, the forfeiture to the Authority of one entitlement per transfer block is not required. (4) If for the time being the number of gaming machine entitlements held in respect of a club licence is 10 or less (the remaining entitlements), the club cannot transfer any of those remaining entitlements unless the transfer has been approved in principle at an extraordinary general meeting of the ordinary members of the club (being an approval supported by a majority of the votes cast at the meeting). (5) If a liquidator has been appointed for a club and any gaming machine entitlements held in respect of any club licence held by the club are proposed to be transferred, the forfeiture to the Authority of one entitlement per transfer block is required. (6) (Repealed) 21A, 22 (Repealed) 23 Transfer of gaming machine entitlements when hotel or club licence surrendered or cancelled (1) If a hotel licence or club licence is surrendered or cancelled any gaming machine entitlements held in respect of the licence concerned may, in accordance with this Division, be transferred. (2) If any such gaming machine entitlements have not been transferred at the end of the period of 12 months immediately following the surrender or cancellation of the hotel or club licence concerned, the remaining entitlements are forfeited to the Authority. (3) However, a remaining entitlement may be retained for a further period of up to 12 months if a levy is paid to the Secretary to retain the entitlement for that period. The levy is $500 for each of the remaining entitlements intended to be retained. (4) The Authority may, in the case of a club, allow a gaming machine entitlement to be retained for the further period without requiring the payment of the levy under subsection (3) if the Authority is satisfied that the delay in transferring the remaining entitlements is due to circumstances beyond the control of the proposed transferor of the entitlements. (5) If the remaining gaming machine entitlements have not been transferred by the end of the further 12-month period under subsection (3) the entitlements are forfeited to the Authority. (6) Any levy paid under this section is to be paid into the Community Development Fund. Division 2A Leasing of gaming machine entitlements 24 Leasing of gaming machine entitlements permitted (1) An eligible hotel or eligible club can lease any (or all) of the gaming machine entitlements held by it. (2) A gaming machine entitlement held by an eligible hotel can only be leased to another hotel (whether or not an eligible hotel), and a gaming machine entitlement held by an eligible club can only be leased to another club (whether or not an eligible club). (3) A club is an eligible club if the gaming machine threshold for the club premises does not exceed 30. (4) A hotel is an eligible hotel if the gaming machine threshold for the hotel does not exceed 10. (5) The leasing of a gaming machine entitlement is not a transfer of the gaming machine entitlement and a gaming machine entitlement cannot be transferred while it is leased. Note— The requirements of Division 2 for the transfer of gaming machine entitlements (including requirements for the forfeiture of entitlements on transfer) do not apply to the leasing of gaming machine entitlements. (6) The subleasing of a gaming machine entitlement is not permitted. 25 Lease requires approval of Authority (1) A lease of a gaming machine entitlement does not have any effect unless the lease is approved by the Authority and complies with the requirements of this Division and any requirements of the regulations. (2) A lease of a gaming machine entitlement cannot be varied so as to change the term of the lease or the number of gaming machine entitlements leased except with the approval of the Authority. (3) The termination of a lease of a gaming machine entitlement otherwise than by expiration of the term of the lease does not have effect until written notice of the termination has been given to the Authority by the lessor and lessee. (4) An application for the Authority's approval of the lease of a gaming machine entitlement must— (a) be accompanied by the fee (if any) prescribed by the regulations, and (b) be accompanied by such particulars or other matter as may be required by the Authority in relation to the proposed lease, and (c) in the case of an application for the lease of an entitlement held by a hotel—demonstrate, to the satisfaction of the Authority, that the proposed lease is supported by each person who, in the opinion of the Authority, has a financial interest in the hotel licence, and (d) be in the form and made in the manner determined by the Authority from time to time. (5) A person is taken to have a financial interest in a hotel licence for the purposes of this section if the person is entitled to receive any income derived from the business carried on under the authority of the licence or any other financial benefit or financial advantage from the carrying on of the business (whether the entitlement arises at law or in equity or otherwise). However, a person is not to be considered as having a financial interest in a hotel licence by reason only of being the owner of the hotel. 25A Standard form of lease (1) The Authority may approve a standard form of lease of gaming machine entitlements. (2) The Authority may refuse to approve a lease of gaming machine entitlements for which there is an approved standard form if the lease is not in that form. (3) The Authority's approval of a standard form of lease may provide for the following— (a) the terms of the lease, (b) more than one standard form of lease for use for different classes of venues or in different circumstances, (c) the addition of terms to, or the omission or variation of terms in, a standard form of lease in specified circumstances. (4) A lease of gaming machine entitlements for which a standard form is approved may include additional terms that are not inconsistent with the terms set out in the standard form. 25B Effect of lease of gaming machine entitlements (1) The following provisions apply to a lease of a gaming machine entitlement held by a hotel or club (the lessor venue) to another hotel or club (the lessee venue)— (a) the lease operates as a lease by the licensee for the time being of the lessor venue to the licensee for the time being of the lessee venue (with the result that a transfer of the licence of the lessor venue or lessee venue does not affect the operation or continuation of the lease and does not require any assignment of lease), (b) during the lease the lessee venue has the benefit of the gaming machine entitlement and the lessor venue does not have the benefit of the gaming machine entitlement, (c) during the lease the gaming machine entitlement is considered to be a gaming machine entitlement acquired and held by the lessee venue and counts towards the total number of gaming machine entitlements held by the lessee venue, (d) the gaming machine entitlement is not considered to be held by the lessor venue during the lease, (e) during the lease the gaming machine threshold for the lessor venue is reduced by the number of entitlements leased. Note— Section 32A (Caps on gaming machine entitlements in particular areas) provides that for the purposes of a cap under that section the gaming machine threshold for a venue is not to be reduced by a lease of gaming machine entitlements. Gaming machine tax (which is imposed on profits from a gaming machine) is payable by the hotel or club where the gaming machine is kept. When a gaming machine entitlement is leased, it is the lessee venue that is liable for that tax because the gaming machine is kept by the lessee venue. (2) At the end of the lease, the gaming machine threshold for the lessee venue is reduced by the number of entitlements leased unless a threshold increase application that was made together with an application for approval of the lease was accompanied by an LIA, or was not required to be accompanied by an LIA because of section 35 (2) (a). (3) While any gaming machine entitlement of a hotel or club is leased, the hotel or club licence cannot be removed under the Liquor Act 2007 to other premises unless— (a) those other premises are situated in the same local statistical area as the previous premises, or (b) those other premises are situated in the same local government area as the previous premises and the classification of the local statistical area in which those other premises are situated is the same as or ranked lower than the classification of the local statistical area in which the previous premises were situated. (4) The Authority is not to decrease the gaming machine threshold for a venue because the venue has not acquired its approved increase in gaming machine entitlements before the end of the limited period for doing so (as required by section 37) to the extent that the gaming machine threshold has already been reduced under this section at the end of a lease of gaming machine entitlements. 25C Levy payable for lease of gaming machine entitlement (1) A levy is to be paid in respect of a lease of a gaming machine entitlement approved by the Authority. (2) The amount of the levy is the amount fixed by or determined in accordance with the regulations. (3) The levy is payable by the lessee to the Secretary under the Casino Control Act 1992 for payment into the Responsible Gambling Fund as gaming machine lease levy under this Act. Note— Section 115B of the Casino Control Act 1992 provides that a payment under this section into the Responsible Gambling Fund is to be applied for such purposes as the Minister determines for the benefit of local communities in which gaming machine thresholds for venues have increased. (4) The levy is payable at the time of the application for the Authority's approval of the lease (for which purpose the proposed lessee is considered to be the lessee) or in accordance with such other arrangements as the Authority may approve. (5) A levy paid under this section in respect of a lease is not refundable on account of early termination of the lease. Division 3 Transfer of permits 26 Transfer of permits generally (1) A permit that is held in respect of a hotel licence may be transferred to another hotel licence but only in accordance with such arrangements as are approved by the Secretary. (2) Any such arrangements may, without limitation, provide for the charging of fees in connection with an application for the approval of the transfer of permits. 27 Hotel's gaming machine threshold to be decreased when permits transferred to another hotel If any permits held in respect of a hotel licence are transferred to another hotel licence in accordance with the arrangements referred to in section 26, the Authority is to decrease, by the number of permits transferred, the gaming machine threshold for the hotel from which the permits are transferred. 28 Transfer of permits when hotel licence surrendered or cancelled (1) If a hotel licence is surrendered or cancelled, any permits held in respect of the licence may, in accordance with such arrangements as are approved by the Secretary, be transferred to another hotel licence. (2) If, at the end of the period of 12 months immediately following the surrender or cancellation of the hotel licence, any such permits have not been transferred, the remaining permits are forfeited to the Authority. (3) However, any such remaining permit may be retained for a further period of up to 12 months if a levy is paid to the Secretary to retain the permit for that period. The levy is $500 for each of the remaining permits intended to be retained. (4) If the remaining permits have not been transferred by the end of the further 12-month period under subsection (3), the permits are forfeited to the Authority. (5) Any levy paid under this section is to be paid into the Community Development Fund. 29–31 (Repealed) Division 4 Miscellaneous provisions 31A, 31B (Repealed) 31C Consequences of moving to temporary premises (1) If the business under a hotel licence or a club licence is carried on at temporary premises, any gaming machine entitlements held in respect of the licence concerned may, in accordance with Division 2 of this Part, be transferred to the temporary premises without the forfeiture of any of the entitlements to the Authority. (2) The transferred gaming machine entitlements may be subsequently transferred from the temporary premises back to the premises from which they were transferred without the forfeiture of any of the entitlements to the Authority. (3) (Repealed) Part 4 Gambling harm minimisation measures Division 1 Gaming machine threshold scheme 32 Gaming machine thresholds for venues (1) The Authority may, for each hotel and each set of club premises, set the maximum number of approved gaming machines that may be authorised under Part 5 to be kept in the hotel or on those premises. (2) Any such maximum number is the gaming machine threshold for the hotel or club premises concerned. (3) The gaming machine threshold for a hotel is subject to section 11. (4) In the case of a new hotel or new club premises, the gaming machine threshold for the hotel or club premises may be set at zero. (5) The gaming machine threshold for a hotel or the premises of a club may be increased or otherwise varied by the Authority in accordance with this Act. (6) For the purposes of this Division and any regulations made under this Division, a hotel or club premises cease to be a new hotel or new club premises (as the case requires) once the gaming machine threshold for the hotel or club premises is increased or a gaming machine entitlement held by the hotel or club has been leased (whether or not the lease is still in force). Note— If the licence for the venue is subsequently removed under the Liquor Act 2007 to another venue, the other venue would be considered a new hotel or new club premises (as the case requires). 32A Caps on gaming machine entitlements in particular areas (1) In this section— Fairfield LGA means the Fairfield local government area. restricted increase area means any local statistical area of the State that is classified as a Band 3 LSA (not being an area within Fairfield LGA) and that the Authority determines from time to time to be a restricted increase area for the purposes of this section. (2) The Authority may determine from time to time the maximum number of gaming machine entitlements to be permitted in Fairfield LGA or a restricted increase area and that number is the area cap for the area concerned. (3) The following restrictions apply to a threshold increase application for a venue in an area for which there is an area cap if granting the application would result in the total of the gaming machine thresholds for all the venues in the area exceeding the area cap— (a) if the venue is in Fairfield LGA the application must not be granted, (b) if the venue is in a restricted increase area the application can only be granted if the threshold increase application is not required to be accompanied by an LIA (as provided by section 35). (4) For the purposes of a determination under this section of the total of the gaming machine thresholds for venues in an area, the gaming machine threshold for a venue is not to be reduced by a lease of gaming machine entitlements by the venue (with the result that for the purposes of this section the venue's gaming machine threshold is to be determined as if no gaming machine entitlements had been leased by the venue). Note— Section 25B (Effect of lease of gaming machine entitlements) would otherwise result in the gaming machine threshold for the lessor venue being reduced by the number of entitlements leased. (5) The following arrangements apply to determinations under this section— (a) the Authority may vary or revoke a determination at any time, (b) a determination and any variation or revocation of a determination must be notified by the Authority on a publicly available website. 33 Classification of local statistical areas (1) For the purposes of this Act, each local statistical area of the State is to be classified by the Authority as— (a) a Band 1 LSA, or (b) a Band 2 LSA, or (c) a Band 3 LSA. (2) For the purposes of this Act there is a hierarchy of classification of local statistical areas under this section as follows— (a) Band 1 LSA is ranked lower than both Band 2 LSA and Band 3 LSA, (b) Band 2 LSA is ranked lower than Band 3 LSA. Note— The ranking of bands is relevant for section 35 (2). (3) The Authority is to specify the classification of local statistical areas on a publicly available website. (4) The classification of any local statistical area under this section may be varied from time to time by the Authority. 34 Application to increase gaming machine threshold (1) A hotelier or club may apply to the Authority to increase the gaming machine threshold for the hotel or the premises of the club (a threshold increase application). (2) The hotel or club premises to which a threshold increase application relates is referred to in this Division as the relevant venue. (3) A threshold increase application must comply with the requirements of this Division and the regulations. (4) The Authority may approve a threshold increase application only if the Authority is satisfied that the requirements of this Division and the regulations have been complied with in relation to the application. (4A) The Authority must determine a threshold increase application within the time required by the regulations. (5) If the application is approved, the Authority may increase the gaming machine threshold for the relevant venue in accordance with the Authority's approval. (6) Nothing in this Division requires the Authority, if it approves a threshold increase application, to increase the relevant venue's gaming machine threshold by the number to which the application relates. (7) Without limiting subsection (1), a threshold increase application may be made by a person in relation to premises that are the subject of an application for a licence under the Liquor Act 2007 that has not yet been granted. 35 Requirements relating to threshold increase applications (1) Except as provided by this section, a threshold increase application must be accompanied by a local impact assessment (LIA). An LIA, if required, is to be a class 1 LIA or a class 2 LIA as determined by this section. (2) When LIA is not required A threshold increase application is not required to be accompanied by an LIA if the application is made together with a transfer or lease application and any one or more of the following apply— (a) the relevant venue is situated in a Band 1 LSA and the threshold increase application, if approved, would not result in the gaming machine threshold for the venue being increased, over any period of 12 months, by a number that is more than the number corresponding to a low-range increase for the venue, (b) the relevant venue and the hotel or club from which the gaming machine entitlements or permits are proposed to be transferred or leased by the transfer or lease application (the transferring/lessor venue) are situated in the same local statistical area, (c) the relevant venue and the transferring/lessor venue are situated in the same local government area and the classification of the local statistical area in which the transferring/lessor venue is situated is the same as or ranked higher than the classification of the local statistical area in which the relevant venue is situated, (d) the relevant venue and the transferring/lessor venue are situated in adjoining local statistical areas (whether or not in the same local government area) and the classification of the local statistical area in which the transferring/lessor venue is situated is the same as or ranked higher than the classification of the local statistical area in which the relevant venue is situated. (2A) For the purposes of subsection (2), a transfer or lease application means either or both of the following— (a) an application under section 19 or 25 for the Authority's approval of the transfer or lease of gaming machine entitlements to the relevant venue, (b) an application under and in accordance with the arrangements referred to in section 26 for the acquisition by the relevant venue of permits. (2B) If a threshold increase application that is not required to be accompanied by an LIA is approved, the applicant must within 1 month after the approval provide a local impact statement for the venue (containing such information about the venue and the impact of the approved increase as the Authority may determine) to such persons and bodies as the applicant would have been required to notify of the proposed application had it been required to be accompanied by a class 2 LIA. (3) When class 1 LIA is required A threshold increase application must, unless subsection (2) applies in relation to the application, be accompanied by a class 1 LIA if the relevant venue— (a) is situated in a Band 1 LSA and the application is for a mid-range increase in the gaming machine threshold for the venue, or (b) is situated in a Band 2 LSA and the application is for a low-range increase in the gaming machine threshold for the venue. (4) When class 2 LIA is required A threshold increase application must, unless subsection (2) applies in relation to the application, be accompanied by a class 2 LIA if the relevant venue— (a) is situated in a Band 1 LSA and the application is for a high-range increase in the gaming machine threshold for the venue, or (b) is situated in a Band 2 LSA and the application is for a mid-range or high-range increase in the gaming machine threshold for the venue, or (c) is situated in a Band 3 LSA. (5) For the purposes of this section, a low-range increase, a mid-range increase or a high-range increase in a gaming machine threshold for a venue is to be determined in accordance with the regulations. (6) The regulations may make provision for or with respect to the following— (a) the information to be provided by an LIA, (b) the requirements that must be complied with in relation to an LIA, which may include a requirement to verify any information by statutory declaration, (c) the matters to be assessed or addressed by an LIA, (d) the advertising of LIAs, (e) the making of submissions in relation to LIAs. (7) The regulations may also create exceptions to this section and provide for the conditions to which any such exception is subject. (8) Except to the extent to which the regulations make provision, an LIA is to be provided in the form and manner approved by the Authority. 36 Approval of LIA by Authority (1) If an LIA is required to be provided with a threshold increase application, the application cannot be approved unless the Authority approves the LIA. (2) The applicant is liable to meet any costs incurred by the Authority in connection with its determination of the LIA. The Authority may refuse to determine the LIA until any such costs are paid to the Secretary or provision, satisfactory to the Authority, has been made for their payment. (3) The Authority may approve an LIA only if it is satisfied that— (a) the LIA complies with the requirements of this Division and the regulations in relation to the LIA, and (b) the LIA has demonstrated that gambling activities in the relevant venue will be conducted in a responsible manner, and (c) in the case of a class 1 LIA— (i) the proposed increase in the gaming machine threshold for the relevant venue will provide a positive contribution towards the local community where the venue is situated, and (ii) the relevant venue is not, if the venue is a new hotel or comprises new club premises, situated in the immediate vicinity of a school, hospital or place of public worship, and (iii) the LIA has adequately addressed any community concerns arising out of the consultation process under the regulations, and (d) in the case of a class 2 LIA— (i) the proposed increase in the gaming machine threshold for the relevant venue will have an overall positive impact on the local community where the venue is situated, and (ii) the relevant venue is not, if the venue is a new hotel or comprises new club premises, situated in the immediate vicinity of a school, hospital or place of public worship, and (iii) the LIA has adequately addressed any community concerns arising out of the consultation process under the regulations, and (e) it is otherwise appropriate that the LIA be approved. (4) The regulations may specify other grounds on which the Authority may refuse to approve an LIA. (5) If any submissions are made in relation to an LIA in accordance with the regulations, the Authority must take those submissions into consideration in deciding whether to approve the LIA. (6) The Authority may, in any case it considers appropriate, partly approve an LIA, in which case the Authority may increase the relevant venue's gaming machine threshold by a number that is less than the number to which the threshold increase application relates. (7) Without limiting any other provision of this Division, the approval of an LIA is subject to such conditions as may be specified by the Authority. The LIA has no effect if any such conditions are not complied with. 36A Community benefit requirement—payment of money to Responsible Gambling Fund (1) A community benefit requirement cannot be wholly or partly satisfied by a payment of money except a payment to the Secretary under the Casino Control Act 1992 for payment into the Responsible Gambling Fund as a community benefit payment under this Act. Note— Section 115B of the Casino Control Act 1992 provides that a payment under this Act into the Responsible Gambling Fund is to be applied for such purposes as the Minister determines for the benefit of local communities in which gaming machine thresholds for venues have increased. (2) A community benefit payment by a venue is to be taken into account by the Authority in the determination of a threshold increase application as if it were a contribution to the local community where the venue is situated. (3) In this section, community benefit requirement means a requirement under section 36 that a proposed increase in the gaming machine threshold for a venue will— (a) provide a positive contribution towards the local community where the venue is situated, or (b) have an overall positive impact on the local community where the venue is situated. 36B Community benefit requirement—consideration of additional positive contributions (1) In determining a threshold increase application, the Authority is to have regard to additional positive contributions by the venue in connection with the proposed increase and may decide to treat those additional positive contributions as being in partial satisfaction of a community benefit requirement (so as to reduce what is required to satisfy a community benefit requirement). (2) In this section— additional positive contributions means any of the following actions by a venue— (a) the putting in place of harm minimisation and responsible gambling measures that are in addition to measures already required by law, (b) the application of funds by a club to community development and support that constitutes Category 1 harm minimisation expenditure in excess of the amount that entitles the club to the maximum reduction in gaming machine tax under section 17 of the Gaming Machine Tax Act 2001, (c) the payment of money by a club into the ClubGRANTS Fund (established under section 17A of the Gaming Machine Tax Act 2001), (d) such other actions as the regulations prescribe as additional positive contributions for the purposes of this section. Category 1 harm minimisation expenditure means expenditure for projects or services that constitute Category 1 projects and services under the ClubGRANTS guidelines (referred to in section 16 of the Gaming Machine Tax Act 2001) and that in the opinion of the Authority are concerned with harm minimisation. community benefit requirement has the same meaning as in section 36A. 36C Guidelines for threshold increase applications (1) The Authority may publish guidelines about the operation of this Division for the purpose of providing guidance in respect of the requirements of this Division relating to threshold increase applications. (2) Without limitation, the guidelines may provide guidance about the following— (a) what the Authority considers to be a positive contribution towards a local community or an overall positive impact on a local community, (b) conditions that the Authority may impose on its approval of an LIA. (3) The guidelines do not limit the Authority's discretion when deciding in a particular case what constitutes a positive contribution towards a local community or an overall positive impact on a local community, or in deciding to impose conditions on an approval. 37 Limited period for acquiring gaming machine entitlements (1) If a threshold increase application is approved, the relevant venue is permitted to acquire gaming machine entitlements for the number of gaming machines by which the venue's gaming machine threshold is increased (its approved increase in gaming machine entitlements) but can only do so during the limited period provided for by this section. (2) The limited period during which a venue can acquire its approved increase in gaming machine entitlements is— (a) for a threshold increase application required to be accompanied by a class 1 LIA—2 years from the date of approval of the application, or (b) for a threshold increase application required to be accompanied by a class 2 LIA—5 years from the date of approval of the application, or (c) for any other threshold increase application—12 months from the date of approval of the application. (3) The Authority may in a particular case extend or further extend the limited period during which a venue can acquire its approved increase in gaming machine entitlements. (4) If a relevant venue has not acquired its approved increase in gaming machine entitlements before the end of the limited period for doing so, the Authority is to decrease the gaming machine threshold for the venue by the number of gaming machine entitlements by which the number acquired fell short of the approved increase. (5) If a gaming machine entitlement is acquired by lease, the limited period in which the entitlement can be acquired under this section stops running during the term of the lease. (6) A reference in this section to a gaming machine entitlement includes, if the relevant venue is a hotel, a reference to a permit. 37A Special provision for clubs establishing in new development areas (1) In this section— new development area means an area of land in a Band 1 LSA or Band 2 LSA that— (a) is identified by an environmental planning instrument as an urban release area (or such other description as the Authority considers to be similar), and (b) does not, in the opinion of the Authority, have the full benefit of the services and facilities of the kind provided by clubs. (2) A class 1 LIA may be provided with a threshold increase application in relation to the premises of a club that are situated in a new development area if— (a) the number to which the application relates is not more than 150, and (b) the Authority is satisfied that the acquisition of a corresponding number of gaming machine entitlements in respect of those premises would not increase the density of gaming machines in the local statistical area in which the premises are situated to the extent that the classification of the area is affected. (3) The following provisions apply if any such class 1 LIA is approved— (a) only one gaming machine entitlement for every 2 transfer blocks is required to be forfeited to the Authority under Division 2 of Part 3 in respect of the first 50 gaming machine entitlements that are transferred to the premises after the approval of the LIA, (b) the club has up to 5 years from the date of the approval in which to acquire gaming machine entitlements for the number of gaming machines to which the threshold increase relates (the club's special class 1 quota), (c) if, at the end of that 5-year period the club has not acquired gaming machine entitlements for its special class 1 quota, the Authority is to decrease the gaming machine threshold for the premises in accordance with the portion of the special class 1 quota that is not used during that period. (4) This section has effect despite any other provision of this Division. 37B Restriction on gaming machine thresholds for venues in retail shopping centres (1) The gaming machine threshold for a hotel or premises of a club cannot be increased if the hotel or premises are part of a retail shopping centre or proposed retail shopping centre. (2) If a hotel licence or club licence is granted under the Liquor Act 2007 for premises that are part of a retail shopping centre or proposed retail shopping centre, the gaming machine threshold for the premises is to be set at zero. (3) If an application is granted under the Liquor Act 2007 that results in the removal of a hotel licence, or the extension of a hotel, to premises that are part of a retail shopping centre or proposed retail shopping centre, the gaming machine threshold for the premises is to be set at zero. (4) If an application is granted under the Liquor Act 2007 that results in the removal of a club licence, or the extension of the premises of a club, to premises that are part of a retail shopping centre or proposed retail shopping centre, the gaming machine threshold for the premises is to be set at zero. (5) However, subsection (4) does not apply if— (a) the retail shopping centre comprises or will comprise less than such number of shops as may be prescribed by the regulations, and (b) patrons will not be able to gain access to the club's premises directly from the retail shopping centre, and (c) in the case where the club licence is being removed to other premises—the other premises are situated in the same suburb or town as the previous premises, and (d) in the case where the club's premises are being extended—the club's premises remain predominantly where they were before the extension, and (e) the gaming machine threshold for the club's premises is no more than the gaming machine threshold for the club's premises immediately before the club licence was removed or the premises were extended, and (f) such other requirements as may be prescribed by the regulations have been complied with. (6) For the purposes of this section, a hotel or the premises of a club are taken to be part of a retail shopping centre if the hotel or club premises are located within the retail shopping centre or physically adjoin any part of the retail shopping centre. (7) This section has effect despite any other provision of this Division. 37C Special provision relating to de-amalgamated clubs (1) A threshold increase application by a de-amalgamated club in respect of the premises that are transferred to it under the de-amalgamation (the relevant premises) is not required to be accompanied by an LIA if— (a) the relevant premises are situated in the same local statistical area as the premises of the amalgamated club from which gaming machine entitlements are proposed to be transferred to the relevant premises, or (a1) the premises of the amalgamated club and the relevant premises are situated in the same local government area and the classification of the local statistical area in which the premises of the amalgamated club are situated is the same as or ranked higher than the classification of the local statistical area in which the relevant premises are situated, or (a2) the premises of the amalgamated club and the relevant premises are situated in adjoining local statistical areas (whether or not in the same local government area) and the classification of the local statistical area in which the premises of the amalgamated club are situated is the same as or ranked higher than the classification of the local statistical area in which the relevant premises are situated, or (b) the relevant premises are situated in a Band 1 LSA and the threshold increase application, if approved, would not result in the gaming machine threshold for the premises being increased, over any period of 12 months, by a number that is more than the number corresponding to a low-range increase for the premises, or (c) the relevant premises are situated in a Band 1 or Band 2 LSA and the threshold increase application, if approved, would not result in the gaming machine threshold for the relevant premises exceeding the gaming machine threshold for the premises of the dissolved club immediately before it amalgamated with the parent club concerned. (2) If an LIA is required to be provided with any such threshold increase application because paragraphs (a)–(c) of subsection (1) do not apply in relation to the relevant premises, a class 1 LIA is required to be provided with the threshold increase application concerned. (3) Subsections (1) and (2) have effect despite any other provision of this Division but apply only if the threshold increase application by the de-amalgamated club is made— (a) in connection with the de-amalgamation, and (b) together with an application under section 19 for the Authority's approval of the transfer of gaming machine entitlements to the relevant premises from the premises of the amalgamated club. (4) A word or expression used in this section that has a meaning under the Registered Clubs Act 1976 has the same meaning given to it under that Act. Division 2 Mandatory shutting down of gaming machines 38 (Repealed) 39 General 6-hour shutdown period after 1 May 2003 (1) On and from 1 May 2003, a hotelier or club must ensure that each approved gaming machine that is kept in the hotel or on the premises of the club is not operated for the purposes of gambling between 4 am and 10 am on each day of the week (the general 6-hour shutdown period). Maximum penalty—100 penalty units. (2) The application of the general 6-hour shutdown period in respect of a hotel or the premises of a club is subject to sections 40, 40A and 41. 40 Approval of 3-hour shutdown period on weekends and public holidays (1) The Authority may, on application by a hotelier or club, approve of the hotel or the premises of the club having, with effect on and from 1