New South Wales: Public Lotteries Act 1996 (NSW)

Public Lotteries Act 1996 No 86 An Act to amend and consolidate the law relating to the conduct of public lotteries; to repeal the Soccer Football Pools Act 1975, the Lotto Act 1979 and the New South Wales Lotteries Act 1990 and regulations made under those Acts; to make consequential amendments to other Acts; and for other purposes. Part 1 Preliminary 1 Name of Act This Act is the Public Lotteries Act 1996. 2 Commencement This Act commences on a day or days to be appointed by proclamation. 3 Objects of Act The objects of this Act are— (a) to make provision for the proper conduct of public lotteries in the public interest and to minimise any harm associated with public lotteries, and (b) to ensure that revenue derived from the conduct of public lotteries is accounted for in a proper manner, and (c) to ensure that, on balance, the State and the community as a whole benefit from the conduct of public lotteries. 4 Definitions (1) In this Act— agent of a licensee means an agent appointed or approved in accordance with the conditions of the licence held by the licensee. commission, in relation to a public lottery, means an amount— (a) paid to, deducted by or retained by an agent in connection with a subscription to the public lottery (whether or not in the person's capacity as an agent of the licensee conducting the public lottery), and (b) determined by or in accordance with, and identified as commission in, the conditions of the relevant licence or the rules of the public lottery. conduct a public lottery includes promote, organise and operate the public lottery. corresponding law means a law of another State, Territory or country under which a person is authorised to conduct a public lottery. exercise a function includes perform a duty. function includes a power, authority or duty. inspector means a person appointed under section 71. keno has the meaning set out in section 5B. key employee means a person (whether or not appointed under a contract of service) who is— (a) employed in a managerial or supervisory capacity in relation to the conduct of a public lottery by a licensee, or (b) authorised to make decisions, involving the exercise of his or her discretion, that regulate the operations of a licensee or an agent in relation to the conduct of a public lottery by the licensee, or (c) concerned or engaged, in any manner prescribed by the regulations, in the conduct of a public lottery by a licensee. licence means an operator licence or product licence in force under this Act. licensee means the holder of a licence. operator licence—see section 10. outgoings for a public lottery conducted by a licensee means the amount required to be paid by the licensee in accordance with section 26 (1) into the prize fund for the lottery. player loss on a public lottery conducted by a licensee means the difference between— (a) the subscriptions to the public lottery and, if the conditions of the licensee's licence so require, the commission payable in respect of those subscriptions, and (b) the outgoings for the public lottery. product licence—see section 10. public lottery has the meaning set out in section 5. rules of a public lottery means the rules relating to the conduct of the public lottery in force under Part 4. subscriptions to a public lottery means the amounts paid for entries in the public lottery, but does not include the following— (a) amounts charged to subscribers by the licensee's agents for providing ancillary services in connection with the subscriptions (as referred to in section 13 (1) (e1)), (b) commission, unless this Act otherwise expressly provides. Note— See sections 26 (3), 28 (4) and 29 (6). symbol includes amount, word or picture. unclaimed prize means a prize that remains unclaimed by the prizewinner for a period of one year after the date on which the public lottery to which the prize relates was conducted. Note— The Interpretation Act 1987 contains definitions and other provisions that affect the interpretation and application of this Act. (2) Notes in the text of this Act do not form part of this Act. 5 Meaning of "public lottery" (1) For the purposes of this Act, public lottery means any lottery, and includes— (a) a game of chance (including a game such as draw lottery or bingo) in which— (i) persons choose or are allocated numbers, and (ii) certain numbers are subsequently selected at random as prizewinning numbers, and (iii) prizes are distributed to persons holding the prizewinning numbers, or (b) a game of chance (including a game such as instant lottery) in which— (i) certain numbers are designated as prizewinning numbers, and (ii) persons are allocated numbers that have previously been selected at random, and (iii) prizes are distributed to persons holding the prizewinning numbers, or (c) a game of chance (including a game such as lotto, keno or powerball) in which persons choose or attempt to forecast, from designated numbers, fewer numbers to be drawn on a random basis, or (d) the game known as soccer football pool in which persons choose or attempt to forecast, from designated numbers, fewer numbers that represent the outcome of soccer football matches. (2) For the purposes of this section, numbers includes— (a) symbols, or (b) a single number or symbol, or (c) a group or groups of numbers or of symbols (or of numbers and symbols), or (d) a combination or combinations of numbers or of symbols (or of numbers and symbols), or (e) a distribution or distributions of numbers or of symbols (or of numbers and symbols). (3) For the purposes of this section, a person chooses numbers if the person chooses the numbers personally or if the numbers are chosen for the person. 5A Meaning of "close associate" (1) For the purposes of this Act, a person is a close associate of another if the person— (a) holds or will hold any relevant financial interest, or is or will be entitled to exercise any relevant power (whether in his or her own right or on behalf of any other person), in the lottery business of the other person, and by virtue of that interest or power is or will be able (in the opinion of the Minister) to exercise a significant influence over or with respect to the management or operation of that business, or (b) holds or will hold any relevant position, whether in his or her own right or on behalf of any other person, in the lottery business of the other person. (2) In this section— lottery business means the business conducted or to be conducted by a person under the authority of an operator licence. relevant financial interest, in relation to a business, means— (a) any share in the capital of the business, or (b) any entitlement to receive any income derived from the business, or to receive 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, or (c) any entitlement to receive any rent, profit or other income in connection with the use or occupation of premises on which the lottery business of the other person is to be carried on (such as, for example, an entitlement of the owner of premises to receive rent as lessor of the premises). relevant position means— (a) the position of director, manager or secretary, or (b) any other position, however designated, if it is an executive position. relevant power means any power, whether exercisable by voting or otherwise and whether exercisable alone or in association with others— (a) to participate in any directorial, managerial or executive decision, or (b) to elect or appoint any person to any relevant position. (3) A financial institution is not a close associate for the purposes of this section by reason only of having a relevant financial interest in relation to a business. 5B Meaning of "keno" (1) For the purposes of this Act, keno means a game of chance that has the following essential features— (a) the selection of 20 winning numbers from the set of numbers 1 to 80, (b) each individual draw is conducted and completed within a 24 hour period, (c) subscriptions are sold only to persons who at the time of sale are on the licensed premises of a club, hotel or casino (regardless of the manner or means of sale). (2) The sale of a multi-game entry does not commence the individual draws to which the multi-game entry relates (so the requirement that each individual draw is conducted and completed within a 24 hour period does not require the draws to which a multi-game entry relates to be conducted and completed within 24 hours after the sale of the multi-game entry). (3) In this section— licensed premises of a club, hotel or casino means— (a) licensed premises to which a club licence under the Liquor Act 2007 relates, or (b) licensed premises to which a hotel licence under the Liquor Act 2007 relates, or (c) premises that form part of a casino within the meaning of the Casino Control Act 1992. multi-game entry means an entry in a number of consecutive games of keno, starting with the game that is open when the entry is sold. Part 2 Conduct of public lotteries 6 Public lotteries not unlawful (1) A public lottery conducted by a licensee is not unlawful, despite the provisions of any other Act or law. (2) In particular— (a) any such public lottery is not an unlawful game for the purposes of the Unlawful Gambling Act 1998, and (b) the Community Gaming Act 2018 does not apply to or in respect of any such public lottery. 7 Contracts or agreements relating to public lotteries enforceable (1) An agreement is not to be regarded as void or voidable, or otherwise unenforceable, merely because it relates to, or is made for the purposes of, a public lottery conducted by a licensee. (2) Without limiting subsection (1), section 56 of the Unlawful Gambling Act 1998 does not apply to or in respect of such a public lottery. 8 Unlawful conduct of public lottery by licensee A licensee who conducts a public lottery is guilty of an offence if— (a) the licence does not authorise the conduct of that public lottery or public lotteries of that kind, or (b) the public lottery is conducted in contravention of a requirement of or made under this Act, the regulations, the rules or the conditions of the licence. Maximum penalty—100 penalty units. 9 Exculpation of certain persons from certain offences (1) A person is not guilty of an offence under any law merely because— (a) the person is an entrant in a public lottery conducted by a licensee, or (b) the person is or acts for a licensee and the person conducts a public lottery in accordance with the requirements of or made under this Act, the regulations, the rules and the conditions of the licensee's licence, or (c) in relation to a public lottery conducted by a licensee in the manner referred to in paragraph (b), the person— (i) is concerned in the conduct of the public lottery, or (ii) prints or publishes any thing relating to the conduct of the public lottery, or (iii) is the owner or occupier of any premises used for the purpose of, or in connection with, the conduct of the public lottery, or (d) the person prints or publishes the results of, or information as to the prize money payable in respect of, a public lottery conducted under a corresponding law. (2) This section does not affect any offence against this Act. Part 3 Licences to conduct public lotteries Division 1 Grant of licences 10 Operator licences and product licences (1) The Minister can grant the following kinds of licences for the purposes of this Act— (a) an operator licence, which is a licence to conduct any public lottery for which the licensee holds a product licence, (b) a product licence, which is a licence for a particular public lottery that is issued to the licensee under an operator licence to authorise the licensee to conduct the particular public lottery. (2) The grant of an operator licence requires the approval of the Treasurer. (3) A product licence can only be held by the holder of an operator licence. (4) Both kinds of licence can only be held by a corporation or by 2 or more corporations jointly. 11 Considerations for grant of operator licence (1) The Minister is not to grant an operator licence to a person (the applicant) unless satisfied that the applicant and each close associate of the applicant is a suitable person to be concerned in or associated with the management and operation of the business (the lottery business) to be conducted under the licence. (2) For the purpose of determining suitability to be concerned in or associated with the management and operation of a lottery business the Minister is to consider whether— (a) the applicant and each close associate is of good repute, having regard to character, honesty and integrity, and (b) the applicant and each close associate is of sound and stable financial background, and (c) the applicant has, or has arranged, a satisfactory ownership or corporate structure, and (d) the applicant has or is able to obtain financial resources that are both suitable and adequate for ensuring the financial viability of the lottery business, and (e) the applicant has or is able to obtain the services of persons who have sufficient experience in the management and operation of a lottery business, and (f) the applicant has sufficient business ability to establish and maintain a successful lottery business, and (g) the applicant has sufficient technical expertise and resources to conduct lotteries of the kind to be conducted as part of the lottery business, and (h) the applicant or any close associate has any business association with any person, body or association who, in the opinion of the Minister, is not of good repute having regard to character, honesty and integrity or has undesirable or unsatisfactory financial sources, and (i) each director, partner, executive officer and secretary and any other officer or person determined by the Minister to be associated or connected with the ownership, administration or management of the operations of the lottery business of the applicant is a suitable person to act in that capacity. (3) This section does not limit the matters that the Minister can consider in determining suitability to be concerned in or associated with the management and operation of a lottery business and does not limit the matters that the Minister can consider in deciding whether to grant an operator licence to the applicant. 12 Considerations for grant of product licence (1) The Minister is not to grant a product licence for the conduct of a game as a public lottery unless satisfied that the game is suitable to be conducted as a public lottery. (2) For the purpose of determining the suitability of a game to be conducted as a public lottery the Minister is to consider— (a) whether the proposed rules of the game are appropriate and sufficient to ensure the game's integrity as a public lottery, and (b) whether the harm minimisation and consumer protection measures proposed for the conduct of the game are appropriate and sufficient for the purposes of the conduct of the game as a public lottery, and (c) such other matters as the Minister considers relevant. 13 Police assistance (1) The Minister and the Commissioner of Police may enter into arrangements for the supply to the Minister of information contained in the records of the NSW Police Force to assist in the effectual administration of this Part. Those arrangements are sufficient authority for the supply of that information. (2) The Minister may arrange with the Commissioner of Police for police officers to be seconded or otherwise engaged to assist the Minister in the exercise of functions under this Part. 14 Conditions of licence (1) The Minister may impose any conditions on a licence at the time of its issue. (2) The Minister may at any time amend the conditions of a licence (by imposing further conditions or by altering or removing existing conditions) but only with the agreement of the licensee. In addition, in the case of an operator licence, the Minister may not amend the conditions of the licence without the approval of the Treasurer. (3) The agreement of the licensee is not required for an amendment to the conditions of a licence under Division 2 (Disciplinary action). (4) The approval of the Treasurer must be obtained for the inclusion in a licence (either at the time of issue or by subsequent amendment) of a condition specifying the general duty or licence duty, or both, to be paid by the licensee to the Treasurer in accordance with Part 5. Note— Part 5 provides for the inclusion of conditions in the licence relating to the prize fund for a public lottery, and to the payment of duty by the licensee in connection with the grant of the licence and the conduct of the public lottery. (5) The conditions of a licence must at all times include the conditions specified in Schedule 1 as the mandatory conditions of the licence. (6) Without limiting the conditions that can be imposed on a licence, any of the conditions specified in Schedule 1 as the optional conditions of a licence can be imposed on a licence. (7) A licensee may apply to the Minister for an amendment of the conditions of the licence and any such application is to be made and determined in accordance with any relevant conditions of the licence. 15 Licence fees The Minister may require the payment of fees for or in connection with the consideration and determination of an application for the grant or transfer of a licence (including fees to cover reasonable costs incurred in investigating and inquiring into any application or proposal for the grant or transfer of a licence). 16 Consideration payment for licence (1) The Minister may, on the occasion of the grant of an operator licence, require the licensee to pay a consideration payment in connection with the grant of the licence. (2) The Minister may determine that the consideration payment is to be payable wholly in respect of the operator licence or may determine that it is to be apportioned between the operator licence and any one or more of the product licences issued to the licensee when the operator licence is issued. (3) The Minister may determine that a consideration payment is to be— (a) a single amount payable on grant of the licence or licences concerned or by a later time determined by the Minister, as consideration for the grant of the licence or licences, or (b) an amount (or variable amounts) payable periodically for the duration of the licence or licences concerned and at the times determined by the Minister, as consideration for the continuation of the licence or licences. (4) A requirement or determination of the Minister under this section requires the approval of the Treasurer. (5) It is a condition of a licence that the licensee must pay any consideration payment that the licensee is required to pay under this section. (6) A consideration payment paid by a licensee pursuant to a requirement under this section is not recoverable on the grounds of, or on any ground arising from, the surrender, cancellation, suspension or transfer of the licence concerned. (7) A consideration payment paid to the Minister under this section is to be paid into the Consolidated Fund. 17 Term of licence (1) A licence is granted for the term specified in the licence. (2) The maximum term for which a licence may be granted is 40 years. 18 Exclusive operator licence (1) An operator licence can, if the Minister thinks fit, be granted as an exclusive licence for any period (the exclusivity period) up to the term for which the licence is granted. (2) If an operator licence is granted as an exclusive licence, no other operator licence can be granted to be in force during the exclusivity period. This does not affect a licence already in force when the exclusive licence is granted. (3) The grant of an exclusive licence does not create an exclusivity period for games of keno, with the result that one or more operator licences limited to a product licence for games of keno can be granted to be in force during the exclusivity period. 19 Transfer of licence (1) A licence can be transferred but only with the approval of the Minister given at the Minister's absolute discretion. The Minister must consult with the Treasurer before approving the transfer of a licence. (2) A product licence can only be transferred to the holder of an operator licence. (3) The Minister is not to approve of the transfer of an operator licence to a person (the transferee) unless satisfied that— (a) the transferee and each close associate of the transferee is a suitable person to be concerned in or associated with the management and operation of the business to be conducted under the licence, and (b) there are satisfactory arrangements for the transfer to the transferee of responsibilities for the conduct and completion of any public lottery being conducted at the time of transfer of the licence. (4) For the purpose of determining whether the transferee or any close associate of the transferee is a suitable person to be concerned in or associated with the management and operation of the business being conducted under the licence, the Minister is to have regard to the same matters to which the Minister is required to have regard in deciding whether an applicant or close associate of an applicant is a suitable person for that purpose. 20 Changes to ownership structure of licensee (1) A significant change in the ownership structure of a licensee must not occur unless the Minister has given consent in writing for the change to occur. (2) A significant change in the ownership structure of a licensee is considered to occur when— (a) a person acquires a relevant interest in issued voting shares in the licensee or any holding company of the licensee and the acquisition results in that person's, or some other person's, voting power in the licensee or holding company increasing from 20% or below to more than 20%, or (b) a person becomes a person who controls, or ceases to be a person who controls, the licensee or any holding company of the licensee. (3) The regulations may prescribe another percentage to replace 20% in subsection (2). (4) Words and expressions used in this section that are defined in section 9 of the Corporations Act 2001 of the Commonwealth have the same meanings as in that section, except in so far as they are defined differently in this Act or the context or subject-matter otherwise indicates or requires. 21 Surrender of licence (1) A licensee may surrender the licence by giving notice in writing to the Minister. If the licence is held by more than one licensee, all licensees must surrender the licence. (2) The surrender takes effect only if the Minister consents to the surrender. Division 2 Disciplinary action 21A Review of suitability of licensee (1) The Minister may from time to time determine whether in the opinion of the Minister the licensee under an operator licence and each close associate of the licensee remains a suitable person to be concerned in or associated with the management and operation of the business conducted under the licence. (2) For the purpose of determining whether the licensee or any close associate of the licensee is a suitable person to be concerned in or associated with the management and operation of the business conducted under the licence, the Minister is to have regard to the same matters to which the Minister is required to have regard in deciding whether an applicant or close associate of an applicant is a suitable person for that purpose. (3) The Minister may require the licensee under an operator licence to pay to the Minister such reasonable costs as may be incurred by or on behalf of the Minister in conducting any inquiry or investigation for the purposes of a determination under this section. (4) It is a condition of an operator licence that the licensee must— (a) provide such information (including necessary consents to facilitate the provision of information) as the Minister may reasonably request for the purpose of making a determination under this section, and (b) pay the costs that the Minister requires the licensee to pay under this section in connection with any inquiry or investigation conducted for the purposes of a determination under this section. (5) The Minister may recover from a licensee (as a debt due to the Crown) any costs that the Minister has required the licensee to pay under this section. (6) The Minister may give a certificate as to the amount of the reasonable costs incurred by or on behalf of the Minister in conducting any inquiry or investigation for the purposes of a determination under this section, and such a certificate is in any proceedings evidence of the matter certified. 21B Grounds for disciplinary action against licensee (1) Each of the following grounds constitutes grounds for disciplinary action against a licensee under this Division— (a) the licensee or any close associate of the licensee is not a suitable person to be concerned in or associated with the management and operation of the business being conducted under the licence, (b) the licensee has failed to comply with a provision of this Act or the regulations, (c) the licensee or any close associate of the licensee has been convicted of an offence under a relevant gaming law, (d) the licensee or any close associate of the licensee has been convicted in the State or elsewhere of an offence in connection with the management or operation of a public lotteries, gaming or wagering business, (e) the licensee or any close associate of the licensee has been convicted of an offence in the State that is an indictable offence or has been convicted elsewhere than in the State of an offence that, if committed in the State, would be an indictable offence, (f) the licensee has failed to comply with the rules of a public lottery conducted by the licensee, (g) the licensee has failed to comply with a condition of the licence or a direction given to the licensee under Division 2 of Part 7, (h) a significant change in the ownership structure of the licensee (as referred to in section 20) occurs without the consent in writing of the Minister as required by that section, (i) the licensee has failed to use reasonable endeavours to ensure that the licensee's agents comply with this Act, the regulations and any direction given by the Minister under Division 2 of Part 7, (j) the licensee has entered into or authorised a dealing with or in respect of securities of, or other instruments issued by, the licensee without the consent in writing of the Minister that, in the opinion of the Minister, affects the control of the licensee, (k) the licensee has become insolvent or an externally-administered body corporate within the meaning of the Corporations Act 2001 of the Commonwealth, (l) the licensee has failed to promptly terminate the employment of a person concerned in the management of the licensee who is convicted of an offence involving fraud or dishonesty, (m) the licence was granted as a result of a material false or misleading representation or declaration. Note— Division 2 of Part 7 enables the Minister to give directions to licensees and other persons engaged in the conduct of public lotteries on a licensee's behalf to protect the integrity of public lotteries and to require the termination of arrangements between licensees and agents and the employment of key employees of licensees for a similar purpose. (2) For the purpose of determining whether the licensee or any close associate of the licensee is a suitable person to be concerned in or associated with the management and operation of the business being conducted under the licence, the Minister is to have regard to the same matters to which the Minister is required to have regard in deciding whether an applicant or close associate of an applicant is a suitable person for that purpose. (3) In this section— relevant gaming law means any of the following laws— (a) Unlawful Gambling Act 1998, (b) Community Gaming Act 2018, (c) Gaming Machines Act 2001, (d) Casino Control Act 1992, (e) any other law (including any law of another State or Territory or of another country) that is prescribed by the regulations as a relevant gaming law for the purposes of this definition. 21C Disciplinary action (1) The Minister can take any of the following disciplinary actions against a licensee if satisfied that there are grounds for disciplinary action against the licensee under this Division— (a) suspend or cancel the licence (but only if there is a sufficient ground for the suspension or cancellation as provided by this Division), (b) amend the conditions of the licence to deal with any act, omission or other circumstance that constitutes a ground for disciplinary action, (c) impose a monetary penalty on the licensee of an amount not exceeding $250,000, (d) direct the licensee to rectify a matter that relates to any act, omission or other circumstance that constitutes a ground for disciplinary action, (e) censure the licensee for any act, omission or other circumstance that constitutes a ground for disciplinary action. (2) A direction to rectify a matter must direct that the matter be rectified within a specified period that is reasonable in the circumstances having regard to the nature of the matter to be rectified. (3) The Minister is not to suspend or cancel a licence except with the approval of the Treasurer. (4) A monetary penalty imposed under this section may be recovered as a debt due to the Crown in a court of competent jurisdiction. 21D Sufficient grounds for suspension or cancellation of licence A ground for disciplinary action is a sufficient ground for the suspension or cancellation of a licence if (and only if) the Minister is satisfied that— (a) the act, omission or other circumstance constituting the ground for disciplinary action is of a serious and fundamental nature and the integrity of the conduct of a public lottery may be jeopardised in a material way or the public interest may be adversely affected in a material way, or (b) the ground for disciplinary action is failure by the licensee to pay any duty payable by the licensee under Division 2 of Part 5. 21E Procedure for taking disciplinary action (1) Before taking disciplinary action, the Minister must first follow the show cause procedure provided for by this Division and then decide whether there is a sufficient ground for the taking of the proposed disciplinary action. (2) The Minister is not required to follow the show cause procedure before— (a) immediately suspending the licence as authorised by this Division, or (b) censuring a licensee for any act, omission or other circumstance that constitutes a ground for disciplinary action. (3) If the licensee fails to comply with a direction (imposed as disciplinary action) to rectify a matter within the period allowed for compliance, the Minister may take any other disciplinary action that the Minister could have taken in respect of the ground for disciplinary action concerned (without again following the show cause procedure for that other disciplinary action). (4) The Minister takes disciplinary action by giving notice of the action to the licensee concerned. (5) Disciplinary action takes effect when notice of it is given to the licensee or on such later date as may be specified in the notice of disciplinary action. (6) The Minister may at any time by notice in writing to the licensee under a suspended licence cancel the remaining period of suspension or reduce the remaining period of suspension by a stated period. 21F Immediate suspension of licence (1) The Minister may suspend a licence immediately if the Minister considers there is a sufficient ground for the suspension or cancellation of the licence and the circumstances are so extraordinary that it is imperative to suspend the licence immediately to ensure that the integrity of the conduct of a public lottery is not jeopardised in a material way or the public interest is not adversely affected in a material way. (2) An immediate suspension is effected by giving written notice of the suspension (a suspension notice) to the licensee and then following the show cause procedure provided for by this Division. (3) The suspension takes effect when the suspension notice is given and continues to have effect until the show cause procedure is completed. 21G Show cause procedure (1) The following procedure is the show cause procedure for proposed disciplinary action under this Division— (a) the Minister must give the licensee a show cause notice that requires the licensee to show why the proposed disciplinary action should not be taken, (b) the Minister must promptly give each interested person a copy of the show cause notice, (c) the Minister must consider all written representations made during the show cause period by the licensee or any interested person to whom a copy of the show cause notice is given. (2) A show cause notice must indicate the following— (a) the disciplinary action that the Minister proposes to take, (b) the ground for the proposed disciplinary action and the act, omission or other circumstance constituting the ground for the proposed action, (c) the period (the show cause period) within which the licensee must show why the proposed disciplinary action should not be taken. (3) The show cause period is to be a period of not less than 21 days after the show cause notice is given. (4) An interested person is a person who appears to the Minister to have an interest in the licence that may be adversely affected by the proposed disciplinary action. An interested person is only to be given a copy of the show cause notice if the Minister is satisfied that it is appropriate in the circumstances. (5) In considering whether it is appropriate to give a copy of the show cause notice to an interested person, the matters to which the Minister may have regard include the following— (a) the nature of the person's interest in the licence, (b) whether the licensee's interests may be improperly prejudiced. (6) An interested person to whom a copy of the show cause notice is given may make representations about the proposed disciplinary action to the Minister during the show cause period. 21H Withdrawal of approval or appointment of agent under conditions of licence (1) The Minister may withdraw the approval or appointment of an agent of a licensee under the conditions of a licence if the Minister is of the opinion that the integrity or apparent integrity of a public lottery conducted by the licensee is likely to be seriously prejudiced because of the criminal record, character or reputation of the agent. (2) An agent ceases to be an agent of the licensee if the approval or appointment is so withdrawn, and any arrangement under which the agent was appointed as the agent of the licensee is taken to be terminated. (3) The Minister is not to withdraw the approval or appointment unless the Minister— (a) has given the licensee and the agent notice, in writing, of the proposed withdrawal, and (b) has invited the licensee and the agent to make representations to the Minister, within the period specified in the notice, concerning the proposed withdrawal, and (c) has, after the end of that period, considered any representations so made. (4) The withdrawal of the approval or appointment takes effect— (a) on the day that is 14 days after the day on which a notice advising the licensee and the agent of the withdrawal is given to the licensee and the agent by the Minister, or (b) if a later day is specified in the notice—on that day. (5) It is taken to be a condition of any arrangement under which a person is appointed as an agent of a licensee that, in the event of the termination of the arrangement because of the withdrawal of an approval or appointment under this section, the licensee does not incur any liability to the agent by reason only of that termination (except to the extent agreed on between the licensee and the agent). 21I Completion of public lottery following cancellation or suspension of licence (1) If a licence is suspended or cancelled, the Minister may authorise a person to complete the conduct of any game in a public lottery that was in the course of being conducted when the licence was suspended or cancelled. (2) In that event— (a) the person so authorised is taken to be the licensee under the suspended or cancelled licence, and (b) the suspended or cancelled licence is, for the purposes of enabling the completion of the conduct of the public lottery, taken not to have been suspended or cancelled. Division 3 Temporary licences 21J Grant of temporary licence on suspension, cancellation or surrender of licence (1) Following the suspension, cancellation or surrender of a licence (the original licence), the Minister may grant a temporary licence to be in force for the period determined by the Minister. (2) The Minister may grant a temporary licence only if satisfied that the proposed licensee and each close associate of the proposed licensee is a suitable person to be concerned in or associated with the management and operation of the business to be conducted under the licence. (3) A temporary licence is granted on such terms and conditions as the Minister determines and Division 1 does not apply to a temporary licence. (4) A temporary licence— (a) may be extended once only for a period determined by the Minister, and (b) may be cancelled at any time by the Minister, and (c) if granted following the suspension of the original licence, is cancelled by the lifting or expiry of that suspension. (5) If a temporary licence (including a temporary licence granted under this subsection) is cancelled or otherwise terminates (other than under subsection (4) (c)), the Minister may grant a further temporary licence under this section. (6) The cumulative periods for which a temporary licence may be granted or extended under this section cannot exceed 3 years after the day on which the original licence was cancelled, suspended or surrendered. 21K Arrangements with former licensee (1) A temporary licensee may enter into any arrangements that are approved by the Minister with the former licensee, including arrangements relating to the use of assets and services of staff of the former licensee. (2) The former licensee— (a) must make available to the temporary licensee on reasonable terms any assets of, or under the control of, the former licensee that are reasonably necessary for arrangements under subsection (1), and (b) must use its best endeavours to make available any staff of the former licensee that are reasonably necessary for those arrangements. Maximum penalty—100 penalty units. (3) In this section— former licensee means the person who was a licensee— (a) under the original licence immediately before its cancellation, suspension or surrender, or (b) under a temporary licence immediately before its cancellation or other termination. Division 4 Special provision for keno licensing 21L Definitions In this Division— existing keno licence means the licence in force under this Act in respect of games of keno immediately before the commencement of this Division. new keno licence means a licence granted by the Minister as provided by section 21N. 21M Authority for Minister to enter into keno licensing arrangements (1) The Minister is authorised, on behalf of the Crown in right of the State— (a) to accept the offer made in the tabled copy of the deed poll to enter into the deed set out in the annexure to that deed poll, which is titled and referred to in this Division as the Implementation Deed, and (b) to enter into the Implementation Deed. (2) The tabled copy of the deed poll is the copy of the deed poll executed on 22 December 2015 as tabled, by or on behalf of the Minister introducing the Bill for the Public Lotteries Amendment (Keno Licensing) Act 2016, in the Legislative Assembly on the day that the Bill was introduced. (3) The reference in this section to the offer made in the tabled copy of the deed poll includes that offer as extended by any supplementary deed poll to the extent that the supplementary deed poll extends the time by which any condition precedent referred to in the tabled copy of the deed may be satisfied. (4) For the avoidance of doubt, it is declared that the Minister and the Treasurer are (and are taken always to have been) authorised on behalf of the Crown in right of the State— (a) to conduct negotiations with the other parties to the Implementation Deed in connection with that deed and the grant of the new keno licences (including in relation to the consideration payable to the Crown for any such grant), and (b) to exercise any function under this Act for or in connection with the entry into and performance of obligations arising under the Implementation Deed. (5) The tabling of the tabled copy of the deed poll as provided by this section does not abrogate, limit or otherwise affect any right or liability of any person arising under or in relation to the deed poll or the Implementation Deed after it comes into force. 21N Grant of new keno licences (1) The Minister is to grant an operator licence and product licence (each a new keno licence) as required to satisfy the conditions precedent of the Implementation Deed. (2) A new keno licence is deemed to have been granted under section 10 but the grant of a new keno licence does not require the approval of the Treasurer and sections 11 and 12 do not apply to the grant of the licence. (3) Section 16 (Consideration payment for licence) applies to the grant of a new keno licence. (4) A new keno licence is to be granted as required by this section even though the existing keno licence is in force when the new keno licence is granted. 21O Revocation of existing keno licence (1) The existing keno licence is revoked immediately before the commencement time under the new keno licences. The commencement time under the new keno licences is the time from which the licensee under the new keno licences is authorised to conduct games of keno under those licences. (2) Any agreement (an existing keno agency agreement) that provides for a person to act as the agent of the licensee under the existing keno licence in connection with the conduct of a public lottery and that is in force immediately before the revocation of the existing keno licence continues in force after the existing keno licence is revoked and is not affected by the revocation of that licence (but without affecting any later variation or termination of the agreement). (3) A reference in an existing keno agency agreement to the existing keno licence is, after the revocation of the existing keno licence, to be read as a reference to the new keno licences. (4) Compensation is not payable by or on behalf of the State because of the revocation of the existing keno licence under this section, or for any consequence of the revocation of that licence under this section. 21P Savings and transitional arrangements (1) The rules for the conduct of games of keno that are in force under the existing keno licence immediately before the revocation of that licence continue in force as the rules made and approved under this Act for the conduct of games of keno under a new keno licence (but without affecting any later amendment of those rules). (2) The prize fund kept for the purposes of Division 1 of Part 5 by the licensee under the existing keno licence becomes and is taken to be the prize fund kept for that purpose by the licensee under a new keno licence. (3) Any approval in force under this Act in respect of the existing keno licence immediately before the revocation of that licence is taken to have been given in respect of a new keno licence for which the approval has any relevant operation. (4) A game of keno being conducted under the existing keno licence immediately before the revocation of that licence is to be continued and completed under a new keno licence. Part 4 Rules for conduct of public lotteries 22 Making of rules (1) A licensee is required to make rules, not inconsistent with this Act, the regulations or the conditions of the licensee's licence, for or with respect to the conduct by the licensee of the public lottery. (2) Without limiting subsection (1), the rules may make provision as to the liability of a licensee, agent or other person acting under the authority or on behalf of a licensee in connection with the following— (a) the handling of applications for subscriptions to a public lottery, (b) the printing and issue of tickets in a public lottery, (c) the determination of the entitlement (if any) of a subscriber to a prize in a public lottery, (d) the payment of prizes in, or the refund of money subscribed to, a public lottery. (3) The power to make rules under this section includes power to amend or repeal any rules made in the exercise of that power. 23 Approval and publication of rules (1) Rules made under this Part must be submitted to the Minister for approval and have no effect unless they are approved in writing by the Minister. (1A) The Minister is required to decide whether to approve an amendment of rules in a timely manner and so as to give effect to any condition of the relevant product licence as to the time within which such a decision is to be made. (2) If the rules are so approved, the licensee must cause the rules to be published in the Gazette. (3) Rules take effect— (a) on and from the day on which they are published in the Gazette, or (b) if a later day is specified in the rules—on and from that day. 24 Display of rules (1) A licensee or agent who accepts entries in a public lottery must— (a) display a complete copy of the rules of the public lottery in a prominent position at each place where those entries are accepted, or (b) make available a complete copy of the rules of the public lottery for inspection by any person free of charge on request. (2) If the Minister so directs a licensee, the licensee or agent of the licensee must also display an extract of the rules approved by the Minister in a prominent position at each place where entries in the public lottery are accepted. (3) A licensee or agent who, in accordance with this section, displays an extract only of the rules of a public lottery at any place must keep a complete copy of those rules at that place and must produce them for inspection by any person free of charge on request. Maximum penalty—10 penalty units. 24A Display of notice that minors prohibited from entering lottery A licensee or agent must display a notice to the effect that persons under 18 years of age are prohibited from entering a public lottery in a prominent position at the place where entries are accepted at the time the licensee or agent accepts any entry in a public lottery. Maximum penalty—10 penalty units. 25 Rules inconsistent with Act If a rule becomes inconsistent with this Act, the regulations or the conditions of a licence (because of amendment of this Act or the regulations or alteration of the conditions of the licence), the rule ceases to have effect to the extent of the inconsistency. Part 5 Financial provisions relating to public lotteries Division 1 Prize fund 25A Separate prize funds A separate prize fund is to be kept in respect of a licensee for each kind of public lottery that the licensee is licensed to conduct. 26 Application of subscriptions to prize fund (1) Out of the subscriptions received by a licensee in respect of a public lottery conducted by the licensee, the licensee must pay into the prize fund for the lottery an amount that, when added to any amount already applied by the licensee or the licensee's agents to the payment of prizes won in the lottery, is not less than the requisite percentage of the subscriptions for the lottery. (2) The requisite percentage is the percentage specified in the conditions of the licence. (3) In this section, a reference to subscriptions includes, if the conditions of the licence so require, a reference to commission payable in respect of those subscriptions. 27 Prize fund account (1) A prize fund for a public lottery kept in respect of a licensee is to be kept in an account in a bank, building society or credit union that is nominated or approved by the Minister. (2) Payments under this Division are to be made in accordance with the conditions of the licence or section 27A (Unclaimed prizes). (3) A licensee may draw on the prize fund— (a) in order to apply money from the fund in accordance with subsection (8), or (b) in order to make payments in respect of unclaimed prizes or disputed money as authorised or required by or under subsection (9) or section 27A (Unclaimed prizes), unless the Minister has by notice in writing directed the bank, building society or credit union at which the prize fund is kept not to accommodate drawings by the licensee on the fund. (4) If the Minister has so directed a bank, building society or credit union, the Minister may draw on the prize fund— (a) in order to enable the completion of a public lottery to which the fund relates that has been commenced by the licensee, or (b) in order to apply money from the fund in accordance with subsection (8) (c) towards the reimbursement of the licensee, or (c) in order to make payments in respect of unclaimed prizes or disputed money, as authorised or required by or under subsection (9) or section 27A (Unclaimed prizes), that the licensee is unable to make from the fund because of the direction. (5) Money for the time being credited to a prize fund and not immediately required for the payment of prizes may be invested in such manner as the licensee concerned requests and the Minister approves in writing. (6) The proceeds of an investment, or of any realisation of an investment, under subsection (5) must be paid into the relevant prize fund and form part of the fund. (7) At the request of the licensee, investments made from the prize fund are to be realised (unless there are special circumstances that warrant not doing so). (8) Apart from investment under subsection (5), money forming part of a prize fund may be applied only— (a) towards the payment by the licensee or the licensee's agents of prizes won in a public lottery in respect of which the fund is kept, and (a1) towards the payment of contributions by the licensee to prizes won in a public lottery conducted pursuant to an agreement entered into by the licensee under section 37A, and (b) towards the payment, from a prize reserve fund located within the prize fund in accordance with the conditions of the licence, of the amounts specified to be paid from the prize reserve fund by the conditions of the licence, and (c) to the extent that the conditions of the licence require any subsidy of the prize fund by the licensee—towards the reimbursement of the licensee, and (d) towards payment of such costs for operating the prize fund as the Minister approves in writing, and (e) in the case of a licence that is no longer in force—in accordance with regulations under subsection (10). (9) The regulations may make provision for or with respect to the disposal of money as to which any dispute has arisen. (10) The regulations may make provision for or with respect to the disposal by the Minister of any money in a prize fund (being money that is not required for payment of prizes won in a public lottery) when a licence is no longer in force. 27A Unclaimed prizes (1) The regulations may make provision for or with respect to the time within which claims for unclaimed prizes must be made. (2) Unclaimed prizes in a prize fund kept by a licensee are to be paid into the Consolidated Fund as directed by the Minister with the approval of the Treasurer and after consultation with the licensee. (3) After an unclaimed prize is paid into the Consolidated Fund any liability to pay the prize to the prize winner becomes a liability of the Crown and payment of the prize to the prize winner is authorised to be made from the Consolidated Fund. Division 2 Duty payable to Treasurer 28 Payment of general duty (1) Out of the subscriptions received by a licensee in respect of public lotteries conducted by the licensee, the licensee must pay to the Treasurer, as general duty, an amount equal to a requisite percentage of— (a) the subscriptions for those public lotteries, or (b) the player loss on those public lotteries, as determined by the conditions of the licence. (2) The requisite percentage is the percentage specified in the conditions of the licence. (3) A licensee must, within 7 days after the day on which entries in respect of a public lottery close, or within such other period as the Treasurer may determine, pay to the Treasurer the general duty required by this section in respect of those public lotteries. (4) In this section, a reference to subscriptions includes, if the conditions of the licence so require, a reference to commission payable in respect of those subscriptions. 29 Payment of licence duty (1) If the conditions of a licence so require, a licensee must also pay to the Treasurer, as licence duty for the licence, an amount determined in accordance with the conditions of the licence. (2) Different amounts may be determined for licences for different public lotteries. (3) An aggregate amount may be determined for several public lotteries conducted under the same licence or under different licences held by the same licensee. (4) The amount determined may (but need not) be— (a) a flat or periodic amount, or (b) a percentage of the subscriptions received by the licensee in respect of public lotteries conducted by the licensee, or (c) a percentage of the player loss on the public lotteries conducted by the licensee. (5) A licensee must, within the period specified in the conditions of the licence, or within such other period as the Treasurer may determine, pay to the Treasurer the licence duty required by this section in respect of the licence. (6) In this section, a reference to subscriptions includes, if the conditions of the licence so require, a reference to commission payable in respect of those subscriptions. 30 Additional duty because of non-payment (1) If payment of general duty or licence duty is not made by the due date, the licensee must, in addition to that duty, pay to the Treasurer, as additional general duty or licence duty, an amount that is equal to the requisite percentage of the amount of the unpaid duty in respect of each month, calculated from the due date, during which that duty remains unpaid. (2) The requisite percentage is 10 per cent or, if another percentage is specified by the conditions of the licence, the percentage so specified. (3) Despite subsection (1), the Treasurer may, if the Treasurer thinks fit, forgo the whole or any part of any additional duty, or allow further time for the payment of any additional duty. 31 Payment of duty into Consolidated Fund The Treasurer must pay any money paid to the Treasurer as duty under this Division into the Consolidated Fund. 32 (Repealed) 33 Sharing of duty with participating areas (1) In this section, participating area, in relation to any class or description of public lotteries, means any State, Territory or country declared under subsection (2) to be a participating area for the purposes of this section in relation to public lotteries of that class or description. (2) The Minister may, by order published in the Gazette, declare to be a participating area for the purposes of this section any State, Territory or country in which it is lawful to conduct public lotteries of any class or description under this Act. (3) Out of any duty received by the Treasurer under this Division, the Treasurer may, in respect of a participating area, pay in accordance with subsection (4) such proportion as the Treasurer may from time to time determine of— (a) so much of the duty as, in the opinion of the Treasurer, was paid to the Treasurer in respect of— (i) subscriptions paid to any person in that participating area, being subscriptions to any public lottery in respect of which the area concerned is a participating area, or (ii) player loss incurred in relation to a person who subscribed to the lottery in a participating area, and (b) any additional duty that, in the opinion of the Treasurer, was paid to the Treasurer and is attributable to the late payment of the portion of any duty referred to in paragraph (a). (4) Nothing in subsection (3) prevents the Treasurer, in respect of a participating area, from determining to pay the whole of the duty referred to in subsection (3) (a) and the whole of any additional duty referred to in subsection (3) (b). (5) Any payment that may be made under subsection (3) in respect of a participating area must be made to such person, on behalf of the State, Territory or country that is the participating area, as the Minister considers appropriate. (6) Any payment that may be made under or in accordance with subsections (3) and (5) may be made without further authority than those subsections. Division 3 Miscellaneous 34 Sport and Recreation Fund—soccer football pool duty (1) There is established in the Special Deposits Account an account to be called the Sport and Recreation Fund. (2) There is to be paid, without further appropriation than this Act, into the Sport and Recreation Fund out of the Consolidated Fund in each financial year an amount equal to two-thirds of the amount of the duty and additional duty paid to the Treasurer under this Part in respect of soccer football pools. (3) If any money is paid to the Treasurer under section 33 (3) pursuant to an arrangement with a participating area under that section, that money is, for the purposes of subsection (2), taken to be paid to the Treasurer as duty or additional duty. (4) The money paid to the Sport and Recreation Fund under subsection (2) and the Totalizator Act 1997 must be used to support and develop, by way of grant or loan, those sporting and recreational facilities and services within the State that are approved by the Minister administering the Sporting Bodies' Loans Guarantee Act 1977. (5) Any interest payable on a loan made under subsection (4), and any repayment of the principal of such a loan, is to be paid into the Sport and Recreation Fund. 35 False statements as to revenue A person who, with respect to subscriptions received or other revenue derived from conducting a public lottery, furnishes or makes to an inspector or other person exercising a function under this Act a report, return or statement that the person knows is false or misleading in a material particular is guilty of an offence. Maximum penalty—100 penalty units or imprisonment for 2 years, or both. 36 Recovery of money (1) An amount that is payable by a person to the Treasurer under this Act but is not paid may be recovered from the person as a debt due to the Crown in any court of competent jurisdiction. (2) For the purpose of an action to recover an amount referred to in this section, a certificate of the Treasurer certifying the amount alleged to be payable by a person and that the amount has not been paid is evidence that the amount so specified is payable to the Treasurer in accordance with this Act and has not been paid. Part 6 Other provisions relating to public lotteries Division 1 General 37 Special provision relating to appointment of statutory authorities as agents (1) A statutory authority may be appointed as an agent of a licensee. (2) A statutory authority that is appointed as an agent is, to the extent that it is not otherwise authorised to do so, authorised to do anything that is necessary or expedient to be done by the statutory authority as agent by or under the authority of this Act, the regulations, the rules or the conditions of a licence. (3) In this section, statutory authority includes— (a) a person holding or occupying a particular office or position under any Act or law, or (b) a body, whether incorporated or unincorporated, constituted by or under any Act or law (including a State owned corporation). 37A Agreements with lotteries authorities of other jurisdictions (1) A licensee may, on such terms as are approved by the Minister, enter into an agreement with a lotteries authority of another jurisdiction with respect to— (a) the administration of a scheme for the conduct of public lotteries among participating jurisdictions, and (b) the manner of making payments to and by the licensee, and (c) related matters. (2) In this section— another jurisdiction means another State, a Territory or another country. lotteries authority means a person or body who is authorised to conduct public lotteries in another jurisdiction. participating jurisdiction means New South Wales and any other jurisdiction in which a lotteries authority that is a party to an agreement with a licensee under this section is authorised to conduct public lotteries. 38 Publicity concerning prizewinners (1) A licensee who publishes, or causes to be publis