Queensland: Lotteries Act 1997 (Qld)

Lotteries Act 1997 An Act to regulate lotteries and for other purposes Part 1 Preliminary 1 Short title This Act may be cited as the Lotteries Act 1997. 2 Commencement This Act commences on a day to be fixed by proclamation. 2A Object (1) The object of this Act is to ensure that, on balance, the State and the community as a whole benefit from lotteries. (2) The balance is achieved by allowing lotteries subject to a system of regulation and control designed to protect players and the community through— (a) ensuring the integrity and fairness of games; and (b) ensuring the probity of those involved in the conduct of lotteries; and (c) minimising the potential for harm from lotteries. 2B Explanation of licensing scheme This Act establishes a licensing scheme under which a lottery may be conducted only if— (a) a person holds a lottery licence for the lottery; and (b) another person holds a lottery operator's licence for the lottery; and (c) the lottery is conducted under a lottery operation agreement between the 2 persons. 3 Definitions—the dictionary The dictionary in schedule 3 defines particular words used in this Act. Part 2 Authorised lotteries Division 1 Basic concepts 4 Meaning of gaming scheme A gaming scheme is a game, scheme or arrangement in which the winners of prizes are decided— (a) wholly or partly by chance; or (b) by a competition or other activity of which the outcome is dependent on fate or guessing. 5 Meaning of lottery A lottery is a gaming scheme classified under a rule as a lottery. Division 2 Requirement for lottery to be authorised by lottery licence and lottery operator's licence 6 Requirement for primary licence (1) A person must not conduct a lottery unless the person is authorised to do so under a primary licence. Maximum penalty—200 penalty units or 2 years imprisonment. (2) A person must not conduct a gaming scheme that is not a lottery if— (a) the gaming scheme may reasonably be confused with a lottery; or (b) because of the scheme's similarity to a lottery, it may reasonably be taken to be in direct competition with a lottery. Maximum penalty—200 penalty units or 2 years imprisonment. (3) Subsection (2) does not apply if the gaming scheme is conducted under a gaming Act. (4) A person must not participate in a lottery, or a gaming scheme mentioned in subsection (2), knowing the person who is conducting the lottery or scheme is not authorised under this Act or a gaming Act to conduct the lottery or scheme. Maximum penalty—40 penalty units. (5) A person must not conduct a gaming scheme (other than an approved lottery) under a name that— (a) is a name by which an approved lottery is conducted; or (b) is likely to be confused with the name by which an approved lottery is conducted; or (c) includes a word— (i) contained in the name by which an approved lottery is conducted; and (ii) prescribed under a regulation. Maximum penalty for subsection (5)—40 penalty units. 7 Foreign gaming schemes (1) Unless authorised by an approved arrangement or under a gaming Act, a person must not— (a) sell or offer for sale, or cause to be sold or offered for sale, a ticket in a gaming scheme conducted by a foreign agency; or (b) accept or cause to be accepted, an amount for purchase of a ticket, or submission of an entry form, for a gaming scheme conducted by a foreign agency. Maximum penalty—200 penalty units or 2 years imprisonment. (2) Unless authorised by an approved arrangement or under a gaming Act, a person must not publish or cause to be published an advertisement or notice that promotes, is calculated to promote, or is likely to be taken as promoting, a gaming scheme conducted by a foreign agency. Maximum penalty—200 penalty units or 2 years imprisonment. (3) In this section— approved arrangement means an arrangement, approved by the chief executive in writing, under which a primary licensee, by agreement with a foreign agency that is conducting or proposes to conduct a gaming scheme, is to assume responsibility for the conduct of the gaming scheme in Queensland under this Act. 7A Approval to conduct approved lottery in another State or foreign country (1) A primary licensee must not conduct an approved lottery in another State or foreign country unless the arrangement about the conduct of the lottery in the other State or foreign country is approved by the chief executive. (2) The chief executive may charge the primary licensee a fee for— (a) giving the approval; and (b) doing what is necessary under this Act to facilitate and regulate the licensee's conduct of the approved lottery in the other State or foreign country. (3) The Minister may enter into an agreement with the relevant Minister of the other State or foreign country about any of the following— (a) the taxation of lotteries and the sharing of tax revenue derived from lotteries; (b) collaboration between lottery officials and officers of the other State or foreign country engaged in the administration of the corresponding law of the other State or foreign country; (c) mutual recognition of licences and administrative acts between the State, and the other State or foreign country. (4) In this section— corresponding law, of the other State or foreign country, means the law of the other State or foreign country that provides for the same matter as this Act or a provision of this Act. relevant Minister, of the other State or foreign country, means the Minister, or equivalent office holder, of the other State or foreign country, with portfolio responsibility for lotteries regulation or the taxation of lotteries. 8 Lawful activities Despite any other law, the following activities are lawful— (a) the conduct, in accordance with this Act, of a lottery stated in a lottery licence and lottery operator's licence, by the lottery licensee and lottery operator; (b) activities of a lottery agent in accordance with this Act and the relevant agency agreement; (c) participation (including the purchase of a lottery ticket) in a lottery conducted under this Act; (d) the use of approved lottery equipment by lottery operators and lottery agents; (e) the doing of anything else required or authorised to be done under this Act. Part 2A Primary licences Division 1 Preliminary 8A Person may not hold both types of primary licence (1) The same person may not hold both a lottery licence and a lottery operator's licence. (2) Subsection (1) does not prevent a body corporate from holding 1 type of primary licence only because a related body corporate holds the other type of primary licence. (3) In this section— related body corporate see the Corporations Act, section 9. 8B What a licence authorises (1) This section applies if a lottery (the authorised lottery) is stated in both a lottery licence and a lottery operator's licence. (2) The lottery licence authorises the lottery licensee to conduct the authorised lottery through the lottery operator by entering a lottery operation agreement with the lottery operator. (3) The lottery operator's licence authorises the lottery operator to conduct the authorised lottery under a lottery operation agreement with the lottery licensee. Division 2 Issuing and amending primary licences 9 Application for primary licence (1) An application for a primary licence must be made to the Minister in the approved form. (2) The application must state whether it is for a lottery licence or a lottery operator's licence. (3) An application must be accompanied by any application fee prescribed under a regulation. (4) The Minister may, by written notice given to an applicant, require the applicant to give the Minister further information or a document that is necessary and reasonable to help the Minister decide the application. 10 Consideration of application The Minister must consider an application for a primary licence and either grant or refuse to grant the application. 11 Conditions for granting application (1) The Minister may grant an application for a primary licence only if the Minister is satisfied— (a) the applicant is a suitable person to hold a licence of the type to which the application relates; and (b) each business or executive associate of the applicant is a suitable person to be associated with the operations of the holder of a licence of that type. (2) However, the Minister may refuse to grant an application even if the Minister is satisfied of the matters mentioned in subsection (1). (3) Without limiting the other matters the Minister may consider in deciding whether to grant an application for a primary licence, the Minister may have regard to the terms of another primary licence in force at the time of the application and any commercial arrangements in place relating to that other licence. 12 Suitability of applicant to hold primary licence (1) In deciding whether an applicant for a lottery licence or lottery operator's licence is a suitable person to hold a licence of that type, the Minister may have regard to the following matters— (a) the applicant's character or business reputation; (b) the applicant's current financial position and financial background; (c) if the applicant is not an individual—whether the applicant has, or has arranged, a satisfactory ownership, trust or corporate structure; (d) whether the applicant has, or is able to obtain, appropriate resources and appropriate services; (e) for an application for a lottery licence—whether the applicant has the appropriate business ability to enter into, and manage, lottery operation agreements; (f) for an application for a lottery operator's licence—whether the applicant has the appropriate business ability to conduct lotteries successfully under a lottery operator's licence; (g) the extent to which the applicant has negotiated a proposed lottery operation agreement; (h) if the applicant has a business association with another entity— (i) the entity's character or business reputation; and (ii) the entity's current financial position and financial background; (i) any other issues prescribed under a regulation. (2) In subsection (1)— appropriate resources means financial resources the Minister considers adequate to ensure the financial viability of operations conducted under a licence of the type to which the application relates. appropriate services means the services of persons who have appropriate experience to ensure the proper and successful conduct of lotteries. 13 Suitability of business and executive associates In deciding whether a business or executive associate of an applicant for a primary licence is a suitable person to be associated with the operations of the holder of a licence of the relevant type, the Minister may have regard to the following matters— (a) the person's character or business reputation; (b) the person's current financial position and financial background; (c) if the person has a business association with another entity— (i) the entity's character or business reputation; and (ii) the entity's current financial position and financial background; (d) any other matters prescribed under a regulation. 14 Investigations of suitability of persons (1) The chief executive may investigate an applicant for a primary licence to help the Minister decide whether the applicant is a suitable person to hold a licence of the type to which the application relates. (2) The chief executive may investigate a business or executive associate of an applicant for a primary licence to help the Minister decide whether the business or executive associate is a suitable person to be associated with the operations of the holder of a licence of the relevant type. 15 Decision on application (1) If the Minister decides to grant an application for a primary licence, the Minister must promptly issue a licence of the relevant type to the applicant. (2) If the Minister decides to refuse to grant an application for a primary licence, the Minister must promptly give the applicant written notice of the decision. 16 Conditions of licence The Minister may issue a primary licence— (a) on conditions the Minister considers necessary or desirable for the proper conduct of lotteries; and (b) on other conditions the Minister considers necessary or desirable in the public interest. 17 Form of primary licence (1) A primary licence must be in the approved form. (2) The approved form must provide for the inclusion of the following particulars— (a) the licensee's name; (b) the type of licence; (c) the date of issue of the licence; (d) the term for which the licence is (subject to this Act) to remain in force; (e) the lotteries to which the licence relates; (f) the conditions of the licence; (g) any other particulars prescribed under a regulation. 17A Voluntary omission of a lottery stated in a primary licence (1) With a primary licensee's written approval, the Minister may amend the primary licence to omit a lottery stated in it. (2) At a primary licensee's written request, the Minister must amend the primary licence to omit a lottery stated in it. Note— A primary licence may also be amended, to omit a lottery stated in it, under division 5. 18 Changing conditions of primary licence (1) The Minister may decide to change the conditions of a primary licence, if the Minister considers it is necessary or desirable to make the change for the proper conduct of lotteries stated in the licence or otherwise in the public interest. (2) If the Minister decides to change conditions of a primary licence under this section, the Minister must promptly give the primary licensee written notice of the change (a condition notice) and the reasons for the change. (3) The power of the Minister under subsection (1) includes the power to add conditions to an unconditional licence. 18A Other amendments of primary licence The Minister may amend a primary licence, other than to omit a lottery or change a condition, only with the written approval of the primary licensee. 18B When amendments take effect (1) If the Minister amends a primary licence under this division, the Minister must give the licensee a notice stating the day the amendment takes effect (the stated day). (2) For an amendment changing the conditions of the licence, the notice may be included in the condition notice. (3) For an amendment omitting a lottery stated in a licence, unless the Minister and primary licensee agree otherwise, the stated day must be 3 months after the day the Minister receives the approval or request for the amendment. 18C Notice to other interested persons If a primary licence is being amended under this division, the Minister must give written notice of the amendment, before the stated day under section 18B, to each person with whom the primary licensee has a lottery operation agreement. 19 Return of licence for endorsement of amendments (1) The primary licensee must return the primary licence to the Minister within 7 days of receiving the condition notice notifying a change of conditions or a notice from the Minister requesting the return of the licence to endorse another amendment being made under this division, unless the licensee has a reasonable excuse. Maximum penalty—40 penalty units. (2) On receiving the primary licence, the Minister must— (a) amend the licence in an appropriate way and return the amended licence to the primary licensee; or (b) if the Minister does not consider it is practicable to amend the licence—issue a replacement licence, incorporating the changed conditions or other amendment, to the primary licensee. (3) An amendment takes effect on the stated day in the notice given under section 18B and does not depend on the primary licence being amended to record the amendment or a replacement licence being issued. 20 [Repealed] Division 3 General provisions about primary licences 21 Primary licence not to be transferable (1) A primary licence can not be transferred. (2) However, if a primary licence is mortgaged, charged or encumbered with the written approval of the Minister, this section does not prevent the transfer of the licence, subject to section 22, by way of enforcement of the security. 22 Mortgage and assignment of primary licence (1) A primary licensee must not mortgage, charge or otherwise encumber the licence except with the written approval of the Minister. (2) If a person has a right to sell and transfer a primary licence under or because of a mortgage, charge or encumbrance, the licence may only be sold and transferred to a person approved by the Minister. (3) Before the Minister approves the transfer of a primary licence under this section, the Minister must be satisfied— (a) the proposed transferee is a suitable person to hold a licence of the relevant type; and (b) each business and executive associate of the proposed transferee is a suitable person to be associated with the operations of the holder of a licence of the relevant type. (4) The Minister may require the proposed transferee of the primary licence to submit an application for the licence and may deal with the application, and investigate the suitability of the proposed transferee and the proposed transferee's business and executive associates, in the same way as if the application were an application for a new primary licence of the relevant type. (5) If a person has, under or because of, a mortgage, charge or encumbrance, a power to appoint a receiver or manager of the business conducted under a primary licence, the power may only be exercised if the Minister first approves the proposed receiver or manager in writing. (6) Before transferring a primary licence, the primary licensee must give written notice of the proposed transfer to each other person with whom the primary licensee has a lottery operation agreement. 23 Surrender of primary licence (1) A primary licensee may surrender the primary licence by written notice given to the Minister. (2) The surrender takes effect— (a) if paragraph (b) does not apply— (i) 3 months after the notice is given; or (ii) if a later day of effect is stated in the notice—on the later day; or (b) if the Minister, by written notice, approves a day of effect that is earlier than 3 months after the notice is given—on the day of effect approved by the Minister. (3) Before surrendering a primary licence, the primary licensee must give written notice of the proposed surrender to each other person with whom the primary licensee has a lottery operation agreement. Division 4 Obligations to act under primary licences 23A Primary licensees must enter lottery operation agreements (1) This section applies if— (a) a primary licence stating a lottery is issued; or (b) a primary licence is amended to include a lottery; or (c) a lottery operation agreement for the conduct of a lottery stated in a primary licence stops being in force and the primary licensee is not a party to any other lottery operation agreement for the conduct of the lottery. (2) The primary licensee must take all reasonable steps to enter an agreement for the conduct of the lottery and have it approved as a lottery operation agreement as soon as practicable. 23B Lottery operators must actively conduct lotteries A lottery operator must actively conduct each lottery stated in the lottery operator's licence. 23C Minister may temporarily excuse non-activity (1) The Minister may excuse a primary licensee from complying with a requirement under section 23A or 23B, for a stated period, if satisfied it would be reasonable in all the circumstances. Example— The Minister may be satisfied it would be reasonable to excuse a lottery operator from actively conducting a lottery, for a stated period, if the lottery operator is unable to conduct the lottery during the period for operational reasons beyond the lottery operator's control. (2) Sections 23A and 23B apply to the primary licensee subject to the excuse given by the Minister. Division 5 Suspension or cancellation of primary licences and omission of lotteries from primary licences 24 Grounds for suspension or cancellation (1) Each of the following is a ground for suspending or cancelling a primary licence— (a) the primary licensee is not, or is no longer, a suitable person to hold a licence of the relevant type; (b) a business or executive associate of the primary licensee is not, or is no longer, a suitable person to be associated with the operations of the holder of a licence of the relevant type; (c) the primary licensee has been convicted of an offence against this Act or a gaming Act; (d) the primary licensee has been convicted of an indictable offence; (e) the primary licensee has contravened a condition of the primary licence; (f) the primary licensee has contravened a provision of this Act (being a provision a contravention of which does not constitute an offence against this Act); (g) there has been a breach of a lottery operation agreement to which the primary licensee is a party (by any party to the agreement); (h) the primary licensee has failed to discharge the licensee's financial commitments for the licensee's operations; (i) the primary licensee is bankrupt, has compounded with creditors or otherwise taken, or applied to take, advantage of any law about bankruptcy; (j) the primary licensee is affected by control action under the Corporations Act; (k) the primary licence was issued because of a materially false or misleading representation or declaration. (2) For forming the belief that the ground mentioned in subsection (1)(a) exists, the Minister may have regard to the same matters to which the Minister may have regard in deciding whether an applicant is a suitable person to hold a licence of the relevant type. (3) For forming the belief that the ground mentioned in subsection (1)(b) exists, the Minister may have regard to the same matters to which the Minister may have regard in deciding whether a business or executive associate of an applicant is a suitable person to be associated with the operations of the holder of a licence of the relevant type. (4) For subsection (1)(j), a primary licensee is affected by control action under the Corporations Act if the licensee— (a) has executed a deed of company arrangement under that Act; or (b) is the subject of a winding-up (whether voluntarily or under a court order) under that Act; or (c) is the subject of an appointment of an administrator, liquidator, receiver or receiver and manager under that Act. 24A Ground for omitting a lottery from a primary licence (1) A primary licence may be amended to omit a lottery stated in it on the ground that the primary licensee is, and has been for a continuous period of at least 14 days, contravening division 4 in relation to the lottery. (2) The power to amend a primary licence under this division to omit a lottery, on the ground mentioned in subsection (1), includes the power to amend the licence to omit the only lottery, or all lotteries, stated in the licence on that ground. 25 Show cause notice (1) This section applies if the Minister believes— (a) a ground exists to suspend or cancel a primary licence; and (b) the act, omission or other thing constituting the ground is of a serious and fundamental nature; and (c) either— (i) the integrity of the conduct of lotteries stated in the licence may be jeopardised in a material way; or (ii) the public interest may be affected in an adverse and material way. (2) This section also applies if the Minister believes the ground exists to amend a primary licence by omitting a lottery stated in it. (3) The Minister must give the primary licensee a written notice (a show cause notice) that— (a) states the action (the proposed action) the Minister proposes taking under this division; and (b) states the grounds for the proposed action; and (c) outlines the facts and circumstances forming the basis for the grounds; and (d) if the proposed action is suspension of the primary licence—states the proposed suspension period; and (e) invites the primary licensee to show within a stated period (the show cause period) why the proposed action should not be taken. (4) The show cause period must be a period ending at least 21 days after the show cause notice is given to the primary licensee. 26 Copy of show cause notice to be given to interested persons (1) The Minister must promptly give a copy of the show cause notice to each person (an interested person) the Minister believes has an interest in the primary licence if the Minister considers— (a) the person's interest may be affected adversely by the suspension, cancellation or amendment of the licence; and (b) it is otherwise appropriate in the circumstances to give the copy of the notice to the person. (2) In considering whether it is appropriate to give a copy of the show cause notice to an interested person, the issues to which the Minister may have regard include the following— (a) the nature of the interested person's interest; (b) whether the primary licensee's interest may be improperly prejudiced. (3) Without limiting subsection (1), a person is an interested person if a lottery operation agreement between the person and the primary licensee is in force. (4) An interested person to whom a copy of the show cause notice is given may make representations about the notice to the Minister in the show cause period. 27 Consideration of representations The Minister must consider all written representations (the accepted representations) made during the show cause period by— (a) the primary licensee; or (b) any interested person to whom a copy of the show cause notice is given. 28 Immediate suspension (1) The Minister may suspend a primary licence immediately if the Minister believes— (a) a ground exists to suspend or cancel the primary licence; and (b) the circumstances are so extraordinary that it is imperative to suspend the licence immediately to ensure— (i) the public interest is not affected in an adverse and material way; or (ii) the integrity of the conduct of lotteries stated in the licence is not jeopardised in a material way. (2) The suspension— (a) must be effected by written notice (a suspension notice) given to the primary licensee with a show cause notice; and (b) operates immediately the suspension notice is given; and (c) continues to operate until the show cause notice is finally dealt with. (3) If the Minister gives a suspension notice to a primary licensee, the Minister must give a copy of the suspension notice to each other person with whom the primary licensee has a lottery operation agreement. 29 Censuring primary licensee (1) This section applies if the Minister— (a) believes a ground exists to suspend or cancel a primary licence; but (b) does not believe the giving of a show cause notice to the primary licensee is warranted. (2) This section also applies if, after considering the accepted representations for the show cause notice, the Minister— (a) still believes a ground exists to suspend or cancel the primary licence; but (b) does not believe suspension or cancellation of the primary licence is warranted. (3) The Minister may, by written notice given to the primary licensee, censure the licensee for a matter relating to the ground for suspension or cancellation. 30 Directions to rectify (1) This section applies if, after considering the accepted representations for the show cause notice, the Minister— (a) still believes a ground exists to suspend or cancel the primary licence; but (b) considers a matter relating to the ground for suspension or cancellation is capable of being rectified and that it is appropriate to give the primary licensee an opportunity to rectify the matter. (2) The Minister may, by written notice given to the primary licensee, direct the licensee to rectify the matter within the period stated in the notice. (3) The period stated must be reasonable, having regard to the nature of the matter to be rectified. 31 Notice by the Minister (1) This section applies if, after considering the accepted representations for the show cause notice, the Minister still believes— (a) a ground exists to suspend or cancel the primary licence; and (b) the act, omission or other thing constituting the ground is of a serious and fundamental nature; and (c) either— (i) the integrity of the conduct of lotteries stated in the licence may be jeopardised in a material way; or (ii) the public interest may be affected in an adverse and material way. (2) This section also applies if, after considering the accepted representations for the show cause notice, the Minister still believes the ground exists to amend a primary licence by omitting a lottery stated in it. (3) This section also applies if the primary licensee fails to comply with a direction to rectify a matter within the period stated in the relevant notice. (4) The Minister must forward to the Governor in Council— (a) written notice of the Minister's belief or of the primary licensee's failure to comply with the direction; and (b) copies of the accepted representations for the show cause notice. 32 Suspension, cancellation, amendment and appointment of administrator (1) After receiving the notice from the Minister under section 31, the Governor in Council may— (a) if the proposed action stated in the show cause notice was to suspend the primary licence for a stated period—suspend the licence for not longer than the stated period; or (b) if the proposed action stated in the show cause notice was to cancel the primary licence— (i) suspend the licence for a period; or (ii) cancel the licence; or (iii) appoint an administrator to conduct the operations of the primary licensee under the licence; or (c) if the proposed action stated in the show cause notice was to amend the primary licence by omitting a lottery stated in it—make the amendment. (2) The Minister must promptly give written notice of the decision of the Governor in Council to the primary licensee and to each other person with whom the primary licensee has a lottery operation agreement. (3) The decision takes effect on— (a) the day the notice is given to the primary licensee; or (b) if a later day of effect is stated in the notice—the later day. 32A Endorsement of amendment (1) This section applies if— (a) a primary licence is amended under section 32(1)(c); and (b) the Minister asks the primary licensee to return the licence within a stated period of at least 7 days so the amendment may be endorsed on the licence. (2) The primary licensee must comply with the request, unless the licensee has a reasonable excuse. Maximum penalty—40 penalty units. (3) On receiving the primary licence, the Minister must— (a) amend the licence in an appropriate way and return the amended licence to the primary licensee; or (b) if the Minister does not consider it is practicable to amend the licence—issue a replacement licence, incorporating the amendment, to the primary licensee. (4) An amendment takes effect on the relevant day under section 32(3) and does not depend on the primary licence being amended to record the amendment or a replacement licence being issued. 33 Terms of appointment, and role, of administrator (1) This section applies to an administrator appointed by the Governor in Council to conduct operations under a primary licence. (2) For any matter not provided for under this Act, the administrator holds office on terms decided by the Governor in Council. (3) The administrator— (a) has full control of, and responsibility for, the operations of the primary licensee conducted under the primary licence (including lotteries that had been commenced but not completed as at the time of the administrator's appointment); and (b) subject to any directions by the Minister, must conduct the operations in accordance with this Act as if the administrator were the primary licensee. (4) The costs of and incidental to the conduct and administration of a primary licensee's operations by an administrator under this section (the costs of administration) are payable by the licensee. (5) Any profits derived from the conduct of the primary licensee's operations by the administrator are, after payment of the costs of administration, to be paid to the primary licensee. (6) This section and section 32(1)(b)(iii) apply despite the Corporations Act. 34 Cancellation or reduction of period of suspension (1) At any time the suspension of a primary licence is in force, the Governor in Council may— (a) cancel the remaining period of suspension; or (b) reduce the remaining period of suspension by a stated period. (2) The Minister must promptly give written notice of the decision of the Governor in Council to the primary licensee and to each other person with whom the primary licensee has a lottery operation agreement. Division 6 Investigations into suitability 35 Audit program (1) The Minister may approve an audit program for investigating primary licensees, or business or executive associates of primary licensees. (2) The chief executive is responsible for ensuring that investigations under an approved audit program are conducted in accordance with the program. (3) A person may be investigated under an audit program only if there has not been an investigation of the same person within the preceding 2 years. 36 Investigations (1) The chief executive may investigate a primary licensee to help the Minister decide whether the person is a suitable person to hold, or to continue to hold, a primary licence of the relevant type. (2) The chief executive may investigate a business or executive associate of a primary licensee to help the Minister to decide whether the person is, or continues to be, a suitable person to be associated with the operations of the holder of a primary licence of the relevant type. (3) However, the chief executive may investigate a primary licensee only if— (a) the Minister reasonably suspects the primary licensee is not, or is no longer, a suitable person to hold a primary licence of the relevant type; or (b) the investigation is made under an audit program for primary licensees approved by the Minister. (4) Also, the chief executive may investigate a business or executive associate of a primary licensee only if— (a) the Minister reasonably suspects the person is not, or is no longer, a suitable person to be associated with the operations of the holder of a primary licence of the relevant type; or (b) the investigation is made under an audit program for business and executive associates of primary licensees approved by the Minister; or (c) the person— (i) became a business or executive associate of the primary licensee after the issue of the primary licence; and (ii) has not been investigated previously under an audit program mentioned in paragraph (b); or (d) the person— (i) was a business or executive associate of the primary licensee when the primary licence was issued; and (ii) has not been investigated under section 14(2). 37 Requirement to give information or document for investigation (1) In investigating a primary licensee, or a business or executive associate of a primary licensee, the chief executive may, by written notice given to the person, require the person to give the chief executive information or a document the chief executive considers relevant to the investigation. (2) When making the requirement, the chief executive must warn the person it is an offence to fail to comply with the requirement, unless the person has a reasonable excuse. (3) The person must comply with the requirement, unless the person has a reasonable excuse. Maximum penalty—200 penalty units or 2 years imprisonment. (4) It is a reasonable excuse for the person not to comply with the requirement if complying with the requirement might tend to incriminate the person. (5) The person does not commit an offence against this section if the information or document sought by the chief executive is not in fact relevant to the investigation. 38 Reports about person's criminal history (1) If the chief executive, in making an investigation about a person under section 14 or 36 asks the commissioner of the police service for a written report about the person's criminal history, the commissioner must give the report to the chief executive. (2) However, the report is required to contain only criminal history in the commissioner's possession or to which the commissioner has access. 39 Decisions about primary licence not to be justiciable (1) A decision of the Governor in Council or Minister made, or appearing to be made, under this Act about a primary licence, or person with an interest or potential interest in a primary licence— (a) is final and conclusive; and (b) can not be challenged, appealed against, reviewed, quashed, set aside, or called in question in another way, under the Judicial Review Act 1991 or otherwise (whether by the Supreme Court, another court, a tribunal or another entity); and (c) is not subject to any writ or order of the Supreme Court, another court, a tribunal or another entity on any ground. (2) The decisions to which subsection (1) applies include, but are not limited to— (a) a decision of the Governor in Council mentioned in schedule 1, part 1; and (b) a decision of the Minister mentioned in schedule 1, part 2. (3) In this section— decision includes— (a) conduct engaged in to make a decision; and (b) conduct related to making a decision; and (c) failure to make a decision. Part 2B Lottery operation agreements 39A What is a lottery operation agreement (1) A lottery operation agreement is an agreement between a lottery licensee and a lottery operator, for the conduct of a lottery by the lottery operator, approved by the Minister under this part. (2) Another person may also be a party to a lottery operation agreement. Example for subsection (2)— A person may be a party to a lottery operation agreement because the agreement includes provisions under which the person acts as a guarantor for one of the primary licensees. 39B Amendments must also be approved For this Act, an amendment of a lottery operation agreement is of no effect until it is approved by the Minister. 39C Approval process (1) A lottery licensee may apply to the Minister for approval of a proposed lottery operation agreement or a proposed amendment of a lottery operation agreement. (2) The application must be written and accompanied by a copy of the proposed agreement or amendment. (3) The Minister must give, or refuse to give, the approval. (4) The Minister may refuse to give the approval only if the Minister reasonably believes it is necessary to do so— (a) in the public interest; or (b) to protect proper standards of integrity in the conduct of lotteries. (5) The Minister must promptly give the lottery licensee written notice of the Minister's decision. 39D Minister to be notified if agreement ends If a lottery operation agreement stops being in force, each party to the agreement must immediately give written notice to the Minister. 39E Being a party to more than 1 lottery operation agreement (1) A lottery licensee may be a party to lottery operation agreements with 2 or more lottery operators at the same time, whether for the same or different lotteries. (2) A lottery licensee may not be a party to more than 1 lottery operation agreement with the same lottery operator at the same time. (3) A lottery operator may not be a party to more than 1 lottery operation agreement at the same time. Part 3 Key employees and operators Division 1 Requirement for key employees to be licensed 40 Meaning of key employee (1) A lottery employee is a key employee if the employee— (a) occupies or acts in a managerial position, or carries out managerial functions, in relation to the primary licensee's operations; or (b) is in a position to affect or significantly influence the operations conducted under the primary licence; or (c) for a lottery employee of a lottery operator—occupies or acts in a position designated in the lottery operator's control system as a key position. (2) Subsection (1)(a) and (b) applies to a position only if the position is designated by the chief executive by written notice given to the primary licensee as a key position. (3) Subsection (1)(a) applies to functions only if the functions are designated by the chief executive by written notice given to the primary licensee as key functions. 41 Obligation to hold licence A person must not occupy or act in the position of a key employee, or carry out the functions of a key employee, in relation to the primary licensee's operations unless the person is a licensed employee. Maximum penalty—40 penalty units. 42 Prohibition of employment of unlicensed persons as key employees A primary licensee must not employ a person as a key employee, or to carry out the functions of a key employee, unless the person is a licensed employee. Maximum penalty—40 penalty units. Division 2 Key operators 43 Meaning of key operator A key operator is a person (other than a lottery employee) who— (a) is in a position to control or exercise significant influence over the conduct of a primary licensee's operations; or (b) is associated with a primary licensee in a way that enables the person to control or exercise significant influence over the conduct of a primary licensee's operations; or (c) occupies a position or has an association with a primary licensee of a kind that makes the person a key operator under criteria prescribed under a regulation. 44 Requirement that key operator apply for licence or end role (1) If the chief executive reasonably believes a person is a key operator, the chief executive may, by written notice given to the person, require the person either to apply to be licensed as a key operator under a key person licence, or to stop being a key operator, within 7 days of receiving the notice. (2) The person must comply with the requirement (the key operator's requirement) within 7 days of receiving the notice, unless the person has a reasonable excuse. Maximum penalty—100 penalty units or 1 year's imprisonment. (3) The chief executive must give a copy of the notice to the relevant primary licensee. 45 Requirement that key operator end role (1) If the chief executive refuses to approve an application for a key person licence made by a person of whom a key operator's requirement is made, the chief executive may, by written notice given to the person, require the person to stop being a key operator of the primary licensee within the time stated in the notice. (2) The person must comply with the requirement within the time stated in the notice, unless the person has a reasonable excuse. Maximum penalty—100 penalty units or 1 year's imprisonment. (3) A person does not incur any liability as a result of action taken to comply with a notice under this section. 46 Requirement to end key operator's role (1) This section applies if a key operator's requirement is made of a person and— (a) the person fails to comply with the requirement; or (b) the chief executive refuses to approve an application for a key person licence made by the person. (2) The chief executive may, by written notice given to the primary licensee for whom the person is a key operator, require the licensee to take any necessary action to ensure that the person ceases to be a key operator within the time stated in the notice. (3) The primary licensee must comply with the requirement. (4) This section applies to a primary licensee despite another Act or law. (5) A primary licensee does not incur any liability because of action taken to comply with a notice under this section. Division 3 Applications for, and issue of, key person licences 47 Application for key person licence (1) An application for a key person licence must be made to the chief executive in the approved form. (2) The application must be accompanied by— (a) if the applicant applies to be licensed as an employee—a letter from a primary licensee addressed to the chief executive stating that the licensee intends to employ the applicant as a key employee subject to the applicant being issued with a key person licence; and (b) any documents prescribed under a regulation; and (c) the application fee prescribed under a regulation. (3) The chief executive may, by written notice given to an applicant for a key person licence, require the applicant to give the chief executive further information or a document that is necessary and reasonable to help the chief executive decide the application. 48 Consideration of application (1) The chief executive must consider an application for a key person licence and either grant or refuse to grant the application. (2) Despite subsection (1), the chief executive is required to consider an application only if the applicant agrees to having the applicant's photograph and fingerprints taken. 49 Conditions for granting application (1) The chief executive may grant an application for a key person licence only if— (a) the applicant's photograph and fingerprints have been taken; and (b) the chief executive is satisfied the applicant is a suitable person to hold a key person licence. (2) In deciding whether the applicant is a suitable person to hold a key person licence, the chief executive may have regard to the following matters— (a) the applicant's character; (b) the applicant's current financial position and financial background; (c) the applicant's general suitability to carry out functions as a key employee or to be a key operator for a primary licensee. 50 Investigation of suitability of applicant The chief executive may investigate an applicant for a key person licence to help the chief executive decide whether the applicant is a suitable person to hold a key person licence. 51 Decision on application (1) If the chief executive decides to grant an application for a key person licence, the chief executive must promptly— (a) issue a key person licence to the applicant; and (b) give written notice of the grant of the licence to the relevant primary licensee. (2) If the chief executive decides to refuse to grant an application for a key person licence, the chief executive must promptly— (a) give the applicant an information notice about the decision; and (b) give written notice of the decision to the relevant primary licensee. 52 Form of key person licence (1) A key person licence must be in the approved form. (2) The approved form must provide for the inclusion of the following particulars— (a) the key person licensee's name; (b) a recent photograph of the licensee; (c) the date of issue of the licence; (d) whether the licensee is a licensed employee or licensed as a key operator; (e) the conditions of the licence; (f) other particulars prescribed under a regulation. 53 Term of key person licence A key person licence remains in force unless it lapses or is cancelled or surrendered. 54 Lapsing of key person licence (1) A key person licence lapses if the key person licensee is a licensed employee and— (a) at the end of 1 year after the licence was issued, the licensee has not been employed (as a key employee or in any other capacity) by a primary licensee; or (b) the licensee ceases to be employed by a primary licensee and is not re-employed by the same or another primary licensee within the following 3 months. (2) A key person licence lapses if the person licensed is licensed as a key operator and ceases to be a key operator. 55 Conditions (1) The chief executive may issue a key person licence— (a) on conditions the chief executive considers necessary or desirable for the proper conduct of lotteries; and (b) on other conditions the chief executive considers necessary or desirable in the public interest. (2) If the chief executive decides to issue a key person licence on conditions, the chief executive must promptly— (a) give the applicant an information notice about the decision; and (b) give a copy of the notice to the relevant primary licensee. 56 Changing conditions of key person licence (1) The chief executive may decide to change the conditions of a key person licence if the chief executive considers it necessary or desirable to make the change for the proper conduct of lotteries or otherwise in the public interest. (2) If the chief executive decides to change the conditions of a key person licence, the chief executive must immediately— (a) give the key person licensee— (i) written notice of the changed conditions; and (ii) an information notice about the decision; and (b) if the chief executive believes the key person licensee is currently an employee or key operator of a primary licensee—give the primary licensee a copy of the information notice. (3) The key person licensee must return the licence to the chief executive within 7 days of receiving the information notice, unless the licensee has a reasonable excuse. Maximum penalty—40 penalty units. (4) On receiving the licence, the chief executive must— (a) amend the licence in an appropriate way and return the amended licence to the key person licensee; or (b) if the chief executive does not consider it practicable to amend the licence—issue another key person licence, incorporating the changed conditions, to the key person licensee to replace the licence returned to the chief executive. (5) The change of conditions takes effect when the information notice is given to the key person licensee and does not depend on the licence being amended to record the change or a replacement licence being issued. (6) The power of the chief executive under subsection (1) includes the power to add conditions to an unconditional licence. 57 Replacement of key person licence (1) A key person licensee may apply to the chief executive for the replacement of the licensee's licence if it has been lost, stolen, destroyed or damaged. (2) The chief executive must consider an application and either grant or refuse to grant the application. (3) The chief executive must grant the application if the chief executive is satisfied the licence has been lost, stolen or destroyed, or damaged in a way to require its replacement. (4) If the chief executive decides to grant an application, the chief executive must, on payment of the fee prescribed under a regulation, issue another key person licence to the applicant to replace the lost, stolen, destroyed or damaged licence. (5) If the chief executive decides to refuse to grant an application, the chief executive must promptly— (a) give the key person licensee an information notice about the decision; and (b) if the chief executive believes the key person licensee is currently an employee or a key operator of a primary licensee—give the primary licensee a copy of the information notice. 58 Surrender of key person licence (1) A key person licensee may surrender the licence by written notice given to the chief executive. (2) The surrender takes effect on— (a) the day the notice is given to the chief executive; or (b) if a later day of effect is stated in the notice—the later day. (3) If the chief executive believes the key person licensee was at the time of the surrender an employee or a key operator of a primary licensee, the chief executive must promptly give notice of the surrender to the primary licensee. Division 4 Suspension and cancellation of key person licences, and other action by chief executive Subdivision 1 Suspension and cancellation 59 Grounds (1) Each of the following is a ground for suspending or cancelling a key person licensee's key person licence— (a) the key person licensee— (i) is not a suitable person to hold a key person licence; or (ii) acts in a way that is inappropriate for the conduct of approved lotteries; or (iii) contravenes a provision of this Act, other than a provision a contravention of which is an offence against this Act; or (iv) contravenes a condition of the licence; (b) the key person licensee has a conviction, other than a spent conviction, for— (i) an offence against this Act or a gaming Act; or (ii) an indictable offence; (c) the key person licence was issued because of a materially false or misleading representation or document. (2) For forming a belief that the ground mentioned in subsection (1)(a)(i) exists, the chief executive may have regard to the same matters to which the chief executive may have regard under section 49(2) in deciding whether an applicant for a key person licence is a suitable person to hold the licence. (3) For subsection (1)(a)(ii), a key person licensee acts in a way that is inappropriate for the conduct of approved lotteries if the licensee does, or omits to do, an act that results in— (a) the conduct of approved lotteries by a lottery operator not being conducted under the operator's control system for the conduct of the lotteries; and (b) the integrity of the conduct of approved lotteries being jeopardised. 60 Show cause notice (1) If the chief executive believes a ground exists to suspend or cancel a key person licence, the chief executive must before taking action to suspend or cancel the licence give the key person licensee a written notice (a show cause notice). (2) The show cause notice must state the following— (a) the action the chief executive proposes taking under this subdivision (the proposed action); (b) the grounds for the proposed action; (c) an outline of the facts and circumstances forming the basis for the grounds; (d) if the proposed action is suspension of the licence—the proposed suspension period; (e) that the key person licensee may, within a stated period (the show cause period), make written representations to the chief executive to show why the proposed action should not be taken. (3) The show cause period must end at least 21 days after the key person licensee is given the show cause notice. (4) Subsection (5) applies if the chief executive believes— (a) the key person licensee is an employee or a key operator of a primary licensee; and (b) the existence of the grounds for the proposed action is likely to adversely affect the conduct of approved lotteries stated in the primary licence. (5) The chief executive must immediately give a copy of the show cause notice to the primary licensee. (6) The primary licensee may make written representations about the show cause notice to the chief executive in the show cause period. 61 Consideration of representations The chief executive must consider all written representations (the accepted representations) made under section 60(2)(e) or (6). 62 Immediate suspension (1) The chief executive may suspend a key person licensee's key person licence immediately if the chief executive believes— (a) a ground exists to suspend or cancel the licence; and (b) it is necessary to suspend the licence immediately— (i) in the public interest; or (ii) to ensure the integrity of the conduct of approved lotteries is not jeopardised. (2) The suspension— (a) can be effected only by the chief executive giving the key person licensee an information notice about the decision to suspend the licence, together with a show cause notice; and (b) operates immediately the information notice is given to the licensee; and (c) continues to operate until the show cause notice is finally dealt with. (3) If the chief executive believes the key person licensee is an employee or a key operator of a primary licensee, the chief executive must immediately give written notice of the suspension to the primary licensee. 63 Suspension and cancellation of licence after show cause process (1) This section applies if— (a) there are no accepted representations for a show cause notice; or (b) after considering the accepted representations for a show cause notice, the chief executive— (i) still believes a ground exists to suspend or cancel a key person licence; and (ii) believes suspension or cancellation of the licence is warranted. (2) This section also applies if a key person licensee contravenes a direction given to the licensee under section 65A. (3) The chief executive may— (a) if the proposed action was to suspend the licence—suspend the licence for not longer than the proposed suspension period; or (b) if the proposed action was to cancel the licence—cancel the licence or suspend it for a period. (4) If the chief executive decides to take action under subsection (3), the chief executive must immediately— (a) give an information notice about the decision to the key person licensee; and (b) if the chief executive believes the licensee is an employee or a key operator of a primary licensee—give written notice of the suspension or cancellation to the primary licensee. (5) The decision takes effect on the later of the following— (a) the day the information notice is given to the key person licensee; (b) the day of effect stated in the information notice. (6) If the chief executive cancels the licence, the key person licensee must give the licence to the chief executive within 14 days after the cancellation takes effect. Maximum penalty for subsection (6)—40 penalty units. Subdivision 2 Other action by chief executive 64 Ending show cause process without further action (1) This section applies if, after considering the accepted representations for a show cause notice, the chief executive no longer believes a ground exists to suspend or cancel a key person licence. (2) The chief executive— (a) must not take any further action about the show cause notice; and (b) must give each of the following a written notice stating that no further action is to be taken— (i) the key person licensee; (ii) a primary licensee to whom a copy of the show cause notice was given under section 60(5). 65 Censuring key person licensee (1) The chief executive may censure a key person licensee for a matter relating to a ground for suspension or cancellation if the chief executive— (a) believes a ground exists to suspend or cancel the key person licensee's key person licence but does not believe that giving a show cause notice to the licensee is warranted; or (b) after considering the accepted representations for a show cause notice, still believes a ground exists to suspend or cancel the key person licensee's key person licence but does not believe suspension or cancellation of the licence is warranted. (2) The censure can be effected only by the chief executive giving the key person licensee an information notice about the decision to censure the licensee. (3) If the chief executive believes the key person licensee is an employee or a key operator of a primary licensee, the chief executive must immediately give written notice of the censure to the primary licensee. 65A Direction to rectify matter after show cause process (1) This section applies if, after considering the accepted representations for a show cause notice, the chief executive— (a) still believes a ground exists to suspend or cancel a key person licence; and (b) believes a matter relating to the ground for suspension or cancellation is capable of being rectified and it is appropriate to give the key person licensee an opportunity to rectify the matter. (2) The chief executive may direct the key person licensee to rectify the matter. (3) If the chief executive decides to give a key person licensee a direction under this section, the direction can be effected only by the chief executive giving the licensee an information notice about the decision. (4) The information notice must state the period for rectifying the matter. (5) The period must be reasonable, having regard to the nature of the matter to be rectified. (6) If the chief executive gave a copy of the show cause notice to a primary licensee under section 60(5), the chief executive must give written notice of the direction to the primary licensee immediately after giving the information notice to the key person licensee. 65B Cancellation or reduction of period of suspension (1) If the chief executive suspends a key person licence, the chief executive may, for any remaining period of suspension and at any time the suspension is in force— (a) cancel the p