South Australia: Authorised Betting Operations Act 2000 (SA)

South Australia Authorised Betting Operations Act 2000 An Act to provide for the regulation of totalisator and other betting operations. Contents Part 1—Preliminary 1 Short title 2 Objects 3 Interpretation 3A Interaction with Gambling Administration Act 2019 4 Approved contingencies 4A Fit and proper person 5 Close associates 6 Designation of racing controlling authorities 6A Commissioner may approve staff training courses Part 2—Major betting operations licences Division 1—Grant, renewal and conditions of licences 7 Grant of licences 8 Eligibility to hold licence 9 Authority conferred by licence 10 Term and renewal of licence 11 Conditions of licence Division 2—Agreements with licensee 12 Approved licensing agreements 13 Racing distribution agreements 15 Approved licensing agreement to be tabled in Parliament Division 3—Dealings with licence or licensed business 16 Transfer of licence 17 Dealings affecting licensed business 18 Other transactions under which outsiders may acquire control or influence 19 Surrender of licence Division 4—Approval of designated persons 20 Approval of designated persons Division 5—Applications and criteria for determination of applications 21 Applications 22 Determination of applications Division 6—Investigations by Commissioner 23 Investigations 24 Investigative powers 25 Costs of investigation 26 Results of investigation Division 6A—Notification of change of prescribed particulars 26A Licensee to notify change of particulars Division 7—Accounts and audit 27 Accounts and audit 29 Duty of auditor Division 10—Recovery of administration costs 33A Commissioner to recover administration costs Part 3—Bookmaker's and other licences Division 1—Licences 34 Classes of licences 35 Term of licence 36 Conditions of licences 37 Application for grant or renewal, or variation of condition, of licence 38 Determination of applications 38A Suspension of body corporate licence 38B Licensee to notify change of particulars Part 3A—Authorisation of interstate betting operators 40A Authorisation of interstate betting operators 40AA Interstate betting operator to notify change of particulars Part 3B—Taxation Division 1—Preliminary 40B Interpretation Division 2—Betting operations tax 40C Taxation Administration Act 40D Liability to pay tax 40E Payments to Fund Division 3—Multi-jurisdictional agreements 40F Treasurer may enter into agreements 40G Commissioner of State Taxation must implement agreements Division 4—Regulations 40H Regulations Part 4—Regulation of betting operations Division 1—Major betting operations and on-course totalisator betting operations 41 Approval of rules, systems, procedures and equipment 42 Location of off-course totalisator offices, branches and agencies 43 Prevention of betting by children 44 Prohibition of lending or extension of credit 45 Cash facilities not to be in certain areas staffed and managed by comprehensive licensee 46 Player return information 47 Systems and procedures for dispute resolution 48 Advertising code of practice 49 Responsible gambling code of practice 51 Alteration of approved rules, systems, procedures or equipment Division 2—Bookmaking operations 53A Bets by telephone, Internet or other electronic means 54 Places at which bets may be accepted by bookmakers 60 Prevention of betting with children by bookmaker or agent 60A Advertising code of practice 60B Responsible gambling code of practice 61 Prohibition of certain information as to racing or betting 62 Rules relating to bookmakers' operations Division 3—Interstate betting operations 62A Prevention of betting by children 62B Advertising code of practice 62C Responsible gambling code of practice 62D Notification Division 4—Betting operations relating to racing 62E Integrity agreements and contribution agreements 62F Supreme Court review 62G Contributions for betting operations on races held on or after 1 September 2008 and before commencement of section 62E 62H Disclosure of information and confidentiality 62I Prosecution requires Commissioner's consent Part 6—Power to deal with default or business failure Division 1—Taxation default 73A Disciplinary action for taxation defaults Division 2—Official management 74 Power to appoint manager 75 Powers of manager Division 3—Administrators, controllers and liquidators 76 Administrators, controllers and liquidators Part 8—Miscellaneous 79A Licensees may bet with interstate licensees conducting fixed-odds betting 80 Lawfulness of betting operations conducted in accordance with Act 81 Further trade practices authorisations 83 False or misleading information 84 Offences by bodies corporate 85 Reasons for decision 86 Power of Commissioner in relation to approvals 87 Confidentiality of information provided by Commissioner of Police 89 Evidence 91 Regulations Legislative history The Parliament of South Australia enacts as follows: Part 1—Preliminary 1—Short title This Act may be cited as the Authorised Betting Operations Act 2000. 2—Objects The objects of this Act are— (a) to ensure that those involved in the control, management and operation of authorised betting operations are fit and proper persons to exercise their respective functions and responsibilities; and (b) to ensure that authorised betting operations are conducted responsibly, fairly and honestly, with due regard to minimising the harm caused by gambling; and (c) to prohibit minors from gambling and ensure that minors are not encouraged to gamble; and (d) to ensure that the interest of the State in the taxation of gambling revenue arising from authorised betting operations is properly protected. 3—Interpretation (1) In this Act, unless the contrary intention appears— advertising code of practice means an advertising code of practice prescribed under the Gambling Administration Act 2019; agent's licence—see section 34; approved contingency—see section 4; approved licensing agreement—see section 12; authorised betting operator means— (a) the holder of a licence under this Act; or (b) an authorised interstate betting operator; authorised interstate betting operator—see section 40A(3); betting exchange means a facility, electronic or otherwise, designed to provide a mechanism through which— (a) offers to make bets are regularly made and accepted; or (b) offers or invitations to make bets are regularly made that are intended to result, or may reasonably be expected to result, directly or indirectly, in the acceptance of the offers or invitations, but does not include a facility involved in the activities of a bookmaker or the conduct of totalisator betting; bookmaker's licence—see section 34; cash facility means— (a) an automatic teller machine; or (b) an EFTPOS facility; or (c) any other facility, prescribed by regulation, that enables a person to gain access to his or her funds or to credit; child means a person under the age of 18 years; close associates—see section 5; Commissioner has the same meaning as in the Gambling Administration Act 2019; compliance notice—see section 69; comprehensive licence means the comprehensive major betting operations licence granted under section 7(1); conduct betting operations—a person conducts betting operations if the person conducts totalisator betting, acts as a bookmaker or conducts a betting exchange; contribution agreement—see section 62E; designated person—see section 20; domestic partner means a person who is a domestic partner within the meaning of the Family Relationships Act 1975, whether declared as such under that Act or not; executive officer of a body corporate is— (a) a secretary or public officer of the body corporate; or (b) a person responsible for managing the body corporate's business or any aspect of its business; gambling administration guidelines means the gambling administration guidelines issued by the Commissioner under the Gambling Administration Act 2019; greyhound race or greyhound racing means a race or racing between greyhounds in competitive pursuit of a quarry or lure that is not a live animal; harness race or harness racing means a pacing race or trotting race or pacing or trotting; horse race or horse racing does not include a harness race or harness racing; integrity agreement—see section 62E; interstate betting operator means— (a) a person who holds a prescribed interstate licence (including a licence that is suspended); or (b) a statutory body established under the law of another State or a Territory of the Commonwealth for the purpose of conducting betting operations in that State or Territory; licensed bookmaker means a person who is the holder of a bookmaker's licence; licensed racing club means a racing club that is the holder of an on-course totalisator betting licence; limited licence means a limited major betting operations licence granted under section 7(3); major betting operations licence means the comprehensive licence or a limited licence granted under Part 2; on-course totalisator betting means totalisator betting that takes place within a racecourse, and off-course totalisator betting has a corresponding meaning; on-course totalisator betting licence—see section 34; prescribed interstate licence means a licence or other authority issued under the law of another State or a Territory of the Commonwealth authorising the holder to conduct betting operations in that State or Territory, but does not include a licence of a class excluded by regulation from the ambit of this definition; race or racing means— (a) a horse race or horse racing; or (b) a harness race or harness racing; or (c) a greyhound race or greyhound racing; racecourse means a place where a race meeting is held by a racing club, and includes adjacent land or premises to which persons attending the meeting have access in connection with the meeting; race meeting means a meeting at which horse races, harness races or greyhound races are held; racing club means a club or association that— (a) is a body corporate; and (b) is established for the purpose of holding race meetings; and (c) is unable, because of its constitution or its nature, lawfully to return profits to its members; and (d) — (i) is related to a racing controlling authority through its membership of the authority, or its membership of a body that is a member of the authority; or (ii) is registered by a racing controlling authority, and includes a racing controlling authority that holds race meetings; racing controlling authority—see section 6; racing distribution agreement—see section 13; responsible gambling code of practice means a responsible gambling code of practice prescribed under the Gambling Administration Act 2019; spouse—a person is the spouse of another if they are legally married; taxation default—section 73A; telephone, Internet or other electronic means—see subsection (3); totalisator betting means betting in accordance with a system under which the amount paid out in respect of a bet made on a particular contingency is affected by the total amount bet on that contingency, and totalisator bet has a corresponding meaning; 24 hour sportsbetting licence—see section 34. (2) In this Act, administrator, controller and liquidator have (unless the contrary intention appears) the same respective meanings as in the Corporations Act 2001 of the Commonwealth. (3) In this Act, a reference to telephone, Internet or other electronic means is a reference to a means of communicating at a distance by the use of electronic devices. 3A—Interaction with Gambling Administration Act 2019 This Act and the Gambling Administration Act 2019 will be read together as a single Act (and a reference in a provision of this Act to "this Act" will be taken to include, where relevant, a reference to the Gambling Administration Act 2019). 4—Approved contingencies (1) The Commissioner may approve, for all or specified betting operations— (a) contingencies related to races within or outside Australia (other than races held by licensed racing clubs); or (b) contingencies related to sporting or other events within or outside Australia; or (c) other contingencies. (2) The Commissioner may vary or revoke an approval. (3) Before approving contingencies or varying an approval, the Commissioner must— (a) have regard to— (i) the standards of probity applying in relation to the contingencies; and (ii) available evidence of the past conduct of events to which the contingencies relate (if any); and (iii) the likely nature and scale of betting operations in relation to the contingencies; and (iv) whether betting operations in relation to the contingencies are lawful in another State or a Territory of the Commonwealth; and (v) the appropriateness in other respects of the contingencies for the conduct of betting operations generally or the particular betting operations concerned; and (ab) be satisfied that the betting operations in relation to the contingencies do not allow betting in relation to amateur sporting events or sporting events where the only participants are children; and (b) give prior written notice of the proposal to the Minister. (3a) The Commissioner must, within 14 days after approving contingencies or varying or revoking an approval, publish a notice in the Gazette setting out the terms of the approval, variation or revocation. (4) The Minister may give the Commissioner binding directions preventing or restricting the approval of contingencies. 4A—Fit and proper person (1) A person is not a fit and proper person for a particular purpose under this Act if— (a) the person has been found guilty or convicted of an offence as prescribed by the regulations; or (b) in the case of a body corporate— (i) the body corporate is a body corporate, or is a body corporate of a class, prescribed by the regulations; or (ii) the body corporate is a prescribed organisation; or (c) in the case of a natural person, the person— (i) is— (A) a member of a prescribed organisation; or (B) a close associate of a person who is a member of a prescribed organisation or is subject to a control order under the Serious and Organised Crime (Control) Act 2008; or (ii) is an insolvent under administration within the meaning of the Corporations Act 2001 of the Commonwealth. (2) For the purpose of determining whether a person is a fit and proper person for a particular purpose under this Act the Commissioner— (a) may cause the person's photograph to be taken; and (b) may cause the person's fingerprints to be taken; and (c) may have regard to the following: (i) the corporate structure of the person; (ii) the person's financial background and resources; (iii) the person's reputation; (iv) the character, reputation and financial background of the person's close associates; (v) any representations made by the Minister; (vi) any other matters the Commissioner thinks fit. (3) In this section— prescribed organisation—the following are prescribed organisations: (a) a declared organisation within the meaning of the Serious and Organised Crime (Control) Act 2008; (b) a criminal organisation within the meaning of Division 1 or Division 2 of Part 3B of the Criminal Law Consolidation Act 1935; (c) any other organisation prescribed by the regulations for the purposes of this definition. 5—Close associates (1) Two persons are close associates if— (a) one is a spouse, domestic partner, parent, brother, sister or child of the other; or (b) they are members of the same household; or (c) they are in partnership; or (d) they are joint venturers; or (da) they are related bodies corporate within the meaning of the Corporations Act 2001 of the Commonwealth; or (e) one is a body corporate and the other is a director or executive officer of the body corporate; or (f) one is a body corporate (other than a public company whose shares are quoted on a prescribed financial market) and the other is a shareholder in the body corporate; or (g) one is a body corporate whose shares are quoted on a prescribed financial market and the other has a substantial holding in the body corporate; or (h) one has a right to participate (otherwise than as a shareholder in a body corporate) in, or is remunerated by reference to, proceeds or profits derived from a business conducted by the other; or (i) one is in a position to exercise control or significant influence over the conduct of the other; or (j) a chain of relationships can be traced between them under any one or more of the above paragraphs. (1a) For the purposes of this section, a reference to a parent, brother, sister or child of a person will be taken to include a reference to a step‑parent, step‑brother, step‑sister or step‑child (as the case requires) of the person. (2) In subsection (1)— prescribed financial market means a prescribed financial market within the meaning of section 9 of the Corporations Act 2001 of the Commonwealth; substantial holding in a body corporate has the same meaning as in section 9 of the Corporations Act 2001 of the Commonwealth. 6—Designation of racing controlling authorities (1) The Governor may, by proclamation— (a) designate a body as the racing controlling authority for horse racing; (b) designate a body as the racing controlling authority for harness racing; (c) designate a body as the racing controlling authority for greyhound racing. (2) The Governor may, by subsequent proclamation, substitute the body designated as a racing controlling authority. 6A—Commissioner may approve staff training courses (1) The Commissioner may, on application by a person, approve courses of training to be undertaken by staff involved in betting operations. (2) The Commissioner must not approve a training course under this section unless the course complies with the requirements of any applicable responsible gambling codes of practice or any applicable gambling administration guidelines. (3) The Commissioner may— (a) on the Commissioner's own initiative, by written notice to the training course provider, relevant authorised betting operator and a relevant body representative of licensees or authorised interstate betting operators; or (b) on application by a training course provider, vary or revoke an approval under this section. (4) Before the Commissioner varies or revokes an approval under subsection (3)(a), the Commissioner must— (a) give notice in writing of the proposed variation or revocation to the training course provider, relevant authorised betting operator or relevant body representative of licensees or authorised interstate betting operators; and (b) consider any representations made by the provider, operator or body within 21 days after the notice is given or a longer period allowed in the notice. Part 2—Major betting operations licences Division 1—Grant, renewal and conditions of licences 7—Grant of licences (1) The Governor may grant a comprehensive major betting operations licence. (2) There is not to be more than one comprehensive major betting operations licence in force under this Act at the same time. (3) The Governor may grant any number of limited major betting operations licences. (4) The grant of a licence is to be made, on the recommendation of the Commissioner, to an applicant for the licence. (5) The Governor is not bound to act in accordance with the Commissioner's recommendation. 8—Eligibility to hold licence The holder of a licence must be a body corporate. 9—Authority conferred by licence (1) The comprehensive licence may authorise the licensee— (a) to conduct off-course totalisator betting on races held by licensed racing clubs; (b) to conduct off-course totalisator betting on approved contingencies; (c) to conduct on-course totalisator betting under agreements with licensed racing clubs on races held by licensed racing clubs and on approved contingencies; (d) to conduct other forms of betting on races held by licensed racing clubs or on approved contingencies, in accordance with this Act. (2) A limited licence may authorise the licensee— (a) to conduct off-course totalisator betting on races held by licensed racing clubs; (b) to conduct off-course totalisator betting on approved contingencies; (c) to conduct other forms of betting on races held by licensed racing clubs or on approved contingencies, provided that the following requirements are complied with: (d) the betting must be conducted only by telephone, Internet or other electronic means and otherwise in accordance with this Act; (e) the licensee must not directly or indirectly make available, or in any way facilitate the provision of, a telephone, computer or other device capable of being used for the conduct of betting by telephone, Internet or other electronic means to a person in South Australia for the purpose of encouraging or facilitating such betting. 10—Term and renewal of licence (1) A licence is to be granted for a term fixed under the licensee's approved licensing agreement. (2) If before the end of a term for which a licence has been granted or renewed a new approved licensing agreement and, in the case of the comprehensive licence, a new racing distribution agreement are entered into, the Governor may, on the recommendation of the Commissioner, renew the licence for a term fixed under the renegotiated approved licensing agreement. (3) The Governor is not bound to act in accordance with the Commissioner's recommendation and the licensee is to have no entitlement to, or legitimate expectation of, renewal. 11—Conditions of licence (1) The conditions of a licence consist of— (a) the conditions fixed by this Act; and (b) the conditions (supplementary licence conditions) fixed by or in accordance with the licensee's approved licensing agreement. (2) Subject to the licensee's approved licensing agreement, the Governor may, on the recommendation of the Commissioner, vary supplementary licence conditions. (3) The Governor is not bound to act in accordance with the Commissioner's recommendation. Division 2—Agreements with licensee 12—Approved licensing agreements (1) There is to be an agreement (the approved licensing agreement) between a licensee and the Minister about— (a) the scope and operation of the licensed business; and (b) the term of the licence; and (c) the conditions of the licence; and (d) the performance of the licensee's responsibilities under the licence or this Act. (2) An agreement may deal with other subjects relevant to the licence or the licensed business. (3) An agreement— (a) is to be entered into with a prospective licensee before the licence is granted or with the licensee before renewal of the licence; and (b) is to remain in force for the term of the licence; and (c) must be consistent with the provisions of this Act. (4) If an agreement so provides, specified provisions of the agreement become conditions of the licence. (5) An agreement may require the Minister or the Commissioner to provide information relating to the licensee or the licensee's operations under the licence to a specified person and, if it does so, the information may be provided without breaching any other law. (6) An agreement may contain provisions governing the exercise of powers of the Minister or the Commissioner under this Act or the Gambling Administration Act 2019. (7) An agreement binds— (a) the licensee; and (b) the Minister; and (d) the Commissioner; and (e) if the agreement so provides, any other person who consents to be bound by the agreement, to the extent provided in the agreement. (8) An agreement may contain provisions governing its variation by later agreement, but such a variation must be consistent with the provisions of this Act. (9) An agreement may contain an assurance, on terms and conditions fixed in the agreement, that the licensee's right to conduct specified betting operations in this State will be an exclusive right and not be impugned during a period set out in the agreement. (11) An agreement must contain provisions fixing, for a form of betting in which the actual amounts payable on winning bets are not pre-determined, the maximum proportion of money invested that may be retained by the licensee. (12) Entering into, giving effect to, or enforcing an agreement is, subject to conditions and limitations prescribed by regulation, authorised for the purposes of section 51 of the Competition and Consumer Act 2010 of the Commonwealth, as in force from time to time, and the Competition Code of South Australia. (13) In subsection (12)— entering into an agreement means entering into or negotiating an agreement, including acting collectively or in combination with others in or with respect to the negotiation of an agreement; giving effect to an agreement includes complying with an obligation or exercising a right or power under the agreement. 13—Racing distribution agreements (1) At all times during the term of the comprehensive licence the licensee must have in force an agreement (the racing distribution agreement) with the racing industry about terms and conditions on which the licensee may conduct betting operations on races held by licensed racing clubs. (2) Without limiting the matters that may be included in the agreement, the agreement must include provisions relating to— (a) the arrangement of racing programs and the provision of racing information to the licensee; and (b) the payments to be made by the licensee to the racing industry. (3) The agreement is to be entered into with a prospective licensee before the licence is granted or with the licensee before renewal of the licence. (4) The agreement may be varied by a later agreement between the parties. (5) It is a condition of the comprehensive licence that the licensee must perform its obligations under the agreement. (6) Each racing controlling authority and its related licensed racing clubs are taken to be parties to a contract under seal under which each of the licensed racing clubs agrees to comply with any directions given by the controlling authority for the purposes of enabling the racing industry to perform its obligations and exercise its rights under the agreement. (7) Each racing controlling authority must give directions to its related licensed racing clubs as required for the purposes of enabling the racing industry to perform its obligations and exercise its rights under the agreement. (8) The following is, subject to conditions and limitations prescribed by regulation, authorised for the purposes of section 51 of the Competition and Consumer Act 2010 of the Commonwealth, as in force from time to time, and the Competition Code of South Australia: (a) entering into, giving effect to, or enforcing the agreement in so far as such conduct prevents or restricts the acquisition by the licensee or another person specified in the agreement of racing information from a person other than the person specified in the agreement as the supplier of the information; (b) entering into, giving effect to, or enforcing the agreement in so far as such conduct prevents or restricts the supply by a person specified in the agreement of racing information to a person other than the licensee or another person specified in the agreement; (c) entering into, giving effect to, or enforcing the agreement in so far as such conduct prevents or restricts the supply by the licensee or a person specified in the agreement of racing information received in accordance with the agreement to another person; (d) entering into, giving effect to, or enforcing the agreement in so far as such conduct lessens competition in relation to the conduct of on-course totalisator betting operations; (e) entering into, giving effect to, or enforcing provisions of the agreement prescribed by regulation. (9) In this section— entering into an agreement means entering into or negotiating an agreement, including acting collectively or in combination with others in or with respect to the negotiation of an agreement; giving effect to the agreement, or provisions of the agreement, includes— (a) complying with an obligation or exercising a right or power under the agreement or provisions; and (b) giving or complying with a direction referred to in subsection (6) or (7); racing industry means either or both of the following: (a) the racing controlling authorities; or (b) a body for the time being nominated to the Minister by the racing controlling authorities as a body representative of the racing controlling authorities; racing information means information about races held within the State or elsewhere in Australia; related licensed racing club, in relation to a racing controlling authority, means a licensed racing club that— (a) is related to the racing controlling authority through its membership of the authority, or its membership of a body that is a member of the authority; or (b) is registered by the racing controlling authority. 15—Approved licensing agreement to be tabled in Parliament The Minister must, within 12 sitting days after entering into an approved licensing agreement or an agreement for the variation of an approved licensing agreement, have copies of the agreement laid before both Houses of Parliament. Division 3—Dealings with licence or licensed business 16—Transfer of licence (1) The Governor may, on the recommendation of the Commissioner, approve the transfer of a licence. (3) On a transfer of a licence— (a) the transferee succeeds to all the rights and obligations of the transferor under the approved licensing agreement and, in the case of the comprehensive licence, the racing distribution agreement; and (b) the approved licensing agreement governs the conditions of the licence in the same way and to the same extent as before the transfer. (4) The Governor is not bound to act in accordance with the Commissioner's recommendation. 17—Dealings affecting licensed business (1) A licensee must not enter into any of the following transactions without the approval of the Commissioner: (a) a partnership agreement that relates to betting operations conducted or to be conducted under the licence; (b) an agreement or arrangement under which the licensee conducts or is to conduct betting operations under the licence jointly with another or as the agent of another; (c) an agreement or arrangement under which a person participates in, or is remunerated by reference to, proceeds or profits of the business conducted or to be conducted under the licence; (d) a transaction to mortgage, charge or encumber the licence or assets associated with operations under the licence; (e) an agreement or arrangement under which the licensee disposes of, or grants an interest in, the business conducted under the licence. (2) This section does not invalidate an agreement or arrangement made subject to a condition precedent under which it is not to take effect until approved by the Commissioner. 18—Other transactions under which outsiders may acquire control or influence (1) This section applies to a transaction if it is a transaction (other than one for which the Commissioner's approval is required under this Division) under which a person or a group of persons who are close associates of each other attain a position of control or significant influence over the conduct of a licensee. (2) Within 14 days after a licensee becomes aware of a transaction to which this section applies, the licensee must— (a) inform the Commissioner of the transaction; and (b) provide any information about the transaction that is available to the licensee. Maximum penalty: $50 000. (3) If a licensee is a party to a transaction to which this section applies, and the transaction takes effect before the Commissioner approves it, the licensee is liable to disciplinary action. (4) If a transaction to which this section applies has not been approved or ratified by the Commissioner, the Commissioner may, after allowing the parties to the transaction a reasonable opportunity to be heard, make orders of one or more of the following kinds: (a) an order avoiding the transaction; (b) an order requiring a person who has acquired an interest under the transaction to dispose of that interest within a specified time; (c) an order terminating a contractual or other relationship under which control or influence might be exercised over the licensee; (d) an order preventing or regulating the exercise of power or influence acquired as a result of the transaction; (e) an order (which may include an order for restitution) dealing with any consequential or ancillary issues. (5) The Supreme Court may, if satisfied on application by the Commissioner that there is good reason to do so, register an order of the Commissioner in the Court and, on registration, the order may be enforced as a judgment of the Court. 19—Surrender of licence (1) A licensee may, with the approval of the Commissioner, surrender the licence. (2) The surrender of a licence does not affect liabilities incurred by the licensee before the surrender takes effect. Division 4—Approval of designated persons 20—Approval of designated persons (1) A licensee must ensure that each person who becomes a designated person in relation to the licensee has been approved by the Commissioner. Maximum penalty: $20 000. (1a) The Commissioner must give the Commissioner of Police a copy of all applications made under this section and must allow the Commissioner of Police a reasonable opportunity to make representations on the application. (1b) The Commissioner of Police must make available to the Commissioner information about criminal convictions and other information to which the Commissioner of Police has access relevant to whether the application should be granted. (2) A licensee must, within 14 days after a person ceases to be a designated person in relation to the licensee, give the Commissioner written notice identifying the person and stating the date when, and the reason why, the person ceased to be a designated person. Maximum penalty: $5 000. (3) This section applies in relation to designated persons other than directors of a licensee subject to any limitation for the time being specified by the Commissioner by written notice to a licensee. (5) This section does not apply in respect of an administrator, controller or liquidator of a licensee who has assumed control over the licensed business or a person acting on the authority of such a person. (6) In this section— designated person, in relation to a licensee, means— (a) a director of a licensee; or (b) an executive officer of a licensee; or (c) a person, or a person of a class, designated by the Commissioner for the purpose. Division 5—Applications and criteria for determination of applications 21—Applications (1) The following applications may be made to the Commissioner: (a) an application for the grant, renewal or transfer of a licence; (b) an application for the Commissioner's approval or ratification of a transaction to which Division 3 applies (other than the transfer of a licence); (c) an application for the Commissioner's approval of a transaction to which Division 3 would apply if the transaction were entered into; (d) an application for the Commissioner's approval of a person to become a designated person in relation to a licensee. (2) An application— (a) must be in the form required by the Commissioner; and (b) must be supported by the information required by the Commissioner verified, if the Commissioner so requires, by statutory declaration; and (c) must be made as follows: (i) in the case of an application for the Commissioner's approval of a transfer of a licence—the application must be made jointly by the proposed transferor and transferee; (ii) in the case of an application for the Commissioner's approval or ratification of a transaction to which Division 3 applies or would apply if the transaction were entered into (other than the transfer of a licence)—the application must be made by the licensee or one or more of the parties to the transaction; (iii) in the case of an application for the Commissioner's approval of a person to become a designated person in relation to a licensee—the application must be made by the licensee. (3) If a change of circumstances occurs after an application is made but before it is determined, the applicant must immediately give the Commissioner full details of the change. Maximum penalty: $10 000. (4) An application may be withdrawn by the applicant, or any of the applicants, before the application is determined. 22—Determination of applications (1) The Commissioner must not recommend grant or renewal of a licence unless satisfied that the applicant is a suitable person to carry on the licensed business. (2) The Commissioner must not recommend transfer of a licence unless satisfied that the proposed transferee is a suitable person to carry on the licensed business. (3) If— (a) a transaction to which Division 3 applies results or might result in the acquisition by a person other than the licensee of power to conduct, or to control or exercise significant influence over the conduct of, a licensed business; or (b) a transaction to which Division 3 would apply if the transaction were entered into would or might result in the acquisition by a person other than the licensee of power to conduct, or to control or exercise significant influence over the conduct of, a licensed business, the Commissioner must not approve or ratify the transaction unless satisfied that the person is or would be a suitable person to exercise the relevant power. (4) The Commissioner must not approve a person to become a designated person in relation to a licensee unless satisfied that the person is a fit and proper person to become a designated person in relation to the licensee. (5) In assessing the suitability of a person, the Commissioner may have regard to— (a) the corporate structure of the person; and (b) the person's financial background and resources; and (c) the person's reputation; and (d) the character, reputation, and financial background of the person's close associates; and (e) any representations made by the Minister; and (f) any other matters the Commissioner thinks fit. (6) If the Commissioner approves a transaction to which Division 3 would apply if the transaction were entered into, the approval has effect for the purposes of Division 3 in relation to the transaction when it is entered into. Division 6—Investigations by Commissioner 23—Investigations (1) The Commissioner must carry out the investigations the Commissioner considers necessary to enable the Commissioner to make an appropriate recommendation or decision on an application under this Part. (2) The Commissioner must keep under review the continued suitability of each licensee and each licensee's close associates, and carry out the investigations the Commissioner considers necessary for that purpose. (3) The Commissioner may obtain from the Commissioner of Police such reports on persons as the Commissioner considers necessary for the purposes of investigations. 24—Investigative powers (1) The Commissioner may, by written notice— (a) require any person to provide to the best of the person's knowledge and belief, information, verified by statutory declaration, on matters relevant to an investigation that are specified in the notice; or (b) require any person to appear before the Commissioner for examination on matters relevant to an investigation; or (c) require any person to produce to the Commissioner, within a period stated in the notice, documents or other material relevant to an investigation. (2) The Commissioner may also require any person whose suitability to be concerned in or associated with a licensed business is under investigation to submit to the taking of photographs, finger prints and palm prints. (3) A person is guilty of an offence if the person— (a) fails to comply with a requirement made by the Commissioner under this section; or (b) having appeared for examination before the Commissioner, refuses or fails to take an oath, or to answer a question to the best of the person's knowledge and belief, when required to do so by the Commissioner. Maximum penalty: $10 000. (4) The powers conferred by this section are in addition to those conferred by the Gambling Administration Act 2019. 25—Costs of investigation (1) If the Commissioner carries out an investigation under this Part, the Commissioner must require— (a) in the case of an investigation in connection with an application—the applicant; or (b) in the case of an investigation in connection with review of the continued suitability of a licensee or a licensee's close associates—the licensee, to meet the cost of the investigation. (2) The Commissioner may require the applicant or licensee to make specified payments towards the costs of the investigation before the investigation begins and during the course of the investigation. (3) If a payment is not made by an applicant as required by the Commissioner, the Commissioner may discontinue the investigation. (4) At the end of the investigation, the Commissioner must certify the cost of the investigation and any unpaid balance of that cost may be recovered from the applicant or licensee as a debt due to the State. (5) In proceedings for recovery of the cost (or the balance of the cost) of an investigation, the Commissioner's certificate is to be regarded as conclusive evidence of that cost. (6) This section does not apply in relation to an application for approval of a person to become a designated person in relation to a licensee. 26—Results of investigation If the Commissioner carries out an investigation under this Part, the Commissioner must notify the following persons of the results of the investigation: (a) the Minister; (b) in the case of an investigation in connection with an application—the applicant; (c) in the case of an investigation in connection with review of the continued suitability of a licensee or a licensee's close associates—the licensee. Division 6A—Notification of change of prescribed particulars 26A—Licensee to notify change of particulars (1) A licensee must, within 14 days after a change in any prescribed particulars, notify the Commissioner of that change. Maximum penalty: $2 500. Expiation fee: $210. (2) In this section— prescribed particulars means— (a) any address for service or other email address, telephone number or street or postal address provided by the licensee to the Commissioner for purposes connected with the licence; and (b) any other particulars of a kind prescribed by the regulations. Division 7—Accounts and audit 27—Accounts and audit (1) A licensee must keep proper financial accounts in relation to the operation of the licensed business. Maximum penalty: $50 000. (3) A licensee must have the accounts periodically audited as required under the conditions of the licence by a registered company auditor. (4) The licensee must, on the request of the Treasurer or the Commissioner and within the time specified in the request, provide to the Treasurer or Commissioner (as the case may be) a copy of the audited accounts in relation to the operation of the licensed business. Maximum penalty: $10 000. 29—Duty of auditor (1) The auditor of accounts that a licensee is required to keep either under this Division or the Corporations Act 2001 of the Commonwealth must— (a) notify the Commissioner of any suspected irregularity in the accounts or in the licensee's financial affairs; and (b) must, on the written request of the Commissioner, provide the Commissioner with information specified in the request (in a manner and form specified in the request) about the accounts or the licensee's financial affairs. Maximum penalty: $10 000. (2) A communication under subsection (1) is absolutely privileged. (3) The Commissioner must, subject to subsection (4), keep information obtained under this section confidential. (4) The Commissioner may divulge information obtained under this section to the Minister or as otherwise authorised by law. Division 10—Recovery of administration costs 33A—Commissioner to recover administration costs (1) The Commissioner must, not less than 1 month before the commencement of each financial year, notify each licensee in writing of the amount fixed by the Minister as the recoverable administration costs for that financial year. (2) If, during the course of the financial year, the Minister varies the amount fixed as the recoverable administration costs for the financial year, the Commissioner must notify each licensee in writing of the variation, specifying the amount fixed as the revised recoverable administration costs for that financial year. (3) Subject to subsection (4), a licensee must, in each month of the financial year, pay to the Commissioner one‑twelfth of the amount of the recoverable administration costs for that financial year. (4) If a notice is given to a licensee under subsection (2), the licensee must, in each month of the financial year following that notice, pay to the Commissioner an amount equal to the revised recoverable administration costs specified in the notice less the total of the payments that have fallen due under this section in the financial year, divided by the number of payments yet to fall due under this section in the financial year. (5) If the whole or a part of an amount payable by a licensee is not paid to the Commissioner as required, the amount unpaid may be recovered from the licensee as a debt due to the State. (6) In proceedings for recovery of an amount unpaid, the Commissioner's certificate is to be regarded as conclusive evidence of the recoverable administration costs or revised recoverable administration costs for the period specified in the certificate. (7) In this section— administration costs means the costs of administering this Act arising out of, or in connection with, the carrying out of the Commissioner's administrative and regulatory functions in respect of a licensee. Part 3—Bookmaker's and other licences Division 1—Licences 34—Classes of licences (1) The Commissioner may grant the following classes of licences: (a) a licence (an on-course totalisator betting licence) authorising a racing club to conduct on-course totalisator betting in conjunction with a race meeting held by the club, or at other times authorised by the Commissioner, on races held by the club or another licensed racing club (excluding races of a prescribed kind) and on other races that are approved contingencies; (b) a licence (a bookmaker's licence) authorising a person to act as a bookmaker conducting fixed-odds betting on races held by licensed racing clubs (excluding races of a prescribed kind) and approved contingencies; (c) a licence (an agent's licence) authorising a person to act as the agent of a licensed bookmaker; (e) a licence (a 24 hour sportsbetting licence) authorising a licensed bookmaker to conduct fixed-odds betting on approved contingencies (excluding races) by telephone on a 24 hour basis. (2) A bookmaker's licence must not be granted— (a) to a child; or (b) to a body corporate unless— (i) the body corporate is a proprietary company within the meaning of the Corporations Act 2001 of the Commonwealth and is taken to be registered in South Australia for the purposes of that Act; and (ii) each of the directors and shareholders of the body corporate holds a bookmaker's licence. (2a) An agent's licence must not be granted to a body corporate or a child. (3) The Minister may give the Commissioner binding directions about authorisations as to the conduct of on-course totalisator betting at times other than in conjunction with a race meeting. (4) The Minister may give the Commissioner binding directions about the granting of a 24 hour sportsbetting licence. 35—Term of licence (1) A licence granted under this Part will, subject to this Act, have effect for a period specified in the licence and may be renewed from time to time in accordance with the regulations. (2) The Minister may give the Commissioner binding directions about the term of an on-course totalisator betting licence. 36—Conditions of licences (1) The Commissioner may, on granting or renewing a licence under this Part, attach conditions to the licence. (2) The Commissioner may, by written notice to the person granted a licence under this Part, vary or revoke a condition attached to the licence or attach a further condition. (3) An on-course totalisator betting licence must have attached to it conditions fixing the maximum proportion of money invested in totalisator betting that may be retained by the licensee. (4) The Minister may give the Commissioner binding directions about conditions to be attached to a licence under subsection (3). (5) The Minister may give the Commissioner binding directions about a condition to be attached to a 24 hour sportsbetting licence under subsection (1) or (2) preventing betting operations being conducted under that licence on a specified day. 37—Application for grant or renewal, or variation of condition, of licence (1) An application for the grant or renewal, or variation of a condition, of a licence under this Part— (a) must be made to the Commissioner in the form required by the Commissioner; and (b) must be supported by the information required by the Commissioner verified, if the Commissioner so requires, by statutory declaration; and (c) must be accompanied by the fee fixed by regulation. 38—Determination of applications (1) The Commissioner must not grant or renew a licence under this Part unless satisfied— (a) that the applicant is a fit and proper person to hold the licence; and (b) in the case of an on-course totalisator betting licence—as to the adequacy of the standards of probity that will apply to races held by the racing club. 38A—Suspension of body corporate licence A bookmaker's licence held by a body corporate is suspended for any period during which any director or shareholder of the body corporate does not hold a bookmaker's licence. 38B—Licensee to notify change of particulars (1) The holder of a licence under this Part must, within 14 days after a change in any prescribed particulars, notify the Commissioner of that change. Maximum penalty: $2 500. Expiation fee: $210. (2) In this section— prescribed particulars means— (a) any address for service or other email address, telephone number or street or postal address provided by the licensee to the Commissioner for purposes connected with the licence; and (b) any other particulars of a kind prescribed by the regulations. Part 3A—Authorisation of interstate betting operators 40A—Authorisation of interstate betting operators (1) An interstate betting operator may give notice to the Commissioner of— (a) the operator's intention to conduct betting operations in this State as from a specified date; or (b) the cessation of the conduct of those betting operations in this State as from a specified date. (2) The notice must be in the form and be given in the manner required by the Commissioner. (3) For the purposes of this Act, an interstate betting operator is an authorised interstate betting operator on and from the date specified in a notice of intention to conduct betting operations until the date specified in a notice of the cessation of the conduct of the betting operations. (4) An authorised interstate betting operator is authorised to conduct betting operations in this State provided that— (a) the betting is conducted only by telephone, Internet or other electronic means; and (b) the operator does not directly or indirectly make available, or in any way facilitate the provision of, a telephone, computer or other device capable of being used for the conduct of betting by telephone, Internet or other electronic means to a person in South Australia for the purpose of encouraging or facilitating such betting; and (c) the betting relates only to races held by licensed racing clubs and approved contingencies; and (d) the operator is authorised to conduct the operations under a prescribed interstate licence or in the operator's capacity as a statutory body; and (e) a prescribed interstate licence held by the operator authorising the operations is not suspended; and (f) the operator is not prohibited from conducting the operations under this Act. (5) The Commissioner must keep a list of authorised interstate betting operators (including details of notices given under this section and any disciplinary action taken against operators) available for inspection on a website to which the public has access free of charge. (5a) An authorised interstate betting operator must, on or before 30 September in each year, lodge with the Commissioner an annual return containing the information required by the Commissioner by written notice. (6) For the purposes of this section— (a) if a person in this State may make a bet with an interstate betting operator, the operator conducts betting operations in this State; and (b) if a person in this State may make a bet by means of a betting exchange, the person who conducts the betting exchange conducts betting operations in this State. 40AA—Interstate betting operator to notify change of particulars (1) An authorised interstate betting operator must, within 14 days after a change in any prescribed particulars, notify the Commissioner of that change. Maximum penalty: $2 500. Expiation fee: $210. (2) In this section— prescribed particulars means— (a) any address for service or other email address, telephone number or street or postal address provided by the authorised interstate betting operator to the Commissioner for purposes connected with the authorisation; and (b) any other particulars of a kind prescribed by the regulations. Part 3B—Taxation Division 1—Preliminary 40B—Interpretation In this Part— betting operations tax—see section 40D(1); betting operator means— (a) an authorised betting operator; and (b) any person who earns revenue as a result of accepting bets from, or providing a service through which bets are made by, persons who were located in South Australia at the time of making the bet or using the service (not being a person who is licensed or authorised to accept such bets, or provide such a service, under a law of the State); multi-jurisdictional agreement—see section 40F(1); net State wagering revenue—the net State wagering revenue of a betting operator for a financial year is the sum of— (a) the total amount of all bets made with, or using a service provided by, the betting operator during the financial year by persons who were located in South Australia at the time of making the bet or using the service; and (b) the total of any fees, commission or other amounts of a kind prescribed by the regulations (in relation to betting operators generally or in relation to particular betting operators or classes of betting operators) associated with making the bets or using the service, less— (c) the total amount of all winnings paid or payable in respect of those bets; and (d) the total of any other amounts of a kind prescribed by the regulations (in relation to betting operators generally or in relation to particular betting operators or classes of betting operators); participating jurisdiction means South Australia and any other Australian jurisdiction that enters, through the agency of a Minister of the Crown, into a multi-jurisdictional agreement. Division 2—Betting operations tax 40C—Taxation Administration Act Subject to any regulations made under section 40H(1)(f), this Part must be read together with the Taxation Administration Act 1996 which makes provision for the administration and enforcement of this Part and other taxation laws. 40D—Liability to pay tax (1) A betting operator is liable to pay tax (betting operations tax) to the Commissioner of State Taxation on the operator's net State wagering revenue for a financial year. (2) Betting operations tax is payable in respect of a financial year as follows: (a) if the net State wagering revenue for the financial year is less than $150 000—no tax is payable; (b) if the net State wagering revenue for the financial year is $150 000 or more—tax is payable at the rate of 15% of the amount of net State wagering revenue in excess of $150 000. 40E—Payments to Fund (1) Subject to this section, the Commissioner of State Taxation must pay, out of the taxation revenue collected under this Division during each financial year, an amount of $500 000 into the Gamblers Rehabilitation Fund established under the Gaming Machines Act 1992 (the Fund). (2) The amount required to be paid into the Fund in respect of taxation revenue collected during a particular financial year is, on or after 1 January 2018, to be adjusted on 1 January of each year by multiplying the amount that would be required to be paid in accordance with subsection (1) by a proportion obtained by dividing the CPI for the September quarter of the immediately preceding year by the CPI for the September quarter, 2016, on the basis that the quotient used for the purposes of the adjustment will be calculated to 2 decimal places and that the amount obtained from the adjustment will be rounded to the nearest dollar. (3) Regulations made under section 40H(1)(i) may require the Commissioner of State Taxation to pay amounts into the Fund in addition to the amounts required under this section. (4) If in any financial year the revenue collected under this Division is insufficient to make the payment required by this section, the Commissioner of State Taxation is relieved of the obligation to make the payment under this section to the extent of the insufficiency. (5) Amounts paid into the Fund under this section may be applied and dealt with as if they had been paid into the Fund under the Gaming Machines Act 1992. (6) In this section— CPI means the Consumer Price Index (All groups index for Adelaide) published by the Australian Bureau of Statistics. Division 3—Multi-jurisdictional agreements 40F—Treasurer may enter into agreements (1) The Treasurer may enter into an agreement (a multi-jurisdictional agreement) with 1 or more other Australian jurisdictions to establish and implement processes for achieving improvements in the assessment and collection of taxes, interest and penalties imposed by the participating jurisdictions on betting operations that are carried on in multiple jurisdictions. (2) A multi-jurisdictional agreement may, for example— (a) provide for collection of relevant taxes, interest and penalties by a participating jurisdiction on behalf of other participating jurisdictions and for the distribution of monies so collected; (b) provide for each participating jurisdiction to collect, on behalf of all jurisdictions, taxes, interest and penalties payable to those jurisdictions by operators whose businesses are based in the collecting jurisdiction; (c) provide for a participating jurisdiction to undertake audits or investigations in respect of taxes, interest and penalties payable by a betting operator under the law of another participating jurisdiction; (d) authorise the performance or exercise of any functions or powers under this Act or the Taxation Administration Act 1996 by a specified authority of a participating jurisdiction (subject to subsection (4) and any other limitations specified in the agreement); (e) authorise the performance or exercise of any functions or powers under a specified law of another participating jurisdiction by the Commissioner of State Taxation (subject to any law of that jurisdiction and any limitations specified in the agreement); (f) provide for participating jurisdictions to assist each other in making timely and accurate determinations of relevant taxes, interest and penalties payable by sharing information available to them (including the results of audits and investigations and any other information of a kind specified by the agreement); (g) make provision for any other measures or matters that the parties consider necessary or expedient for achieving improvements in the assessment or collection of relevant taxes, interest and penalties or for implementing the processes established by the agreement for that purpose. (3) A multi-jurisdictional agreement will operate for such period, and be able to be varied or terminated in such a manner, as the participating jurisdictions agree. (4) A multi-jurisdictional agreement— (a) must be consistent with the provisions of this Act and the Taxation Administration Act 1996 (subject to any modifications prescribed by regulations made under section 40H(1)(f)); and (b) cannot authorise a participating jurisdiction— (i) to make a binding determination of the amount of tax, interest or penalties payable by a betting operator under the laws of another participating jurisdiction; or (ii) to take enforcement action in respect of tax, interest or penalties payable by a betting operator under the laws of another participating jurisdiction. 40G—Commissioner of State Taxation must implement agreements The Commissioner of State Taxation must take such action as is necessary or expedient for giving effect to a multi-jurisdictional agreement. Division 4—Regulations 40H—Regulations (1) Regulations made for the purposes of this Part may— (a) provide for the payment of betting operations tax (including for payment of the tax by instalments payable after or during the financial year to which the tax instalments relate); and (b) impose requirements in relation to record keeping and the preparation and lodgement of returns; and (c) prescribe the form of any record or return; and (d) prescribe consequences for failure to lodge a return or other document required to be provided under the regulations (or for failure to lodge such a return or document at the required time) including requiring the payment of interest or a monetary penalty or prohibiting the conduct of betting operations, or specified betting operations, until the failure is rectified; and (e) make any provision that is necessary or expedient for giving effect to a multi-jurisdictional agreement; and (f) modify the application of the Taxation Administration Act 1996 in relation to this Part or any matter that is, or may be, provided for under a multi-jurisdictional agreement; and (g) prescribe exceptions to and exemptions from liability to betting operations tax; and (h) prescribe circumstances in which there is an entitlement to a refund of betting operations tax paid; and (i) provide for revenue collected under this Part, or any portion of such revenue, to be paid into a specified fund or funds and applied for prescribed purposes or in a prescribed manner; and (j) make any provision to regulate such a fund. (2) Regulations made for the purposes of this Part may provide that a matter or thing in respect of which regulations may be made is to be determined according to the discretion of the Minister, the Commissioner or the Commissioner of State Taxation. (3) A regulation providing for any revenue collected under this Part to be paid into a specified fund or funds and applied for prescribed purposes or in a prescribed manner is sufficient authority for the making of such payments without further appropriation. (4) This section has effect in addition to section 91. Part 4—Regulation of betting operations Division 1—Major betting operations and on-course totalisator betting operations 41—Approval of rules, systems, procedures and equipment (1) It is a condition of a major betting operations licence or an on-course totalisator betting licence that the following must be approved by the Commissioner: (a) the rules governing the betting operations conducted under the licence; and (b) systems and procedures for monitoring and enforcing compliance with those rules and for reporting and dealing with any non-compliance; and (c) other systems and procedures, or equipment of a kind, that the Commissioner determines from time to time to be subject to this section. (2) Without limiting the matters dealt with by rules, the rules must, for a form of betting in which the actual amounts payable on winning bets are not pre-determined, clearly set out— (a) the method of calculation of winnings; and (b) the proportion of money invested that will be retained by the licensee. (3) It is a condition of a major betting operations licence or an on-course totalisator betting licence that the licensee must ensure— (a) that the rules are published in a manner approved by the Commissioner; and (b) that the operations under the licence conform with the rules and the systems and procedures approv