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News Break - 7 December 2007
Changes to the Gaming Machines Regulations and Gaming Machines Act At the end of 2007 there were changes tabled to the Gaming Machines Regulations and Gaming Machines Act. Below is a summary of the major changes that would effect hoteliers in terms of Social Impact Assessment and the trading of entitlements, which aim to reduce the time, cost and complexity of obtaining additional gaming machine threshold approvals. By the permanent removal of entitlements held in the forfeiture pool total machine numbers will be reduced from 104,000 to 99,000 immediately. HISTORY AND COMMENTARY
REPLACEMENT OF SOCIAL IMPACT ASSESSMENT WITH LOCAL IMPACT ASSESSMENT
The following process will take place:
Band 1: Low gaming machine density and expenditure with a high SEIFA ranking Band 2: Moderate gaming machine density and expenditure and a mid rnage SEIFA ranking Band 3: High machine density and expenditure and a low SEIFA ranking (such as but not limited to Canterbury, Ashfield, Penrith, Newcastle, Wyong and Albury) SEIFA = Social Economic Indexes For Areas ( A new bench making ABS Statistic) which is used to assess the imapct of not one venue but the locality in terms of negative gaming effects by the approval of additional gaming machines. The Band classification based on the SEIFA will be updated annually. BAND 1 Application: For over twenty machines could be sort and this would be at the discretion of the decision maker, being the Liquor Administration Board top whether a LIA 1 or 2 would be required . If the application is for less than 20 machines then no LIA is required. BAND 2 Application: The Liquor Administration Board may require a Class 1 or a Class 2 LAI to be completed depending on its findings BAND 3 Application: A Class 2 LIA will always be required. There will be factoring for tourist regions or CBD areas as population data is based on residents and does not take into account transient population such as tourists and city workforces. No LIA will be required :
Guidelines:
Band 3 = Class 2 LIA
COMMENTS: Do not be afraid of this new system. It will provide greater input into applications by Local Government and interest groups. It is questionable if the cost of the Class 1 LIA will be less than that of the Class 1 Social Impact Assessment. However the final regulations for the Class 2 LIA will govern if this process will be shorter and more cost effective depending on service of documents to interested parties. The NSW Government needs to make sure this process works to ensure that there is a further reduction in total numbers of GME's by forfeiture. There has been a total of 3,860 GME's forfeited since the commencement of the Gaming Machines Act in April 2002 in both the Hotel and Club pools. GENERAL MATTERS The proposed changes aim to ensure that the policy objectives of the Gaming Machines Act 2001 will remain valid, whilst reducing unforeseen red tape and un-necessary regulations, while supporting the most vulnerable members of the community are suitability supported and protected from excessive gaming by provisions under the Responsible Gambling Fund and Self Exclusion while achieving a balanced development and ongoing integrity of the industry. SUBMISSIONS: Consistent format and presentation will be used to assist Local Government and stakeholders to submit submissions on applications for all LIA submissions. SHUTDOWN PERIODS: will remain the same and be reviewed when an independent study is tabled in June 2008 MARKETING MATERIAL: Penalties have been removed for the internal promotion of gaming activities to patrons. This marketing material can now take the form of email, mail or on a opt-in basis. No other reductions in restrictions are planned. TRANSFER OF ENTITLEMENTS: Leaseholder transfer of entitlements will not cause any amendment to the legislation. However OLGR will notify the licence owner giving them the ability to object to any transfer. MERGE OF HOTEL AND CLUB POOLS: There will be no merge of the Hotel and Club Pools to ensure the cost of entitlements are capped for the Club Industry. Forfeited machines means removed from circulation. AAD CONVERSION TO GME: There are 99 AAD's in 41 venues. Conversion of these are required within 3 years at a rate of 3:1 and 2:1 city and country respectively and pairing ratios remain the same. If pairing is not adopted then forfeiture will then apply. SINGLE HOTEL TOWNS: It is proposed to allow the local community to object to the removal of entitlements from their hotel. PROMOTIONAL PRIZES: No changes to the promotional prizes and rewards scheme. A study will be completed by Gaming Research Australia on venue characteristics and its impact on player rewards and promotional schemes. STATISTICS: There are 13.17 gaming machines per 1000 people (metropolitan area) There are 17.37 gaming machines per 1000 people (country area) SIA provisions reveal that venues with more gaming machines are more profitable on a per machine basis. FORFEITURE PROVISIONS: There will be no further amendments to forfeiture provisions on the transferring of entitlements. LEASING OF ENTITLEMENTS: Not considered practical due to forfeiture of machines when they are transferred from one hotel licence to another. LEASING OF POKER MACHINE PERMITS: Leasing of permits was not supported due to the government regulation that would be required for peripheral participants to the industry. HARDSHIP GAMING MACHINES: There will be no further hardship machines and were only introduced to provide financial assistance for adversely effected persons by the snap introduction of the gaming freeze in 2002. This section of the Act will be repealed. The conversion of these machines are encouraged if all of the grant conditions are met. CAP ON MACHINE NUMBERS: There is no intention to increase machine numbers per venue to above 30 machines and there is no regional or local caps proposed for the industry. GAMING COUNSELING: A $31 million Responsible Gaming Fund will provide a state wide network to fifty plus counselors and support services including G-line or services for cultural or linguistically diverse, intellectual disabilities, young people, gaming related legal problems or for homeless or imprisoned persons. $2 million has been set aside to launch the fund targeted at young males. The contribution to the Responsible Gaming Levy will remain unchanged. GREEN FIELD HOTEL SITES: There will be no availability to any free entitlements. This will also now apply to the Club industry. ATM LOCATION RESEARCH: A review by Gaming Research Australia will commence in 2008 both Nationally and Statewide. It is proposed that ATM's will not provide cash from credit cards as the restriction stands. The 2006 study shows that the bulk of ATM users use an ATM for non-gaming activities. RCG TRAINING: To incorporate proposed changes in legislation including better identification of problem gamblers. PRIZE WINNING CHEQUES: Will be clearly marked as such and can only be cashed at financial institutions. The recently reviewed cash limit of payouts will remain the same. Improved measures will be introduced to ensure gaming prizes are paid to those who are entitled to receive them. CODES OF PRACTICE: Will be updated to include advancements in responsible gaming practices and such updates will be upgraded in conjunction with industry. SELF EXCLUSION: Develop a single plain English deed allowing exclusion of a person from multiple venues including both Hotels and Clubs. The central collection of data to streamline the administration process of the self exclusion process. Flexibility is proposed for a venue to conduct, operate and make available to patrons a self exclusion scheme. Any involuntary exclusion will come after the new self exclusion scheme is operating correctly. MINORS: There will be no new measures to restrict minor access to gaming rooms. There are already strict and clear guidelines for the placement of machines, accessibility for minors being in the company of a responsible adult and paths of travel. The current breaches and penalties will remain in place. OFFENCES: Effort will be put into ensuring compliance by industry participants thus increasing particular offense provisions. Hotels unlike Clubs must ensure that machines are not visible from public areas. RETAIL SHOPPING CENTRES: Clause 138 to 138C identifies what is and what is not a shopping centre under the Gaming Machines Regulations. Existing venues before 2002 are not permitted to increase there gaming machine numbers. These restrictions will remain in place though they will be simplified and will apply to venues not only in but also adjoining shopping centres. General provisions of not being able to see the machines from the street will also apply. MULTI-TERMINAL GAMING MACHINES: Will not be available in Hotels as they do not complement the primary purpose of a hotel which is the retail sale of liquor. The MTGM's are included in the GME numbers quoted for the combined Club and Hotel industries. APPROVAL BODY: The Liquor Administration Board will remain the consent authority for the final approval of new machines, while the development of the technology will be with the Gaming Machine Testing Facilities (GMTF) BET LIMITS & TECHNICAL STANDARDS : Bet Limits will remain constant, particularly due to the lack of research into bet and prize size. In real terms the bet size is expected to be 15% over 5 years. For the development of new games technical standards will be reviewed by Industry. The current approval guidelines are considered to be objective and define what is considered to be acceptable and un-acceptable. The New South Wales Harm Minimisation Register is more for harm minimisation than for game design. Therefore a change in name of this register is recommended. New game development can be facilitated subject to satisfactory integrity of the product and the ability for it to be monitored by the CMS. GAMING MACHINE INTEGRITY: Amendments are to be introduced to clarify definitions to supply and install unapproved gaming machines or components as well as interfering with machine integrity. Discussions of notification and tracking of machine movements are more effective use of electronic applications are all seen as a required objective. CONSIGNMENT AND MOVEMENT OF MACHINES: A more effective tracking system is to be developed for the moving of machines in New South Wales to enhance the current requirements of machine integrity while improving efficiency and compliance. FINANCING GAMING MACHINES: Government is considering extending the financing period from three to five years but the financing arrangements for these purchases will remain the same. Any Financing Arrangements are to be approved by the Casino, Liquor and Gaming Control Authority. AUTHORISATION OF GAMING MACHINES: Amendments are proposed to gaming related licence provisions. COMPLIANCE PLATES: Compliance Plates should reflect the machine it is attached too. Amendment to the legislation to ensure compliance plates are a permanent fixture on gaming machines and they will not be replaced with a proposed compliance certificate. GAMING RELATED LICENCE OFFENCES: Gaming licensees are to be more accountable for work undertaken on machines, to ensure gaming machine integrity is maintained. KEY OFFICIALS: These government provisions have occurred due to the name change from the Department of Gaming & Racing to the Department of Arts, Sports and Recreation. The Government is in the process of resolving these issues. COMPLAINTS & DISCIPLINARY ACTION: Minor amendments to legislation are proposed to strengthen and clarify powers of the Director, the Police and Inspectors against Hoteliers when a breach is discovered. AUTHORISED CMS: In an attempt to reduce the cost of compliance by industry, the requirement for manual readings will be removed from legislation. Government is working towards a new communication protocol from advancements in technology and game design. Impact of this and subsequent legislation will be dealt with in subsequent legislation after this review. The current system is a one way communication system of machine to host. It is proposed to create a two way communication system. LINK GAME SYSTEM: Amendments are suggested for jackpot displays for all machines that are connected to the link, what link they are connect to and if that link is active. Changes to the legislation is also proposed for link gaming systems due to advancement in technology. INVESTIGATION & ENFORCEMENT POWERS: There has been training between the OLGR and the Police for each party to know what their legislative and enforcement powers are and to ensure they are applied consistently. OLGR inspectors are to enforce matters of a technical nature to the operation of approved gaming devices. RESTRICTING THE DISSEMINATION OF INFORMATION: Expanding data which is available in terms of gaming is supported and are used by academic institutions for research and the result of this research assists government in developing policies. It is also proposed to extend exemption to secrecy provisions to include the New South Wales Police as well as National and International gaming regulatory agencies. At the moment only the ICAC and Ombudsman is the only party that is exempt. GAMING MACHINE TECHNOLOGY: Legislation needs to take into account advances in technology. Discussion sessions take place between between industry development groups and the OLGR FUNDING THE ARTS: There will be no direct fund established for funding of the Arts but submissions can be made under a category 2 submission under the CDSE guidelines that relate to non-profit cultural or visual and performing arts programs. GAMING MACHINES OUTDOORS: Outdoor gaming under this Act will be reduced to ensure that machines are not visible from public places, therefore reducing impact of outdoor gaming and exposure the secondary smoke. Any further issues in this regard need to be addresses under the Tobacco Action Plan. UNCLAIMED TICKETS, JACKPOTS & JACKPOT DISPERSION: The legislation will be amended to allow gaming tickets to be presented for up to 12 months. Any unclaimed funds after 12 months will be directed to the Community Development Fund as these unclaimed monies do not belong to the venue. This will also apply to any unclaimed jackpot prizes. In terms of jackpots that cease and are not replaced these funds should be electronically transferred into another jackpot. EDUCATION STRATEGY: As a result of the 2006 Prevalence Study a State wide awareness campaign is being undertaken which is focused towards young males between 18-24 years plus increase awareness of the G-Line service. The Responsible Gambling Fund is also considering a number of educational strategies including resource kits for school counselors and health worker to raise the awareness of gambling issues. $31 million is to be supplied over four years for a State Wide network and support services by the Responsible Gambling Fund. There role includes general awareness activities in local areas.
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