Australian Capital Territory Numbered Acts Australian Capital Territory Numbered Acts25. Section 45 of the Principal Act is repealed and the following Division substituted:
“45. A person shall not operate a linked jackpot arrangement between gaming machines except in accordance with an approval under section 45A or an inter-club permit.
Penalty: $5,000 or imprisonment for 6 months, or both.
club licence“45A. (1) A club holding a licence may apply in writing for approval to operate a linked jackpot arrangement or arrangements between gaming machines operated under the licence.
“(2) On application in accordance with subsection (1), the Commissioner shall approve a linked jackpot arrangement or arrangements if—
(a) in relation to each proposed arrangement, each gaming machine proposed to be linked—
(i) is operated under a single licence held by the applicant;
(ii) is of the same class and basic stake denomination; and
(iii) offers the same chance of winning linked jackpots as each other machine in the arrangement, if played with the same stakes;
(b) the financial and operational aspects of the proposed arrangement are in accordance with the regulations; and
(c) the Commissioner considers, on reasonable grounds, that the proposed arrangement is satisfactory, having regard to the interests of—
(i) the persons playing the machines in the proposed linked jackpot arrangement; and
(ii) the members of the club.
“(3) It is a condition of an approval that each gaming machine in each approved linked jackpot arrangement displays at all times a sign stating clearly—
(a) that the machine is part of a linked jackpot arrangement with other machines in the club; and
(b) the percentage of the turnover of the machine which is to be set aside for the payment of linked jackpots.
“45B. (1) On application in writing accompanied by the determined fee, the Commissioner shall issue a permit to operate a linked jackpot arrangement or arrangements between gaming machines operated under 2 or more licences, each held by a club, if—
(a) the Commissioner is satisfied on reasonable grounds that the applicant is a fit and proper person to hold a permit, in consideration of circumstances including those referred to in subsection (2);
(b) in relation to each proposed arrangement, each gaming machine proposed to be linked—
(i) is of the same class and basic stake denomination; and
(ii) offers the same chance of winning linked jackpots as each other machine in the arrangement, if played with the same stakes;
(c) the financial and operational aspects of each proposed arrangement are in accordance with the regulations; and
(d) the Commissioner considers, on reasonable grounds, that each proposed arrangement is satisfactory, having regard to the interests of—
(i) the persons playing the machines in each proposed arrangement;
(ii) the clubs operating the machines in each proposed arrangement; and
(iii) the members of those clubs.
“(2) For the purposes of paragraph (1) (a), the circumstances relevant to whether an applicant is a fit and proper person to hold a permit include the following:
(a) if the applicant is a natural person—whether he or she is an undischarged bankrupt;
(b) if the applicant is a body corporate—whether it is in liquidation;
(c) whether an amount under a tax law is due by the applicant;
(d) whether the applicant has contravened a tax law;
(e) whether the applicant has been convicted of an offence punishable on conviction by a fine of not less than $10,000 or by imprisonment for a period of not less than 1 year.
“(3) In paragraphs (2) (c), (d) and (e), a reference to an applicant is to be read, where the applicant is a body corporate, as including a reference to each relevant influential person in relation to the body.
“(4) A permit shall specify—
(a) the full name and address of the permit holder;
(b) the gaming machines in each linked jackpot arrangement in relation to which the permit is issued, and the clubs where they are situated; and
(c) the conditions to which the permit is subject.
“45C. (1) The Commissioner shall issue an inter-club permit subject to the following conditions:
(a) that each gaming machine in an arrangement under the permit display at all times a sign stating clearly—
(i) that the machine is part of a linked jackpot arrangement between machines in different clubs; and
(ii) the percentage of the turnover of the machine which is to be set aside for the payment of linked jackpots;
(b) that the financial and operational aspects of each arrangement under the permit not be varied without the prior approval of the Commissioner under section 45H;
(c) if the permit holder is a body corporate—that the permit holder give notice to the Commissioner specifying any of the following changes to the body within 7 days of the change:
(i) a person becoming a relevant influential person in relation to the body;
(ii) a substantial change in the relationship of a relevant influential person to the body;
(iii) a person ceasing to be a relevant influential person in relation to the body.
“(2) The Commissioner may issue an inter-club permit subject to such other reasonable conditions as he or she thinks fit, in consideration of the interests of—
(a) the persons playing the machines in each linked jackpot arrangement under the permit;
(b) the clubs operating the machines in each such arrangement; and
(c) the members of those clubs.
“45D. An inter-club permit remains in force for a period of 1 year commencing on the date of issue of the permit, subject to this Act, but may be renewed in accordance with section 45E.
“45E. On application in writing accompanied by the determined fee, the Commissioner shall renew an inter-club permit for the period of 1 year commencing on the day immediately following the day on which, but for its renewal, the permit would have expired.
“45F. (1) The Commissioner may vary a condition of an inter-club permit imposed under subsection 45C (2), in consideration of the interests of—
(a) the persons playing the machines in each linked jackpot arrangement under the permit;
(b) the clubs operating the machines in each such arrangement; and
(c) the members of those clubs.
“(2) A variation under subsection (1) takes effect from a date specified in the notice of variation given pursuant to section 52 (being not less than 28 days after the date of the notice).
“45G. (1) At the written request of the permit holder, the Commissioner may vary an inter-club permit for the purpose of—
(a) reducing the number of gaming machines in a linked jackpot arrangement, or terminating a linked jackpot arrangement;
(b) increasing the number of gaming machines in a linked jackpot arrangement under the permit;
(c) including a new linked jackpot arrangement under the permit;
(d) including an additional club in a linked jackpot arrangement; or
(e) varying a condition imposed under subsection 45C (2).
“(2) The Commissioner shall not approve a variation of an inter-club permit unless he or she is satisfied—
(a) if an additional gaming machine is to be included in a linked jackpot arrangement, that the additional machine—
(i) is of the same class and basic stake denomination as the other machines in the arrangement; and
(ii) offers the same chance of winning linked jackpots as each other machine in the arrangement, if played with the same stakes;
(b) if a new linked jackpot arrangement is to be included under a permit, that each gaming machine to be linked—
(i) is of the same class and basic stake denomination; and
(ii) offers the same chance of winning linked jackpots as each other machine in the arrangement, if played with the same stakes;
(c) if an additional club is to be included in a linked jackpot arrangement (whether an existing arrangement or a proposed new arrangement), that the financial and operational aspects of the arrangement are in accordance with the regulations; and
(d) that the proposed variation is satisfactory, on reasonable grounds, having regard to the interests of—
(i) the persons playing the machines in each proposed linked jackpot arrangement;
(ii) the clubs operating the machines in each proposed arrangement; and
(iii) the members of those clubs.
“(3) If the Commissioner varies a permit, he or she shall give a notice to the permit holder specifying—
(a) the variation; and
(b) the date of effect of the variation.
“(4) A variation under subsection (1) takes effect from the date specified in the notice under paragraph (3) (b).
“45H. On application in writing, the Commissioner shall approve the variation of the financial and operational aspects of a linked jackpot arrangement under an inter-club permit if—
(a) the financial and operational aspects of the arrangement, as proposed to be varied, are in accordance with the regulations; and
(b) the Commissioner considers, on reasonable grounds, that the proposed variation is satisfactory, having regard to the interests of—
(i) the persons playing the machines in the arrangement;
(ii) the clubs operating the machines in the arrangement; and
(iii) the members of those clubs.
“45J. (1) On the joint application in writing of the permit holder and a proposed transferee accompanied by the determined fee, the Commissioner shall transfer the permit to the proposed transferee if the Commissioner is satisfied on reasonable grounds that the proposed transferee is a fit and proper person to hold a permit, in consideration of circumstances including the following:
(a) if the proposed transferee is a natural person—whether he or she is an undischarged bankrupt;
(b) if the proposed transferee is a body corporate—whether it is in liquidation;
(c) whether an amount under a tax law is due by the proposed transferee;
(d) whether the proposed transferee has contravened a tax law;
(e) whether the proposed transferee has been convicted of an offence punishable on conviction by a fine of not less than $10,000 or by imprisonment for a period of not less than 1 year.
“(2) In paragraphs (1) (c), (d) and (e), a reference to a proposed transferee is to be read, where the proposed transferee is a body corporate, as including a reference to each relevant influential person in relation to the body.
“45K. (1) The Commissioner may cancel an inter-club permit if satisfied on reasonable grounds that—
(a) the permit was granted in error or in consequence of a false statement made, or misleading information furnished, by the applicant;
(b) the permit holder has contravened a condition to which the permit is subject;
(c) the permit holder has contravened a tax law;
(d) the permit holder has been convicted of an offence—
(i) against a tax law; or
(ii) punishable on conviction by a fine of not less than $10,000 or by imprisonment for a period of not less than 1 year;
(e) if the permit holder is a natural person—he or she is an undischarged bankrupt;
(f) if the permit holder is a body corporate—it is in liquidation; or
(g) the permit holder is otherwise not a fit and proper person to hold a permit.
“(2) In paragraphs (1) (b), (c) and (d), a reference to the permit holder is to be read, where the permit holder is a body corporate, as including a reference to a relevant influential person in relation to the body.
“(3) The Commissioner shall, before cancelling an inter-club permit, by notice in writing to the permit holder invite the permit holder to show cause why the permit should not be cancelled.
“(4) A notice shall contain—
(a) particulars of the facts and circumstances relied upon by the Commissioner to establish that a ground for cancellation exists; and
(b) a statement to the effect that the permit holder may, within such period as is specified in the notice (being a period of not less than 14 days after the date the notice is given), give to the Commissioner written particulars of the facts and circumstances relied on to show that the inter-club permit should not be cancelled.
“(5) If the Commissioner considers on reasonable grounds that a permit holder has not, within the time specified in the notice, showed cause why the inter-club permit should not be cancelled, the Commissioner shall cancel the permit.
“(6) The cancellation of an inter-club permit takes effect on the expiration of the day on which notice of the cancellation is given to the permit holder under section 52.
“(7) Within 7 days after receiving a notice of cancellation of an inter-club permit under section 52, the former permit holder shall return the permit to the Commissioner.
Penalty for contravention of subsection (7):
(a) in the case of a natural person—$2,000;
(b) in the case of a body corporate—$10,000.
“45L. (1) A permit holder may surrender the inter-club permit by written notice to the Commissioner, accompanied by the permit.
“(2) The surrender of an inter-club permit takes effect 28 days after the date of the notice, or on a later date specified in the notice.”.