New South Wales Consolidated Acts

GAMING MACHINES ACT 2001 - SECT 176

176 Appointment of temporary licensee if CMS licence or links licence suspended, cancelled or surrendered

(1) If a CMS licence or links licence is suspended, cancelled or surrendered (
"the former licence" ), the Minister may, if the Minister is satisfied that it is in the public interest to do so, by instrument in writing appoint a person to be a licensee (
"the appointed licensee" ) for the purposes of this section.

(2) In appointing a person to be the appointed licensee, the Minister must have regard to the suitability of the person.

(3) The appointed licensee is to be appointed on such terms and conditions as the Minister thinks fit.

(4) The appointment of the appointed licensee may be terminated at any time by the Minister and is in any case terminated--

(a) in the case of a links licence--90 days after appointment unless in a particular case the appointment is extended by the regulations, or

(a1) in the case of a CMS licence--1 year after the appointment unless in a particular case the appointment is extended by the Minister (for up to 2 additional years), or

(b) by the granting of--

(i) in the case where the former licence authorised the operation of a CMS--another CMS licence, or

(ii) in the case where the former licence authorised an inter-hotel linked gaming system--another links licence to operate an inter-hotel linked gaming system, or

(iii) in the case where the former licence authorised an inter-club linked gaming system--another links licence to operate an inter-club linked gaming system.

(5) The appointed licensee--

(a) is to be considered to be the holder of a licence granted on the same terms and subject to the same conditions as the former licence (as in force immediately before its suspension, cancellation or surrender) with such modifications as the Minister may direct, and

(b) is to assume full control of and responsibility for the business of the former licensee in respect of--

(i) the CMS operated under the former licence, or

(ii) the linked gaming system operated under the former licence, and

(c) is to operate or cause to be operated a CMS or linked gaming system in accordance with this Act, and

(d) has, in connection with the operation of a CMS or linked gaming system, all the functions of the former licensee.

(6) Subject to this section, an appointed licensee under this section may enter into such arrangements as are approved by the Minister with the former licensee, including arrangements relating to the use of assets and services of staff of the former licensee.

(7) The former licensee must--

(a) make available to the appointed licensee on reasonable terms such assets of, or under the control of, the former licensee as are reasonably necessary for arrangements under subsection (6), and

(b) use the former licensee's best endeavours to make available such staff of the former licensee as are reasonably necessary for those arrangements.

: Maximum penalty--100 penalty units.

(8) The regulations may make provision for or with respect to the functions of an appointed licensee.

(9) The following provisions have effect in respect of the net earnings of a CMS or linked gaming system while operated by an appointed licensee under this section--

(a) no payment of net earnings (including any fees or charges) is to be made to the former licensee without the prior approval of the Minister,

(b) the former licensee is entitled to a fair rate of return out of net earnings (if any) on any property of the former licensee retained by the appointed licensee (subject to any arrangements made under subsection (6)),

(c) the Minister may direct that all or any part of net earnings (other than that to which the former licensee is entitled under paragraph (b)) is to be paid into the Consolidated Fund, with any balance to be paid to the former licensee.