Northern Territory Numbered Acts Northern Territory Numbered ActsAfter section 109
insert
In this Part:
"audit log" means an approved audit log required to be kept by a betting exchange operator under section 109R.
"betting exchange" means a facility, electronic or otherwise, that enables a person to:
(a) make or receive, through a betting exchange operator, a bet or wager with other persons; or
(b) make, through a betting exchange operator, a bet or wager that may be:
(i) matched with one or more opposing bets or wagers that have been made through the operator; or
(ii) transmitted by the operator to another person for matching with one or more opposing bets or wagers.
"betting exchange agent" means a person permitted under section 109L(2) to act for a betting exchange operator.
"betting exchange business" means the business of operating a betting exchange.
"betting exchange licence" means a licence to conduct a betting exchange business in specified premises granted under section 109C, or a renewal of the licence granted under section 109G.
"betting exchange operator" means:
(a) a person who holds a betting exchange licence; and
(b) if the person is a body corporate – the nominee endorsed on the licence document in accordance with section 109F(1).
"betting receipt", see section 109Q(1).
"executive officer", of a body corporate, means a director or other person who is concerned with, or takes part in, the management of the body corporate.
"key employee licence "means a licence granted under section 109J(3) permitting a person to be employed or engaged by a betting exchange operator in a key position at licensed premises.
"key position "means:
(a) a position in a betting exchange business that is designated a key position, or involves the performance of a function that is designated a key function, under section 109J(1); or
(b) any other position in a betting exchange business if the holder of the position controls, or exercises significant influence over, the business.
(1) A person may apply for a licence to conduct a betting exchange business in premises specified in the application.
(2) The application must:
(a) be made to the Commission in the approved form; and
(b) be accompanied by:
(i) the information evidencing the applicant's ability to conduct a betting exchange business specified in the approved form; and
(ii) a processing fee of 200 000 revenue units; and
(c) if the applicant is a body corporate – specify the name and address of the individual nominated by the applicant to carry out the functions of the betting exchange operator.
(3) If the applicant is a body corporate, the Commission may require the applicant to supply any information relating to the operations and structure, or executive officers, of the applicant, that the Commission thinks fit.
(4) In addition, the Commission may require an applicant to supply any other information that will assist the Commission to determine the application.
(1) Subject to this section and section 109D, the Commission may grant or refuse to grant a betting exchange licence to an applicant.
(2) In determining whether to grant or refuse to grant the betting exchange licence, the Commission must have regard to the following:
(a) whether the applicant is of good repute, having regard to character, honesty and integrity;
(b) whether the applicant is of sound and stable financial background;
(c) if the applicant is a body corporate – whether it has or has arranged a satisfactory ownership, trust or corporate structure;
(d) whether the applicant has obtained or is able to obtain:
(i) financial resources that are adequate to ensure the financial viability of the betting exchange business proposed to be conducted; and
(ii) the services of persons who have sufficient experience in the management and operation of the business;
(e) whether the applicant has sufficient business ability to establish and maintain the business proposed to be conducted;
(f) whether the applicant, or any person to be involved in the management or operation of the business proposed to be conducted, has any association with any person, body or association who or which, in the opinion of the Commission:
(i) is not of good repute having regard to character, honesty and integrity; or
(ii) has undesirable or unsatisfactory financial resources;
(g) whether each executive officer, partner and trustee of the applicant, and any other person determined by the Commission to be associated or connected with the ownership, administration or management of the operations or business of the applicant, is a suitable person to act in that capacity.
(3) For the purpose of determining whether to grant or refuse to grant the betting exchange licence, the Commission may carry out the investigations and inquiries the Commission considers necessary.
Note for section 109C
Section 109P also requires an applicant to give a security to the Commission.
(1) A betting exchange licence must not be granted to:
(a) an individual who has not attained the age of 18 years; or
(b) a person who already holds a betting exchange licence; or
(c) a person who has an interest of any kind in a betting exchange business conducted by a betting exchange operator; or
(d) a person who is not a fit and proper person.
(2) Without limiting subsection (1)(d), a person is not a fit and proper person if the person, within 10 years before the date of making the application for the betting exchange licence:
(a) has been found guilty of an offence against this Act or the Gaming Control Act , Gaming Machine Act or Unlawful Betting Act ; or
(b) has been found guilty of an offence prescribed by regulation as a disqualifying offence.
(1) A betting exchange licence applies in relation to the premises specified in the licence.
(2) Without limiting section 24(3), the Commission may impose on a betting exchange licence granted to a body corporate conditions relating to the structure and assets of the body corporate, including conditions requiring:
(a) the approval of the Commission before any change may be made to the structure or assets, or the executive officers, of the body corporate; and
(b) the giving of undertakings and the lodging of securities by executive officers of the body corporate.
(1) A betting exchange licence granted to a body corporate must be endorsed with the name and address of the individual nominated under section 109B(2)(c) in the application for the licence.
(2) A betting exchange licence granted to a person who applied for the licence on behalf of, and for the benefit of, the person and other persons, must be endorsed with the names and addresses of those other persons.
(3) A person commits an offence if:
(a) the person acquires or holds an interest in, or derives a benefit from, a betting exchange business conducted by a betting exchange operator; and
(b) the person's name is not endorsed on the operator's betting exchange licence.
Maximum penalty: 40 penalty units.
(4) Subsection (3) does not apply if the person has the approval of the Commission.
(1) The Commission may renew a betting exchange licence on application by the betting exchange operator.
(2) The application must be in the approved form and accompanied by the processing fee of 200 000 revenue units.
(3) Section 109C(2) applies in relation to an application for the renewal of a betting exchange licence under this section as if the application were for the grant of the betting exchange licence.
(4) The renewal of a betting exchange licence may be subject to different conditions than those to which the licence being renewed was subject.
(1) A betting exchange operator may apply to the Commission for a variation of the operator's betting exchange licence, or the conditions to which it is subject, and the Commission may vary or refuse to vary the licence or conditions as it thinks fit.
(2) The Commission may, on its own initiative:
(a) vary a betting exchange operator's betting exchange licence or the conditions to which it is subject; or
(b) impose additional conditions on the licence.
(3) However, before doing so, the Commission must:
(a) give the betting exchange operator not less than 28 days written notice of the proposed variation of the betting exchange licence or conditions or the additional conditions to be imposed; and
(b) consider any representations made by the operator.
(4) This section does not permit the Commission to vary the effect of a prescribed condition to which a betting exchange licence is subject.
(1) The Commission may, by notice to a betting exchange operator, designate a position or function in the operator's betting exchange business to be a key position or key function.
(2) A person may apply to the Commission in the approved form accompanied by the prescribed fee for a key employee licence.
(3) The Commission may, in its discretion:
(a) grant a key employee licence subject to the conditions the Commission thinks fit and endorses on the licence; or
(b) refuse to grant the licence.
(4) Subsection (5) applies if, in relation to a bet made through a betting exchange operator, a key employee employed or engaged by the operator:
(a) fails to enter in the audit log kept by the operator the particulars of the bet prescribed for section 109R(1); or
(b) fails to enter those particulars immediately after the bet is made or received and before making any other record or note of the bet.
(5) Whether or not the key employee is prosecuted for an offence constituted by the employee's act or omission, the Commission may suspend the employee's key employee licence for the period it thinks fit.
(1) A betting exchange operator must not employ or engage a person in a key position at licensed premises unless the person holds a key employee licence.
Maximum penalty: 17 penalty units.
(2) A person commits an offence if the person:
(a) is employed or engaged by a betting exchange operator in a key position at licensed premises; and
(b) does not hold a key employee licence.
Maximum penalty: 17 penalty units.
(3) A person who is, or appears to be, employed or engaged by a betting exchange operator in a key position at licensed premises must, on demand by a betting inspector or person authorised by the Commission, produce the person's key employee licence.
Maximum penalty: 17 penalty units.
(4) An offence against subsection (2) or (3) is a regulatory offence.
(1) A betting exchange operator may apply to the Commission, in the approved form, for permission for a specified person to act for the operator in the operator's absence.
(2) The Commission may grant the permission for a period not exceeding 12 months or refuse the permission.
(3) A betting exchange operator must not allow the operator's licensed premises to be open for business when the operator is not in attendance to supervise the conduct of the operator's betting exchange business unless the operator has obtained permission under subsection (2) for a person to act for the operator during the operator's absence.
Maximum penalty: 17 penalty units.
(4) A betting exchange agent must ensure that a notice stating the following matters is displayed prominently on the betting exchange operator's licensed premises at all times during which the premises are open for business during the operator's absence:
(a) the Commission has granted permission for the agent to act for the operator;
(b) the period for which the permission has been granted;
(c) the agent's name.
Maximum penalty: 17 penalty units.
(5) A betting exchange agent has the same duties, and is liable to the same extent, as if the agent were the betting exchange operator for whom the agent is acting.
(1) If an employee of a betting exchange operator, by act or omission related to the betting exchange business of the operator, commits an offence against this Act, the operator and the employee are severally liable in respect of the offence.
(2) If a betting exchange agent, by act or omission while acting for a betting exchange operator, commits an offence against this Act, the agent and the operator are severally liable in respect of the offence.
(3) In a prosecution of a betting exchange operator for an offence against this Act for an act or omission of the operator's employee or a betting exchange agent, it is not a defence:
(a) that the operator had no knowledge of the act or omission of the employee or agent; or
(b) that it was not the intention of the operator that the employee or agent should do the act or make the omission.
(1) A person must not operate a betting exchange at premises unless the person is the holder of a betting exchange licence permitting the operation of a betting exchange at the premises.
Maximum penalty: For a first offence – not less than 60 penalty units and not more than 105 penalty units.
For a second offence – not less than 105 penalty units and not more than 215 penalty units.
For a third or subsequent offence – not less than 215 penalty units and not more than 430 penalty units.
(2) A person who is, or appears to be, operating a betting exchange must, on demand by a betting inspector, produce the person's betting exchange licence.
Maximum penalty: 8 penalty units.
(1) The Commission must not grant a betting exchange licence to an applicant unless the applicant has given a security to the Commission for payment of the following:
(a) betting exchange tax;
(b) other amounts payable by the applicant to the Commission;
(c) winning bets made or received through the applicant in the applicant's capacity as a betting exchange operator.
(2) The security must be in the approved form and in an amount or to a value determined by the Commission, which must be no more than the prescribed amount.
(3) The Commission may, from time to time, redetermine the amount or value of a security.
(4) If the Commission does so and the redetermined amount or value is greater than the previous amount or value of the security, the Commission must not renew the betting exchange licence to which the security relates until the betting exchange operator has increased the security given to the Commission to the redetermined amount or value.
(5) If the Commission is satisfied that a betting exchange operator has refused or omitted to pay an amount payable to the Commission for betting exchange tax or otherwise, or payable for a winning bet, the Commission:
(a) may pay the amount from any money received by it under a security given by the operator and held by it under this section; and
(b) if it does so – must, under section 109V, either:
(i) cancel the operator's betting exchange licence; or
(ii) suspend the licence until the operator repays to the Commission the amount the Commission has paid, or for a longer period, as the Commission thinks fit.
(6) An amount payable to the Commission by a betting exchange operator for betting exchange tax or otherwise must be paid in full from any security given by a betting exchange operator and held by the Commission under this section before payment is made of a winning bet.
(7) In this section:
"betting exchange tax" means tax imposed by section 109Z.
(1) Unless otherwise approved, immediately after a bet is made or received through a betting exchange operator, the operator must issue to the person who made or received the bet a receipt (a betting receipt ) that clearly shows, in the prescribed manner, the prescribed particulars of the bet.
Maximum penalty: 40 penalty units.
(2) A betting exchange operator must issue a separate betting receipt for each bet made or received through the operator.
Maximum penalty: 40 penalty units.
(3) However, if a win bet and a place bet are made or received through the betting exchange operator at the same time in respect of the same runner, the operator may issue one betting receipt for both bets.
(1) A betting exchange operator must keep an approved audit log and record in the audit log the prescribed particulars of each bet made or received through the operator.
(2) A record of a bet required to be made under subsection (1) must be made immediately after the bet is made or received through the betting exchange operator and before any other record or note of the bet is made.
(3) In addition, a betting exchange operator must comply with any requirements prescribed by regulation for the recording of bets made or received through the operator.
(4) A betting exchange operator must retain all records made under subsection (1) or (3) for a period of not less than 3 years from the date on which they were made or any longer period prescribed by regulation.
(5) A betting exchange operator must not contravene this section.
Maximum penalty: For a first offence – 40 penalty units.
For a second offence – 85 penalty units.
For a third or subsequent offence – 125 penalty units.
(1) A betting exchange operator or person who has ceased to be a betting exchange operator must, at the time and in the manner required by the Commission, give the Commission a true copy of each audit log kept by the operator or person.
(2) A betting exchange operator must, on the oral or written direction of the Commission, a betting inspector or a person authorised by the Commission (each an authorised entity ):
(a) produce for inspection all records and any item of recording equipment or any other equipment, device or thing as directed; and
(b) allow the records, recording equipment or other equipment, device or thing to be inspected or investigated by the authorised entity in the manner the entity thinks fit.
(3) A person must not contravene this section.
Maximum penalty: For a first offence – 40 penalty units.
For a second offence – 85 penalty units.
For a third or subsequent offence – 125 penalty units.
(1) An authorised person may:
(a) direct a person at licensed premises to give the authorised person any property that the authorised person has reasonable grounds for believing is being, or has been, used for making records relating to betting through a betting exchange operator; and
(b) if the authorised person believes on reasonable grounds that an offence against this Act has been committed using the property, take possession of the property.
(2) An authorised person may enter licensed premises and direct any of the following persons to assist the authorised person, as the authorised person considers necessary, for the purpose of ascertaining whether this Act is being complied with:
(a) the occupier of the premises or an employee or agent of the occupier;
(b) a betting exchange operator, betting exchange agent or employee of a betting exchange operator.
(3) A person must not contravene a direction given under subsection (1)(a) or (2).
Maximum penalty: For a first offence – 40 penalty units.
For a second offence – 85 penalty units.
For a third or subsequent offence – 125 penalty units.
(4) In this section:
"authorised person" means:
(a) a betting inspector; or
(b) a person authorised in writing by the Commission.
"property "means a document or any equipment, device or thing of any kind.
(1) A betting exchange operator must not:
(a) procure a person to make a bet on behalf of the operator or another betting exchange operator that, if made by the operator personally, would be contrary to this Act; or
(b) sell or transfer a betting receipt that is required to be issued to a person under section 109Q to another person.
Maximum penalty: 40 penalty units.
(2) A betting exchange operator must not advertise the operator's calling as a betting exchange operator otherwise than as prescribed.
Maximum penalty: 40 penalty units.
(3) An offence against subsection (2) is a regulatory offence.
(1) The Commission may discipline a betting exchange operator if satisfied the operator:
(a) has committed an offence against this Act or rules made under section 109X or has failed to perform a duty required of the operator by this Act; or
(b) has failed to pay, within 3 days after being required by the Commission to do so, a bet made or received through the operator that is a winning bet; or
(c) has entered into an arrangement with a person under which the person derives or is entitled to derive a benefit or advantage from the operator's betting exchange business, unless:
(i) the person's name is endorsed on the operator's betting exchange licence as required by section 109F(1) or (2); or
(ii) the arrangement has been approved by the Commission; or
(d) has failed to comply with a condition of the operator's licence.
(2) For subsection (1), the Commission may discipline a betting exchange operator in one of the following ways:
(a) by reprimanding the operator;
(b) by imposing a fine not exceeding 170 penalty units on the operator;
(c) by suspending or cancelling the operator's betting exchange licence.
(3) The Commission must cancel a betting exchange operator's betting exchange licence:
(a) if satisfied the operator is not a fit and proper person to continue to hold the licence; or
(b) on the written request of the operator.
(4) If a court orders that a betting exchange operator deliver the operator's betting exchange licence to the Commission for suspension for a period or cancellation, the Commission, upon the delivery of the licence, must suspend it for that period or cancel it, as required.
(5) If the Commission cancels a betting exchange operator's betting exchange licence, it must inquire whether all bets made or received through the operator that are winning bets have been paid by the operator, and must:
(a) if satisfied that all those bets have been paid – vacate the security that it holds under section 109P in relation to the licence; or
(b) otherwise – realise the security and divide the proceeds, as prescribed, among the persons who made those bets.
(6) If the Commission suspends a betting exchange operator's betting exchange licence, the licence is of no effect during the period of the suspension.
(1) Except with the approval of the Commission, a betting exchange operator must not:
(a) enter into a partnership, in relation to the betting exchange business conducted under the operator's betting exchange licence, with a person whose name is not endorsed on the licence; or
(b) make an arrangement with a person under which the person derives or is entitled to derive a benefit or advantage from the operator's betting exchange business; or
(c) borrow money, except from an approved financial institution, for use in that business.
Maximum penalty: 40 penalty units.
(2) An offence against subsection (1) is a regulatory offence.
(1) The Commission, with the approval of the Minister, may make rules, not inconsistent with this Act, for the control and regulation of betting through betting exchange operators.
(2) The rules may impose penalties, not exceeding 33 penalty units, for offences against the rules.
(3) In this section:
"betting" includes the negotiation, acceptance and distribution of money in connection with bets and the settling of bets.
(1) Subject to this section, a person may take proceedings for the recovery of money payable on a winning lawful bet made or received through a betting exchange operator.
(2) If a dispute relating to lawful betting arises between a betting exchange operator and a person, the dispute must be referred by the operator, and may be referred by the other party to the dispute, to the Commission.
(3) The Commission may declare a sporting event, other than a horse race, trotting race or greyhound race, to constitute a dispute for this section and declare any person to be a party to the dispute if it appears to the Commission, on the complaint of a person or of its own motion, that:
(a) the event may not have been fairly or lawfully conducted; or
(b) for any other reason the result of the event, either generally or in relation to a particular bet or class of bets, is not what would be legitimately expected if all steps in the proceedings of the event or the declaration of its result were honestly and fairly conducted or declared.
(4) If a dispute has been referred under subsection (2) to the Commission or declared under subsection (3), the Commission may:
(a) summon the parties to the dispute to appear and to give evidence before it; and
(b) take evidence relating to the dispute from other persons; and
(c) require a party to the dispute to produce any books, accounts, tickets or other documents that, in the opinion of the Commission, ought to be examined in order to determine the dispute.
(5) The Commission must hear and determine all disputes referred to it or declared under this section.
(6) If a party to a dispute who has been summoned to attend before the Commission fails without reasonable excuse to attend, the Commission must determine the dispute in favour of the party who attends or, in the case of a dispute declared under subsection (3), as it thinks fit, including declaring the event void.
(7) The determination by the Commission of a dispute referred to it under subsection (2) or declared under subsection (3) is final and conclusive as to the matter in dispute.
(8) In determining a dispute under this section, the Commission is not bound by rules of procedure or evidence, but may inform itself of the facts necessary to determine the dispute in the manner it thinks fit.
(9) For this section, a bet is not lawful if it is declared by the Commission, after an investigation under this section, to be not lawful.
(1) A betting exchange operator's gross monthly profit for a month is:
(a) the total amount of commission retained or received by the operator during the month; less
(b) the total amount of commission retained or received by the operator during the month from persons located in Australia or New Zealand in respect of a sporting event other than a horse race, trotting race or greyhound race.
(2) A betting exchange operator must pay to the Commission, on or before the 14th day of each calendar month, a tax:
(a) imposed on the operator's gross monthly profit for the preceding calendar month; and
(b) calculated at the rate of 10% on the amount of that profit.
(3) However, the amount of tax payable by a betting exchange operator for a financial year under subsection (2) must not exceed:
(a) an amount equal to the monetary value of 500 000 revenue units calculated in accordance with the Revenue Units Act ; or
(b) another amount prescribed by regulation.
(4) A person commits an offence if the person fails to pay an amount of the tax payable under subsection (2) in accordance with this Act.
Maximum penalty: 40 penalty units or imprisonment for 12 months.
(5) An offence against subsection (4) is a regulatory offence.
(6) If a person fails to pay an amount of the tax payable under subsection (2) in accordance with this Act:
(a) the amount is recoverable by the Commission as a debt due and payable by the person to the Territory; and
(b) a court that finds the person guilty of an offence against subsection (4) in relation to the amount may order the person to pay the amount to the Commission, whether or not any other penalty is also imposed for the offence; and
(c) a certificate setting out the terms of an order made under paragraph (b) and filed in a court of competent jurisdiction by the Commission may be enforced as if it were a judgment of that court.
(7) In this section:
"commission" means:
(a) the amount that a betting exchange operator is permitted to retain from a winning bet made or received by a person through the operator (or a person acting for the operator) as authorised by the Commission from time to time; and
(b) any other commission the operator has charged and received from a customer that it retains as revenue.
(1) A betting exchange operator must, on or before the 14th day of each calendar month, lodge with the Commission a return in the approved form setting out the following:
(a) details of all bets made or received through the operator during the preceding calendar month;
(b) all records relating to the bets required to be retained by the operator under section 109R(4);
(c) the information about the betting exchange business conducted by the operator required by the Commission.
Maximum penalty: 40 penalty units.
(2) An offence against subsection (1) is a regulatory offence.
(1) A betting exchange operator who is required to make a payment under section 109Z and lodge a return under section 109ZA may do so by:
(a) delivering the payment and return to the office of the Commission; or
(b) sending the payment and return by registered mail to the office of the Commission.
(2) If a betting exchange operator makes a payment and lodges a return in accordance with subsection (1)(b), the payment is taken to be made to the Commission, and the return is taken to be lodged with the Commission, when a receipt is issued for the envelope containing it.
If a betting exchange operator fails to make a payment in accordance with section 109Z, or lodge a return in accordance with section 109ZA, the operator's betting exchange licence is suspended until the operator makes the payment, or lodges the return, with the Commission.