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GAMBLING REGULATION AMENDMENT (LICENSING) ACT 2008 (NO. 40 OF 2008) - SECT 17

New Chapter 6A inserted

After Chapter 6 of the Principal Act insert

" CHAPTER 6A—KENO

PART 1—INTRODUCTION

        6A.1.1     Purpose

The purpose of this Chapter is to make provision for the conduct and promotion of keno games.

        6A.1.2     Definitions

In this Chapter—

"amount received by the keno licensee", in relation to a keno game, includes entries in the keno game for which payment was not received by the keno licensee;

"keno revenue", in relation to a week, means the amount received by the keno licensee for keno games conducted by the licensee in the week less the sum of all prizes payable in respect of those games;

"keno venue" means premises on which a keno game is conducted by a keno licensee in accordance with this Chapter.

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PART 2—KENO GAMES

Division 1—Legality of keno games

        6A.2.1     Keno games conducted under this Chapter are lawful

A keno game conducted or promoted in accordance with a licence granted under this Chapter is lawful and is not a public nuisance.

        6A.2.2     Keno not subject to Chapter 3

A keno game under this Chapter is not a game that may be approved by the Commission under Chapter 3.

Division 2—Conducting keno games

        6A.2.3     Sale of tickets

    (1)     Tickets in a keno game must be sold in accordance with the distribution arrangements authorised under a keno licence.

    (2)     A person must not knowingly sell a ticket in a keno game to a minor.

Penalty:     60 penalty units.

    (3)     A minor must not buy or attempt to buy a ticket in a keno game.

Penalty:     10 penalty units.

    (4)     A minor must not use any evidence purporting to be evidence of his or her age in order to buy a ticket in a keno game if the evidence is false in a material particular in relation to the minor.

Penalty:     10 penalty units.

        6A.2.4     Agents of licensee

    (1)     A person who is not an agent of the keno licensee must not hold out themselves as an agent of the licensee.

Penalty:     60 penalty units or imprisonment for 6 months or both.

    (2)     The keno licensee may accredit in writing agents of the licensee to sell tickets in keno games.

    (3)     The keno licensee must give the Commission the names and addresses of agents accredited by the licensee and of any other agents and contractors to be used by the licensee in conducting keno games.

        6A.2.5     Approval of keno system

    (1)     The keno licensee must not conduct a keno game unless the licensee uses a keno system that has been approved by the Commission.

    (2)     The keno licensee must not conduct a keno game using a keno system that has been varied from the system approved by the Commission unless the variation has been approved by the Commission.

    (3)     The Commission may approve—

        (a)     a keno system; or

        (b)     a variation to a keno system—

for use by the licensee.

    (4)     The Commission may make an approval to use, or a variation of an approval to use, a keno system subject to any conditions that it thinks fit.

    (5)     A function of the Commission under this section may be performed by any commissioner.

        6A.2.6     Security of certain equipment

    (1)     The keno licensee operating a keno system must ensure that only persons authorised by the licensee have physical access to the central processing unit and game result determination device of the keno system.

    (2)     Equipment at a keno venue which is used for the conduct or monitoring of keno games must not be accessible to the public unless it is intended for public use.

        6A.2.7     Defective machinery, equipment and computer systems

    (1)     The Commission may order the keno licensee to repair or withdraw from use any defective machinery, equipment or computer system used in connection with keno games.

    (2)     A function of the Commission under this section may be performed by any commissioner.

        6A.2.8     Unlawful interference with keno system

A person must not—

        (a)     be in possession of any device made or adapted, or intended by the person to be used, for improperly interfering with any machinery, equipment or computer system used in connection with keno games; or

        (b)     do any act or thing calculated, or likely, to improperly interfere with any machinery, equipment or computer system used in connection with keno games.

Penalty:     1000 penalty units or imprisonment for 2 years or both.

        6A.2.9     Use of defective keno machinery, equipment or computer system

The keno licensee, or an agent of the licensee on whose premises the machinery, equipment or computer system is located, must not allow any machinery, equipment or computer system that—

        (a)     is used in connection with keno games; and

        (b)     does not function in the manner in which it was designed and programmed to function—

to be used, other than for testing purposes, until it is functioning in the manner in which it was designed and programmed to function.

Penalty:     100 penalty units.

        6A.2.10     Credit and loans

The keno licensee or an agent of the licensee or an employee of either of them must not make a loan or extend credit in any form to any person to enable that person or any other person to play a keno game.

Penalty:     100 penalty units.

        6A.2.11     Keno rules

    (1)     The keno licensee must make rules, not inconsistent with this Act and the regulations, for or with respect to the conduct of keno games.

    (2)     The keno licensee must not conduct a keno game unless—

        (a)     rules for the conduct of keno games are in force; and

        (b)     the keno game is conducted in accordance with those rules.

Penalty:     100 penalty units.

    (3)     Without limiting subsection (1), the rules must provide for the following—

        (a)     the manner of entering a keno game;

        (b)     the recording of entries in a keno game;

        (c)     the determination of the entitlement, if any, of a player to a prize or a bonus prize in a keno game;

        (d)     the payment of prizes in, or the refund of money paid to enter, a keno game;

        (e)     the publication of results in a keno game.

    (4)     As soon as practicable after making rules for the conduct of keno games, the licensee must give a copy of the rules to the Commission.

    (5)     Rules for the conduct of keno games, as in force when an entry to a keno game is accepted, form part of the contract between the licensee and the player.

        6A.2.12     Commencement of rules

    (1)     Rules made under section 6A.2.11 come into force on the day specified in the rules, being a day—

        (a)     at least 4 weeks after the day on which the rules are made; or

        (b)     an earlier day approved by the Commission, not being a day before the rules are made.

    (2)     An approval under subsection (1)(b) must be in writing.

    (3)     Despite subsection (1), rules made under section 6A.2.11 cannot come into force before notice of making them is published in accordance with section 6A.2.13.

        6A.2.13     Publication and inspection of keno rules

    (1)     The keno licensee must publish notice of the making of rules for the conduct of keno games in the Government Gazette.

    (2)     The keno licensee, or an agent of the licensee, who accepts entries in a keno game must—

        (a)     make available a complete copy of the rules for the conduct of keno games for inspection by any person free of charge on request; and

        (b)     at each place or point at which those entries are accepted, display a notice stating that the rules are available for inspection.

    (3)     A notice under subsection (2)(b) must be in the form approved by the Commission.

        6A.2.14     Disallowance of keno rules

    (1)     The Commission may disallow rules made under section 6A.2.11, in whole or in part, at any time by giving written notice to the keno licensee if—

        (a)     the Commission is satisfied that the rules are—

              (i)     unfair to players; or

              (ii)     unreasonable; or

              (iii)     contrary to the public interest; or

        (b)     the Minister has requested the Commission to disallow the rules under subsection (3).

    (2)     The Commission may refer rules made under section 6A.2.11 to the Minister if the Commission considers that the Minister ought to consider whether the rules should be disallowed.

    (3)     The Minister may request the Commission to disallow rules made under section 6A.2.11 (whether or not they were referred to the Minister under subsection (2)) if the Minister considers that the rules—

        (a)     are not in the public interest; or

        (b)     would result in the keno game being of a different character from the keno games authorised to be conducted by section 6A.3.1.

    (4)     The disallowance of rules made under section 6A.2.11 takes effect on the day specified in the notice of disallowance, being a day that is at least 3 days after the notice is given to the licensee.

    (5)     If, before the rules are made under section 6A.2.11, the Commission consents in writing to the making of the rules in the form in which they are made, the Commission must not disallow the rules or any part of them within the period of 6 months after they are made, unless the Minister requests disallowance under subsection (3).

    (6)     A function of the Commission under this section may be performed by the Executive Commissioner.

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PART 3—KENO LICENCE

Division 1—Authority and number of keno licences

        6A.3.1     Authority of keno licence

A keno licence authorises the keno licensee, or an agent of the licensee, to conduct keno games subject to this Act and the regulations, and any conditions to which the licence is subject.

        6A.3.2     One licence

This Chapter does not authorise the operation at the same time of more than one keno licence.

Division 2—Licensing procedure

        6A.3.3     Registration of interest

    (1)     The Minister, by notice published in the Government Gazette, may call for registrations of interest in the grant of a keno licence.

    (2)     A notice published under subsection (1) must specify—

        (a)     the procedure for registering an interest in the grant of the licence; and

        (b)     the information to be provided by a registrant; and

        (c)     the matters concerning a registrant and a registration of interest on which the Secretary will report to the Minister; and

        (d)     requirements for a registrant or an applicant to have protocols or procedures to prevent an interested person from improperly interfering with the preparation or making of a recommendation or report under this Act in relation to a registration of interest or an application for a keno licence; and

        (e)     reporting requirements for a registrant or an applicant or an associate of a registrant or of an applicant in relation to the protocols or procedures specified under paragraph (d); and

        (f)     any other requirements specified by the Minister in relation to registrants or registrations of interest; and

        (g)     any other matters that the Minister considers relevant to the registration of interest.

    (3)     The notice published under subsection (1) may require any matter in, or in relation to, the registration of interest to be verified by statutory declaration by a registrant or an applicant or an associate of a registrant or of an applicant.

    (4)     A person who—

        (a)     has a physical place of business in Victoria; and
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        (b)     is not a natural person—

may register interest in the grant of a keno licence by—

        (c)     following the procedure specified under subsection (2)(a); and

        (d)     providing to the Minister the information specified under subsection (2)(b).

    (5)     The Minister must consider each registration of interest and, if the registration of interest satisfies all of the requirements made by or specified under this section, the Minister must refer the registration of interest to the Secretary for a report under section 6A.3.4.

    (6)     If a registrant fails to satisfy a requirement made by or specified under this section, the Minister may refuse to consider, or consider further, the registration of interest or to refer it to the Secretary.
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    (7)     After consideration of the Secretary's report under section 6A.3.4 and any other matters that the Minister considers relevant, the Minister—

        (a)     may invite one or more registrants to apply for a keno licence, if the Minister is of the opinion that an invitation is in the public interest; or

        (b)     may decide not to invite any of the registrants to apply for a keno licence.

    (8)     In this section

"applicant" means applicant for a keno licence;

"interested person" means—

        (a)     a registrant or an applicant; or

        (b)     an associate of a registrant or of an applicant; or

        (c)     an officer, servant, agent or contractor of—

              (i)     a registrant or an applicant; or

              (ii)     an associate of a registrant or of an applicant;

"registrant" means a person who registers interest in the grant of a keno licence.

        6A.3.4     Report to Minister by Secretary on registrations of interest

The Secretary must give a written report to the Minister in writing on the matters specified under section 6A.3.3(2)(c) in relation to each registration of interest referred to him or her by the Minister.

Note

Division 1A of Part 4 of Chapter 10 provides for the investigation of a registration of interest in the grant of a keno licence.

        6A.3.5     Application for licence

    (1)     A person who has been invited by the Minister under section 6A.3.3(7) to apply for a keno licence—

        (a)     may apply to the Minister for the licence; and

        (b)     if the person applies for the licence, must comply with—

              (i)     requirements specified by the Minister for an applicant to have protocols or procedures to prevent an interested person from improperly interfering with the preparation or making of a recommendation or report under this Act in relation to an application for a keno licence; and

              (ii)     reporting requirements specified by the Minister for an applicant or an associate of an applicant in relation to the protocols or procedures specified under subparagraph (i); and

              (iii)     any other requirements specified by the Minister in relation to applicants or applications for a licence.

    (2)     A licence application

        (a)     must be in the form, contain the information and be accompanied by the documents required by the Minister; and

        (b)     must be lodged in accordance with the procedural requirements, if any, specified by the Minister.

    (3)     The Minister may require an applicant to provide any further information to the Minister in connection with the application.

    (4)     The Minister may require any matter in, or in relation to, the application to be verified by statutory declaration by an applicant or an associate of an applicant.

    (5)     The Minister must refer each licence application to the Secretary for a report under section 6A.3.6.

    (6)     If a requirement made by or specified under this section is not complied with, the Minister may refuse to consider or further consider the application or to refer it to the Secretary.

    (7)     In this section

"interested person" has the same meaning as in section 6A.3.3.

Note

Division 1A of Part 4 of Chapter 10 provides for the investigation of an application for a wagering and betting licence.

        6A.3.6     Report to Minister by Secretary on applications

    (1)     The Secretary must give a written report to the Minister on each licence application

        (a)     stating whether or not, in the Secretary's opinion, the matters of which the Minister must be satisfied to grant the licence application have been made out; and

        (b)     stating whether or not, in the Secretary's opinion, the requirements made by or specified under section 6A.3.5 have been complied with; and

        (c)     containing any other information required by the Minister.

    (2)     The report may include any recommendations the Secretary thinks fit, including recommendations as to any appropriate licence conditions.

    (3)     The report must include the reasons for any findings or recommendations contained in it.

        6A.3.7     Determination of applications

    (1)     The Minister is to determine whether to grant or refuse a licence application after receiving the report of the Secretary under section 6A.3.6.

    (2)     The Minister may grant a licence application only if he or she is satisfied that the granting of the application is in the public interest, taking into account each of the following matters—

        (a)     whether the applicant, and each associate of the applicant, is of good repute, having regard to character, honesty and integrity;

        (b)     whether the applicant, or an associate of the applicant, has an association with a person or body that is not of good repute having regard to character, honesty and integrity as a result of which the applicant or the associate is likely to be significantly affected in an unsatisfactory manner;

        (c)     whether each executive officer of the applicant and any other person determined by the Minister to be concerned in or associated with the ownership, management or operation of the applicant's keno business, is a suitable person to act in that capacity;

        (d)     whether the applicant has sufficient technical capability and adequate systems to conduct the activities to be authorised by the licence;

        (e)     whether the applicant is of sound and stable financial background;

        (f)     whether the applicant has financial resources that are adequate to ensure the financial viability of a keno business;

        (g)     whether the applicant has the ability to establish and maintain a successful keno business;

        (h)     any other matters that were specified in the notice calling for registrations of interest under section 6A.3.3;

              (i)     any other matters the Minister considers relevant.

    (3)     In determining whether to grant or refuse a licence application, the Minister is entitled to rely on any findings or recommendations contained in the report of the Secretary under section 6A.3.6.

    (4)     If the Minister refuses a licence application, he or she must give written notice to the applicant.

        6A.3.7A     Prohibition on improper interference

    (1)     An interested person in relation to a registration of interest or an application for a keno licence must not improperly interfere with the preparation or making of a recommendation or report under this Act in relation to the registration of interest or application.

    (2)     If an interested person in relation to a registration of interest or an application for a keno licence improperly interferes with the preparation or making of a recommendation or report under this Act in relation to the registration of interest or application, the Minister may refuse to consider, or consider further, the registration of interest or application.

    (3)     In this section

"interested person" has the same meaning as in section 6A.3.3.

        6A.3.8     Issue of licence

    (1)     If the Minister grants a licence application, he or she must issue a keno licence to the applicant.

    (2)     A keno licence cannot be issued that has effect, otherwise than as provided by section 6A.3.12, at any time while the participants are authorised to conduct or promote club keno games under Chapter 6.

        6A.3.9     Licence conditions

The Minister may impose any conditions he or she thinks fit on a keno licence, including—

        (a)     conditions referred to in any other provision in this Chapter;

        (b)     conditions that leave any matter or thing to be from time to time determined, applied, dispensed with or regulated by the Commission or the Minister.

        6A.3.10     Related agreements

Despite section 6A.3.8, the Minister may refuse to issue a keno licence unless the applicant or any other person requested by the Minister (or both) enters into one or more agreements with the Minister dealing with matters related to the licence.

        6A.3.11     Duration of licence

    (1)     A keno licence—

        (a)     takes effect at the time of issue or at the later time specified in the licence; and

        (b)     is valid for 10 years, unless terminated earlier in accordance with this Chapter.

    (2)     A keno licence cannot be renewed, but a person who holds or has held a keno licence may apply for a subsequent keno licence, if invited by the Minister to do so.

        6A.3.12     Licence may authorise preparatory action

    (1)     This section applies to a keno licence if the licence takes effect at a time specified in the licence that is later than the time of issue of the licence.

    (2)     The keno licence may authorise the keno licensee to take preparatory action from a time specified in the licence (which may be the time of issue) even though the licence has not taken effect.

    (3)     An authorisation under subsection (2) may specify a single time from which any preparatory action may be taken or different times from which different kinds of preparatory action may be taken.

    (4)     Any time specified from which preparatory action may be taken must not be more than 18 months before the time the licence takes effect.

    (5)     Despite section 6A.3.11(1)(a), the keno licence is taken to be in effect for the purpose of any preparatory action taken in accordance with an authorisation under subsection (2).

    (6)     No account is to be had to this section in determining the term of the licence under section 6A.3.11(1)(b).

    (7)     In this section

"preparatory action" means anything necessary or convenient to be done for the purpose of conducting any activities authorised by the keno licence, but does not include the selling of tickets in a keno game or determining the outcome of a keno game.

        6A.3.13     Premium payment

    (1)     The Minister may require the keno licensee to pay, as consideration for a keno licence, one or more amounts determined by the Minister as the premium payment.

    (2)     The Minister may determine the premium payment as—

        (a)     a single amount payable on the issue of the licence, or by the later time determined by the Minister; or

        (b)     an amount payable each year for the duration of the licence at the time determined by the Minister.

    (3)     The premium payment is a tax.

        6A.3.14     Publication and tabling

    (1)     The Minister must cause—

        (a)     notice to be published in the Government Gazette—

              (i)     of the issue of a keno licence, as soon as practicable after the licence is issued; and

              (ii)     of the making of any agreement referred to in section 6A.3.10, as soon as practicable after the agreement is made; and

        (b)     a copy of a keno licence to be—

              (i)     given to the Commission as soon as practicable after the licence is issued; and

              (ii)     subject to subsection (2), presented to each House of Parliament within 7 sitting days of the House after the licence is issued; and

        (c)     a copy of any agreement referred to in section 6A.3.10 to be—

              (i)     given to the Commission as soon as practicable after the agreement is made; and

              (ii)     subject to subsection (2), presented to each House of Parliament within 7 sitting days of the House after the agreement is made.

    (2)     Before complying with subsection (1)(b)(ii) or (c)(ii), the Minister—

        (a)     may exclude information from the licence or agreement if the Minister is of the opinion that the information relates to matters of a business, commercial or financial nature the disclosure of which would be likely to expose any person unreasonably to disadvantage; and

        (b)     must notify the Commission as soon as practicable whether or not any information has been excluded under paragraph (a) and, if it has been, specify the information excluded.

    (3)     Subject to subsection (4), the Commission must cause a copy of a keno licence and any agreements referred to in section 6A.3.10 to be made available on its website as soon as practicable after notification from the Minister under subsection (2)(b).

    (4)     If the Minister has excluded information from the licence or agreement under subsection (2), the Commission must exclude that information from the copy of the licence or agreement it makes available under subsection (3).

        6A.3.15     Engaging contractors and appointing agents to assist with keno games

    (1)     A keno licence may authorise the keno licensee to engage a person on contract, or to appoint an agent, to assist in the conduct of keno games authorised by the licence.

    (2)     For the avoidance of doubt, the engagement of a person or the appointment of an agent by the keno licensee does not affect any function or obligation of the licensee under a gaming Act or gaming regulations.

Division 3—Transfer of licence

        6A.3.16     Transfer only under this Division

A keno licence is not transferable to any other person except in accordance with this Division.

        6A.3.17     Application to transfer licence

    (1)     A keno licensee may apply to the Minister to transfer the keno licence to another person (the  transferee ).

    (2)     An application

        (a)     must be in the form, contain the information and be accompanied by the documents required by the Minister; and

        (b)     must be accompanied by the prescribed fee (if any).

    (3)     If no fee is prescribed for the purposes of subsection (2)(b), the Minister, by written notice, may require the keno licensee to pay to the Minister the amount determined by the Minister, being an amount not exceeding the reasonable costs of the Minister and the Department administered by the Minister in considering the application.

    (4)     The Minister may require costs payable under subsection (3) to be paid by instalments or at any time before, during or after the Minister's consideration of the application, whether or not the application is granted.

    (5)     Costs payable under subsection (3) may be recovered in a court of competent jurisdiction as a debt due to the State.

    (6)     The Minister may refer the application to the Commission for a report under section 6A.3.19.

        6A.3.18     Transfer of a keno licence

    (1)     On application under section 6A.3.17, the Minister may transfer the keno licence to the transferee if the Minister is satisfied of the matters specified in subsections (2), (3), (4) and (5).

    (2)     The Minister must be satisfied—

        (a)     that—

              (i)     the transferee is a wholly-owned subsidiary of the keno licensee; or

              (ii)     the transferee and the keno licensee are both wholly-owned subsidiaries of a third company; and

        (b)     that the transferee has a physical place of business in Victoria; and

        (c)     that the transferee is not a natural person.

    (3)     The Minister must be satisfied that the transfer of the keno licence to the transferee is in the public interest, taking into account each of the following matters—

        (a)     whether the transferee, and each associate of the transferee, is of good repute, having regard to character, honesty and integrity;

        (b)     whether the transferee, or an associate of the transferee, has an association with a person or body that is not of good repute having regard to character, honesty and integrity as a result of which the transferee or the associate is likely to be significantly affected in an unsatisfactory manner;

        (c)     whether each executive officer of the transferee and any other person determined by the Minister to be concerned in or associated with the ownership, management or operation of the transferee's keno business, is a suitable person to act in that capacity;

        (d)     whether the transferee has sufficient technical capability and adequate systems to conduct the activities authorised by the licence;

        (e)     whether the transferee is of sound and stable financial background;

        (f)     whether the transferee has financial resources that are adequate to ensure the financial viability of a keno business; and

        (g)     whether the transferee has the ability to establish and maintain a successful keno business;

        (h)     any other matters that were specified in the notice calling for registrations of interest under section 6A.3.3 in relation to the keno licence;

              (i)     any other matters the Minister considers relevant.

    (4)     The Minister must be satisfied that the transfer of the licence to the transferee would not result in a person who is not currently an associate of the licensee, or not approved by the Minister to become an associate of the licensee, becoming an associate of the transferee.

    (5)     The Minister must be satisfied that the transferee is capable of meeting the obligations of the keno licensee under any agreements referred to in section 6A.3.10.

    (6)     The Minister may refuse to transfer the keno licence unless a company approved by the Minister that is an associate of the transferee has given the transferee an irrevocable guarantee and indemnity, in the form approved by the Treasurer, in respect of the financial obligations of the transferee.

    (7)     In determining whether to grant or refuse an application to transfer the keno licence, the Minister is entitled to rely on any findings or recommendations contained in the report of the Commission under section 6A.3.19.

    (8)     If the Minister transfers the keno licence, the transferee becomes the keno licensee and assumes all the obligations and liabilities of the keno licensee under this Act.

        6A.3.19     Report to Minister by Commission

    (1)     If the Minister has referred to the Commission an application to transfer the keno licence, the Commission must give a written report to the Minister on the application

        (a)     stating whether or not, in the Commission's opinion, the matters of which the Minister must be satisfied to transfer the licence have been made out; and

        (b)     containing any other information required by the Minister.

    (2)     The report may include any recommendations the Commission thinks fit, including recommendations as to any appropriate licence conditions.

    (3)     The report must include the reasons for any findings or recommendations contained in it.

Note

Division 1B of Part 4 of Chapter 10 provides for the investigation by the Commission of an application to transfer a keno licence.

        6A.3.20     Related agreements

The Minister may refuse to transfer a keno licence unless—

        (a)     the keno licensee and any other person who is party to an agreement referred to in section 6A.3.10 relating to the licence executes any document requested by the Minister in relation to that agreement; and

        (b)     the transferee or any other person requested by the Minister (or both) enters into one or more agreements with the Minister dealing with matters related to the licence, including any agreement referred to in section 6A.3.10 or any further agreement.

        6A.3.21     Publication and tabling

    (1)     The Minister must cause—

        (a)     notice to be published in the Government Gazette—

              (i)     of the transfer of a keno licence, as soon as practicable after the licence is transferred; and

              (ii)     of the execution of any document referred to in section 6A.3.20(a) or of the entering into of any agreement referred to in section 6A.3.20(b), as soon as practicable after the document is executed or the agreement is entered into; and

        (b)     a copy of the transfer of a keno licence to be—

              (i)     given to the Commission as soon as practicable after the licence is transferred; and

              (ii)     subject to subsection (2), presented to each House of Parliament within 7 sitting days of the House after the licence is transferred; and

        (c)     a copy of any document referred to in section 6A.3.20(a) or any agreement referred to in section 6A.3.20(b) to be—

              (i)     given to the Commission as soon as practicable after the document is executed or the agreement is entered into; and

              (ii)     subject to subsection (2), presented to each House of Parliament within 7 sitting days of the House after the document is executed or the agreement is entered into.

    (2)     Before complying with subsection (1)(b)(ii) or (c)(ii), the Minister—

        (a)     may exclude information from the transfer, document or agreement if the Minister is of the opinion that the information relates to matters of a business, commercial or financial nature the disclosure of which would be likely to expose any person unreasonably to disadvantage; and

        (b)     must notify the Commission as soon as practicable whether or not any information has been excluded under paragraph (a) and, if it has been, specify the information excluded.

    (3)     Subject to subsection (4), the Commission must cause a copy of a transfer of a keno licence and any document referred to in section 6A.3.20(a) or agreement referred to in section 6A.3.20(b) to be made available on its website as soon as practicable after receiving notification from the Minister under subsection (2)(b).

    (4)     If the Minister has excluded information from the transfer, document or agreement under subsection (2), the Commission must exclude that information from the copy of the transfer, document or agreement it makes available under subsection (3).

Division 4—Amendment and surrender of licence

        6A.3.22     Request by licensee for amendment of licence

    (1)     The keno licensee may request the Minister to amend a keno licence.

    (2)     A request for a licence amendment—

        (a)     must be in writing; and

        (b)     must include the reasons for the requested amendment; and

        (c)     must be accompanied by the prescribed fee (if any).

    (3)     The Minister may require the licensee to provide any further information or any documents to the Minister in connection with the request.

    (4)     If this section or a requirement made by the Minister under this section is not complied with, the Minister may refuse to consider the request.

    (5)     If no fee is prescribed for the purposes of subsection (2)(c), the Minister, by written notice, may require the keno licensee to pay to the Minister the amount determined by the Minister, being an amount not exceeding the reasonable costs of the Minister and the Department administered by the Minister in considering the request.

    (6)     The Minister may require costs payable under subsection (5) to be paid by instalments or at any time before, during or after the Minister's consideration of the request, whether or not the Minister decides to make the requested amendment.

    (7)     Costs payable under subsection (5) may be recovered in a court of competent jurisdiction as a debt due to the State.

        6A.3.23     Amendment of licence

    (1)     The Minister must decide whether to make an amendment requested under section 6A.3.22, either with or without changes from that originally requested, and must give written notice of the decision to the keno licensee.

    (2)     In deciding whether or not to make an amendment, the Minister must take into account whether, in his or her opinion, the amendment is in the public interest.

    (3)     If the Minister amends a keno licence under this section, the Minister must cause—

        (a)     notice of the amendment to be published in the Government Gazette as soon as practicable after the licence is amended; and

        (b)     a copy of the amendment to be—

              (i)     given to the Commission as soon as practicable after the licence is amended; and

              (ii)     subject to subsection (4), presented to each House of Parliament within 7 sitting days of the House after the licence is amended.

    (4)     Before complying with subsection (3)(b)(ii), the Minister—

        (a)     may exclude information from the amendment, or the licence as amended, if the Minister is of the opinion that the information relates to matters of a business, commercial or financial nature the disclosure of which would be likely to expose any person unreasonably to disadvantage; and

        (b)     must notify the Commission as soon as practicable whether or not any information has been excluded under paragraph (a) and, if it has been, specify the information excluded.

    (5)     Subject to subsection (6), the Commission must cause a copy of the amendment, or the licence as amended, to be made available on its website as soon as practicable after receiving notification from the Minister under subsection (4)(b).

    (6)     If the Minister has excluded information from an amendment under subsection (4), the Commission must exclude that information from the copy of the amendment, or the licence as amended, it makes available under subsection (5).

    (7)     An amendment takes effect when notice of the decision to make the amendment is given to the licensee under subsection (1) or on a later date specified in the notice.

        6A.3.24     Surrender of licence

    (1)     The keno licensee may surrender a keno licence by giving at least 12 months' written notice to the Minister.

    (2)     The surrender takes effect only if the Minister consents to the surrender.

    (3)     The Minister may consent subject to any conditions he or she thinks fit, and those conditions remain in effect after the surrender in accordance with their terms.

Division 5—Monitoring and disciplinary action

        6A.3.25     Associates of licensee

    (1)     If it is within the keno licensee's power to do so, the licensee must ensure that a person does not become an associate of the licensee except with the prior written approval of the Commission.

Penalty:     60 penalty units.

    (2)     On application by the licensee, the Commission may grant its approval, but must not grant its approval unless satisfied that the person is a suitable person to be associated with the management of a keno business.

    (3)     If the Commission refuses to grant its approval—

        (a)     the Commission must notify the licensee in writing; and

        (b)     to the extent that it is within the licensee's power to do so, the licensee must ensure—

              (i)     that the person does not become an associate; or

              (ii)     if the person becomes or has become an associate, that the person ceases to be an associate of the licensee within 28 days after the licensee is notified by the Commission under paragraph (a).

Note

Division 1 of Part 4 of Chapter 10 provides for the investigation of an application to approve a person to become an associate of the keno licence.

    (4)     The keno licensee must notify the Commission in writing of the likelihood of a person becoming an associate of the licensee as soon as practicable after the licensee becomes aware of that likelihood.

Penalty:     60 penalty units.

    (5)     The keno licensee must notify the Commission in writing of any person becoming an associate of the licensee within 7 days after becoming aware that the person has become an associate.

Penalty:     60 penalty units.

        6A.3.26     Grounds for disciplinary action

Each of the following is a ground for disciplinary action in relation to a keno licence—

        (a)     the keno licensee is not, or is no longer, a suitable person or body to conduct the activities authorised by the licence;

        (b)     the keno licensee has been found guilty of an offence against a gaming Act;

        (c)     the keno licensee, or an associate of the licensee, has been found guilty of an offence involving fraud or dishonesty, whether or not in Victoria, the maximum penalty for which exceeds imprisonment for 3 months;

        (d)     the keno licensee has contravened—

              (i)     a condition of the licence; or

              (ii)     the keno rules; or

              (iii)     a provision of this Act (being a provision a contravention of which does not constitute an offence);

        (e)     the keno licensee has contravened an agreement referred to in section 6A.3.10 or 6A.3.20;

        (f)     the keno licensee has failed to discharge financial obligations to a player;

        (g)     the keno licensee becomes an externally-administered body corporate or otherwise becomes insolvent;

        (h)     the keno licence was obtained by a materially false or misleading representation or in some other improper way.

        6A.3.27     Commission may take or recommend disciplinary action

    (1)     If the Commission considers that there is a ground for taking disciplinary action in relation to a keno licence, the Commission may give the keno licensee written notice giving the licensee an opportunity to show cause within 28 days why disciplinary action should not be taken on the ground specified in the notice.

    (2)     The licensee, within the period allowed by the notice, may arrange with the Commission for the making of submissions to the Commission as to why disciplinary action should not be taken.

    (3)     After considering any submissions made under subsection (2), the Commission—

        (a)     may take either or both of the following disciplinary actions—

              (i)     issue a letter of censure to the licensee;

              (ii)     fine the licensee an amount not exceeding an amount that is 5000 times the value of a penalty unit fixed by the Treasurer under section 5(3) of the Monetary Units Act 2004 ; or

        (b)     may make a written report to the Minister recommending that the Minister take disciplinary action against the licensee under section 6A.3.28.

    (4)     A report under subsection (3)(b) must include the reasons for the findings and recommendations contained in it.

    (5)     A letter of censure may censure the licensee in respect of any matter connected with the management or operation of its keno business and may include a direction to the licensee to rectify within a specified time any matter giving rise to the letter of censure.

    (6)     If a direction given under subsection (5) is not complied with in the specified time, the Commission may—

        (a)     fine the licensee an amount not exceeding an amount that is 5000 times the value of a penalty unit fixed by the Treasurer under section 5(3) of the Monetary Units Act 2004 ; or

        (b)     make a written report to the Minister recommending that the Minister take disciplinary action against the licensee under section 6A.3.28.

    (7)     The Commission may fine the licensee under subsection (6)(a) whether or not the Commission has already fined the licensee under subsection (3)(a)(ii) in relation to the same matter.

    (8)     A fine imposed under this section may be recovered in a court of competent jurisdiction as a debt due to the State.

        6A.3.28     Minister may take disciplinary action

    (1)     If the Commission makes a report to the Minister under section 6A.3.27, the Minister may—

        (a)     take any one of the following disciplinary actions—

              (i)     amend the licence; or

              (ii)     suspend the licence; or

              (iii)     cancel the licence; or

        (b)     if the Minister considers that disciplinary action under paragraph (a) is not warranted, remit the matter to the Commission with a request that the Commission consider whether disciplinary action should be taken against the licensee under section 6A.3.27(3)(a).

    (2)     In taking disciplinary action, the Minister—

        (a)     must take into account whether, in his or her opinion, taking the action is in the public interest; and

        (b)     is entitled to rely on the findings and recommendations in the report of the Commission under section 6A.3.27; and

        (c)     is not required to give the licensee a further opportunity to be heard or make submissions.

    (3)     If the Minister remits a matter to the Commission under subsection (1)(b), the Commission is not required to give the licensee a further opportunity to be heard or make submissions before taking disciplinary action against the licensee under section 6A.3.27(3)(a).

    (4)     Cancellation, suspension or amendment of a licence under this section takes effect when written notice is given to the licensee or on a later date specified in the notice.

        6A.3.29     Suspension of licence pending criminal proceedings

    (1)     The Minister may suspend a keno licence by giving written notice to the keno licensee if the Minister is satisfied that the licensee or an executive officer of the licensee has been charged with—

        (a)     an offence against a gaming Act or gaming regulations; or

        (b)     an offence arising out of or in connection with the management or operation of a keno business; or

        (c)     an indictable offence or an offence that, if committed in Victoria, would be an indictable offence, the nature and circumstances of which, in the opinion of the Minister, relate to the management or operation of a keno business.

    (2)     The Minister may, at any time, terminate or reduce a period of suspension imposed under subsection (1).

        6A.3.30     Effect of licence suspension

A keno licence is of no effect for the purposes of Part 2 while it is suspended.

Division 6—Temporary keno licence

        6A.3.31     Temporary keno licence

    (1)     If a keno licence (the original licence ) is cancelled, suspended or surrendered under this Part, the Minister may issue a temporary keno licence and appoint a temporary keno licensee for the period determined by the Minister.

    (2)     The Minister may issue a temporary keno licence only if satisfied that—

        (a)     the temporary licensee has a physical place of business in Victoria; and

        (b)     the temporary licensee is not a natural person; and

        (c)     the issue of the temporary licence is in the public interest, taking into account each of the following matters—

              (i)     whether the temporary licensee, and each associate of the temporary licensee, is of good repute, having regard to character, honesty and integrity;

              (ii)     whether the temporary licensee, or an associate of the temporary licensee, has an association with a person or body that is not of good repute having regard to character, honesty and integrity as a result of which the temporary licensee or the associate is likely to be significantly affected in an unsatisfactory manner;

              (iii)     whether each executive officer of the temporary licensee and any other person determined by the Minister to be concerned in or associated with the ownership, management or operation of the temporary licensee's keno business, is a suitable person to act in that capacity;

              (iv)     whether the temporary licensee has sufficient technical capability and adequate systems to conduct the activities to be authorised by the licence;

              (v)     whether the temporary licensee is of sound and stable financial background;

              (vi)     whether the temporary licensee has financial resources that are adequate to ensure the financial viability of a keno business;

              (vii)     whether the temporary licensee has the ability to maintain a successful keno business;

              (viii)     any other matters that were specified in the notice calling for registrations of interest under section 6A.3.3 in relation to the original licence;

              (ix)     any other matters the Minister considers relevant.

    (3)     A temporary keno licence is issued on the terms and conditions the Minister thinks fit and nothing in Division 2 (other than section 6A.3.14) applies to the issue of the temporary licence.

    (4)     In determining whether to grant or refuse a licence application, the Minister—

        (a)     may consult any person the Minister considers appropriate; and

        (b)     is entitled to rely on any findings or recommendations contained in the report of the Commission under section 6A.3.32.

    (5)     In this section

"former licensee" means the person who was the keno licensee—

        (a)     under the original licence immediately before its cancellation, suspension or surrender; or

        (b)     under a temporary keno licence immediately before its cancellation or other termination.

        6A.3.32     Report to Minister by Commission

    (1)     If the Minister is considering issuing a temporary keno licence, the Minister may request the Commission to give a written report to the Minister—

        (a)     stating whether or not, in the Commission's opinion, the matters of which the Minister must be satisfied to issue the temporary licence have been made out; and

        (b)     containing any other information required by the Minister.

    (2)     The Commission must comply with a request of the Minister under this section.

    (3)     The report may include any recommendations the Commission thinks fit, including recommendations as to any appropriate licence conditions.

    (4)     The report must include the reasons for any findings or recommendations contained in it.

Note

Division 1B of Part 4 of Chapter 10 provides for investigations by the Commission for the purposes of the Minister deciding whether or not to issue a temporary keno licence.

        6A.3.33     Arrangements with former licensee

    (1)     A temporary keno licensee may enter into any arrangements that 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.

    (2)     The former licensee must make available to the temporary licensee on reasonable terms any assets of, or under the control of, the former licensee that are reasonably necessary for arrangements under subsection (1).

Penalty:     100 penalty units.

    (3)     The former licensee must use its best endeavours to make available any staff of the former licensee that are reasonably necessary for arrangements under subsection (1).

Penalty:     100 penalty units.

    (4)     In this section

"former licensee" has the same meaning as in section 6A.3.31.

        6A.3.34     Further provisions for temporary licence

    (1)     A temporary keno licence—

        (a)     may be extended once only for a period determined by the Minister; and

        (b)     may be cancelled at any time by the Minister; and

        (c)     if issued following the suspension of the original licence—is cancelled by the lifting or expiry of that suspension.

    (2)     If a temporary keno licence (including a temporary licence issued under this subsection) is cancelled or otherwise terminates (other than under subsection (1)(c)), the Minister may issue a further temporary keno licence and appoint a further temporary licensee for the period determined by the Minister.

    (3)     For the avoidance of doubt, sections 6A.3.31(2), (3) and (4), 6A.3.32 and 6A.3.33 apply to the issue of a temporary licence under subsection (2).

    (4)     The cumulative periods for which a temporary keno licence may be issued or extended under this Division cannot exceed 3 years after the day on which the original licence was cancelled, suspended or surrendered (as the case may be).

Division 7—Further information-gathering powers and obligations

        6A.3.35     Definitions

        In this Division—

"applicant" means applicant for a keno licence;

"application" means application for a keno licence;

"interested person" means—

        (a)     an applicant; or

        (b)     a registrant; or

        (c)     an associate of an applicant or registrant;

        (d)     a person who the Secretary considers may become an associate of an applicant or registrant;

"registrant" means registrant of interest in the grant of a keno licence;

"registration of interest" means registration of interest in the grant of a keno licence.

        6A.3.36     Secretary may require further information

    (1)     The Secretary, by notice in writing, may require an interested person to do any one or more of the following—

        (a)     to provide, in accordance with directions in the notice, any information that is relevant to the consideration of the application or registration of interest and is specified in the notice;

        (b)     to produce, in accordance with directions in the notice, any records relevant to the consideration of the application or registration of interest that are specified in the notice and to permit examination of the records, the taking of extracts from them and the making of copies of them;

        (c)     to authorise a person described in the notice to comply with a specified requirement of the kind referred to in paragraph (a) or (b);

        (d)     to provide the Secretary with any authorities and consents the Secretary requires for the purpose of enabling the Secretary to obtain information (including financial and other confidential information) concerning the interested person from other persons.

    (2)     The Secretary may give any information provided or record produced by an interested person under subsection (1), or a copy of the information or record, to the Commission if the Secretary considers that the information or record is relevant to an investigation or inquiry by the Commission in relation to the application or registration of interest.

    (3)     If an interested person refuses to comply with a requirement under subsection (1)—

        (a)     the Secretary must notify the Minister in writing as soon as practicable; and

        (b)     the Minister may refuse to consider the application or registration of interest.

        6A.3.37     Updating information provided to Secretary

    (1)     If—

        (a)     the Secretary requires information (including information in any records) from an interested person under section 6A.3.36; and

        (b)     a change occurs in that information before the application is granted or refused or the Minister decides whether or not to invite the registrant to apply for the licence (as the case requires)—

the interested person must give the Secretary written particulars of the change as soon as practicable.

Penalty:     60 penalty units.

    (2)     The Secretary may give the particulars of a change referred to in subsection (1) to the Commission if the Secretary considers that the particulars are relevant to an investigation or inquiry by the Commission in relation to the application or registration of interest.

    (3)     When particulars of a change are given, those particulars must then be considered to have formed part of the original information, for the purposes of the application of subsection (1) to any further change in the information provided.

        6A.3.38     Updating information provided to Minister regarding registration of interest or licence application

    (1)     If a change occurs in any relevant registration information before the Minister decides whether or not to invite a registrant to make an application, the registrant must give the Minister written particulars of the change as soon as practicable.

Penalty:     60 penalty units.

    (2)     If a change occurs in any relevant application information before an application is granted or refused, the applicant must give the Minister written particulars of the change as soon as practicable.

Penalty:     60 penalty units.

    (3)     The Minister must give the particulars of a change referred to in subsection (1) or (2) to the Secretary.

    (4)     The Secretary may give the particulars of a change referred to in subsection (1) or (2) to the Commission if the Secretary considers that the particulars are relevant to an investigation or inquiry by the Commission in relation to the registration of interest or application (as the case requires).

    (5)     When particulars of a change are given, those particulars must then be considered to have formed part of the original registration of interest or application, for the purposes of the application of subsection (1) or (2) to any further change in the relevant information.

    (6)     In this section

"relevant application information" means—

        (a)     any information contained in an application for a keno licence; or

        (b)     any information contained in a document that accompanied that application; or

        (c)     any further information given to the Minister by the applicant in relation to that application.

"relevant registration information" means—

        (a)     any information provided by a registrant in or in relation to a registration of interest; or

        (b)     any further information given to the Minister by the registrant in relation to the registration of interest.

        6A.3.39     Updating licence transfer application

    (1)     If a change occurs in any relevant information before an application for transfer of a keno licence is granted or refused, the applicant must give the Minister written particulars of the change as soon as practicable.

Penalty:     60 penalty units.

    (2)     The Minister may give the particulars of a change referred to in subsection (1) to the Commission if the Minister considers that the particulars are relevant to an investigation or inquiry by the Commission in relation to the application.

    (3)     When particulars of a change are given, those particulars must then be considered to have formed part of the original application, for the purposes of the application of subsection (1) to any further change in the relevant information.

    (4)     In this section

"relevant information" means—

        (a)     any information contained in an application for transfer of a keno licence; or

        (b)     any information contained in a document that accompanied that application; or

        (c)     any further information given to the Minister by the applicant in relation to that application.

__________________

PART 4—RETURNS TO PLAYERS, TAXES AND FUNDS

Division 1—Returns to players

        6A.4.1     Returns to players

    (1)     The keno licensee must ensure that not less than 75% of the total amount received by the licensee for any keno game is paid by the licensee to a prizes fund established by the licensee.

    (2)     The prizes fund must be applied exclusively for the payment of prizes in respect of keno games conducted by the licensee.

Division 2—Taxes

        6A.4.2     Duty payable by licensee

    (1)     In this section, "week" means a period of 7 days commencing on a Sunday and ending on the following Saturday.

    (2)     The keno licensee must pay in respect of keno games conducted during each week

        (a)     to the Treasurer, in accordance with arrangements approved by the Treasurer, for payment into the Consolidated Fund, 24.24% of the keno revenue for the week, such payment to be made on the next Tuesday after the end of the week; and

        (b)     to the sales agent of a keno venue in which tickets in keno games are sold during the week

              (i)     if GST is payable on the supply to which the amount to be paid under this paragraph relates, an amount calculated in accordance with the formula—

08-40a01.jpg

where—

    A     is the amount agreed to be paid by the licensee to the sales agent for the agent's services;

    KR     is the keno revenue for the week;

    T     is the total amount received by the licensee for keno games conducted during the week;

    V     is the amount received at the keno venue for keno games conducted during the week.

              (ii)     if GST is not payable on the supply to which the amount to be paid under this paragraph relates, an amount calculated in accordance with the formula—

08-40a02.jpg

where—

    A     is the amount agreed to be paid by the licensee to the sales agent for the agent's services;

    KR     is the keno revenue for the week;

    T     is the total amount received by the licensee for keno games conducted during the week;

    V     is the amount received at the keno venue for keno games conducted during the week.

    (3)     If, in respect of a week, the amount of all prizes payable in respect of keno games conducted during the week exceeds the amount received by the licensee for those games, the amount of that excess may be applied to reduce the keno revenue for the next or a subsequent week for the purposes of determining the amounts payable under subsection (2)(a) in respect of that week.

    (4)     An amount payable under this section is a debt and may be recovered in a court of competent jurisdiction.

Division 3—Supervision charge

        6A.4.3     Supervision charge

    (1)     The keno licensee must pay to the Treasurer a supervision charge in the instalments and in respect of the periods in each financial year determined by the Treasurer from time to time.

    (2)     The supervision charge is the amount in respect of each financial year as the Treasurer, after consultation with the Minister, determines having regard to the reasonable costs and expenses in respect of the financial year incurred by the Commission in carrying out its functions and powers in respect of keno games.

    (3)     The Treasurer may waive payment of part or all of the supervision charge in respect of a financial year, having regard to the total amount of revenue received by the keno licensee in the previous financial year.

    (4)     The supervision charge is a tax.

Division 4—Funds

        6A.4.4     Hospitals and Charities Fund and Mental Health Fund

    (1)     An amount equal to the amount paid into the Consolidated Fund under section 6A.4.2(2)(a) must, in respect of each financial year, be paid out of the Consolidated Fund, in the proportions determined by the Treasurer, into—

        (a)     the Hospitals and Charities Fund; and

        (b)     the Mental Health Fund.

    (2)     An amount or amounts equal to the premium payment paid under section 6A.3.13 must be paid out of the Consolidated Fund, at the time or times determined by the Treasurer, into the Hospitals and Charities Fund.

    (3)     The Consolidated Fund is appropriated to the necessary extent for payment to be made under this section.

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PART 5—COMPLIANCE REQUIREMENTS

Division 1—Accounting records

        6A.5.1     Accounting records

    (1)     The keno licensee must keep accounting records that correctly record and explain the transactions and financial position of the operations of the licensee under this Chapter.

Penalty:     60 penalty units.

    (2)     The licensee must keep the accounting records in a form and manner that will enable—

        (a)     true and fair financial statements and accounts to be prepared from time to time; and

        (b)     those financial statements and accounts to be conveniently and properly audited.

Penalty:     60 penalty units.

Division 2—Complaints

        6A.5.2     Investigation of complaints

    (1)     On receiving a complaint from a person relating to the conduct of keno games, the Commission must investigate the complaint without delay.

    (2)     The Commission must inform the keno licensee of the substance of the complaint and give the licensee a reasonable opportunity to respond to it.

    (3)     A function of the Commission under this section may be performed by any commissioner.

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