[Issued in lieu]
Gambling Regulation (Further Miscellaneous
Amendments) Bill
Circulation Print
EXPLANATORY MEMORANDUM
Clause Notes
Clause 1
sets out the purposes of the Bill.
Clause 2
provides for the commencement of the Bill. The Bill comes into
operation on the day after Royal Assent.
Clause 3
substitutes new definitions for "AFL footy tipping competition"
and "soccer football pool" and amends the definitions of "public
lottery licence" and "ticket" set out in section 1.3 of the
Gambling Regulation Act 2003.
Paragraph (a) amends the definition of "AFL footy tipping
competition" to provide that prizes for such public lotteries are
principally distributed on the basis of match results. However,
the new definition provides that such distributions must also be
made in accordance with the lottery rules. This means that
lottery rules can be made and approved that specify an alternative
method of determining how prizes in those lotteries are to be
distributed in the event that insufficient matches are played for
the distribution of prizes to occur on the basis of matches played.
Paragraph (b) amends the definition of "soccer football pool"
to provide that prizes for such public lotteries are principally
distributed on the basis of match results. However, the new
definition provides that such distributions must also be made in
accordance with the lottery rules. This means that lottery rules
can be made and approved that specify an alternative method of
determining how prizes in those lotteries are to be distributed in
the event that insufficient matches are played for the distribution
of prizes to occur on the basis of matches played.
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BILL LA CIRCULATION 1/6/2006
Paragraph (c) amends the definition of "public lottery licence"
to include a temporary public lottery licence issued under new
section 5.3.27 (which is being inserted by clause 14).
Paragraph (d) amends the definition of "ticket" to include an
electronic ticket. This amendment makes it clear that the
offences in section 2.2.4(2) apply equally to electronic tickets.
Clause 4
substitutes a new section 5.2.8 in the Gambling Regulation Act
2003 which relates to offences with respect to minors and
lotteries.
New section 5.2.8(1) creates an offence proscribing a person
from knowingly selling a lottery ticket to a minor. For the
purposes of this offence, a minor is a person who is under the age
of 18 years. A maximum penalty of 10 penalty units is
applicable for the offence.
New section 5.2.8(2) re-enacts the offence currently in
section 5.2.8 proscribing a person from knowingly accepting an
entry in a public lottery from a minor. For the purposes of this
offence, a minor is a person who is under the age of 18 years.
A maximum penalty of 10 penalty units is applicable for the
offence.
Clause 5
amends section 5.3.2(2)(d) of the Gambling Regulation Act
2003 to provide that the Minister cannot issue a licence to
conduct a public lottery that is a game approved under section 60
of the Casino Control Act 1991 to be played in a casino, other
than keno.
This amendment ensures that a public lottery in the form of a
keno game can be approved by the Minister even though a game
of keno may have already been approved for play in a casino
under section 60 of the Casino Control Act 1991.
Clause 6
substitutes a new section 5.3.6(1) and inserts a new
section 5.3.6(1A) in the Gambling Regulation Act 2003 to
provide that, if the Minister grants a public lottery licence
application, the Minister must either issue the licence to the
successful applicant or, alternatively, the licence can be issued to
a Victorian wholly-owned subsidiary company of the applicant.
In the event that the licence is granted to a wholly-owned
subsidiary of the applicant, such a company must be approved by
the Victorian Commission for Gambling Regulation.
New section 5.3.6(1A) sets out the criteria against which the
Victorian Commission for Gambling Regulation may approve a
wholly-owned subsidiary of the licence applicant. Approval may
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be granted if the Victorian Commission for Gambling Regulation
is satisfied that—

the applicant for the licence has provided the subsidiary
company seeking to hold the licence and the State with
an irrevocable guarantee and indemnity regarding the
subsidiary company's obligations, that has been
approved by the Treasurer; and

the issuing of such a licence to a subsidiary would not
result in the applicant having any new associates.
Division 1 of Part 4 of Chapter 10 of the Gambling Regulation
Act 2003 will provide for the Victorian Commission for
Gambling Regulation's investigatory powers with respect to the
approval process of a wholly-owned subsidiary (see clause 18).
Clause 7
inserts a new section 5.3.7A into the Gambling Regulation Act
2003 relating to agreements between the Minister and a public
lottery licensee that are ancillary to the public lottery licence.
New section 5.3.7A provides that, despite the requirement that a
public lottery licence be issued when a licence application has
been granted set out under section 5.3.6(1) of the Gambling
Regulation Act 2003, the Minister has the discretionary power to
refuse to issue such a licence unless the proposed licensee enters
into one or more agreements with the Minister dealing with
matters that are supplementary to the licence itself. This means
that the entry into ancillary agreements can be a condition upon
which the Minister issues a public lottery licence.
Clause 8
inserts a new section 5.3.8A into the Gambling Regulation Act
2003 relating to permissible actions that a licensee may take prior
to the commencement of the licence. This provision facilitates a
new licensee taking the necessary actions to establish its new
lottery business and be fully operational prior to the date on
which the new licence will become effective.
New section 5.3.8A(1) provides that this section applies to a
public lottery licence that is issued prior to the licence actually
coming into effect.
New section 5.3.8A(2) provides that a public lottery licensee may
be authorised to take preparatory action prior to its licence taking
effect, in compliance with the terms set out in the licence.
New section 5.3.8A(3) provides that an authorisation provided
under new section 5.3.8A(2) can provide a general authorisation,
permitting any preparatory action to be taken from a specific
date. Alternatively, an authorisation can provide multiple times
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allowing different types of preparatory action to be taken at
different stages. For example, a licence may permit the licensee
to develop and publish lottery rules 3 months prior to the licence
taking effect, and also permit the licensee to sell tickets one
month prior to the licence taking effect.
New section 5.3.8A(4) provides an upper limit on authorisations
for preparatory action of no more than 12 months before the time
the licence comes into effect.
New section 5.3.8A(5) clarifies that the public lottery licence is
taken to be in effect for the purposes of any duly authorised
preparatory action, despite section 5.3.8(1)(a) that provides that
the licence takes effect at the time of issue or any later date set
out in the licence. This new provision means that for the
purposes of any preparatory action, the licensee is subject to the
obligations of a licensee whose licence has already commenced
under the Gambling Regulation Act 2003.
New section 5.3.8A(6) clarifies that any preparatory action that
is permitted under new section 5.3.8A is not to be considered in
determining the term of a licence under section 5.3.8(1)(b).
This means that the duration of the licence is determined from
the commencement date and not any prior date from which
preparatory action was authorised.
New section 5.3.8A(7) defines "preparatory action" to mean
anything necessary or expedient to enable the licensee to
undertake all aspects of the conduct of a public lottery with the
exception of the drawing of a lottery or having the lottery
determined in some other way.
Clause 9
substitutes a new section 5.3.11 in the Gambling Regulation Act
2003 which relates to the publication and tabling requirements of
a public lottery licence.
New section 5.3.11(1) provides that the Minister must do the
following—
Publish in the Government Gazette and a Victoria-wide
newspaper the following information—

notice that a public lottery licence has been issued;

notice of any agreements made between the Minister
and the licensee that are ancillary to the public lottery
licence;
(both notices must be published as soon as practical after the
licence was issued and/or the agreements were made).
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Ensure that a copy of the public lottery licence is—

given to the Victorian Commission for Gambling
Regulation as soon as practicable after the licence is
issued; and

laid before each House of Parliament within 7 sitting
days of the House after the licence has been issued.
Ensure that a copy of any agreements made between the Minister
and the licensee that are ancillary to the public lottery licence
are—

given to the Victorian Commission for Gambling
Regulation as soon as practicable after being made; and

laid before each House of Parliament within 7 sitting
days of the House after being made.
New section 5.3.11(2) requires the Victorian Commission for
Gambling Regulation to ensure that a copy of the public lottery
licence and any agreements between the Minister and the licensee
ancillary to the public lottery licence are available on its website
as soon as practicable after receiving them.
Clause 10 substitutes new section 5.3.13(3) and 5.3.13(4) of the Gambling
Regulation Act 2003.
New section 5.3.13(3) requires the Minister to ensure that the
information in the register of public lottery licences is available
to the Victorian Commission for Gambling Regulation.
New section 5.3.13(4) requires the Victorian Commission for
Gambling Regulation to publish the information in the register on
its website.
Clause 11 inserts a new section 5.3.15A into the Gambling Regulation Act
2003 relating to the engagement of contractors and agents by
public lottery licensees.
New section 5.3.15A(1) provides that a public lottery licence
may authorise the licensee to engage contractors or appoint
agents to assist in the conduct of a public lottery pursuant to the
terms of the licence.
New section 5.3.15A(2) clarifies that neither the engagement of a
contractor nor the appointment of an agent by a licensee affects
the licensee's functions and obligations under gaming legislation.
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Clause 12 amends sections 5.3.16 and 5.3.19 of the Gambling Regulation
Act 2003 with respect to amending a public lottery licence.
Sub-clause (1) amends section 5.3.16 to provide that a public
lottery licensee may request the Minister to amend the public
lottery licence. This amendment enables a licensee to request
any general amendment to the licence, rather than being confined
to requesting an amendment to a condition of the licence.
For instance, under this provision a licensee could request that
the Minister amend the licence to enable additional lotteries to
be authorised or already authorised lotteries to be varied or
removed.
Sub-clause (2) substitutes section 5.3.19(4) to provide that the
Minister is required to—

publish in the Government Gazette and a Victoria-wide
newspaper notice of any amendment that has been
approved;

ensure a copy of the amendment is given to the
Victorian Commission for Gambling Regulation as soon
as practicable after the licence is amended;

ensure a copy of the amendment is laid before each
House of Parliament within 7 sitting days of the House
after the licence has been amended.
New section 5.3.19(4A) requires the Victorian Commission for
Gambling Regulation to publish either a copy of the amendment,
or the licence as amended, on its website as soon as practicable
after receiving a copy of the amendment.
Clause 13 inserts new section 5.3.21(ea) into the Gambling Regulation
Act 2003 which provides a new ground for disciplinary action in
relation to a public lottery licence. The additional ground is
where the licensee has contravened any agreement between the
Minister and the licensee ancillary to the public lottery licence.
Clause 14 inserts new Division 6 in Part 3 of Chapter 5 of the Gambling
Regulation Act 2003 which relates to temporary public lottery
licences.
New section 5.3.27(1) provides that the Minister may issue a
temporary licence in the event that a public lottery licence is
cancelled, suspended or surrendered.
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New section 5.3.27(2) provides that the Minister may only issue
a temporary public lottery licence in certain circumstances.
First, the Victorian Commission for Gambling Regulation must
provide a report to the Minister pursuant to section 5.3.28.
On the basis of that report, the Minister must be satisfied that the
proposed licensee and each associate of the proposed licensee is a
suitable person for the purposes of being involved in the conduct,
management or operation of a public lottery business.
New section 5.3.27(3) provides that the Minister has a broad
discretion to issue a temporary public lottery licence with terms
and conditions he or she considers appropriate. To this end, it is
made clear that the licensing procedure set out in Division 2 of
Part 3 of Chapter 5 generally does not apply to temporary
licences, with the exception of sections 5.3.10 through to and
including 5.3.13. This means that the following requirements
and conditions that apply to public lottery licences apply equally
to temporary licences—

the licence is not transferable as provided in
section 5.3.10;

the Minister and the Victorian Commission for
Gambling Regulation are required to comply with the
publication and tabling requirements set out in
section 5.3.11;

the licensee is required to make a copy of the licence
available for public inspection as set out in
section 5.3.12;

the Minister and the Victorian Commission for
Gambling Regulation are required to comply with the
requirements to include temporary licences on the
register as set out in section 5.3.13.
New section 5.3.27(4) provides the following regarding a
temporary public lottery licence—

the Minister may allow such licences to be extended
once;

the Minister may cancel such licences at any time;

in the event that such a licence is issued after the
original licence has been suspended, the temporary
licence is cancelled in the event that the original licence
is no longer suspended.
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New section 5.3.27(5) provides that the Minister may issue a
subsequent temporary public lottery licence and appoint a further
temporary licensee in the event that a temporary public lottery
licence is cancelled or otherwise terminates. However, a
subsequent temporary licence cannot be issued in the
circumstances where a temporary licence was issued after the
original licence had been suspended and that suspension no
longer applies, that is, the original licence has been revived.
New section 5.3.27(6) clarifies that the requirements set out in
new sections 5.3.27(2) and (3) apply to subsequent temporary
licences issued under new section 5.3.27(5).
New section 5.3.27(7) provides that the maximum cumulative
period for which a temporary licence can exist is 3 years, from
the day after the original licence was either cancelled, suspended
or surrendered.
New section 5.3.28(1) requires the Victorian Commission for
Gambling Regulation to provide the Minister with a written
report when the Minister is considering issuing a temporary
public lottery licence. The report must include whether, in the
Victorian Commission for Gambling Regulation's opinion, the
proposed licensee meets certain probity standards such as—

whether the proposed licensee and each of its associates
is of good repute;

whether the proposed licensee and each of its associates
has associations with persons or organisations that are
not of good repute;

whether those persons in positions of power of the
proposed licensee's business (such as executive officers,
managers, owners) are suitable persons.
New section 5.3.28(2) provides that the Victorian Commission
for Gambling Regulation's report to the Minister may include
recommendations, including any recommendations about suitable
licence conditions.
New section 5.3.28(3) provides that the Victorian Commission
for Gambling Regulation's report must also include any reasons
for its findings or recommendations contained within it.
New section 5.3.29(1) provides that a temporary licensee has the
capacity to enter into any arrangements with the former licensee,
subject to the Minister's approval.
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New section 5.3.29(2) requires the former licensee to facilitate a
smooth transition for the temporary licensee. To this end, it is an
offence for the former licensee to fail to do either of the
following—

the former licensee must make any assets available to
the temporary licensee that either belong to it or are
under its control, that are reasonably necessary for the
arrangements between the two bodies. This must be
done so on reasonable terms;

the former licensee must also use its best endeavours to
make any of its staff available to the temporary licensee
that are reasonably necessary.
A maximum penalty of 100 penalty units is applicable for the
offence. This offence applies to both an original licence holder
and any temporary licence holder whose licence has been
cancelled or terminated.
Clause 15 Paragraph (a) amends the heading to section 5.5.6 of the
Gambling Regulation Act 2003 to remove the reference to
agents, as a consequence of the repeal of section 5.5.6(1) by
paragraph (b).
Paragraph (b) repeals section 5.5.6 (1) of the Gambling
Regulation Act 2003. The provision is repealed as a
consequence of new section 5.3.15A(2), which ensures that the
public lottery licensee remains responsible for all aspects of the
conduct of a lottery under gaming legislation, including those
that are conducted by contractors or agents on the licensee's
behalf.
Paragraph (c) amends section 5.5.10 of the Gambling
Regulation Act 2003 to extend a public lottery licensee's
obligations to inquire into complaints to apply to complaints
against contractors of the licensee.
Clause 16 amends section 10.1.26(1) of the Gambling Regulation Act
2003 to provide that the function exercised by the Minister or the
Victorian Commission for Gambling Regulation under the new
section 10.1.32(3), relating to the authorisation to disclose
protected information, is non-delegable to employees or members
of staff of the Victorian Commission for Gambling Regulation.
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Clause 17 substitutes a new Division 6 of Part 1 of Chapter 10 of the
Gambling Regulation Act 2003 with respect to confidentiality.
New section 10.1.29(1) inserts definitions of the following for
this Division—
"court" is broadly defined to mean any tribunal, authority or
person that has the power to require the production or documents
or the answering of questions;
"enforcement agency" is broadly defined to mean a person or
body responsible for law enforcement or approved by the
Minister under section 10.1.29(2). This includes agencies in
Victoria and in any other jurisdiction;
"gambling regulator" is broadly defined to mean a person or
body responsible for the licensing, supervision or regulation of
gambling activities. This includes regulators in Victoria and in
any other jurisdiction;
"produce" is defined to include permitting access to;
"protected information" is defined to mean information
relating to the affairs of any person or information pertaining to
the establishment or development of a casino;
"regulated person" is defined to include the following: the
Victorian Commission for Gambling Regulation, a
commissioner, an employee or member of staff of the Victorian
Commission for Gambling Regulation, the Minister, an employee
in the department administered by the Minister or a person acting
on behalf of the Victorian Commission for Gambling Regulation
or the Minister.
New section 10.1.29(2) empowers the Minister to approve a
person or body as an enforcement agency. Approval must be by
written notice provided to the Victorian Commission for
Gambling Regulation. Such approval may be granted to a person
or body that is responsible for, or engages in the licensing
(or other form of regulation) of licensees (or other persons
regulated) to be suitable, or fit and proper, persons.
New section 10.1.30 creates an offence for a regulated person to
make a record or disclose to someone any protected information
that has been acquired in the performance of functions under
gaming legislation. A maximum penalty of 60 penalty units is
applicable for this offence. There are exceptions to this offence
which permit a record or disclosure made in the performance of
functions under gaming legislation, or a record or disclosure
permitted or required under another provision of this Division
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(that is, the confidentiality regime of the Gambling Regulation
Act 2003).
New section 10.1.31 provides that a regulated person is generally
not required to make certain disclosures in legal proceedings,
unless it is for the purposes of gaming legislation. However, a
regulated person may be required to disclose information if the
Minister certifies that it is necessary in the public interest to do
so, or if the person whose affairs the information relates has
expressly authorised the disclosure.
New section 10.1.32 sets out a range of exceptions to the offence
in section 10.1.30.
New section 10.1.32(1) provides that disclosure of protected
information by a regulated person is permitted in the following
circumstances—

with the consent of the person whose affairs the
information relates;

to an enforcement agency for the purposes of law
enforcement;

to a gaming regulator for regulatory or enforcement
purposes;

with the authorisation of the Minister or the Victorian
Commission for Gambling Regulation;

if the information was considered at a public meeting
conducted by the Victorian Commission for Gambling
Regulation.
New section 10.1.32(2) provides the Minister and the Victorian
Commission for Gambling Regulation with additional powers to
disclose protected information if the Minister or the Victorian
Commission for Gambling Regulation considers that such
disclosure is in the public interest or, taking into account the
circumstances, it is not unreasonable.
New section 10.1.32(3) empowers the Minister or the Victorian
Commission for Gambling Regulation to authorise the disclosure
of protected information if it is considered that disclosure is in
the public interest or, taking into account the circumstances, it is
not unreasonable.
New section 10.1.32(4) provides that an authorisation under
section 10.1.32(3) can be framed broadly to apply to all regulated
persons or can be framed to apply only to a specified regulated
persons, or members of a specified class of regulated persons.
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New section 10.1.32(5) provides that any commissioner can
exercise the Commission's power of authorisation under
section 10.1.32(3).
New section 10.1.33 relates to the restrictions that apply to
publishing statistical information in relation to gaming venues.
New section 10.1.33(1) requires any statistical information
published about gambling expenditure in relation to gaming
venues to be aggregated accordingly—

to give the total gambling expenditure for all approved
venues in a district; and

if the district has less than 3 such venues, to give the
total gambling expenditure for all approved venues in
the district and an adjoining district to ensure that any
such information provides expenditure for at least
3 venues.
New section 10.1.33(2) provides an exception to the requirement
to publish such aggregated information as set out under
section 10.1.33(1). This provision empowers the Minister or the
Victorian Commission for Gambling Regulation to publish or
authorise the publication of disaggregated statistical information
if it is considered that it is in the public interest or, taking into
account the circumstances, it is not unreasonable to do so.
New section 10.1.34 relates to disclosures by third parties (being
persons other than a regulated person) to whom protected
information is disclosed by a regulated person.
New section 10.1.34(1) creates an offence for a person other than
a regulated person to make a record of or disclose to someone
else any protected information. A maximum of 60 penalty units
is applicable for this offence.
New section 10.1.34(2) provides the following exceptions to the
offence—

disclosures that have been authorised by the Victorian
Commission for Gambling Regulation or the Minister;

disclosures made by an enforcement agency or
gambling regulator in the performance of their
functions;

information that has been given in evidence or produced
before a court.
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Clause 18 amends Division 1 of Part 4 of Chapter 10 of the Gambling
Regulation Act 2003 with respect to the investigation powers of
the Victorian Commission for Gambling Regulation relating to
wholly-owned subsidiary companies of a public lottery licence
applicant.
Sub-clause (1)(a) amends section 10.4.1(c)(iii) to provide that the
Division applies to a wholly-owned subsidiary of a public lottery
licence applicant under section 5.3.6(1A).
Sub-clause (1)(b) amends sections 10.4.3(4) and 10.4.4(4) to
provide that neither section 10.4.3 nor section 10.4.4 applies to
an application for approval for a wholly-owned subsidiary of a
public lottery licence applicant under section 5.3.6(1A).
Sub-clause (1)(c) amends section 10.4.5(4) to provide that
section 10.4.5 does not apply to an application for approval for
a wholly-owned subsidiary of a public lottery licence applicant
under section 5.3.6(1A).
Sub-clause (2) substitutes section 10.4.6(4) of the Gambling
Regulation Act 2003 to provide that section 10.4.6 does not
apply to applications for approvals for a wholly-owned
subsidiary of a public lottery licence under Division 3 of Part 3
of Chapter 5, or under section 5.3.6(1A).
Clause 19 provides transitional provisions for Division 6 of Part 1 of
Chapter 10 of the Gambling Regulation Act 2003 with respect
to confidentiality. Clause 10.3 of Schedule 7 is substituted to
provide that certain certificates, authorisations, directions and
approvals that were in force immediately before the
commencement of this Act are taken to be in force for the
purposes of the new confidentiality regime introduced by this
Act.
Clause 20 makes a consequential amendment to repeal section 28 of the
Tobacco (Amendment) Act 2005. This provision is repealed
because it purports to repeal section 10.1.36 of the Gambling
Regulation Act 2003, to take effect on 1 July 2007.
Section 10.1.36 is contained in Division 6 of Part 1 of Chapter 10
of the Gambling Regulation Act 2003, which is being
substituted by this Act.
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