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Gaming and
Wagering
Commission of
Western Australia
2013/14 Annual Report
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TABLE OF CONTENTS
Contacts...........................................................................................................................2
Statement of Compliance.................................................................................................3
Overview of The Commission ..........................................................................................4
Executive Summary......................................................................................................4
Operational Structure .......................................................................................................5
Report on Operations.......................................................................................................9
Licensing Program......................................................................................................10
Compliance Program ..................................................................................................16
Significant Issues Impacting the Commission ................................................................ 19
Activities of the Gaming Community Trust ..................................................................... 23
Activities of the Problem Gambling Support Services Committee .................................. 25
Disclosures and Legal Compliance ................................................................................ 31
Financial Statements ..................................................................................................31
Key Performance Indicators Information ....................................................................55
Ministerial Directives ...................................................................................................63
Governance Disclosures ............................................................................................63
Other Financial Disclosures ........................................................................................63
Other Legal and Government Policy Requirements ...................................................64
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CONTACTS
Office location:
Level 1
87 Adelaide Terrace
East Perth WA 6004
Postal address:
PO Box 6119
East Perth WA 6892
Telephone:
Facsimile:
Toll free:
(08) 9425 1888
(08) 9325 1041
1800 634 541
Internet:
Email:
www.rgl.wa.gov.au
[email protected]
Availability in other formats
This publication can be made available in alternative formats such as compact disc,
audiotape or Braille.
People who have a hearing or speech impairment may call the National Relay Service on 133
677 and quote telephone number (08) 9425 1888.
The report is available in PDF format at www.rgl.wa.gov.au
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STATEMENT OF COMPLIANCE
Hon. Terry Waldron, MLA
MINISTER FOR SPORT AND RECREATION; RACING AND GAMING
In accordance with section 61 of the Financial Management Act 2006, I hereby submit for
your information and presentation to Parliament, the Annual Report of the Gaming and
Wagering Commission of Western Australia for the financial year ended
30 June 2014.
The Annual Report has been prepared in accordance with the provisions of the Financial
Management Act 2006.
Michael Connolly
ACTING CHAIRPERSON
16 September 2014
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OVERVIEW OF THE COMMISSION
EXECUTIVE SUMMARY
The Gaming and Wagering Commission met on 10 occasions during the reporting period to consider a
range of noteworthy issues.
During 2013/14 the Commission moved to an electronic and system-based monitoring of electronic
gaming machines, which led to a change of approach in the way these machines are regulated. As a
result, there has been a reduction in the number of physical inspections during the reporting
period. Similarly, a change in the casino revenue verification process meant inspectors are no longer
required to attend every physical cash count.
These changes resulted in a reduction of inspections when compared with previous years.
Notwithstanding these changes, more than 4500 inspections/audits were conducted over 2013/14 on
behalf of the commission.
After giving in principle approval in 2012 for the introduction of “Ticket in Ticket out” system (TITO) for
electronic games at Crown Perth, the Commission approved the full rollout and operational
deployment of TITO at Crown Perth casino.
In 2013/14, casino gaming revenue of $665 million was generated, producing more than $115 million
in casino taxation revenue for the State. Electronic Gaming Machines continued to generate the
majority of gross revenue, representing approximately 41 per cent of the total gross revenue, while
Baccarat generated the highest gross revenue of the table games, at approximately 34 per cent.
During the year 2208 community gaming permits were issued, resulting in a gross amount of more
than $62 million being raised by permit holders. Following the deduction of event expenses, a net
amount of approximately $21.5 million was returned to beneficiary organisations.
In the area of racing, more than $33 million was remitted to the racing industry from the collection of
the racing bets levy during the reporting period, while amendments to the Betting Control Regulations
1978 saw the introduction of three new betting products.
During the year the Commission considered a Risk Analysis Report prepared by Gaming Laboratories
Australia in relation to the Phoenix wagering system operated by Racing and Wagering Western
Australia. The report examined the operational, procedural and security issues impacting on the
wagering system, and found the Phoenix system to be appropriate to RWWA’s operations.
In December 2012, Ms Helen Cogan was appointed to the Commission in a temporary capacity until a
substantive member was appointed during the 2013/14 reporting period. Ms Cogan served on the
Commission for a period of 12 months, and for that I express my sincere gratitude.
I also take this opportunity to thank all members for their contribution to the effective operation of the
Commission, as well as staff from the Department of Racing, Gaming and Liquor for their ongoing
support during the year.
Barry A Sargeant
CHAIRPERSON
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OPERATIONAL STRUCTURE
ENABLING LEGISLATION
The Gaming and Wagering Commission of Western Australia is established as a statutory
authority under section 4 of the Gaming and Wagering Commission Act 1987.
RESPONSIBLE MINISTER
As at 30 June 2014, the Minister responsible for the Racing and Gaming portfolio was the
Honourable Terry Waldron MLA, Minister for Sport and Recreation; Racing and Gaming.
RESPONSIBILITIES OF THE GAMING AND WAGERING COMMISSION
The Gaming and Wagering Commission Act 1987 legalises social gambling and allows other
forms of gaming (minor gaming) for fund raising purposes by non-profit organisations
provided they are authorised by a gaming permit and conducted on approved premises.
Minor gaming comprises of two-up, bingo, standard lotteries, continuing lotteries and non
casino type games approved by the Commission.
The Commission is responsible for controlling and regulating gambling in Western Australia;
its practices and policies are designed to maintain public confidence in the integrity of
gambling provided. The main duties of the Commission are to:
§
administer the laws relating to gaming and betting;
§
review the conduct, extent and character of gambling operations and the provision, use
and location of gaming and wagering facilities;
§
formulate and implement policies for the scrutiny, control and regulation of gaming and
betting, taking into consideration the requirements and interests of the community as a
whole;
§
issue permits, certificates and employee licences; and
§
provide advice to the Minister on any matter relating to gaming and betting.
The broad objectives of the Commission in relation to the State's gambling industry are to:
§
approve, or withhold approval from persons, premises, games and gambling in relation to
the Betting Control Act 1954, the Casino Control Act 1984, the Gaming and Wagering
Commission Act 1987 and the Racing and Wagering Western Australia Act 2003;
§
licence directors and key employees of Racing and Wagering Western Australia, subject
to the Racing and Wagering Western Australia Act 2003; and to grant, revoke or amend
such approvals and licences;
§
licence persons, partnerships and bodies corporate as bookmakers, bookmakers’
employees and bookmakers’ managers, subject to the provisions of the Betting Control
Act 1954; and to grant, revoke or amend such approvals and licences; and
§
seek, receive, disseminate or publish information relevant to gambling and the incidence
of gaming and wagering and its effect in the community.
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ADMINISTERED LEGISLATION
The Gaming and Wagering Commission is responsible for administering the following
legislation:
§
Betting Control Act 1954;
§
Bookmakers Betting Levy Act 1954;
§
Casino (Burswood Island) Agreement Act 1985;
§
Casino Control Act 1984;
§
Gaming and Betting (Contracts and Securities) Act 1985;
§
Gaming and Wagering Commission Act 1987;
§
Gaming and Wagering Commission (Continuing Lotteries Levy) Act 2000;
§
Racing and Wagering Western Australia Act 2003;
§
Racing and Wagering Western Australia Tax Act 2003;
§
Racing Bets Levy Act 2009; and
§
Racing Restriction Act 2003.
OTHER LEGISLATION IMPACTING ON THE COMMISSION’S ACTIVITIES
In the performance of its functions, the Gaming and Wagering Commission of Western
Australia complies with the following relevant written laws:
§
Auditor General Act 2006;
§
Contaminated Sites Act 2003;
§
Disability Services Act 1993;
§
Equal Opportunity Act 1984;
§
Electronic Transactions Act 2003;
§
Financial Management Act 2006;
§
Freedom of Information Act 1992;
§
Industrial Relations Act 1979;
§
Minimum Conditions of Employment Act 1993;
§
Occupational Safety and Health Act 1984;
§
Public Sector Management Act 1994;
§
Salaries and Allowances Act 1975;
§
State Records Act 2000; and
§
State Supply Commission Act 1991.
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SHARED RESPONSIBILITIES WITH OTHER AGENCIES
The Gaming and Wagering Commission of Western Australia did not share any
responsibilities with other agencies during the reporting period.
ADMINISTRATIVE STRUCTURE
Section 12 of the Gaming and Wagering Commission Act 1987 provides that membership of
the Commission shall comprise:
§ the person holding or acting in the office of Director General of the Department of Racing,
Gaming and Liquor, who shall be ex officio Chairman of the Commission; and
§ not less than five, nor more than seven, members appointed by the Minister as persons of
integrity, good repute and relevant experience.
A member, other than the ex officio member, shall hold office for such period not exceeding
three years, as specified in the instrument of appointment, but is eligible for reappointment.
A person who is, or has been, a member of the Commission is not personally liable for any
act done or omitted in good faith by the Commission or by that person acting as a member.
COMMISSION MEMBERSHIP
As at 30 June 2014, the members of the Gaming and Wagering Commission of Western
Australia were:
Mr Barry A Sargeant PSM – Chairperson
Mr Sargeant is the Director General of the Department of Racing, Gaming and Liquor and has
held the position of Chairman of the Gaming and Wagering Commission since 1992.
Mr Andrew Duckworth – Member
Mr Duckworth has worked in senior positions in a number of Western Australian Government
departments. Following a period as a prisoner educator, Mr Duckworth moved to the Health
Department where he was involved in the creation and management of several Western
Australian health promotion programs.
Mr Kevin Harrison – Member
Mr Harrison is a past Commissioner, Chairman and Chief Executive of the West Australian
Tourist Commission. He has served on government boards at state, national and
international levels.
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Professor Colleen Hayward AM – Member
Professor Hayward has 30 years experience in providing input to policies and programs on a
wide range of issues reflecting the needs of minority groups. She is currently Edith Cowan
University’s Pro-Vice-Chancellor for Equity and Indigenous issues across the university.
Mr Robert Bovell – Member
Mr Bovell recently retired as the Chief Executive of the Western Australian Trotting
Association after 23 years of service. As a result, he has extensive experience and
knowledge of gambling, particularly in bookmaking and on-course totalisator wagering
operations.
Mr Trevor Fisher - Member
Mr Fisher farmed in Kojonup for 42 years and was heavily involved in the Kojonup
community, taking positions in local government and the football and tennis clubs.
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REPORT ON OPERATIONS
REPORT ON OPERATIONS
Actual Results versus Budget Targets
TARGET
$
FINANCIAL TARGETS
Total cost of services (expense limit)
(sourced from Statement of Comprehensive Income)
Net cost of services
(sourced from Statement of Comprehensive Income)
Total equity
(sourced from Statement of Financial Position)
Net increase / (decrease) in cash held
(sourced from Statement of Cash Flows)
Approved full time equivalent (FTE) staff level2
SUMMARY OF KEY PERFORMANCE INDICATORS
1
ACTUAL
$
VARIATION
$
$4,868,650
$4,617,102
($251,548)
$470,000
$513,923
$43,923
$8,194,043
$7,510,571
($683,472)
($470,000)
($426,269)
$43,731
No.
No.
No.
0
0
0
3
KEY EFFECTIVENESS INDICATOR
Percentage of unlawful gambling detected in relation
to total audits
Number of violation reports/infringement notices
issued in relation to casino gaming
KEY EFFICIENCY INDICATOR
TARGET
ACTUAL
1.00%
1.19%
0.19%
5
9
4
TARGET
ACTUAL
VARIATION
VARIATION
Cost per Gambling Certificate/Permit issued
$518
$491
($27)
Cost per Casino Employee Licence issued
$909
$779
($130)
$212,244
$111,937
($100,307)
$45,481
$35,980
($9501)
$936
$936
Cost of monitoring the integrity of casino gaming
operations over one year
Cost per instance of unlawful gambling detected
Cost per casino submission received
$0
1 As specified in the Budget Statements for the year in question.
2 Executive support for the Commission is provided by the Department of Racing, Gaming and Liquor.
3 Explanations for the variations between budget target and actual key performance indicator results are presented at pages
56 to 59.
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LICENSING PROGRAM
COMMUNITY GAMING
Section 51 of the Gaming and Wagering Commission Act 1987 provides that gaming cannot
be promoted or otherwise conducted for the purposes of private gain or any commercial
undertaking.
Officers of the Department of Racing, Gaming and Liquor act on behalf of the Commission to
evaluate and determine applications that have been made pursuant to the provisions of the
relevant legislation, which results in the granting or refusal of applications and the subsequent
issue of the licence or permit sought.
People who assist in the conduct of community gaming for reward are required to hold a
Gaming Operator’s Certificate. The integrity of gaming operators is paramount in the conduct
of community gaming activities, and applicants must satisfy a probity investigation in addition
to demonstrating the required skills needed for working in the gaming industry.
During 2013/14, 2208 community gaming permits were approved, while a total of 234
permits/certificates were issued across a number of areas relating to various gaming
activities, such as the approval of premises to enable gaming activities to be conducted.
The following table provides a four-year summary of the total number of gaming permits and
certificates issued by the Commission.
NUMBER
OF
GAMING
PERMITS/CERTIFICATES
2010/11
ISSUED
2011/12
2012/13
2013/14
Bingo
193
207
192
169
Continuing Lottery
246
249
212
194
Gaming Functions
441
462
456
437
Standard Lottery
907
879
856
936
Calcutta
41
44
51
47
Two-up
52
48
50
80
VLTS
386
382
386
345
Total
2266
2271
2203
2208
Class of Gaming Equipment
7
7
5
6
Item of Gaming Equipment
3
3
3
2
Approval of Premises
135
164
153
196
Gaming Operator’s Certificate
42
34
26
21
Supplier’s Certificate
7
9
8
9
194
217
195
234
Total
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A gross amount of approximately $62.3 million was raised by permit holders during the
reporting period, this represents a 10 percent increase in gross revenue generated by permit
holders since 2011/12.
Following the deduction of expenses associated with running the event, a net amount of
approximately $21.5 million was returned to beneficiary organisations for the active
promotion, support or conduct of sporting, social, political, literary, artistic, scientific,
benevolent, charitable or other similar activities within the Western Australian community.
This represents a 22 percent increase in net proceeds being returned to charities compared
with 2011/12.
The following table provides a three-year summary of the total gross and net revenue raised
by gaming permit holders over the past three years.
COMPARISON OF
PERMIT HOLDERS
GROSS
AND
2011/12
NET
REVENUE
2012/13
RAISED
BY
GAMING
2013/14
Gross
Net
Gross
Net
Gross
Net
$5,692,579
$799,015
$5,587,866
$375,101
$5,378,510
$594,019
$7,310,059
$1,473,857
$6,245,089
$1,289,290
$5,824,688
$1,156,485
$2,977,872
$466,259
$2,921,635
$447,553
$3,652,391
$444,596
$30,878,560
$13,613,067
$34,838,005
$15,792,721
$36,672,333
$18,267,647
Calcutta
$510,907
$135,320
$500,938
$99,208
$513,131
$80,066
Two-up
$44,875
$24,392
$43,800
$23,018
$87,609
$39,084
VLTs
$9,125,835
$1,113,594
$8,384,101
$1,003,435
$10,206,471
$935,881
TOTAL
$56,540,687
$17,625,504
$58,521,434
$19,030,326
$62,335,133
$21,517,778
Bingo
Continuing
Lottery
Gaming
Functions
Standard
Lottery
P a g e | 12
The following table provides a four-year summary of revenue raised from gaming-related fees
charged by the Gaming and Wagering Commission.
The table shows that there has been approximately a 59 per cent reduction in revenue raised
through casino non key employee application fees compared to with the previous year. This is
mainly attributed to a reduction in recruitment by Crown Perth which has undergone various
internal organisational structural changes that has particularly affected staffing levels for the
main gaming floor where a casino employee licence is required.
REVENUE RAISED BY FEES
2010/11
2011/12
2012/13
2013/14
Bingo
$61,790
$63,664
$61,966
$59,184
Continuing Lottery
$71,934
$90,060
$74,013
$78,271
Gaming
$347,080
$361,100
$328,260
$363,429
Class of Gaming Equipment
$735
$735
$529
$650
Item of Gaming Equipment
$180
$180
$181
$124
$62,183
$57,715
$58,281
$66,569
Calcutta
$3910
$4405
$4989
$4724
Two-up
$15,025
$13,635
$12,145
$19,183
Operator's Certificate
$9030
$7430
$5691
$4807
Supplier's Certificate
$1680
$1695
$1476
$3054
$104,572
$85,431
$78,456
$79,716
Approved Premises
$7600
$8330
$7620
$11,141
Bookmaker
$2435
$2105
$325
$408
Bookmaker Manager
$380
$300
$155
$582
Bookmaker Employee
$1310
$1110
$1500
$1080
RWWA Director
$620
$1045
$1304
$988
RWWA Key Employee
$840
$5545
$2571
$7834
Casino Key Employee
$21,635
$20,950
$28,524
$24,205
Casino Non Key Employee
$119,285
$123,305
$138,770
$57,064
Total
$832,224
$848,740
$806,756
$783,013
Standard Lottery
VLT
P a g e | 13
CASINO GAMING
Licensing of Casino Employees and Casino Key Employees
In order to maintain public confidence in those involved in providing gaming activities at
Crown Perth, all people who have managerial responsibilities or have duties that support the
licensed casino must be licensed under the Casino Control (Burswood Island) (Licensing of
Employees) Regulations 1985.
The following table provides a four-year summary of the total number of licences in operation.
CASINO EMPLOYEE
LICENSING
2010/11
2011/12
2012/13
2013/14
Casino Key Employee
378
376
417
408
Casino Employee
1686
1720
1895
1839
Total
2064
2096
2312
2247
Casino Revenue
In 2013/14, casino gaming revenue of $665 million was generated, producing more than $115
million in casino taxation revenue for the State.
The following table provides of a comparison over the past two years of gross casino revenue
and tax payable. Electronic Gaming Machines continue to generate the majority of gross
revenue and represents approximately 41 per cent total gross revenue for 2013/14, while
Baccarat generates the highest gross revenue of the table games, representing
approximately 34 per cent.
GROSS CASINO REVENUE BY GAME TYPE AND TOTAL TAX PAYABLE
2012/13
2013/14
$269,064,743
$272,005,308
Fully Automated Table Games
$2,208,529
$4,788,040
Roulette Games
$65,607,576
$63,775,945
Baccarat Games
$171,312,467
$229,135,313
Blackjack
$55,305,350
$48,741,194
Other games
$33,376,024
$46,614,883
Total Gross Casino Revenue
$596,874,689
$665,060,683
Tax Payable
$106,340,205
$115,209,032
Electronic Gaming Machines
P a g e | 14
As at 30 June 2014, Crown Perth was permitted to have a maximum of 270 table games, and
2200 electronic gaming machines. The following table provides a two-year summary of the
actual number of table games and electronic gaming machines in operation at Crown Perth
casino as of that date.
AS AT 30 JUNE EACH YEAR
2013
2014
Table Games
226
244
Electronic Gaming Machines
2100
2192
Casino Attendance
The expansion of Crown Perth from a gaming based enterprise to a broader entertainment
complex has seen considerable increases in attendance figures. Compared with 2010/11,
there has been approximately a 49 per cent increase in attendance. This figure is expected to
continue growing as the complex undergoes further development over the coming years.
The following table provides a four-year summary of the total number of visitors to Crown
Perth Casino.
CASINO ATTENDANCE FIGURES
2010/11
2011/12
2012/13
2013/14
5,716,078
5,659,122
7,726,346
8,507,044
WAGERING
Licensing of Racing and Wagering Western Australia (RWWA) Directors and Key
Employees
RWWA’s directors and key employees are required to be licensed in accordance with the
Racing and Wagering Western Australia Act 2003. The following table provides a four-year
summary of the total number of licences in operation.
RWWA EMPLOYEE LICENCES
2010/11
2011/12
2012/13
2013/14
Directors
12
11
11
11
Key Employee
72
73
72
76
Total
84
84
83
87
P a g e | 15
Licensing of Bookmaker Operations
Bookmakers and bookmakers’ employees are required to be licensed in accordance with the
Bookmakers Betting Levy Act 1954. The following table provides a summary of the total
number of licences in operation over the past four years. It can be seen that the number of
licences has declined over the past four years, which is a result of increased competition with
large out-of-State corporate and online bookmakers.
BOOKMAKER LICENCES
2010/11
2011/12
2012/13
2013/14
49
45
40
38
2010/11
2011/12
2012/13
2013/14
Issued
3
2
1
1
Expired
0
0
0
0
2010/11
2011/12
2012/13
2013/14
Issued
43
33
50
36
Expired
26
26
54
39
As at 30 June
BOOKMAKER’S
LICENCES
BOOKMAKER’S
LICENCES
MANAGER
EMPLOYEE
Racing Bets Levy Returns
The Commission is responsible for collecting and disbursing the racing bets levy paid by
wagering operators who use Western Australian race fields as part of their wagering
operations. The Commission remits all levies (less a monthly administration fee) to RWWA
for distribution among all WA registered racing clubs in accordance with its Strategic
Development Plan.
During the reporting period, the Commission remitted a total of $33.1 million in racing bets
levy to RWWA for distribution. Since the introduction of the racing bets levy scheme, the
Commission has remitted a total of $157.2 million to RWWA.
P a g e | 16
COMPLIANCE PROGRAM
To allow for gaming to be conducted lawfully and in a responsible manner, the Gaming and
Wagering Commission provides a range of inspectorial and audit functions for casino,
wagering and community gaming. Inspectorial functions carried out by the Commission
include:
§
Casino surveillance;
§
Daily verification of casino gaming revenue and monthly casino tax reconciliations;
§
Physical inspections and auditing of financial returns relating to permitted gaming
activities;
§
Inspection of race day activities;
§
Audits of TAB agencies; and
§
Investigation of complaints.
The Commission also has an arrangement with Lotterywest to conduct verification functions
for all Lotto and Cash 3 draws.
The inspectorial program also enforces the provisions of the Racing Bets Levy Act 2009,
Betting Control Act 1954, the Casino Control Act 1984, the Gaming and Wagering
Commission Act 1987 and the Racing and Wagering Western Australia Act 2003, to ensure
that adequate controls are in place to maintain compliance with legislative requirements and
to monitor the ongoing effectiveness of those controls.
The following table provides a four-year summary of the number and nature of audits,
inspections, assessments and investigations conducted by the Commission. A breakdown of
these figures is provided in the subsequent table.
In 2013/14, the Commission moved to electronic and system-based monitoring of electronic
gaming machines, subsequently removing the need to physically inspect each machine to
ensure compliance. This resulted in a reduction of inspections, as can be seen below.
Similarly, the casino revenue verification process was also amended to remove the need for
inspectors to attend every physical count of cash; instead, revenue is calculated and verified
using an approved, tested and certified information system. This change also resulted in a
reduction of inspections from previous years.
AUDITS, INSPECTIONS, ASSESSMENTS AND
INVESTIGATIONS
2010/11
2011/12
2012/13
2013/14
Racing
535
333
323
522
Lotterywest
761
754
706
756
Community Gaming
747
398
364
280
Casino
5483
3714
3726
3021
Total
7526
5199
5119
4579
P a g e | 17
The following table provides a four-year summary of the number of compliance activities
undertaken by the Gambling Regulation Division.
INSPECTORATE PROGRAM
2010/11 2011/12 2012/13 2013/14
Wagering
Bookmaker telephone betting inspections
Bookmaker licensing and equipment checks
5
3
0
0
16
1
18
1
Bookmaker betting operations inspections
3
0
1
1
TAB agency inspections and cash counts
On course tote inspections and audits
Sports betting contingency audit
247
54
0
144
1
0
180
2
0
371
4
0
7
3
0
0
180
156
79
92
0
3
0
1
Cash 3 draw verification
364
366
365
365
Lotto/Soccer Pools draw verification
364
366
312
365
Promotional draws verification
24
13
18
18
Lotterywest GST reimbursement claims received
9
9
11
8
Lotterywest GST reimbursement audits conducted
0
0
0
0
Gaming inspections performed
56
149
198
154
Gaming investigations conducted
380
16
15
4
Gaming audits conducted
223
150
91
90
6
0
0
0
EGM Prom and seal checks completed
Daily revenue figures calculated
Illegal activity detected
Casino audits and inspections completed
2871
365
0
1497
1380
366
0
1252
2564
363
6
7
403
365
10
1476
Hard and soft cash counts completed
Casino GST reimbursement claims received
676
12
677
10
725
12
726
12
Race fields bet levy return audits
Racing industry GST reimbursement claims
received
Racing industry GST reimbursement audits
conducted
Lotterywest
Community Gaming
Casino
Equipment checks completed
P a g e | 18
INSPECTORATE PROGRAM
2010/11 2011/12 2012/13 2013/14
Submissions to the Gaming and Wagering Commission
Racing industry
4
6
7
2
Racing and Wagering WA
Gaming
Casino
Gaming Compliance issues
32
73
56
15
20
67
29
16
37
41
49
19
32
27
29
5
The following table provides a four-year summary of the number and nature of noncompliance issues detected by the Department’s Gambling Regulation Division.
NON
COMPLIANCE
WITH
LEGISLATIVE
2010/11 2011/12 2012/13 2013/14
REQUIREMENTS
Community Gaming and Casino Infringements
49
22
37
34
Issued
Gaming Cautions Issued
Violation reports against the casino operation
(relating to breaches of game rules, procedures or
directions)
Casino Prosecutions
Racing Prosecutions/Cautions Issued
Total
32
15
22
8
5
7
11
9
0
12
98
0
0
44
2
5
77
0
2
53
P a g e | 19
SIGNIFICANT ISSUES IMPACTING THE COMMISSION
AMENDMENTS TO WESTERN AUSTRALIAN GAMBLING LEGISLATION
On 1 July 2013, Cabinet approved drafting of amendments to the:
§
Racing and Wagering Western Australia Act 2003;
§
Gaming and Wagering Commission Act 1987;
§
Betting Control Act 1954; and
§
Casino Control Act 1984.
The major objectives of the amendments are to:
§
implement the recommendations of the Joint Standing Committee on the Review of the
Racing and Wagering Western Australia Acts;
§
reduce the regulatory burden on business and the community;
§
introduce additional consumer protection measures in respect of responsible gambling
matters; and
§
align with other Australian jurisdictions the application of “bet backs” in relation to
wagering operations under the racing bets levy scheme.
Amendments to the Racing and Wagering Western Australia Act 2003, will, among minor
operational and consequential amendments, include the recommendations of the Joint
Standing Committee on the Review of the Racing and Wagering Western Australia Acts as
endorsed by Cabinet and clarify that the Minister can revoke or cancel approvals given for
RWWA to participate in a combined totalisator pool scheme and jointly operated fixed odds
wagering arrangement.
With respect to the Gaming and Wagering Commission Act 1987, amendments will include
further consumer protection measures to allow the Gaming and Wagering Commission to
prohibit remote gambling facilities from being established in locations that are not conducive to
gambling and therefore not in the public interest ( such as shopping centres). This will also
prohibit the advertising of live odds during sporting events including the advertising of wagering
operators and live odds at sporting arenas; repeal the prohibition on foreign lotteries being
conducted in Western Australia, in line with the agreement to have a nationally consistent
approach to fundraising regulation; and make other minor operational and consequential
amendments.
The main focus of the proposed amendments to the Betting Control Act 1954, relates to the
racing bets levy scheme, particularly, in relation to off-setting “bet backs” in determining the
racing bets levy. This amendment will bring Western Australia into line with other Australian
racing jurisdictions in the treatment of “bet backs”.
Minor operational and consequential amendments are proposed for the Casino Control Act
1984.
P a g e | 20
The first draft Amendment Bill containing the proposed amendments was received in July
2014.
CHANGES TO REGULATIONS
§
On 12 July 2013, the Racing and Wagering Western Australia Regulations 2003 were
amended by the Racing and Wagering Western Australia Amendment Regulations 2013 to
prescribe a reduced rate of contribution of 20.5 percent to the Sports Wagering Account for
the period 1 August 2013 to 31 July 2015, after which the rate of contribution will revert to
the 25 percent specified in the RWWA Act.
§
On 29 November 2013, the Rules of Wagering 2005 were amended by the Rules of
Wagering Amendment Rules (No. 2) 2013 to provide for the introduction of three new
betting products – Top Fluctuation, Starting Price Guarantee and Tote Based Betting.
§
On 30 November 2013, the Betting Control Regulations 1978 were amended by the
Betting Control Amendment Regulations (No. 2) 2013 to provide for the introduction of
three new betting products – Top Fluctuation, Starting Price Guarantee and Tote Based
Betting.
§
New fees and charges effective 1 January 2014 were introduced by the following
amendment regulations:
§
-
Betting Control Amendment Regulations (No. 3) 2013
-
Casino Control (Burswood Island) (Licensing of Employees) Amendment Regulations
2013
-
Casino Control Amendment Regulations 2013
-
Gaming and Wagering Commission Amendment Regulations 2013
-
Racing and Wagering Western Australia Amendment Regulations (No. 2) 2013
-
Racing Penalties (Appeals) Amendment Regulations 2013.
On 11 April 2014, the Casino Control (Burswood Island) (Licensing of Employees)
Regulations 1985 were amended by the Casino Control (Burswood Island) (Licensing Of
Employees) Amendment Regulations 2014 to allow for the submission of a National Police
Certificate, which is not more than three months old, for the purpose of obtaining a licence
for a Non-Key Casino Employee.
PHOENIX WAGERING SYSTEM
During the year the Commission considered the Risk Analysis Report prepared by Gaming
Laboratories Australia (GLA) in relation to the Phoenix wagering system operated by Racing
and Wagering Western Australia. GLA was contracted by the Commission to conduct a risk
analysis of the computerised wagering system and examine the operational issues and
procedures impacting on the wagering system; GLA also conducted a security review of the
system architecture.
P a g e | 21
GLA noted the following overall strengths and positive process attributes while conducting the
risk analysis:
§
Wagering operations at RWWA are well established and have been in place since
RWWA’s inception.
§
Changes to RWWA’s gaming system undergo a rigorous and well-documented change
control process.
§
Security considerations are included in the design and development approach adopted by
RWWA for its in-house software creation.
§
RWWA’s investment in current hardware and software has enabled it to stay
technologically competitive with other wagering operators.
§
The segregation of responsibilities and control of access to the gaming system have been
implemented with a balance of business and security requirements.
The Commission noted that the Phoenix Wagering System complies with all statutory
requirements under the Racing and Wagering Western Australia Act 2003, with the exception
for the provision of a minimum dividend of 50 cents for non-combined pools. Amendments to
the Racing and Wagering Western Australia Regulations 2003 and Betting Control
Regulations 1978 are currently being progressed to rectify this exception.
NEW BETTING PRODUCTS
On 30 November 2013, amendments were introduced into the Betting Control Regulations
1978 and Rules of Wagering 2005 which allow licensed bookmakers in Western Australia to
offer the following new betting products:
§
Top Fluctuation;
§
Starting Price Guarantee; and
§
Tote Based Betting.
Top Fluctuation is a win wager where the odds payable are the highest odds offered by oncourse bookmakers, as determined by the Australian Prices Network.
Starting Price Guarantee is a win wager where the odds payable are the higher of the odds
displayed by the bookmaker at the time the bet is placed and the final odds offered by oncourse bookmakers, as determined by the Australian Prices Network.
Tote Based Betting (or Best of Tote) are win or place wagers where the odds are based on
dividends paid by Australian totalisators.
The amendments were introduced following a request from the Western Australian
Bookmaker’s Association to allow its members to better compete with the large interstate
corporate bookmakers. The new bet types can only be placed through a bookmaker’s
approved telephone and/or internet system.
P a g e | 22
NATIONAL GAMBLING REFORM ACT 2012
The Commonwealth’s National Gambling Reform Act 2012 came into operation on 12
December 2012 after being introduced by the previous Federal Government.
The object of the legislation was to reduce the incidence of problem gambling and harm
caused by problem gambling. To achieve this, the legislation introduced a National Gambling
Regulator; required venues to have a pre-commitment system; required gaming machines to
display electronic warnings; and placed a withdrawal limit on ATM machines located in
gaming venues.
However, in November 2013 the current Federal Government introduced the Social Services
and Other Legislation Amendment Bill 2013 into the Australian Parliament to:
§
abolish the National Gambling Regulator and the supervisory/gaming machine regulation
levy;
§
remove the ATM withdrawal limit, dynamic warnings, the mandatory pre-commitment trial
and the Productivity Commission’s requirement to undertake reviews; and
§
express the Commonwealth’s commitment to encouraging responsible gambling, including
the development and implementation of voluntary pre-commitment.
The Bill was passed by the Parliament on 25 March 2014.
ATTENDANCES AT CONFERENCES AND MEETINGS
Senior officers from the Department attended the following conferences in 2013/14:
§
Mr Sargeant travelled to Macao in July 2013 to gain a greater understanding of the
importance of the international VIP business to casinos;
§
Mr Mick Connolly (Deputy Director General) attended the Electronic Gaming Machine
National Standards working party meeting and Australasian Gaming Expo in August 2013
in Sydney;
§
Mr Sargeant attended the CEOs of Casino and Gaming Regulators Forum in November
2013, in Hobart;
§
Messrs Connolly and Lance Sgro (Director Gambling Regulation) attended the Better
Practice in Investigation and Inspection workshop in November 2013 in Adelaide; and
§
Mr Sargeant attended the CEOs Forum and Annual Australasian Casino and Gaming
Regulators Conference in Melbourne in June 2014.
P a g e | 23
ACTIVITIES OF THE GAMING COMMUNITY TRUST
The Gaming Community Trust (GCT) is established under section 109D of the Gaming and
Wagering Commission Act 1987 to give advice and make recommendations to the Minister on
applications for moneys standing to the credit of the Trust Fund for the benefit of the
community.
The money credited to the Trust Fund is derived from unclaimed winnings that are payable
from the conduct of gaming or betting that have not been claimed within 12 months after the
right to be paid them has expired.
As at 30 June 2014, the members of the Gaming Community Trust were:
§
Barry Sargeant (Chairperson)
§
Jan Cooper (Member)
§
Joshua Preston (Member)
§
Stephen Wayne Reynolds (Member)
§
Maxine Connolly (Member)
The following grants continue to be funded by the GCT and below is a summary of the major
milestones achieved to date:
Epilepsy Action Australia
In April 2012, Epilepsy Action Australia (EAA) was successful in its application for funding of
$300,000 over three years from the GCT. The grant funds the Regional Outreach Service
Program which provides education and training to epilepsy sufferers, their families and
professionals who work with people who have epilepsy.
In January 2014, the Chairman of the GCT approved a change to the program which initially
aimed to fund the employment of four epilepsy registered nurses located in the regions of
Geraldton, Kalgoorlie, Albany and Broome. The nurses would have delivered individualised
epilepsy education and other awareness raising projects to promote the online tools/services
available for people with epilepsy. However, after undertaking extensive community research
and engagement, EAA considered that the original model proposed was not sustainable and
proposed an alternative sustainable model that could meet the service needs of regional
areas and provide (within the grant funding) a broader service by building partnerships with
local professionals and carers instead of employing four registered nurses in the nominated
areas.
Since the project was introduced in July 2012, the following milestones have been achieved:
§
Recruitment and induction of a Community Development Officer;
§
Development of community profiles for the Goldfields, Midwest, Great Southern and
Kimberley Regions;
§
Promotion of the project online, via local media and industry forms;
P a g e | 24
§
Completion of a comprehensive community research strategy consisting of surveys and
in-depth
interviews
to
encourage
input
from
local
stakeholders.
The results from this research form the basis of the service scope and implementation
plan for the project; and
§
Development of an online learning module specifically created for Aboriginal and Torres
Strait Islanders (ATSI), and aimed at existing healthcare workers (including students) and
healthcare teachers at indigenous tertiary institutions
Western Australian Amateur Football League
The Integrated Football League program was established by the Western Australian Amateur
Football League (WAAFL) in 2009 to provide opportunities for those with intellectual
disabilities to participate in Australian Rules Football.
In October 2011, the WAAFL was successful in obtaining a $20,000 from the GCT to promote
and develop the Integrated Football League Program. Following the success of the program,
in June 2013, the Minister for Racing and Gaming approved a further application by the
WAAFL for an additional $60,000 over two years to continue the promotion and development
of the Integrated Football League. The first payment was made in August 2013.
There are currently eight competing clubs and approximately 180 individuals with intellectual
disabilities participating in the league.
Town of Bassendean
In July 2013, the Town of Bassendean, in partnership with community organisation Stand By
Me, received its first Gaming Community Trust instalment ($26,500) of a total of $53,000 to
fund its Ladders and Rafts Project. The aim of the project is to provide young people with the
support needed to reduce their level of risk from drug related criminal activity and drug abuse,
through early intervention strategies and personal development.
The grant funds the development and delivery of a series of programs and workshops to
youths considered to be “at risk”. These resources will be collated into a training package for
partner agencies to run the program using their own resources and budgets in the future.
To date, 39 workshops have been delivered with 130 participants.
VenuesWest
In July 2013, the Minister for Racing and Gaming approved a grant of $250,000 to the
Western Australian Sports Federation (care of VenuesWest) to transfer the WA Sports
Museum collection to the WA Museum where it will be prepared for future display to be
enjoyed by all Western Australians.
The collection contains more than 2500 items of WA sporting collectables and is housed at
Challenge Stadium and managed by VenuesWest.
P a g e | 25
The grant has funded:
§
An audit of the collection which at 30 June was 60 percent complete; and
§
The identification, documentation, and ownership status of collection items.
The formal handover of the collection to the Western Australian Museum took place on 14
March 2014. This event was presided over by the Honourable Terry Waldron MLA Minister
for Sport and Recreation and Racing and Gaming, and the Honourable John Day Minister for
Planning and Culture and the Arts, together with sporting identities Mike Hussey and Graham
McKenzie. Among a number of donated sporting items, Western Australian cricket legend
Mike Hussey donated his batting gloves, helmet and two cricket bats to the collection.
The completion of the project is due in May 2015 with a commitment to display the collection
at the WA Museum by 2020.
ACTIVITIES OF THE PROBLEM GAMBLING SUPPORT SERVICES
COMMITTEE
The Problem Gambling Support Services Committee (PGSSC) addresses the social and
economic issues that result from problem gambling in Western Australia. The Committee is
comprised of representatives from the gambling industry and government agencies.
The Committee’s mission is to promote responsible gambling by providing the community of
Western Australia with information regarding the impact and consequences of problem
gambling.
Voluntary contributions are made from each member of the PGSSC and held in a gambling
support fund administered by the Department of Racing, Gaming and Liquor.
As at 30 June 2014, the membership of the PGSSC was:
§
Barry A Sargeant (Chairperson);
§
Barry Felstead (Crown Perth);
§
Richard Burt (Racing and Wagering Western Australia);
§
Jan Stewart (Lotterywest);
§
Jason Cheetham (WA Bookmakers Association); and
§
Scott Hollingworth (Department of Local Government and Communities).
P a g e | 26
The primary focus of the PGSSC is to fund support services and raise awareness of problem
gambling for people affected by gambling in Western Australia. In this regard, the PGSSC
funds the following counselling and support services:
§
24/7 Problem Gambling Helpline;
§
Gambling Help WA (face-to-face counselling); and
§
Gambling Help Online (online counselling).
The PGSSC also funds research projects commissioned by Gambling Research Australia,
awareness campaigns and other one-off projects such as Responsible Gambling Awareness
Week and the Gambleaware website.
Responsible Gambling Awareness Week (RGAW) is a national event held each May to raise
awareness among gamblers and their support networks about responsible gambling practices
and the help services that are available.
Responsible Gambling Awareness Week 2014 ran between 26 May and 1 June 2014 with the
key theme “Gamble Aware – When does the fun stop for you?”
The Gambleaware website was originally created in 2009
to promote RGAW.
The Gambleaware logo is
trademarked and owned by the Gaming and Wagering
Commission of WA.
Due to the success of the website, it is now utilised not
only for promoting RGAW but also for the promotion of the
PGSSC funded help services.The website can be found at
www.gambleaware.com.au
During the year, the PGSSC approved the development of an awareness campaign to focus
on the digital medium. To maximise exposure through this medium and provide relevant
information to different user groups, a review of the gambleaware website will be undertaken.
Online advertising will also be placed next year to generate traffic to the site.
The Gambleaware website will provide the key platform for engaging the target audience and
allow people to easily access help through the Helpline, Gambling HelpWA or Gambling Help
Online.
Problem Gambling Helpline
The Problem Gambling Helpline is a specialist toll-free telephone counselling and referral
service funded by the PGSSC for Western Australian problem gamblers and their families.
The Helpline is available 24-hours-per-day, seven-days-per-week.
The single 1800 gambling helpline allows people to seek immediate help through a counsellor
in each State or Territory simply by ringing one number from anywhere in the country. The
national number is 1800 858 858.
P a g e | 27
The PGSSC covers the call costs for any Western Australian callers using the national
number from a landline.
A significant feature of the service in Western Australia is the provision of on-going telephone
counselling (i.e. regular booked sessions) for those people for whom face-to-face counselling
is not available or appropriate. This is particularly beneficial for people in regional and remote
parts of the State.
Medibank Health Solutions Telehealth Pty Ltd currently provides the helpline service for WA
via a service provision contract. The Department of Racing, Gaming and Liquor, on behalf of
the Gaming and Wagering Commission, is responsible for managing the helpline contract and
its services, including:
§
Ensuring adequate qualified counselling staff are provided;
§
Providing continued improvements to service delivery;
§
Providing on-going analysis of reports and statistics;
§
Reporting to the PGSSC on the service delivery; and
§
Handling the request for the tender process at the completion of each contract.
The following table provides a three-year summary of the total number of telephone calls
relating to problem gambling and the number of calls received which were not related to
gambling. Of the 504 target calls handled by the Helpline over the reporting period, 68.8%
(347) were male callers aged 25 + and 28.4% (143) were repeat callers.
NUMBER OF CALLS TO PROBLEM GAMBLING HELPLINE
2011/12
2012/13
2013/14
Target
670
630
504
Non Target
322
226
396
Total
992
856
900
Gambling Help WA
Gambling Help WA (GHWA) is a free face-to-face counselling service funded by the PGSSC
for people affected by problem gambling, their partners and families who are residents of
Western Australia. GHWA is operated by Centrecare, a not-for-profit social services agency
which provides counselling in a number of different areas.
The contract is governed by a Lotterywest grant agreement. Representatives from the
Department of Racing, Gaming and Liquor and Lotterywest monitor the service provided by
GHWA and report to the PGSSC.
P a g e | 28
Notable achievements throughout this reporting period include:
§
The launching in May 2014 of an interactive facebook
page (including two YouTube clips) to compliment a
social
media
strategy
–
www.facebook.com/gamblinghelpwa
§
Providing health practitioners, professionals and
agencies a thumb-drive containing:
-
A range of brochures in English, Chinese and
Vietnamese to assist people affected by gambling;
-
Centrecare’s group training program; and
-
A list of useful websites resources and references.
§
Secured Commonwealth funding for two financial counsellors for a period of one year to
support people affected by Problem Gambling in Western Australia.
§
Worked in partnership with the Australian Asian Association offering a series of psychoeducational programs to various community groups, addressing social problem gambling.
§
Undertook a series of Gambling Help workshops delivered to Mission Australia’s Drug and
Alcohol Youth Service for the “Residential Rehabilitation Program”.
§
Provided attendance on Crown Perth’s gaming floor to answer any questions patrons may
have on responsible gambling initiative’s throughout Responsible Gambling Awareness
Week, which ran between 26 May and 1 June 2014.
§
Delivered two, 10-week “Gambling Help WA Groups” assisting people affected by
gambling.
§
Trained Lotterywest agents and managers in identifying people affected by gambling.
§
Worked collaboratively with Boronia Women’s Pre-Release Centre educating prisoners
about the effects of gambling on release.
Centrecare registered 508 new clients within the reporting period, 303 clients of which were
males aged 26+. The following table provides a three-year summary of the total number of
counselling sessions held by Centrecare within the reporting period.
GAMBLING HELP WA SESSIONS
2011/12
2012/13
2013/14
1312
1259
1551
P a g e | 29
National Online Counselling Service
Gambling Help Online provides an immediate response via online counselling to anyone
concerned about issues concerning problem gambling. The service was launched on 31
August 2009 and is operated by Turning Point, a Victorian-based counselling service
provider. The cost of operating the service is shared between the Commonwealth, States
and Territories.
The online service complements the range of services available in responding to gambling
problems. It provides Australians with an opportunity to access counselling and information
services when they are unable or reluctant to access face-to-face services in each
jurisdiction. Further, the service may appeal to the increasing number of people who gamble
online, while ensuring that people in remote areas also have access to quality support
services.
Gambling Help Online is the first service worldwide to provide:
§
24-hour availability of live and email counselling and support services;
§
Availability of professional counsellors with expertise in problem gambling and online
services;
§
Integration with State-based 24-hour telephone services and face-to-face counselling; and
§
Extensive website content, information and links for additional help and information.
The Memorandum of Understanding between all Australian governments for the continuation
and funding of the Australian Online Gambling Counselling and Support Program is current to
30 June 2015. The contribution structure is based on each jurisdiction’s share of the national
gambling expenditure. Western Australia’s commitment for the 2013/14 period was $40,747
(excluding GST).
The following table provides a summary of the total number of clients who received live online
counselling, and the number of visits to each jurisdiction’s information webpage between 1
July 2013 and 30 June 2014.
ONLINE COUNSELLING BY STATE
VIC
NSW QLD
SA
TAS
WA
ACT
NT
Unknown
Online Clients
364
382
160
65
22
55
14
4
75
Email Support
83
68
39
14
2
15
3
4
35
1599
2599
532
358
1045
286
295
Visits to Information
1605
Pages
A total of 55 Western Australians undertook live online counselling in 2013/14 compared with
66 in 2012/13 period. Of the 55 clients who undertook live counselling, 65 percent were male
clients aged 20 and 34.
P a g e | 30
Gambling Research Australia
The Problem Gambling Support Services Committee provides annual funding to Gambling
Research Australia (GRA). GRA, through a memorandum of understanding, is a partnership
between the Commonwealth, State and Territory Governments to initiate and manage a
national gambling research program structured around the following five research priority
areas:
§
helping individuals set their limits including access to cash and pre-commitment;
§
responsible gambling environments;
§
gaming machine standards – developing better consumer protection;
§
a preventative and early intervention strategy targeted at those at risk of problem
gambling; and
§
development of harm minimisation measures for interactive gambling.
During 2013/14 GRA published the following reports:
§
The Impact of Electronic Gaming Machine Jackpots on Gambling Behaviour
This study aimed to answer the question, “Do jackpots and linked jackpots increase the
likelihood of risky gambling behaviour and gambling related harm, and to what extent do
jackpots enhance the player experience?” The study involved a literature review,
experiments and an observational study.
§
Validation Study of In-Venue Problem Gambler Indicators
The study aimed to validate the Checklist of Visible Indicators, which was developed to
visually identify people experiencing gambling problems (particularly with electronic
gaming machines), and to transfer the checklist into the Gambling Behaviour Checklist, a
tool successfully used by gaming staff to monitor and assist their customers.
§
Interactive Gambling
This study aimed to determine who, what, when, how and why people are gambling using
interactive technology in Australia.
The GRA website, http://www.gamblingresearch.org.au, contains a full catalogue of reports
published by GRA.
P a g e | 31
DISCLOSURES AND LEGAL COMPLIANCE
FINANCIAL STATEMENTS
The aim of these financial statements is to inform Parliament and other interested parties, not
only of what the Gaming and Wagering Commission of Western Australia has achieved
during the financial year, but also of the reasons behind those achievements.
CERTIFICATION OF FINANCIAL STATEMENTS FOR THE GAMING AND WAGERING
COMMISSION OF WESTERN AUSTRALIA FOR THE YEAR ENDED 30 JUNE 2014
The accompanying financial statements of the Gaming and Wagering Commission of Western
Australia have been prepared in compliance with the provisions of the Financial Management
Act 2006 from proper accounts and records to present fairly the financial transactions for the
financial year ending 30 June 2014 and the financial position as at 30 June 2014.
At the date of signing, we are not aware of any circumstances which would render the
particulars included in the financial statements misleading or inaccurate.
Terry Ng
Chief Financial Officer
Barry A Sargeant
Chairperson
Gaming and
Wagering Commission
of Western Australia
Colleen Hayward
Member
Gaming and
Wagering Commission
of Western Australia
8 September 2014
8 September 2014
9 September 2014
P a g e | 32
Gaming and Wagering Commission of Western Australia
Statement of Comprehensive Income
for the year ended 30 June 2014
Note
2014
$
2013
$
COST OF SERVICES
Expenses
Board members expenses
16
84,580
82,507
Superannuation
16
7,829
7,459
Expenses related to restricted cash and special purpose accounts
4
38,923,293
35,714,377
4,524,693
4,546,758
43,540,395
40,351,101
Services and contract fees
Total cost of services
Income
Revenue
Fees and charges
5
4,049,303
4,177,349
Revenues related to restricted cash and special purpose accounts
6
38,901,706
35,089,304
Interest revenue
7
75,463
117,189
43,026,472
39,383,842
513,923
967,259
(513,923)
(967,259)
0
0
(513,923)
(967,259)
Total Revenue
NET COST OF SERVICES
SURPLUS/(DEFICIT) FOR THE PERIOD
14
OTHER COMPREHENSIVE INCOME
Total other comprehensive income
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
The Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
P a g e | 33
Gaming and Wagering Commission of Western Australia
Statement of Financial Position
as at 30 June 2014
Note
2014
$
2013
$
ASSETS
Current Assets
Cash and cash equivalents
8
2,663,266
3,064,770
Restricted cash and cash equivalents
9
5,294,123
5,318,868
Receivables
10
65,055
72,004
Inventories
11
5,232
5,959
Total Current Assets
8,027,676
8,461,601
TOTAL ASSETS
8,027,676
8,461,601
517,105
437,107
Total Current Liabilities
517,105
437,107
TOTAL LIABILITIES
517,105
437,107
7,510,571
8,024,494
Accumulated surplus/(deficit)
7,510,571
8,024,494
TOTAL EQUITY
7,510,571
8,024,494
LIABILITIES
Current Liabilities
Payables
12
NET ASSETS
EQUITY
13
The Statement of Financial Position should be read in conjunction with the accompanying notes.
P a g e | 34
Gaming and Wagering Commission of Western Australia
Statement of Changes in Equity
for the year ended 30 June 2014
Accumulated
Contributed
surplus/
Note
equity
Reserves
(deficit) Total equity
$
$
$
$
0
0
8,991,753
8,991,753
Changes in accounting policy or correction of
prior period errors
0
0
0
0
Restated balance at 1 July 2012
0
0
8,991,753
8,991,753
0
0
0
0
(967,259)
0
(967,259)
0
Total comprehensive income for the period
0
0
(967,259)
(967,259)
Transactions with owners in their capacity as owners:
Other contributions by owners
Distributions to owners
0
0
0
0
0
0
0
0
Total
0
0
0
0
Balance at 30 June 2013
0
0
8,024,494
8,024,494
Balance at 1 July 2013
0
0
8,024,494
8,024,494
0
0
0
0
(513,923)
0
(513,923)
0
Total comprehensive income for the period
0
0
(513,923)
(513,923)
Transactions with owners in their capacity as owners:
Other contributions by owners
Distributions to owners
0
0
0
0
0
0
0
0
Total
0
0
0
0
Balance at 30 June 2014
0
0
7,510,571
7,510,571
Balance at July 2012
Surplus/(deficit)
Other comprehensive income
Surplus/(deficit)
Other comprehensive income
13
The Statement of Changes in Equity should be read in conjunction with the accompanying notes.
P a g e | 35
Gaming and Wagering Commission of Western Australia
Statement of Cash Flows
for the year ended 30 June 2014
Note
2014
$
2013
$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments
Board members expenses
Payments related to restricted cash and special purpose accounts
Supplies and services
GST payments on purchases
GST payments to taxation authority
(89,971)
(94,822)
(38,924,026)
(35,728,323)
(4,511,643)
(4,898,182)
(508,368)
(411,688)
(3,356,659)
(2,934,649)
Receipts
Fees and charges
4,077,932
4,176,879
38,896,564
35,102,643
86,255
131,209
3,393,787
2,949,512
509,880
383,892
(426,249)
(1,323,529)
Net increase/(decrease) in cash and cash equivalents
(426,249)
(1,323,529)
Cash and cash equivalents at the beginning of the period
8,383,638
9,707,167
7,957,389
8,383,638
Receipts related to restricted cash and special purpose accounts
Interest received
GST receipts on sales
GST receipts from taxation authority
Net cash provided by/(used in) operating activities
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
14
14
The Statement of Cash Flows should be read in conjunction with the accompanying notes.
P a g e | 36
Gaming and Wagering Commission of Western Australia
Notes to the Financial Statements
for the year ended 30 June 2014
Note 1. Australian Accounting Standards
General
The Commission’s financial statements for the year ended 30 June 2014 have been prepared in accordance with Australian Accoun ting
Standards. The term ‘Australian Accounting Standards’ includes Standards and Interpretations issued by the Australian Accoun ting Standard
Board (AASB).
The Commission has adopted any applicable, new and revised Australian Accounting Standards from their operative dates.
Early adoption of standards
The Commission cannot early adopt an Australian Accounting Standard unless specifically permitted by TI 1101 Application of Australian
Accounting Standards and Other Pronouncements. There has been no early adoption of Australian Accounting Standards that have been
issued or amended (but not operative) by the Commission for the annual reporting period ended 30 June 2014.
Note 2. Summary of significant accounting policies
(a) General statement
The Commission is a not-for-profit reporting entity that prepares general purpose financial statements in accordance with Australian
Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the AASB as applied
by the Treasurer's instructions. Several of these are modified by the Treasurer's instructions to vary application, disclosu re, format and
wording.
The Financial Management Act 2006 and the Treasurer's instructions impose legislative provisions that govern the preparation of financial
statements and take precedence over Australian Accounting Standards, the Framework, Statements of Accounting Concepts and oth er
authoritative pronouncements of the AASB.
Where modification is required and has had a material or significant financial effect upon the reported results, details of that modification and
the resulting financial effect are disclosed in the notes to the financial statements.
(b) Basis of preparation
The financial statements have been prepared on the accrual basis of accounting using the historical cost convention.
The accounting policies adopted in the preparation of the financial statements have been consistently applied throughout all periods
presented unless otherwise stated.
The accrual basis of accounting has been applied.
The financial statements are presented in Australian dollars and all values are rounded to the nearest dollar.
(c) Reporting entity
The reporting entity comprises the Commission only.
Administered revenues are not integral to the Commission in carrying out its functions and are disclosed in the notes to the financial
statements (Note 18).
(d) Contributed equity
AASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities requires transfers in the nature of equity
contributions, other than as a result of a restructure of administrative arrangements, to be designated by the Government (th e owner) as
contributions by owners (at the time of, or prior to transfer) before such transfers can be recognised as equity contribution s. Capital
appropriations have been designated as contributions by owners by TI 955 Contributions by Owners made to Wholly Owned Public Sector
Entities and have been credited directly to Contributed equity.
The transfer of net assets to/from other agencies, other than as a result of a restructure of administrative arrangements, are designated as
contributions by owners where the transfers are non -discretionary and non-reciprocal.
P a g e | 37
(e) Income
Revenue recognition
Revenue is recognised and measured at the fair value of consideration received or receivable. This represents income received pursuant to
the Gaming and Wagering Commission Act 1987, Casino Control Act 1984, and Betting Control Act 1954, net of refunds. It includ es the
annual casino licence fee, income from community gaming, and wagering activities.
In 2007, a change in accounting policy was adopted to include the trust fund activities in the Statement of Comprehensive Income. Trust fund
activities (Special Purpose Account) is recognised on cash basis.
Security deposits previously shown as current asset and liability are no longer recognised in the Statement of Financial Posi tion of the
Commission.
Other trust funds previously included in the current liabilities of the Commission are not recognised since it is established that there is no
present obligation as at the reporting period.
Revenue is recognised for the major business activities as follows:
Sale of goods
Revenue is recognised from the sale of goods and disposal of other assets when the significant risks and rewards of ownership transfer to the
purchaser and can be measured reliably.
Provision of services
Revenue is recognised by reference to the stage of completion of the transaction.
Fees and charges
Revenue is recognised when the transaction or event giving rise to the revenue occurs.
Interest
Revenue is recognised as the interest accrues.
Grants, donations, gifts and other non-reciprocal contributions
Revenue is recognised at fair value when the Commission obtains control over the assets comprising
the contributions, usually when cash is received.
Other non-reciprocal contributions that are not contributions by owners are recognised at their fair
value. Contributions of services are only recognised when a fair value can be reliably determined
and the services would be purchased if not donated.
(f) Services Performed for the Gaming and Wagering Commission of Western Australia by the
Department of Racing, Gaming and Liquor
The Department of Racing, Gaming and Liquor provides support to the Commission to enable the Commission to carry out its obje ctives. This
support comprises most of the amount reported in the Statement of Comprehensive Income under 'Services and contract fees'. Th ese
charges are in the nature of salaries and administration costs in providing these support services.
Recoups from the Commission to the Department of Racing, Gaming and Liquor are made on a monthly basis under a net appropriat ion
determination.
(g) Financial instruments
In addition to cash, the Commission has two categories of financial instrument:
* Receivables; and
* Financial liabilities measured at amortised cost.
Financial instruments have been disaggregated into the following classes:
* Financial Assets
- Cash and cash equivalents
- Restricted cash and cash equivalents
- Receivables
* Financial Liabilities
- Payables
Initial recognition and measurement of financial instruments is at fair value which normally equates to the transaction cost or the face value.
Subsequent measurement is at amortised cost using the effective interest method.
The fair value of short-term receivables and payables is the transaction cost or the face value because there is no interest rate applicable and
subsequent measurement is not required as the effect of discounting is not material.
P a g e | 38
(h) Cash and cash equivalents
For the purpose of the Statement of Cash Flows, cash and cash equivalent (and restricted cash and cash equivalent) assets comprise cash
on hand.
(i) Inventories
Inventories are measured at the lower of cost and net realisable value. Costs are assigned by the method most appropriate for each
particular class of inventory, with the majority being measured on a first in first out basis.
(j) Receivables
Receivables are recognised at original invoice amount less an allowance for any uncollectible amounts (i.e. impairment). The
collectability of receivables is reviewed on an ongoing basis and any receivables identified as uncollectible are written -off against the
allowance account. The allowance for uncollectible amounts (doubtful debts) is raised when there is objective evidence that t he
Commission will not be able to collect the debts. The carrying amount is equivalent to fair value as it is due for settlement within 30
days.
(k) Payables
Payables are recognised at the amounts payable when the Commission becomes obliged to make future payments as a result of a p urchase
of assets or services. The carrying amount is equivalent to fair value, as settlement is generally within 30 days.
(l) Employee Benefits
Annual and Long Service Leave
The Commission does not employ staff. Section 18 of the Gaming and Wagering Commission Act 1987 provides for the Commission to
utilise the staff and facilities of the Department of Racing, Gaming and Liquor. The cost of the services provided by the De partment of
Racing, Gaming and Liquor is recouped from the Commission as a service fee. Accordingly, provisions have not been made for an nual and
long service leave.
Superannuation
The Government Employees Superannuation Board (GESB) and other fund providers administer public sector superannuation arrange ments
in Western Australia in accordance with legislative requirements. Eligibility criteria for membership in particular schemes f or public sector
employees vary according to commencement and implementation dates.
Eligible employees contribute to the Pension Scheme, a defined benefit pension scheme closed to new members since 1987, or th e Gold
State Superannuation Scheme (GSS), a defined benefit lump sum scheme closed to new members since 1995.
Board members of the Commission commencing employment prior to 16 April 2007 who were not members of either the Pension Scheme or
the GSS became non-contributory members of the West State Superannuation Scheme (WSS). Board members commencing employment
on or after 16 April 2007 became members of the GESB Super Scheme (GESBS). From 30 March 2012, existing members of the WSS or
GESBS and new employees have been able to choose their preferred superannuation fund provider. The Commission makes contributions to
GESB or other fund providers on behalf of employees in compliance with the Commonwealth Government's Superannuation Guarantee
(Administration) Act 1992. Contributions to these accumulation schemes extinguish the Commission's liability for superannuation charges in
respect of employees who are not members of the Pension Scheme or GSS.
The GSS is a defined benefit scheme for the purposes of employees and whole-of-government reporting. However, it is a defined contribution
plan for agency purposes because the concurrent contributions (defined contributions) made by the Commission to GESB extingui shes the
agency's obligations to the related superannuation liability.
The Commission has no liabilities under the Pension Scheme or the GSS. The liabilities for the unfunded Pension Scheme and th e unfunded
GSS transfer benefits attributable to members who transferred from the Pension Scheme, are assumed by the Treasurer. All othe r GSS
obligations are funded by concurrent contributions made by the Commission to the GESB.
The GESB makes all benefit payments in respect of the Pension Scheme and GSS, and is recouped from the Treasurer for the empl oyer’s
share.
(m) Superannuation expense
The superannuation expense in the Statement of Comprehensive Income comprises employer contributions paid to the GSS
(concurrent contributions), WSS, the GESBS, and other superannuation funds.
(n) Comparative figures
Comparative figures are, where appropriate, reclassified to be comparable with the figures presented in the current
financial year.
P a g e | 39
Note 3. Disclosure of changes in accounting policy and estimates
Initial application of an Australian Accounting Standard
The Commission has applied the following Australian Accounting Standards effective for annual reporting periods beginning on or
after 1 July 2013 that impacted on the Commission.
AASB 13
Fair Value Measurement
This Standard defines fair value, sets out a framework for measuring fair value and requires additional disclosures for assets and
liabilities measured at fair value. There is no financial impact.
AASB 119
Employee Benefits
This Standard supersedes AASB 119 (October 2010), making changes to the recognition, presentation and disclosure requirements.
The Authority assessed employee leave patterns to determine whether annual leave is a short-term or other long-term employee benefit.
The resultant discounting of annual leave liabilities that were previously measured at the undiscounted amounts is not material.
AASB 1048
Interpretation of Standards
This Standard supersedes AASB 1048 (June 2012), enabling references to the Interpretations in all other Standards to be updated by
reissuing the service Standard. There is no financial impact.
AASB 2011-8
Amendments to Australian Accounting Standards arising from AASB 13 [AASB 1, 2, 3, 4, 5, 7, 9, 2009-11, 2010-7, 101, 102, 108, 110,
116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 and Int 2, 4, 12, 13, 14, 17, 19, 131 &
132]
This Standard replaces the existing definition and fair value guidance in other Australian Accounting Standards and Interpretations as the
result of issuing AASB 13 in September 2011. There is no financial impact.
AASB 2011-10
Amendments to Australian Accounting Standards arising from AASB 119 (September 2011)[AASB 1, 8, 101, 124, 134, 1049 & 2011-8
and Int 14]
This Standard makes amendments to other Australian Accounting Standards and Interpretations as a result of issuing AASB 119 in
September 2011. The resultant discounting of annual leave liabilities that were previously measured at the undiscounted amounts is not
material.
AASB 2012-2
Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial Assets and Financial Liabilities [AASB 7 & 132]
This Standard amends the required disclosures in AASB 7 to include information that will enable users of an entity’s financial statements
to evaluate the effect or potential effect of netting arrangements, including rights of set-off associated with the entity’s recognised financial
assets and recognised financial liabilities, on the entity’s financial position. There is no financial impact.
AASB 2012-5
Amendments to Australian Accounting Standards arising from Annual Improvements 2009-11 Cycle [AASB 1, 101, 116, 132 & 134 and
Int 2]
This Standard makes amendments to the Australian Accounting Standards and Interpretations as a consequence of the annual
improvements process. There is no financial impact.
AASB 2012-6
Amendments to Australian Accounting Standards – Mandatory Effective Date of AASB 9 and Transition Disclosures [AASB 9, 2009-11,
2010-7, 2011-7 & 2011-8]
This Standard amends the mandatory effective date of AASB 9 Financial Instruments to 1 January 2015 (instead of 1 January 2013).
Further amendments are also made to numerous consequential amendments arising from AASB 9 that will now apply from 1 January
2015. There is no financial impact.
AASB 2012-9
Amendment to AASB 1048 arising from the Withdrawal of Australian Int 1039
The withdrawal of Int 1039 Substantive Enactment of Major Tax Bills in Australia has no financial impact for the Authority during the
reporting period and at balance date. Measurement of tax assets and liabilities continues to be measured in accordance with enacted or
substantively enacted tax law pursuant to AASB 112.46-47.
AASB 2012-10
Amendments to Australian Accounting Standards – Transition Guidance and Other Amendments [AASB 1, 5, 7, 8, 10, 11, 12, 13, 101,
102, 108, 112, 118, 119, 127, 128, 132, 133, 134, 137, 1023, 1038, 1039, 1049 & 2011-7 and Int 12]
The Standard introduces a number of editorial alterations and amends the mandatory application date of Standards for not for profit
entities accounting for interests in other entities. There is no financial impact.
AASB 2013-9
Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments
Part A of this omnibus Standard makes amendments to other Standards arising from revisions to the Australian Accounting Conceptual
Framework for periods ending on or after 20 December 2013. Other Parts of this Standard become operative in later periods. There is no
financial impact for Part A of the Standard.
P a g e | 40
Future impact of Australian Accounting Standards not yet operative
The Commission cannot early adopt an Australian Accounting Standard unless specifically permitted by TI 1101 Application of
Australian Accounting Standards and Other Pronouncements. Consequently, the Commission has not applied early any of the
following Australian Accounting Standards that have been issued that may impact the Commission. Where applicable, the
Commission plans to apply these Australian Accounting Standards from their application date.
Operative for
reporting periods
beginning on/after
Int 21
Levies
1 Jan 2014
This Interpretation clarifies the circumstances under which a liability to pay a government levy imposed
should be recognised. There is no financial impact for the Authority at reporting date.
AASB 9
Financial Instruments
1 Jan 2018
This Standard
supersedes
AASB 139
Instruments:
Recognition
andCommission
Measurement,
introducing
Video Lottery Terminals
are an electronic
alternative
to Financial
break open
bingo tickets.
The Gaming
collects
6% of a
the cash collected by a
number of changes to accounting treatments.
The mandatory application date of this Standard was amended to 1 January 2018. The Authority has not
yet determined the application or the potential impact of the Standard.
AASB 10
Consolidated Financial Statements
1 Jan 2014
This Standard, issued in August 2011, supersedes AASB 127 Consolidated and Separate Financial
Statements and Int 112 Consolidation – Special Purpose Entities, introducing a number of changes to
accounting treatments.
Mandatory application of this Standard was deferred for not-for-profit entities by AASB 2012-10 Amendments
to Australian Accounting Standards – Transition Guidance and Other Amendments. The adoption of the new
Standard has no financial impact for the Model Statutory Authority as it does not impact accounting for related
bodies and the Authority has no interests in other entities.
AASB 11
Joint Arrangements
1 Jan 2014
This Standard,
issued in alternative
August 2011,
supersedes
AASB
131 Interests
in Joint
Ventures, introduces
Video Lottery Terminals
are an electronic
to break
open bingo
tickets.
The Gaming
Commission
collects 6%new
of the cash collected by a
principles for determining the type of joint arrangement that exists, which are more aligned to the actual
rights and obligations of the parties to the arrangement.
Mandatory application of this Standard was deferred for not-for-profit entities by AASB 2012-10. There is
no financial impact for the Model Statutory Authority as the new standard continues to require the
recognition of the Authority’s share of assets and share of liabilities for the unincorporated joint operation.
AASB 12
Disclosure of Interests in Other Entities
1 Jan 2014
This Standard, issued in August 2011, supersedes disclosure requirements in AASB 127 Consolidated and
Separate Financial Statements, AASB 128 Investments in Associates and AASB 131 Interests in Joint
Ventures. Mandatory application was deferred for not-for-profit entities by AASB 2012-10. There is no
financial impact.
AASB 14
Regulatory Deferral Accounts
1 Jan 2016
The Authority
not yetalternative
determined
application
or the
potential
impact ofCommission
the Standard.
Video Lottery Terminals
are an has
electronic
tothe
break
open bingo
tickets.
The Gaming
collects 6% of the cash collected by a
P a g e | 41
Operative for
reporting periods
beginning on/after
AASB 127
Separate Financial Statements
1 Jan 2014
This Standard, issued in August 2011, supersedes AASB 127 Consolidated and Separate Financial
Statements, removing the consolidation requirements of the earlier standard whilst retaining accounting and
disclosure requirements for the preparation of separate financial statements. Mandatory application was
deferred for not-for-profit entities by AASB 2012-10. There is no financial impact.
AASB 128
Investments in Associates and Joint Ventures
1 Jan 2014
This Standard,
issued in alternative
August 2011
AASBtickets.
128 Investments
in Associates,
Video Lottery Terminals
are an electronic
to supersedes
break open bingo
The Gaming
Commission introducing
collects 6%aof the cash collected by a
number of clarifications for the accounting treatments of changed ownership interest.
Mandatory application was deferred for not-for-profit entities by AASB 2012-10. The adoption of the new
Standard has no financial impact for the Model Statutory Authority as it does not hold investments in
associates and the accounting treatments for joint operations is consistent with current practice.
AASB 1031
Materiality
1 Jan 2014
This Standard supersedes AASB 1031 (February 2010), removing Australian guidance on materiality not
available in IFRSs and refers to guidance on materiality in other Australian pronouncements. There is no
financial impact.
AASB 1055
Budgetary Reporting
1 Jul 2014
This Standard requires specific budgetary disclosures in the financial statements of not-for-profit entities
within the General Government Sector. The Authority will be required to disclose additional budgetary
information and explanations of major variances between actual and budgeted amounts, though there is no
financial impact.
AASB 2009-11
Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108,
112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and Int 10 & 12]
1 Jan 2015
[modified by AASB 2010-7]
Video Lottery Terminals are an electronic alternative to break open bingo tickets. The Gaming Commission collects 6% of the cash collected by a
AASB 2010-7
Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7,
101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Int 2, 5, 10, 12, 19 &
127]
1 Jan 2015
This Standard makes consequential amendments to other Australian Accounting Standards and
Interpretations as a result of issuing AASB 9 in December 2010. The Authority has not yet determined the
application or the potential impact of the Standard.
AASB 2011-7
Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements
1 Jan 2014
Standards [AASB 1, 2, 3, 5, 7, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 1038 and Int
5, 9, 16 are
& 17]
Video Lottery Terminals
an electronic alternative to break open bingo tickets. The Gaming Commission collects 6% of the cash collected by a
This Standard gives effect to consequential changes arising from the issue of AASB 10, AASB 11, AASB 127
Separate Financial Statements and AASB 128 Investments in Associates and Joint Ventures. For not-forprofit entities it applies to annual reporting period beginning on or after 1 January 2014. The Authority has
not yet determined the application or the potential impact of the Standard.
AASB 2012-3
Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities
[AASB 132]
This Standard adds application guidance to AASB 132 to address inconsistencies identified in applying some
of the offsetting criteria, including clarifying the meaning of “currently has a legally enforceable right of set-off”
and that some gross settlement systems may be considered equivalent to net settlement.
The model Authority does not routinely hold financial assets and financial liabilities that it intends to settle on
a net basis, therefore there is no financial impact.
1 Jan 2014
P a g e | 42
Operative for
reporting periods
beginning on/after
AASB 2013-3
Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets
1 Jan 2014
This Standard
introducesalternative
editorial and
disclosure
There
is no
financial
impact. collects 6% of the cash collected by a
Video Lottery Terminals
are an electronic
to break
open changes.
bingo tickets.
The
Gaming
Commission
AASB 2013-4
Amendments to Australian Accounting Standards – Novation of Derivatives and Continuation of Hedge
Accounting [AASB 139]
1 Jan 2014
Video Lottery Terminals are an electronic alternative to break open bingo tickets. The Gaming Commission collects 6% of the cash collected by a
This Standard permits the continuation of hedge accounting in circumstances where a derivative, which has
been designated as a hedging instrument, is novated from one counterparty to a central counterparty as a
consequence of laws or regulations. The model Authority does not routinely enter into derivatives or
hedges, therefore there is no financial impact.
AASB 2013-8
Amendments to Australian Accounting Standards - Australian Implementation Guidance for Not-for-Profit
Entities – Control and Structured Entities [AASB 10, 12 & 1049]
1 Jan 2014
The amendments, issued in October 2013, provide significant guidance in determining whether a not-forprofit entity controls another entity when financial returns are not a key attribute of the investor’s relationship.
The Standard has no financial impact in its own right, rather the impact results from the adoption of the
amended AASB 10.
AASB 2013-9
Amendments to Australian Accounting Standards - Conceptual Framework, Materiality and Financial
Instruments
1 Jan 2014
1 Jan 2017
Video Lottery Terminals are an electronic alternative to break open bingo tickets. The Gaming Commission collects 6% of the cash collected by a
This omnibus Standard makes amendments to other Standards arising from the deletion of references to
AASB 1031 in other Standards for periods beginning on or after 1 January 2014 (Part B), and, defers the
application of AASB 9 to 1 January 2017 (Part C). The Authority has not yet determined the application or
the potential impact of AASB 9, otherwise there is no financial impact for Part B.
AASB 2014-1
Amendments to Australian Accounting Standards
The Authority has not yet determined the application or the potential impact of the Standard.
1 Jul 2014
1 Jan 2015
1 Jan 2016
1 Jan 2018
Video Lottery Terminals are an electronic alternative to break open bingo tickets. The Gaming Commission collects 6% of the cash collected by a
P a g e | 43
Note 4. Expenses related to Restricted Cash and Special Purpose Accounts
Grant payments
Racing Bets Levy payment to Racing and Wagering Western Australia
Other services and contract fees - relates to restricted cash and special purpose accounts
2014
$
5,284,098
33,432,563
206,632
38,923,293
2013
$
4,866,545
30,583,746
264,086
35,714,377
2014
$
2,672,340
78,043
95,113
722,794
4,613
476,400
0
4,049,303
2013
$
2,617,403
167,294
88,599
643,775
4,709
655,000
569
4,177,349
2014
$
5,176,113
33,524,917
200,676
38,901,706
2013
$
4,292,612
30,597,168
199,524
35,089,304
Note 5. Fees and charges
Casino licence fee
Casino employee licence fee
Betting related fee
Community gaming
Gaming infringement
Recoups for services provided
Other revenue
Note 6. Revenues related to Restricted Cash and Special Purpose Accounts
Contributions
Racing Bets Levy
Interest revenue - relates to restricted cash and special purpose accounts
Contributions received from Burswood International Resort Casino, WA Bookmakers' Association, Racing and
Note 7. Interest revenue
2014
$
Interest revenue
Commonwealth Bank of Australia
2013
$
75,463
117,189
2014
$
2,663,266
2013
$
3,064,770
Note 8. Cash and cash equivalents
Cash and cash equivalents are represented by funds held at the
Commonwealth Bank of Australia
P a g e | 44
Note 9. Restricted cash and cash equivalents
2014
$
(a) Restricted Cash
Problem Gambling Support Services
Balance at start of period
Receipts
Payments
Balance at end of period
2013
$
482,526
498,166
(425,955)
554,737
531,910
464,769
(514,153)
482,526
1,408,134
263,475
(316,700)
1,354,909
1,264,214
231,009
(87,089)
1,408,134
3,246,305
4,583,494
(4,722,223)
3,107,576
3,969,783
3,819,856
(4,543,334)
3,246,305
181,903
33,555,444
(33,460,446)
276,901
168,482
30,597,168
(30,583,747)
181,903
5,294,123
5,318,868
The Problem Gambling Support Services receive contributions from Burswood International Resort
Casino, WA Bookmakers' Association, Racing and Wagering Western Australia, and the
Commission. The fund is used to provide services for problem gamblers and to undertake problem
gambling related research.
(b) Special Purpose Account
(i)
Gaming Community Trust Fund
Balance at start of period
Receipts
Payments
Balance at end of period
The Gaming Community Trust Fund comprises winnings from gaming activities that have
remained unclaimed for more than 14 months, plus interest income. The fund is held for
purposes as recommended by the Trust, and approved by the Minister, for the benefit of the
community pursuant to section 109C (2) of the Gaming and Wagering Commission Act 1987.
The total fees, salaries and other benefits received or due and receivable for the financial year, by members
(c) Special Purpose Account
(i)
Sports Wagering Account
Balance at start of period
Receipts
Payments
Balance at end of period
The Sports Wagering Account holds monies paid by Racing and Wagering Western Australia under
section 104 or 107 of the Racing and Wagering Western Australia Act, 2003 and monies held by the
Commission relating to bookmakers' betting levy received under section 15 of the Betting Control Act
1954. These monies are held in trust until distributed as directed by the Minister for Sport and
Recreation, pursuant to section 110A of the Gaming and Wagering Commission Act 1987.
(d) Special Purpose Account
(i)
Racing Bets Levy Account
Balance at start of period
Receipts
Payments
Balance at end of period
The Racing Bets Levy Account receives monies under section 14A of the Betting Control Act 1954.
This Account is to be applied for the purposes of making payments to the Western Australian racing
industry under the Betting Control Act, and outgoings and expenses incurred by the Commission in
administering the Account.
Total restricted cash and cash equivalents as per Statement of Financial Position
P a g e | 45
2014
$
(e) Security Deposits (ii)
Balance at start of period
Receipts
Payments
Balance at end of period
2013
$
1,353,470
912,933
(855,555)
1,410,848
1,543,892
837,521
(1,027,943)
1,353,470
Security deposits represent security deposits received from bookmakers under section 11E of
the Betting Control Act 1954, and received from organisations conducting lotteries/raffles as a
guarantee of the distribution of prizes, plus interest income.
As stated in note 2(e), following a change in accounting policy, security deposits are no longer
recognised on the Statement of Financial Position as asset and liability of the Commission.
(i)
Established under section 16(1)(b) of FMA.
(ii)
Established under section 16(1)(c) of FMA.
Note 10. Receivables
2014
$
Current
Receivables
Accrued revenue
Total current
2013
$
0
65,055
65,055
0
72,004
72,004
The Commission does not hold any collateral or other credit enhancements as security for
receivables.
Note 11. Inventories
2014
$
Current
Betting tickets
Betting ledgers
Total current
2013
$
1,063
4,169
5,232
1,507
4,452
5,959
Note 12. Payables
2014
$
Current
Trade payables
Other payables
GST payable
Total current
The total fees, salaries and other benefits received or due and receivable for the financial year, by members
211
317,458
199,436
517,105
2013
$
4
276,287
160,816
437,107
P a g e | 46
Note 13. Equity
The Government holds the equity interest in the Commission on behalf of the community. Equity represents the residual interes t in
the net assets of the Commission.
Contributed equity
2014
$
Balance at start of period
2013
$
0
0
Transfer of net assets from other agencies
0
0
Total contributions by owners
0
0
Transfer of net assets to other agencies
0
0
Total distributions to owners
0
0
Balance at end of period
0
0
2014
$
8,024,494
2013
$
8,991,753
Result for the period
(513,923)
(967,259)
Balance at end of period
7,510,571
8,024,494
Total Equity at end of period
7,510,571
8,024,494
Contributions by owners
Distributions to owners
Accumulated surplus/(deficit)
Balance at start of period
Note 14. Notes to the Statement of Cash Flows
Reconciliation of cash
Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the State ment of Financial
The total fees, salaries and other benefits received or due and receivable for the financial year, by members
Position as follows:
Cash and cash equivalents
Restricted cash and cash equivalents (note 9 'Restricted cash and cash equivalents' )
2014
$
2,663,266
5,294,123
7,957,389
2013
$
3,064,770
5,318,868
8,383,638
2014
$
(513,923)
2013
$
(967,259)
6,949
727
37,619
1,033
41,378
(381,993)
38,639
(12,933)
(19)
(426,249)
4
(1,323,529)
Reconciliation of net cost of services to net cash flows provided by/(used in) operating activities
Net cost of services
(Increase)/decrease in assets
Receivables (a)
Inventories
Increase/(decrease) in liabilities
(a)
Payables
Net GST receipts/(payments)
(b)
(c)
Change in GST in receivables/payables
Net cash provided by/(used in) operating activities
(a) Note that the Australian Taxation Of f ice (ATO) receivable/payable in respect of GST and the receivable/payable in respect of the sale/purchase of noncurrent assets are not included in these items as they do not f orm part of the reconciling items.
(b) This is the net GST paid/received, i.e. cash transactions.
(c) This reverses out the GST in receivables and payables.
P a g e | 47
Note 15. Explanatory statement
Significant variations between estimates and actual results for 2014 and between the actual results for 2013 and 2014 are sho wn below.
Significant variations are considered to be those greater than 10% or $50,000.
(i) Significant variances between estimated and actual result for 2014
There were no significant variations between estimates and actual results. Significant2014
variations are
Estimate
$
The
variation
is theexpenses
result of additional
increased balances
revenue received
in the Gaming
from the
Commission
Lotteries
Board
members
102,000
Superannuation
9,000
Services and contract fees
4,757,650
Fees and charges
4,293,650
Interest revenue
105,000
2014
Actual
$
84,580
7,829
4,524,693
4,049,303
75,463
Variance
$
(17,420)
(1,171)
(232,957)
(244,347)
(29,537)
Board members expenses
The variance was mainly due to two less Commission members for a period of time.
Superannuation
The variance was directly impacted by the reduced board fees.
The increase of $18,654 was largely attributable to an increase in receipts from Video Lottery Terminal.
Services and contract fees
The variance was due to savings in the operating expenses and capital expenditure.
The increase of $18,654 was largely attributable to an increase in receipts from Video Lottery Terminal.
Fees and charges
The variance was mainly due to a reduction in the recoupment from Lotterywest for services rendered.
The increase of $18,654 was largely attributable to an increase in receipts from Video Lottery Terminal.
Interest revenue
The variance was due to lower bank balances and lower actual interest rates allocated during the year.
The increase of $18,654 was largely attributable to an increase in receipts from Video Lottery Terminal.
The variancevariances
was due to
abetween
change
inactual
theresults
accounting
policy
adopted
2007 as stated in note 2(e) to
(ii) Significant
between
actual
for 2010
2011
Significant
variances
results
forand
2013
and in
2014
2009
2010
Variations which have been explained in part (i) of this note have not been repeated here in the interests of concise reporting.
Variations
Variations which
which have
have been
been explained
explained in
in part
part (i)
(i) of
of this
this note
note have
have not
not been
been repeated
repeated here
here in
in the
the interests
interests of
of concise
concise reporting.
reporting.
2014
$
2013
$
Income
Revenues related to restricted cash and special purpose accounts
38,901,706
35,089,304
Expenses
Expenses related to restricted cash and special purpose accounts
38,923,293
35,714,377
Revenues related to restricted cash and special purpose accounts
The variance was mainly due to the increase in the collection of the Racing Bets Levy during the year.
Expenses related to restricted cash and special purpose accounts
The variance was mainly due to the increase in the distribution of the Racing Bets Levy during the year.
Variance
$
3,812,402
3,208,916
P a g e | 48
Note 16. Remuneration of members of the accountable authority
increase
of $18,654of
was largely
attributable
to an increase
intotal
receipts
fromsalaries,
Video Lottery
Terminal.
TheThe
number
of members
accountable
authority,
of fees,
The
total fees,
salaries and the
other
benefits received
or duewhose
and receivable
for the
financialsuperannuation,
year, by members non -monetary benefits and other
benefits for the financial year, fall within the following bands are:
2014
$ fees, salaries and other benefits received or due and receivable for the financial year, by members
The total
0 - 10,000
10,001 - 20,000
2013
5
4
$
Base remuneration and superannuation
Other benefits
The
Th
Ad The total remuneration of members of the accountable authority
(The Chairman does not receive remuneration.)
5
4
$
92,409
0
92,409
89,966
0
89,966
The total remuneration includes the superannuation expense incurred by the Commission in respect of members of the accountable
authority.
Note 17. Remuneration of auditor
Remuneration paid or payable to the Auditor General in respect of the audit for the current financial year is as follows:
Auditing the accounts, financial statements and key performance indicators
2014
$
14,500
2013
$
14,150
2014
$
2013
$
Note 18. Administered transactions
The
Th
Ad
Administered revenue
(a) Video lottery terminals
156,073
187,085
135,163
153,201
The Commission collects 3.25% of the revenue collected by a Video Lottery Terminal under
regulation 18AA of the Gaming and Wagering Commission Regulations 1988. The Commission
retains 1% to cover the cost of administering Video Lottery Terminals, the remaining 2.25% is
collected on behalf of the Government and paid into the Consolidated Fund. The amount reported
here as administered revenue represents Government's 2.25% share of this income.
(b) Continuing lottery levy
The Commission collects a levy of 3.25% of the face value of Continuing Lottery tickets sold by
licensed suppliers. The Commission retains 1% as controlled revenue and remits the
remaining 2.25% to the Consolidated Fund. The amount reported here as administered
revenue represents Government's 2.25% share of this income.
P a g e | 49
Note 19. Financial instruments
(a) Financial risk management objectives and policies
Financial instruments held by the Commission are cash and cash equivalents, restricted cash and cash equivalents, receivables ,
and payables. The Commission has limited exposure to financial risks. The Commission's overall risk management program
focuses on managing the risks identified below.
Credit risk
Credit risk arises when there is the possibility of the Commission's receivables defaulting on their contractual obligations resulting in
financial loss to the Commission.
The maximum exposure to credit risk at end of the reporting period in relation to each class of recognised financial assets i s the
gross carrying amount of those assets inclusive of any allowance for impairment as shown in the table at note 19(c) ‘Financia l
instruments disclosures’ and note 10 ‘Receivables’.
Credit risk associated with the Commission's financial assets is minimal because the Commission trades only with recognised,
creditworthy third parties. The Commission has policies in place to ensure that sales of products and services are made to
customers with an appropriate credit history. In addition, receivable balances are monitored on an ongoing basis with the re sult that
the Commission’s exposure to bad debts is minimal. At the end of the reporting period there were no significant concentratio ns of
credit risk.
Liquidity risk
Liquidity risk arises when the Commission is unable to meet its financial obligations as they fall due.
The Commission is exposed to liquidity risk through its trading in the normal course of business.
The Commission has appropriate procedures to manage cash flows by monitoring forecast cash flows to ensure that sufficient fu nds
are available to meet its commitments.
Market risk
Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates will affect the Commi ssion's
income or the value of its holdings of financial instruments. The Commission does not trade in foreign currency and is not m aterially
exposed to other price risks. Other than as detailed in the interest rate sensitivity analysis table at Note 19(c), the Commi ssion has no
borrowings and its exposure to market risk for changes in interest rates relates primarily to cash and cash equivalents and r estricted
cash which are interest bearing.
(b) Categories of financial instruments
The carrying amounts of each of the following categories of financial assets and financial liabilities at the end of the repo rting period
are:
2014
$
Financial Assets
Cash and cash equivalents
Restricted cash and cash equivalents
Receivables
(a)
Financial Liabilities
(b)
Financial liabilities measured at amortised cost
(a) The amount of receivables excludes GST recoverable from the ATO (statutory receivable).
(b) The amount of payables excludes GST payable to the ATO (statutory payable).
2013
$
2,663,266
5,294,123
3,064,770
5,318,868
65,055
72,004
317,669
276,291
Gaming and Wagering Commission of Western Australia
Notes to the Financial Statements
for the year ended 30 June 2014
Note 19.(c) Financial instrument disclosures
Credit risk
The following table discloses the Commission's maximum exposure to credit risk and the ageing analysis of financial assets. The Commission's maximum exposure to credit risk
at the end of the reporting period is the carrying amount of financial assets as shown below. The table discloses the ageing of financial assets that are past due but not impaired
and impaired financial assets. The table is based on information provided to senior management of the Commission.
The Commission does not hold any collateral as security or other credit enhancements relating to the financial assets it holds.
Ageing analysis of financial assets
Past due but not impaired
Carrying
Amount
$
Not past due
and not
impaired
Up to 1 month
$
$
1-3 months
3 months to
1 year
1-5 years
More than 5
years
Impaired financial
assets
$
$
$
$
$
2014
Cash and cash equivalents
Restricted cash and cash equivalents
Receivables (a)
2,663,266
5,294,123
65,055
2,663,266
5,294,123
8,022,444
7,957,389
65,055
65,055
0
0
0
0
0
0
0
0
0
0
2013
Cash and cash equivalents
Restricted cash and cash equivalents
Receivables (a)
3,064,770
5,318,868
8,455,642
8,383,638
72,004
72,004
The amount of receivables excludes the GST recoverable from the ATO (statutory receivable).
P a g e | 50
(a)
3,064,770
5,318,868
72,004
Gaming and Wagering Commission of Western Australia
Notes to the Financial Statements
for the year ended 30 June 2014
Note 19. (c) Financial instrument disclosures
Liquidity risk and interest rate exposure
The following table details the Commission's interest rate exposure and the contractual maturity analysis of financial assets and financial liabilities. The maturity analysis section includes interest and
principal cash flows. The interest rate exposure section analyses only the carrying amounts of each item.
Interest rate exposure and maturity analysis of financial assets and financial liabilities
Interest rate exposure
Weighted
Average
Effective
Interest
Rate
2014
Financial Assets
Cash and cash equivalents
Restricted cash and cash equivalents
Receivables (a)
%
2.81
2.81
Maturity dates
Carrying
Amount
Fixed
interest
rate
Variable
interest
rate
Noninterest
bearing
Nominal
Amount
Up to 1
month
1-3 months
3 months to
1 year
1-5 years
More than 5
years
$
$
$
$
$
$
$
$
$
$
2,663,266
5,294,123
65,055
8,022,444
2,663,266
5,294,123
0
7,957,389
65,055
2,663,266
5,294,123
65,055
2,663,266
5,294,123
65,055
65,055
8,022,444
8,022,444
317,669
317,669
317,669
317,669
317,669
317,669
0
0
0
0
0
0
0
0
Financial Liabilities
Payables (b)
317,669
317,669
(a)
(b)
0
0
The amount of receivables excludes the GST recoverable from the ATO (statutory receivable).
The amount of payables excludes GST payable to the ATO (statutory payable).
P a g e | 51
Gaming and Wagering Commission of Western Australia
Notes to the Financial Statements
for the year ended 30 June 2014
Note 19. (c) Financial instrument disclosures
Liquidity risk and interest rate exposure
Interest rate exposure and maturity analysis of financial assets and financial liabilities
Interest rate exposure
Weighted
Average
Effective
Interest
Rate
2013
Financial Assets
Cash and cash equivalents
Restricted cash and cash equivalents
Receivables (a)
%
3.40
3.40
Maturity dates
Carrying
Amount
Fixed
interest
rate
Variable
interest
rate
Noninterest
bearing
Nominal
Amount
Up to 1
month
1-3 months
3 months to
1 year
1-5 years
More than 5
years
$
$
$
$
$
$
$
$
$
$
3,064,770
5,318,868
72,004
8,455,642
3,064,770
5,318,868
0
8,383,638
72,004
3,064,770
5,318,868
72,004
3,064,770
5,318,868
72,004
72,004
8,455,642
8,455,642
276,291
276,291
276,291
276,291
276,291
276,291
0
0
0
0
0
0
0
0
Financial Liabilities
Payables (b)
276,291
276,291
(a)
(b)
0
0
The amount of receivables excludes the GST recoverable from the ATO (statutory receivable).
The amount of payables excludes GST payable to the ATO (statutory payable).
P a g e | 52
Gaming and Wagering Commission of Western Australia
Notes to the Financial Statements
for the year ended 30 June 2014
Note 19. (c) Financial instrument disclosures (contd)
Interest rate sensitivity analysis
The following table represents a summary of the interest rate sensitivity of the Commission's financial assets and liabilities at the end of the reporting
period on the surplus for the period and equity for a 1% change in interest rates. It is assumed that the change in interest rates is held constant
throughout the reporting period.
-100 basis points
2014
+100 basis points
Carrying amount
Surplus
Equity
Surplus
Equity
$
$
$
$
$
Financial Assets
Cash and cash equivalents
2,663,266
(26,633)
(26,633)
26,633
26,633
Restricted cash and cash equivalents
5,294,123
(52,941)
(52,941)
52,941
52,941
(79,574)
(79,574)
79,574
79,574
Financial Liabilities
0
Total Increase/(Decrease)
-100 basis points
2013
+100 basis points
Carrying amount
Surplus
Equity
Surplus
Equity
$
$
$
$
$
Financial Assets
Cash and cash equivalents
3,064,770
(30,648)
(30,648)
30,648
30,648
Restricted cash and cash equivalents
5,318,868
(53,189)
(53,189)
53,189
53,189
(83,837)
(83,837)
83,837
83,837
Financial Liabilities
Total Increase/(Decrease)
All financial assets and liabilities recognised in the Statement of Financial Position, whether they are carried at cost or fair value, are
recognised at amounts that represent a reasonable approximation of fair value unless otherwise stated in the applicable notes.
P a g e | 53
Fair values
P a g e | 54
Note 20. Commitments
The
Feestotal
to the
ofAuditor
fees paidGeneral:
or due and payable to the auditors of the Commission for the financial year is as
As at 30 June 2014 the Commission did not have any other material capital or expenditure commitments.
The
Th
Ad
Note 21. Contingent liabilities and contingent assets
The Commission is not aware of any contingent liabilities and contingent assets as at the end of the reporting period.
Note 22. Events occurring after the end of the reporting period
The Commission is not aware of any matters or circumstances that have arisen since the end of the financial year to the date of this report
which has significantly affected or may significantly affect the activities of the Commission, the results of those activitie s or the state of affairs
of the Commission in the ensuing or any subsequent year.
P a g e | 55
KEY PERFORMANCE INDICATORS INFORMATION
Key performance indicators (KPIs) are required under the Financial Management Act 2006
and are provided to assist interested parties such as Government, Parliament and community
groups in assessing an agency’s performance in meeting its desired outcomes. KPIs
measure the effectiveness and efficiency of an agency.
CERTIFICATION OF KEY PERFORMANCE INDICATORS
We hereby certify that the key performance indicators are based on proper records, are
relevant and appropriate for assisting users to assess the performance of the Gaming and
Wagering Commission of Western Australia, and fairly represent the performance of the
Gaming and Wagering Commission of Western Australia for the financial year ended 30 June
2014.
Barry A Sargeant
Chairperson
Gaming and Wagering Commission
of Western Australia
Colleen Hayward
Member
Gaming and Wagering Commission
of Western Australia
8 September 2014
9 September 2014
P a g e | 56
Agency Level Government Desired Outcomes and Key Effectiveness Indicators
Desired Outcome: To regulate and maintain the integrity of lawful gambling activities.
The Gaming and Wagering Commission (the Commission) administers the law relating to
community and social gaming, wagering and casino gaming. The Commission formulates
and implements policies for the scrutiny and control of gaming and wagering taking into
account the requirements and interests of the community as a whole and the need to
minimise harm caused by gambling.
The Commission has a significant focus on the responsible service of gaming and wagering
products, harm minimisation and on the integrity of gaming and wagering activities and
operators.
A comprehensive legislative framework operates within the State with the aim of:
§
Preventing criminal interests from operating gaming and wagering activities; and
§
Maintaining the integrity of lawful gaming and wagering activities within a framework that
minimises harm.
The Commission’s licensing and compliance regimes verify the integrity of gambling
operators through initial probity checks and ongoing licensing and audit and inspection
requirements.
The table below shows the breaches detected over the past four financial years have been
relatively low. Whilst the number of Casino breaches detected is slightly higher than targeted
in the current reporting period it has decreased from last year.
Key Effectiveness Indicator
2010/11 2011/12 2012/13 2013/14 2013/14
Actual Actual Actual Target Actual
Percentage
of
unlawful
gambling
detected in relation to total audits
1.34%
0.88%
1.50%
1.00%
1.19%
Number of violation reports/ infringement
notices issued in relation to casino
gaming
5
7
11
5
9
The specific licensing requirements imposed by the Commission provide increased certainty
about the quality and integrity of the lawful gaming and wagering products. The Commission
approve games, rules and associated procedures to ensure that the operators of gaming and
wagering activities provide consistent and fair outcomes in accordance with the conditions of
their approvals.
P a g e | 57
The Commission’s licensing regime requires licences, permits, approvals, authorisations and
certificates, as appropriate, to be issued in relation to persons, premises, casinos, facilities,
gaming equipment and gaming and wagering operations.
It is difficult to determine future trends in relation to the casino as business decisions made by
the Casino Licensee determine the number of:
§
submissions provided; and
§
new staff employed by the casino that require a casino employee licence.
The table below shows that the cost per instance of unlawful gambling has increased from
last year; this is due to the number of instances of unlawful gambling detected decreasing in
2013/14. The table also shows the costs associated with issuing licences and the costs
associated with monitoring the probity and integrity of the gambling industry over the past four
financial years.
2010/11
Actual
$
2011/12
Actual
$
2012/13
Actual
$
2013/14
Target
$
2013/14
Actual
$
Cost per Gambling Certificate/Permit
issued4
$399
$501
$476
$518
$491
Cost per Casino Employee Licence
issued5
$586
$810
$644
$909
$779
Cost of monitoring the integrity of
casino gaming operations over one
year6
$232,960
$164,950
$95,025
$212,244
$111,937
Cost per instance
gambling detected7
$21,570
$46,810
$23,756
$45,481
$35,980
$408
$591
$532
$936
$936
Key Efficiency Indicator
of
unlawful
Cost per casino submission received
Cost per Casino Employee Licence issued: as per the footnote, this figure is derived by
dividing the cost allocation for the activity by the number of licences issued. Approximately
100 extra licences were issued than expected, resulting in a lower average cost per licence.
4 The efficiency indicator for this activity is derived by dividing the cost allocation for the activity by the number of licences and permits
issued.
5 The efficiency indicator for this activity is derived by dividing the cost allocation for the activity by the number of licences issued.
6 The efficiency indicator for this activity is derived by dividing the cost allocation for the activity by the number of violation reports
issued.
7 The efficiency indicator for this activity is derived by dividing the cost allocation for the activity by the number of breaches detected.
P a g e | 58
Cost of monitoring the integrity of casino gaming operations over one year: as per the
footnote, this figure is derived by dividing the cost allocation for the activity by the number of
violation reports issued. In the year, nine violation reports were issued to the casino licensee
which is four more than budgeted. This resulted in a significantly lower actual average cost of
monitoring the integrity of casino gaming operations.
Cost per instance of unlawful gambling: as per the footnote, this figure is derived from dividing
the cost allocation by the number of breaches detected. In the year, 12 more breaches than
budgeted were detected. This resulted in a lower average cost per instance of unlawful
gambling.
The table below provides a comparative snapshot of the target and actual costs allocated to
activities over 2013/14.
2013/14
Target
Cost
Number
Allocated Completed
2013/14
Actual
Cost
Number
Allocated Completed
$1,295,674
2500
$1,227,655
2500
$863,783
950
$818,437
1051
Total cost of monitoring the integrity of
$1,061,219
casino gaming operations
5
$1,007,431
9
Total cost
detected
$1,591,829
35
$1,511,146
42
$56,145
60
$52,434
56
Key Efficiency Indicator
Total
cost
of
Certificate/Permit issued
Gambling
Total Cost of
Licences issued
Employee
of
Casino
unlawful
gambling
Total of processing casino submissions
Total Cost of Services
$4,868,650
$4,617,103
The table above highlights the following facts:
§
Funds allocated for the processing of Casino Employee Licences was less than targeted.
The cost per licence has therefore reduced with 101 more licences processed than
targeted.
§
The cost of monitoring the integrity of the Casino was $53,788 less than the target as the
number of violation reports was more than targeted.
§
The instance of unlawful gambling detected was higher than targeted at 42 incidents in
2013/14.
§
Whilst the number of casino submissions was lower than targeted, the cost per casino
submission received was slightly lower than targeted due to a reduction in allocated funds.
P a g e | 59
The table below details the number of actual audits, inspections, investigations and
assessments completed during the year compared to the target amount.
2013/14
Target
2013/14
Actual
Difference
Racing
Lotterywest
Gaming
Casino
505
760
354
2384
522
756
280
3021
17
(4)
(74)
637
Totals
4003
4579
576
Audits/Inspections/Investigations/Assessments
Gaming: The number of gaming audits completed can be directly impacted by the availability
of inspectorate resources. In the year, there was a significant push to reduce leave liabilities
which has had an impact on the number of gaming audits and inspections completed.
Casino: In the year, the inspectorate moved to an electronic system based method of
verifying the integrity of electronic gaming machines and casino revenue tax. This resulted in
a significant reduction in the targeted number of audits and inspections at the casino. In the
transitional period, more physical audits and inspections of electronic gaming machines and
casino revenue counts were conducted than anticipated.
Finally, there has been a decrease of $251,548 in the total cost of services between the target
and actual costs for 2013/14. The reason for the decrease is due to no capital expenditure
incurred during the year.
A breakdown of costs is provided in the table below.
Operating Expenses
2013/14
Target
$
2013/14
Actual
$
Difference
$
Fees paid to board members
102,000
84,580
(17,420)
9000
7829
(1171)
52,000
52,000
0
4,420,000
4,420,000
0
Conference and Seminar fees
30,000
1690
(28,310)
Capital expenditure
200,000
$0
(200,000)
Other operating expenses
55,650
51,003
(4647)
4,868,650
4,617,102
($251,548)
Superannuation expense to GESB
Problem Gambling Expenditure
Services provided by DRGL
Total Cost of Service
P a g e | 60
P a g e | 61
P a g e | 62
P a g e | 63
MINISTERIAL DIRECTIVES
Section 48 of the Gaming and Wagering Commission Act 1987, enables the Minister, in
instances where there is a major sporting event or a special occasion, to direct the
Commission to issue a permit for the conduct of a specified gaming activity.
During 2013/14, the Minister directed the Commission on three occasions to issue permits for
the conduct of two-up on Anzac Day to the:
§
Rockingham Naval Association Club.
§
Returned Services League of Australia (WA Branch) Sub-Branches. A total of 39 permits
were issued to clubs at various specified locations in Western Australia.
§
Yarloop Volunteer Bush Fire Brigade.
GOVERNANCE DISCLOSURES
CONTRACTS WITH SENIOR OFFICERS
At the date of reporting, other than normal contracts of employment of service, no senior
officers, nor firms of which senior officers are members, or entities in which Senior officers
have substantial interests had any interests in existing or proposed contracts with the Gaming
and Wagering Commission of Western Australia and senior officers.
OTHER FINANCIAL DISCLOSURES
PRICING POLICIES OF SERVICES PROVIDED
When analysing its fees and charges, the Commission considers the Department of
Treasury’s recommendation that agencies’ fees and charges should achieve full cost recovery
where applicable. In addition, the Commission also considers the Joint Standing Committee
on Delegated Legislation’s recommendations that fees and charges do not exceed cost
recovery and/or do not cross subsidise.
In setting fees, the Commission recognises that not for profit organisations and charitable
bodies form a large part of the Commission’s customer base. Fees for services levied under
the respective regulations should not pose a barrier to entry for those organisations
attempting to raise funds through lawful gambling activities.
The Commission is fully aware that increasing the fees to meet cost recovery will impose
barriers to entry, which is something that the Commission is reluctant to do.
Consistent with the Department of Treasury’s instructions, increases that approximate CPI or
catch up on CPI applied over previous years are to be considered routinely by the Minister.
The Commission’s fees and charges were increased on 1 January 2014. The list of fees and
charges are available on the Department’s website at www.rgl.wa.gov.au and are reviewed
annually.
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CAPITAL WORKS
There were no capital works undertaken by the Gaming and Wagering Commission during
2013/14.
STAFF PROFILE
The Commission does not employ staff, but has a net appropriation agreement with the
Department of Racing, Gaming and Liquor that relates to functions carried out on behalf of
the Commission by staff from the Department. Accordingly, the Commission does not report
on compliance with these issues. The Department of Racing, Gaming and Liquor’s Annual
Report contains relevant information.
OTHER LEGAL AND GOVERNMENT POLICY REQUIREMENTS
ADVERTISING
In accordance with section 175ZE of the Electoral Act 1907, the Commission must report on
any expenditure incurred for advertising, market research, polling, direct mail and media
advertising. Total expenditure for 2013/14 was $49.45 with expenditure incurred in the
following areas:
NAME OF ADVERTISING AGENCY
$
Advertising Agencies
Nil
Government Agencies
$49.45
Market research organisations
Nil
Polling organisations
Nil
Direct mail organisations
Nil
Media advertising organisations
Nil
OTHER GOVERNMENT POLICY REQUIREMENTS
The Commission meets its requirements through arrangements with the Department of
Racing, Gaming and Liquor. The Department’s Annual Report contains information on how
the Department meets the following requirements:
§
Disability Access and Inclusion Plan Outcomes.
§
Compliance with Public Sector Standards and Ethical Codes.
§
Recordkeeping Plans.
§
Substantive Equality.
§
Occupational Safety, Health and Injury Management.