Review of the Registered Clubs Industry in NSW - Clubs NSW
Review of the Registered Clubs Industry in NSW - Clubs NSW
Review of the Registered Clubs Industry in NSW - Clubs NSW
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12 Mak<strong>in</strong>g it easier for new clubs to be established<br />
12.3.3 Cont<strong>in</strong>ue to provide new clubs with access to 10 free gam<strong>in</strong>g mach<strong>in</strong>e<br />
entitlements until alternative measures to assist new clubs are <strong>in</strong> place<br />
Stakeholders identified three ma<strong>in</strong> areas <strong>in</strong> <strong>the</strong> legislation as a h<strong>in</strong>drance to club<br />
establishment:<br />
1. New clubs have access to only 10 free gam<strong>in</strong>g mach<strong>in</strong>e entitlements.<br />
Stakeholders argued that <strong>the</strong> current allowance <strong>of</strong> 10 free gam<strong>in</strong>g mach<strong>in</strong>e<br />
entitlements is <strong>in</strong>sufficient to f<strong>in</strong>ancially support a club’s ongo<strong>in</strong>g operations, and<br />
some peak bodies called for an <strong>in</strong>crease <strong>in</strong> this allowance. The Leagues <strong>Clubs</strong>’<br />
Association <strong>of</strong> <strong>NSW</strong> submitted that clubs provid<strong>in</strong>g significant <strong>in</strong>frastructure<br />
should have access 100 plus free gam<strong>in</strong>g mach<strong>in</strong>e entitlements. 238 Similarly,<br />
<strong>Clubs</strong><strong>NSW</strong> argued that <strong>the</strong> <strong>NSW</strong> Government should allow access to an<br />
appropriate number <strong>of</strong> free gam<strong>in</strong>g mach<strong>in</strong>e entitlements that allows <strong>the</strong> club to<br />
provide <strong>the</strong> level <strong>of</strong> facility desired <strong>in</strong> a new community. 239<br />
2. <strong>Clubs</strong> transferr<strong>in</strong>g gam<strong>in</strong>g mach<strong>in</strong>e entitlements between club premises are<br />
required to forfeit gam<strong>in</strong>g mach<strong>in</strong>e entitlements. Many clubs put <strong>the</strong> view that<br />
sett<strong>in</strong>g up satellite clubs is not feasible, due to <strong>the</strong> restrictions on transferr<strong>in</strong>g<br />
gam<strong>in</strong>g mach<strong>in</strong>e entitlements between club premises. The movement <strong>of</strong> gam<strong>in</strong>g<br />
mach<strong>in</strong>es between club premises is subject to <strong>the</strong> forfeiture scheme. Under this<br />
scheme, if a club wants to move gam<strong>in</strong>g mach<strong>in</strong>e entitlements to a satellite club, it<br />
must forfeit one gam<strong>in</strong>g mach<strong>in</strong>e entitlement for every two to three gam<strong>in</strong>g<br />
mach<strong>in</strong>e entitlements it transfers. 240 This effectively penalises a club by reduc<strong>in</strong>g<br />
its entitlements.<br />
3. If a club that established a satellite club wanted to apply for more entitlements,<br />
and this exceeded <strong>the</strong> club’s SIA threshold, it would also have to go through <strong>the</strong><br />
SIA process. <strong>Clubs</strong> argued that this fur<strong>the</strong>r reduces <strong>the</strong> feasibility <strong>of</strong> open<strong>in</strong>g<br />
satellite clubs by add<strong>in</strong>g ano<strong>the</strong>r layer <strong>of</strong> costs.<br />
IPART notes that <strong>the</strong> report on review <strong>of</strong> <strong>the</strong> Gam<strong>in</strong>g Mach<strong>in</strong>es Act <strong>in</strong>cludes<br />
proposals that relate to <strong>the</strong>se three issues. The proposed changes are to:<br />
<br />
<br />
<br />
Reduce <strong>the</strong> state-wide cap on gam<strong>in</strong>g mach<strong>in</strong>es and provide a mechanism for <strong>the</strong><br />
automatic reduction <strong>of</strong> <strong>the</strong> cap over time.<br />
Elim<strong>in</strong>ate access to 10 free entitlements, as this <strong>in</strong>hibits <strong>the</strong> proposal to reduce <strong>the</strong><br />
overall state cap on gam<strong>in</strong>g mach<strong>in</strong>es. Instead, <strong>the</strong> report proposes to develop<br />
o<strong>the</strong>r mechanisms, <strong>in</strong> consultation with <strong>the</strong> <strong>in</strong>dustry, to assist small clubs and new<br />
clubs (particularly <strong>in</strong> greenfield areas).<br />
Relax <strong>the</strong> restriction on gam<strong>in</strong>g mach<strong>in</strong>e transfers for related clubs by remov<strong>in</strong>g<br />
<strong>the</strong> forfeiture ratio for transfers with<strong>in</strong> <strong>the</strong> same LGA and chang<strong>in</strong>g <strong>the</strong> forfeiture<br />
ratio to one entitlement for every six that is transferred for <strong>in</strong>ter-LGA transfers.<br />
238 Leagues <strong>Clubs</strong>’ Association <strong>of</strong> <strong>NSW</strong> submission, 8 April 2008, p 2.<br />
239 <strong>Clubs</strong><strong>NSW</strong> submission, 4 April 2008, p 33.<br />
240 Gam<strong>in</strong>g Mach<strong>in</strong>es Act, Section 20. Forfeiture rules apply unless both club premises are located with<strong>in</strong><br />
1km <strong>of</strong> each o<strong>the</strong>r for metropolitan locations and 50km for non-metropolitan clubs.<br />
<strong>Review</strong> <strong>of</strong> <strong>the</strong> <strong>Registered</strong> <strong>Clubs</strong> <strong>Industry</strong> <strong>in</strong> <strong>NSW</strong> IPART 205