Being the Nominee of a Venue Operator - Victorian Commission for ...

Being the Nominee of a Venue Operator:
What you need to know
Fourth Edition
January 2011

ABOUT THIS GUIDE
Nominees of licensed gaming venues play an important role in the regulation of Victoria’s
gaming industry.
Before an individual applies to the Victorian Commission for Gambling Regulation
(VCGR) to become an approved nominee, it is vital they gain a fuller understanding of
the role and its responsibilities.
This booklet has been designed to do just that, providing nominated nominees with an
appreciation of the role’s requirements.
It details how to become a nominee as well as the responsibilities of venue operators
and their nominees as outlined in the Gambling Regulation Act 2003 and the Gambling
Regulation Regulations 2005 and Gambling Regulation (Signage) Regulations 2005.
Directions to the relevant references of the Act, Regulations and VCGR Directions or
Guidelines feature next to each topic heading, with copies of documents available on the
VCGR website at www.vcgr.vic.gov.au.
VCGR advises all nominees to know what is expected of them as well as venue
operators. If any uncertainty exists the advice of the VCGR or an independent legal
advisor should be sought.
This edition of Being the Nominee of a Venue Operator: What you need to know adds to
and updates the information previously provided to nominees and venue operators.
Peter Cohen
Executive Commissioner
Victorian Commission for Gambling Regulation
1

Topic
CONTENTS
Page
VENUE OPERATOR’S LICENCE
Licence issued by VCGR 4
Licence not transferable 4
Licensee responsible 4
BECOMING A NOMINEE
What is a nominee? 4
Role of nominee 4
Who should be a nominee? 5
When to nominate a nominee 5
What if there isn’t a nominee? 5
Applying to be a nominee 5
LICENCE RESPONSIBILITIES
Complying with licence conditions 6
Notice of certain liquor licence applications 6
Notice of changes in venue operator’s structure or status 6
Reporting other changes in circumstances 7
Address for mail 7
Renewing a venue operator’s licence 7
Resigning as a nominee 7
Approving new associates 8
False or misleading information 8
Amending licence conditions 8
GAMING INDUSTRY EMPLOYEES
Licensing gaming industry employees 8
Gaming industry training 9
COMMUNITY BENEFIT STATEMENTS
Community Benefit Statements 9
RECORDS
Financial and accounting records 10
GAMING OPERATIONS
Gaming machine areas 11
Installing and sealing gaming machines 11
Gaming tokens 11
2

Malfunctioning machines 11
Gaming hours 12
Unlawful payments, inducements and cheating 12
Unfettered access to gaming areas 12
Ejecting people from gaming venues 12
Minors in gaming areas 13
RESPONSIBLE GAMBLING
Self Exclusion Program 13
Responsible Gambling Codes of Conduct 14
Payment of accumulated credits and cashing cheques 14
Playing of gaming machines by intoxicated persons prohibited 14
Credit for gaming, limiting withdrawals and cash advances 15
Time displays, lighting and external views 15
Printed information 15
Gaming machine advertising and signs 15
Staff training in responsible gambling 16
RULES AND DIRECTIONS
Inspection of the VCGR’s rules 16
VCGR Directions 17
DISCIPLINARY ACTION 17
CONTACT INFORMATION 18
PROSECUTION AND PENALTIES 19
APPENDIX 1A – Gambling Regulation Act 2003
(Directions under section 10.4A.4
to venue operators) 21
APPENDIX 1B – Gambling Regulation Act 2003
(Directions under section 10.4A.4
to nominees and associates) 23
APPENDIX 2 – Duties of a gaming industry employee 25
APPENDIX 3 – Victorian Commission for Gambling
Regulation Rules 26
3

VENUE OPERATOR’S LICENCE
Licence issued by VCGR
The Victorian Commission for Gambling Regulation (VCGR) is responsible under the
Gambling Regulation Act 2003 (the Act) for the issue of licences to manage and operate
a venue which has been approved as suitable to be used for gaming.
A venue operator’s licence may be granted to a company, an incorporated association,
the management committee of an unincorporated association, or to an individual. It is
common for venue operator licences to be held by either a company or an incorporated
association. In each case the applicant must be assessed to be a suitable person to be
concerned in, or associated with, the management and operation of a gaming venue.
Licence not transferable
A venue operator’s licence applies only to the person [including company or incorporated
association] it has been issued to and cannot be sold or transferred.
Licensee responsible
Venue operators must make sure that they follow the requirements placed on them by
the Act and related regulations, and can be prosecuted in court or have disciplinary
action taken against their licence if they do not. The nominee of a venue operator is
responsible as though they were the licence holder.
The role and responsibilities of venue operators and nominees are summarised in the
following pages.
BECOMING A NOMINEE
What is a nominee?
Under the Act, an individual must be nominated to be the responsible person if a licence
to manage and operate a gaming venue is granted to a company, an incorporated
association, or the management committee of a club which is an unincorporated
association.
That individual is referred to as the nominee.
Role of nominee
The nominee plays an important role in ensuring responsible, honest and crime free
gambling takes place in their venue.
Once an application to be a nominee is approved by the VCGR that person is
accountable for the management and control of the gaming venue and is also liable
under the Act as licensee.
The nominee is liable under the Act as licensee and may, as well as the licensee, be
prosecuted for any breaches of the Act by the licensee.
4

Who should be a nominee?
Generally, the person best placed to be a nominee is one who has an understanding of
the requirements of the position, coupled with the capacity to influence the business
direction of the venue operator. A person nominated to be the nominee is usually a
director of the company or committee member of the club that holds the venue operator’s
licence. Alternatively, that person may be employed as the venue manager.
Before a nominee is approved, the VCGR must consider whether the nominated person,
and each of their associates, is suitable to be concerned in, or associated with, the
management and operation of a gaming venue. The VCGR must consider whether the
nominated person and their associates are of good reputation by assessing their
character, honesty and integrity. It must consider if the nominated person has a
business association with anyone who may be regarded as not of good standing or as
having unsatisfactory financial resources.
Using information obtained through the application and other checks, the VCGR
assesses each nominated person and confirms their suitability.
Before they can take on the role, all nominated individuals must receive a letter from the
VCGR approving their nomination.
When to nominate a nominee
[s.3.4.14]
Venue operators must nominate a nominee for each venue linked to its licence. All
nominees must have their nomination approved by the VCGR in the following instances:
when a venue operator is granted a licence with an approved venue;
after the licence conditions have been amended to add an approved venue;
when the VCGR notifies the venue operator it has refused to approve a nominated
person; and
when an approved nominee resigns, is dismissed or stops managing the venue.
Applications to the VCGR must be made within 60 days of any of the above
circumstances arising. If unable to meet that timeline, venues should apply to the VCGR
for an extension.
What if there isn’t a nominee? [s.3.4.14 (5)]
In instances where there is no nominee, the company’s board of directors or the
incorporated association or club’s committee members are all separately responsible and
liable as the licensee until an individual is nominated and approved by the VCGR. In
such a situation, each member of the board of directors or club’s committee could be
prosecuted if the Act or regulations are breached.
Applying to be a nominee
All nominee applications must be submitted on a Venue Operator’s Licence – Approval
as a Nominee form. There is no fee for making this application.
Together with the completed form, all applications must include:
an original National Police Certificate from Victoria Police;
a original credit report; and,
an original Australian Securities and Investments Commission personal historical
extract.
5

Applicants must also consent to having their fingerprints taken to satisfy identification
requirements.
Nominee application forms can be obtained during business hours from Level 5/35
Spring Street, on the VCGR website www.vcgr.vic.gov.au or by telephoning
(03) 9651 3655.
Complying with licence conditions
LICENCE RESPONSIBILITIES
[s.3.4.6]
Venue operators are required to comply with all the conditions relevant to their licence,
as identified at the time the licence is granted. Variations to the licence conditions may
be made by following the steps set out in section 3.4.17 of the Act.
Notice of certain liquor licence applications [s.3.4.22]
Venue operators must notify the VCGR in writing about certain liquor licence applications
concerning their approved gaming venue. These include applications:
to grant, vary, transfer, relocate , suspend, cancel or surrender a liquor licence.
to release a liquor licence holder from their obligations.
to remove a partner’s name from a liquor licence.
for an inquiry about the licensee or licensed premises.
for approval of a person as a director of the liquor licensee.
If a liquor licence for an approved venue is cancelled, transferred, relocated, surrendered
or released the venue operator’s licence is automatically and immediately amended to
remove the premises that were the approved venue.
In addition, where the liquor licence is cancelled, relocated, surrendered or released, the
approval of the premises is immediately revoked.
In these circumstances gaming at those premises would have to cease immediately.
Notice of changes in venue operator’s structure or status [s.3.4 23]
Venue operators must notify the VCGR in writing if they change or plan to change their
structure in the following ways:
an incorporated association decides to amalgamate with another incorporated
association, or to convert itself into a company.
an unincorporated body decides to become incorporated.
a venue operator is one of two or more clubs applying for an amalgamated club
liquor licence.
an application has been made by executors, trustees or administrators to have
their name or that of their agent endorsed on the liquor licence.
6

Reporting other changes in circumstance
[s.10.4A.4]
Through the nominee, venue operators are responsible for notifying the VCGR of certain
changes in the licensee’s situation as detailed in Directions made under section 10.4A.4
of the Act.
Whenever any of the specific changes take place, a written notice must be given to the
VCGR within 14 days of the change occurring.
A copy of the VCGR’s Directions which details all those changes required to be notified is
at Appendix 1A.
Individual nominees and associates are also required to tell the VCGR about certain
changes in their situation [see also Appendix 1B]. Nominees can help by reminding
associates from time to time about their reporting obligations.
Address for Mail
Official mail for the venue operator is sent to the registered office or place of business of
the company or business. The VCGR has developed electronic means of
communicating with venue operators for those that have provided a contact email
address. Venue operators that have not provided an email address can contact the
VCGR at Commercial.Licensing@vcgr.vic.gov.au to provide this information.
Renewing a venue operator’s licence
[s.3.4.16 and s.10.4.6]
Three months before a venue operator’s licence is due to expire the licensee will receive
a letter from the VCGR advising that their licence needs to be renewed. Nominees
should be aware of their licence expiry date, as printed on the Notice of Venue
Operator’s Licence, or Notice of Approved Venue.
If a venue operator does not receive a renewal package approximately three months
before the licence is due to expire, the VCGR should be contacted to obtain the
necessary paperwork.
It is the nominee’s responsibility to lodge the application to renew the venue operator’s
licence and submit all forms and lodge the information requested with the VCGR before
the licence is due to expire. This allows gaming to continue past the expiry date of the
existing licence and until the application for a new licence is decided by the VCGR.
If there are any changes in the information provided with an application before it is
determined, the applicant must immediately inform the VCGR.
Resigning as a nominee
[s.10.4A.4]
A nominee must provide the VCGR with 14 days notice of their intention to resign.
Notification of any changes in status – such as a nominee having been dismissed or no
longer managing the venue – must also be given within this timeframe.
Within 60 days, or a longer time as allowed by the VCGR, a new nominee must be
nominated for approval by the venue operator and the required documentation lodged
with the VCGR. If the VCGR allows an extension of time for the nomination of a new
nominee and a person has not yet been nominated, the venue operator should seek a
further extension of time prior to the current extension lapsing.
A proposed nominee must receive a letter of approval from the VCGR before taking on
the role.
7

Approving new associates [s.10.4A.7]
Through its nominee, a venue operator must ensure that a person does not become an
associate of the venue operator before the VCGR approves the appointment in writing.
This applies, but is not limited to, business partners, executive officers – such as a
director, secretary, committee member or part of a management body – and significant
shareholders of the venue operator.
For further advice on who may be considered to be an associate contact the VCGR.
Any new person associated with the venue operator, must not play a role in the
management or operation of gaming at the venue until they are approved by the VCGR.
False or misleading information [s.10.5.16]
A person – including a venue operator, nominee or associate – must not give false or
misleading information when:
applying for a licence or other approval;
complying with a notice given by the VCGR;
answering a question by an inspector of the VCGR; and,
providing information to the VCGR.
Amending licence conditions
[s.3.4.17]
At any time a venue operator can make an application to the VCGR to amend the
conditions of their licence to:
• include or remove approved venues;
• increase or decrease the number of gaming machines at the venues; or,
• vary the days or dates when 24 hour gaming is permitted.
The forms that need to be completed by a venue operator to amend any licence
conditions can be obtained from the VCGR website www.vcgr.vic.gov.au.
GAMING INDUSTRY EMPLOYEES
Licensing gaming industry employees [s.9A.1.3 and s.9A.1.16]
Venue operators must ensure all those employed to undertake gaming related duties in
their venue are appropriately licensed.
A copy of the duties is included at Appendix 2.
Provided they are wearing appropriate identification – as approved by the VCGR – a
nominee can undertake all duties ordinarily performed by a gaming industry employee.
If a venue operator or nominee is advised by the VCGR that an employee’s licence has
been suspended, or cancelled or has expired, the venue operator must, within 24 hours,
stop that employee from continuing to fill the role of a gaming industry employee.
It is important to note that this does not mean the employee must cease performing all
duties at the approved venue but only those for which a Gaming Industry Employee
licence is required.
8

Gaming industry training [s.9A.1.18]
It is a venue operator’s responsibility to ensure that anyone performing the functions of a
gaming industry employee in a gaming machine area has completed an approved
training course on providing a responsible gambling service (RSG).
The training course must be completed by the employee within 6 months after
commencing work in the gaming machine area of an approved venue.
All employees must complete a refresher course every 3 years after completing the initial
approved training course.
Venue operators are required to keep a register containing a copy of the relevant course
certificate for each gaming industry employee employed in the gaming machine area of
the venue. This register is inspected by VCGR inspectors as part of the regular gaming
venue inspection program.
Approved training providers are listed on the VCGR website www.vcgr.vic.gov.au>
Legislation & Standards>Responsible Gaming Training>Approval of Responsible
Gaming Training>Providers of Approved Responsible Gaming Training Courses
COMMUNITY BENEFIT STATEMENTS
Community Benefit Statements [s.3.6.9]
Each year, club and racing club venue operators must lodge an audited Community
Benefit Statement (CBS) for each venue reporting on how much revenue it has reinvested
into the community and how. Venue operators with a pub licence are not
required to lodge a CBS as a higher rate of tax is already paid on their gaming revenue.
This statement must be lodged with the VCGR by 30 September each year. As the date
is set down in legislation, it is not possible for the VCGR to allow an extension of time to
lodge a CBS.
A CBS can be lodged on the VCGR website. Forms can also be downloaded from the
site for those not lodging electronically.
The Ministerial Order sets out what can be claimed as a community benefit or purpose in
a CBS. The Ministerial Order is available on the VCGR website together with a Notes
and Frequently Asked Questions Booklet.
Club and racing club venues that do not lodge an audited CBS by the required date will
be taxed at the pub venue rate. The higher tax rate is payable from the time the CBS
was required to be lodged until the time that the CBS is actually lodged. The VCGR can
also take disciplinary action against the venue operator for contravening the Act for
failing to lodge an audited CBS by the required date.
Where an audited CBS indicates that a venue has made less than the required
community benefit contribution, the venue operator must pay an amount equal to the
difference between the required 81/3% community benefit contribution and the
community benefit stated in the CBS.
For example, if the CBS indicates that the equivalent of only 5% of the Net Gaming
Revenue has been spent on community benefits, the venue operator will be required to
pay the equivalent of an additional 3 1/3% of its Net Gaming Revenue for the period
covered by the CBS.
9

RECORDS
Financial and accounting records [s.3.7.3, s.3.7.4 and s.3.7.5]
To meet this requirement a venue operator must:
keep separate accounts for gaming transactions at a financial institution approved by
the VCGR;
maintain accounts that correctly record and explain the transactions and financial
position of the venue operator;
at the end of each financial year prepare financial statements and accounts which
include:
a) cash flow statements;
b) profit and loss accounts; and,
c) a balance sheet.
Venue operators must retain all banking, accounting and auditing records (other than
audit rolls) related to the operations of the approved venue for not less than three years
after the completion of the transactions to which they relate (audit rolls are required to be
kept for not less than 13 months after the completion of the transactions to which they
relate).
These records must be stored at either the approved venue, or the venue operator’s
principal place of business for a minimum of 13 months after the completion of the
transactions to which they relate. After this period, documents may be relocated so long
as the VCGR is notified in writing at least 14 days prior to their removal.
Venue operators must ensure that all banking, accounting and auditing documents are
stored in a safe and secure manner and allow unlimited access by VCGR inspectors at
any time. For further information see the “Guidelines for Summary Gaming
Transactions” booklet available from the VCGR.
The electronic storage of documents is permitted but must be accessible,
understandable for the VCGR’s purposes, and secure.
Venue operators should also be aware of any requirements for retention of records of
other relevant regulators such as the Australian Taxation Office, the Australian Securities
and Investments Commission (companies) and the Registrar of Incorporated
Associations (incorporated clubs), or any other relevant State or Commonwealth
regulatory body, which may affect the time frame for retaining records.
10

GAMING OPERATIONS
Gaming machine areas [s.3.3.16]
The nominee is responsible for applications to modify a gaming machine area in an
approved venue.
Gaming machines can only be played in approved gaming machine areas.
Any modifications to gaming machine areas must be approved by the VCGR taking into
account the size, layout or facilities of an approved venue. Venue operators should be
aware that there is a permanent ban preventing gaming machines being situated
outdoors.
Installing and sealing gaming machines [s.3.5.17 and s.3.5.9]
A gaming machine must be installed by a gaming operator in the manner outlined in the
Act. Gaming must not take place on a machine that has been incorrectly installed.
Venue operators must not allow gaming machines to be played unless the machine’s
computer cabinet is securely sealed in the manner approved by the VCGR.
Cabinets are electronically locked and monitored by the gaming operator. If the cabinet
opens, gaming should be automatically disabled, and a ‘door-open’ message displayed.
Venue operators must advise their gaming operator if a cabinet is faulty.
Gaming tokens [s.3.5.19]
Only approved gaming tokens – Australian currency or an approved token or credit – can
be used to make a bet on a gaming machine.
Venue operators must ensure the sale or redemption of gaming tokens is carried out in a
manner that ensures the integrity of all transactions.
Malfunctioning machines
[s.3.5.20 and s.3.5.21]
A venue operator must not allow payments to be made to anyone playing on a gaming
machine that is reasonably suspected to have malfunctioned. Disputes must be resolved
by the gaming operator using procedures approved by the VCGR.
If a gaming machine is not functioning in the manner it was designed and programmed
to, the venue operator must not allow it to be played, and should report the fault to their
gaming operator immediately.
Faults in gaming machines include, but are not limited to, coin and note acceptors not
working, player information displays not working, monitor problems such as light
flickering and partial game displays.
11

Gaming hours [Rule 3 (1)&(2), s.3.3.9 and s.3.5.22]
Venue operators may only allow gaming machines to be played during the period
outlined in their liquor licence.
The Act requires that there be a continuous four hour break from gaming after every 20
hours of gaming and that there must be no more than 20 hours of continuous gaming
each day, unless expressly approved by the VCGR and indicated in the Notice of
Approved Venue.
Gaming machines must not be played when the venue is closed to the public.
Unlawful payments, inducements and cheating [s.3.4.68 and s.3.5.28]
Venue operators must not receive benefit from any individuals or organisations listed on
the roll of manufacturers, suppliers and testers, their employees or associates.
A nominee or venue operator must not dishonestly persuade an individual or
organisation to provide them with money, gaming tokens, benefit, advantage, valuable
consideration or security. They must also ensure they do not cause gaming equipment to
do this either.
Unfettered access to gaming areas [Rule 3(2)]
When gaming is offered to the public, the venue operator must give unrestricted access
to the gaming areas to anyone 18 years and over. This means that no fee or charge can
be made for a person to enter the gaming areas of the venue. However, the venue
operator may:
(a) impose and enforce a reasonable dress code for the gaming venue;
(b) exclude from the venue a person whose behaviour is unacceptable in a public
place;
(c) exclude from the venue a person who has sought to be excluded from gaming
venues under a voluntary self-exclusion scheme;
(d) exclude a person engaged in “syndicate play”.**
** “Syndicate play” occurs when two or more persons act in concert to affect the chance
of any person or persons winning a linked jackpot arrangement.
Ejecting people from gaming venues [s.3.5.43]
A venue operator may refuse entry or eject from their venue anyone who:
breaks the VCGR’s rules;
damages or vandalises a gaming machine;
behaves in a manner likely to cause offence to other persons; or,
is reasonably suspected of being in the venue with the intention of committing an
offence.
A venue operator may use no more force than is reasonably necessary to remove a
person.
This is in no way intended to limit or restrict the general common law right a venue
operator has to refuse entry or evict a person from their venue.
12

Minors in gaming areas [s.10.7.3, s.10.7.6(1) & (2) and s.10.7.13 and Direction
dated 29/8/2002]
A venue operator or gambling employee must not knowingly allow or assist a minor to
gamble or knowingly allow, assist or enable a minor to obtain entry to or remain in a
gaming machine area of an approved venue.
Apprentices aged under 18 are permitted to enter a gaming machine area if they are to
receive professional training in the venue.
Proof of age and identification may be required from anyone in an approved venue
suspected of being a minor.
Venue operators are responsible for placing approved signs in the venue advising that
those aged under 18 must not enter. Signs must be displayed at each place a person
could enter the gaming machine area, or on the boundary of this area. The sign must be
clearly visible at all times, and must follow these standards:
be at least A4 size;
have clear and legible wording, in black on a white background;
use the same font size for wording throughout;
use wording of a size to fill the background on which it is printed.
RESPONSIBLE GAMBLING
Self-exclusion program [s.3.4.8(2)(b)(ba), s.3.4.12.A, s.10.6.1, s.10.6.2, s.10.6.3,
s.10.6.4 and Sch.7 Part 18.3]
It is a condition of all venue operator licences to conduct a self-exclusion program, at
approved venues from 1 June 2009. An applicant for a new Venue Operator’s licence
must submit, as part of their application, a self-exclusion program that the applicant
intends to conduct if the licence is granted by the VCGR.
The self-exclusion program must detail how a person may voluntarily exclude themselves
from a gaming venue or venues. The program must comply with the Ministerial Direction
and be approved by the VCGR.
The Ministerial Direction details what venue operators must specify in their self-exclusion
program. Guidelines are included with the Ministerial Direction which provides practical
information for meeting the standards required by the direction. A copy of the Ministerial
Direction and Guidelines are available on the VCGR website at www.vcgr.vic.gov.au,
click on Responsible Gambling on the left side of the VCGR Home page, then Minister’s
Directions for Codes & SEP and then Ministerial Directions – Self-Exclusion Programs.
A venue operator’s self-exclusion program must be suitable for the nature and size of the
gaming machine area and also state how the effectiveness of the program will be
assessed and how often it will be reviewed.
Venue operators must amend their self-exclusion program if there is an amendment to
the Ministerial Direction which results in a change, or addition to, requirements to be met
by venue operators. In these circumstances, the venue operator must submit the
amended program to the VCGR for approval within six months of the date of the direction
change.
13

Responsible Gambling Code of Conduct [s.3.4.8(2)(b)(bb), s.3.4.12.B, s.10.6.6,
s.10.6.7, s.10.6.8, s.10.6.9 and Sch. 7 Part 18.4]
It is a condition of all venue operator licences to have a Responsible Gambling Code of
Conduct (Code of Conduct) put into practice at approved venues from 1 June 2009. An
applicant for a new venue operator’s licence must submit, as part of their application, a
Code of Conduct the applicant intends to implement if the licence is granted by the
VCGR.
A venue operator’s Code of Conduct must detail how the venue operator will foster
responsible gambling at its gaming venue or venues. The Code of Conduct must comply
with the Ministerial Direction and be approved by the VCGR.
The Ministerial Direction details what venue operators must specify in their Code of
Conduct. Guidelines are included with the Ministerial Direction which provides practical
information for meeting the standards required by the direction. A copy of the Ministerial
Direction and Guidelines are available on the VCGR website at www.vcgr.vic.gov.au,
click on Responsible Gambling on the left side of the VCGR Home page, then Minister’s
Directions for Codes & SEP and then Ministerial Directions – Responsible Gambling
Codes of Conduct.
The Code of Conduct must also state the review process that will be undertaken by the
venue operator in assessing its operation and effectiveness.
Venue operators must amend their Code of Conduct if there is an amendment to the
Ministerial Direction which results in a change, or addition to, requirements to be met by
venue operators. In these circumstances, the venue operator must submit the amended
Code of Conduct to the VCGR for approval within six months of the date of the direction
change.
Payment of accumulated credits and cashing cheques [s.3.5.33]
Venue operators must:
Pay accumulated credits of $1,000 or more on a gaming machine by cheque and,
At the request of a person, pay accumulated credits of less than $1,000 by
cheque.
In either case, the entire amount must be paid by cheque (not part by cheque and part by
cash). The cheque must not be payable to cash.
Venue operators must not give cash or gaming tokens in exchange for a cheque drawn
on their account or that of the gaming operator to enable a person to play a gaming
machine.
Venue operators can give cash for a cheque up to the value of $400 but must not give a
greater amount of cash if the value of the cheque is for more than $400. Venue
operators must only exchange one cheque for cash per person in a 24 hour period.
Playing of gaming machines by intoxicated persons prohibited [s.1.3A and
s.3.5.33A]
A venue operator must not knowingly allow an intoxicated person to play a gaming
machine. A person can be identified as being in an intoxicated state if ‘…his or her
speech, balance, co-ordination or behaviour is noticeably affected and there are
reasonable grounds for believing that this is the result of the consumption of alcohol’.
14

Credit for gaming, limiting withdrawals and cash advances [s.3.5.31 and
s.3.5.32].
It is an offence to provide credit for gaming. Venue operators must not make a loan or
extend credit in any form, to someone in order for them to play a gaming machine.
It is the responsibility of a venue operator to ensure cash facilities – such as ATMs –
inside the venue cannot be used to withdraw more than $200 in any one transaction.
A venue operator must not allow a person to obtain a cash advance from a credit
account at a cash facility in their venue.
Time displays, lighting and external views [regulations 7 & 8, 11, 12 & 14]
Every gaming machine must display the time. Should a time display on a gaming
machine malfunction, a venue operator must immediately supply details of that
malfunction to the relevant gaming operator.
Lighting in the gaming room must be kept at the prescribed level as set out in Schedule 2
of the Gambling Regulation Regulations 2005.
The venue operator must not remove a window or block the view from a window that
gives a view out of the gaming machine area. Using blinds to block out heat or glare,
however, is allowed.
Printed information [regulations 16, 17 & 18]
As outlined in the regulations, player information posters must be displayed in the venue
by the operator.
Player information talkers on gaming machines that can be seen from the front of the
machine must also be displayed. Venue operators must also ensure player information
brochures can be obtained at each cashier’s desk.
There must be at least as many brochures as there are gaming machines in the gaming
room available at all times.
Posters, talkers and brochures detail how gaming machines work and the chances of
winning. The venue operator must have them available in English, and may also provide
them in other commonly spoken community languages. They must contain the
information specified by the Minister.
For information on these specifications, refer to the Responsible Gambling page of the
VCGR website and follow the links to Minister’s Standards – Player Information.
Gaming machine advertising and signs [s.3.5.34 and s.3.5.35]
Venue operators are forbidden from advertising gaming machines outside the venue’s
gaming machine area.
This refers to any form of advertising that promotes or is intended to promote the playing
of gaming machines. It does not include information or advertisements on problem
gambling or technical details relating to the operation of a gaming machine.
A venue operator is permitted to send advertising to anyone who has requested it.
Displaying a gaming machine related sign is also not allowed. This refers to any sign –
expressed in words, symbols or pictures – that:
15

draws attention to the availability of gaming machines for gaming; or
uses terms or expressions often associated with gaming machines.
A limited number of signs are exempt from this prohibition, as outlined in the Gambling
Regulation (Signage) Regulations 2005.
Venue operators can obtain further information on this from their gaming operator or from
an independent legal adviser.
Staff training in responsible gambling [s.9A1.18]
All Gaming Industry Employee licence holders must complete training in the responsible
provision of gambling. Refer to the section on ‘Gaming industry training’ on page 9 for
details.
A venue operator is not allowed to employ someone to perform the duties of a gaming
industry employee unless the person has completed the required training within six
months after commencing work in the gaming machine area of an approved venue.
Venue operators are required to keep a register containing a copy of the relevant course
certificate for each gaming industry employee employed in the gaming machine area of
the venue. This register is inspected by VCGR inspectors as part of the regular gaming
venue inspection program.
RULES AND DIRECTIONS
Inspection of the VCGR’s rules [s.3.5.25 and VCGR Guideline dated 3/12/2004]
Venue operators must ensure a notice is prominently displayed informing patrons that
they can inspect a copy of the VCGR’s rules from the venue’s cashier station. This
notice must be in a form approved by the VCGR.
The notice must be clearly visible at all times, and must follow these standards:
be at least A4 size;
have clear and legible wording, in black on a white background;
use the same font size for wording throughout;
wording of a size to fill the background on which it is printed.
A venue operator must:
allow a patron to inspect the VCGR’s rules on request; and,
ensure the rules are enforced.
For the VCGR rules, please refer to Appendix 3.
16

VCGR Directions [s.3.5.27 and Directions dated 13/7/2004]
A venue operator must comply with any written direction given by the VCGR that relates
to:
how gaming is conducted;
keeping or inspecting financial records; or
the administration of the venue.
As an example, Directions issued on 13 July 2004 required venue operators to:
Display publicly a copy of the venue operator’s licence or a Notice of Approved
Venue at the entrance of the gaming machine area or adjacent to the cashier’s
station;
Complete in the approved form, a weekly summary of gaming transactions, to
match the period of the venue operator’s weekly venue report;
Retain the weekly transaction summary reports as per requirements in the Act for
other records;
Ensure a gaming machine area is physically separated from other areas of the
venue;
Ensure that it is possible for a patron to enter or leave the venue, or gain access to
such amenities as a toilet or smoking area, without having to pass through a
gaming machine area.
Refer also to Directions issued regarding signage about minors in gaming machine areas
(page 13)
DISCIPLINARY ACTION
The VCGR may take disciplinary action against a venue operator for failing to comply
with the requirements of the Act [s.3.4.25].
This may result in the:
cancellation or suspension of a venue operator’s licence;
variation of the terms of a venue operator’s licence;
issuing a letter of censure; or
issuing of a fine of up to 5,000 penalty units.
Disciplinary action could also be taken against the nominee in instances when they also
hold a Gaming Industry Employee licence. The VCGR may review the ongoing suitability
of the nominee as an associate of the venue operator.
Results of disciplinary action, including the licensee’s name and licence number are
made public on the VCGR website, newsletter and Annual Report.
17

CONTACTS
For more information on becoming a nominee, licence responsibilities and
Community Benefit Statements contact:
Commercial Licensing and Monitoring
Telephone: (03) 9651 3655
E-mail: commercial.licensing@vcgr.vic.gov.au
For more information on gaming operations, responsible gambling, and rules and
directions contact:
Duty Inspector
Telephone: (03) 9651 3563
For more information on advertising and records contact:
Compliance and Investigations
Telephone: (03) 9651 3737
E-mail: investigation@vcgr.vic.gov.au
For more information on the general operations of the VCGR visit www.vcgr.vic.gov.au
For assistance with problem gambling
Gambler’s Help
Telephone: 1800 858 858
Visit: www.problemgambling.vic.gov.au
18

PROSECUTION & PENALTIES
Breaching certain sections of the Act may see venue operators prosecuted and attract
penalties such as those listed below. The description below is a brief summary of
requirements. Venue operators and nominees should refer to the relevant sections of the
Gambling Regulation Act 2003 or the related regulations for more complete information.
Description
Modification of gaming
machine area must be
authorised.
Venue operator must
comply with licence
conditions.
Nominee must be
nominated and apply
within required time.
Venue Operator must not
receive a benefit from a
person listed on the Roll
of Manufacturers
Suppliers or Testers.
Gaming only allowed on
protected devices.
Play only permitted on a
gaming machine installed
as authorised.
Gaming only permitted in
gaming machine areas.
Gaming tokens must be
used.
Play only allowed on
correctly functioning
gaming machine.
Gaming only allowed
when the venue is
authorised to be open to
the public.
Notice must be displayed
regarding where to find
the VCGR’s rules.
Venue operator must
enforce VCGR’s rules.
Venue operator must
comply with a direction
from the VCGR.
Penalty Section
Units
100 3.3.16
2500 3.4.6
20 3.4.14
1000 3.4.68
or 2
yrs
prison
or
both
400 or 3.5.9
2 yrs
prison
or
both
1000 3.5.17
1000 3.5.18
or 2yrs
prison
or
both
100 3.5.19
100 3.5.21
60 3.5.22
25 3.5.25
25 3.5.26
25 3.5.27
Venue operator must not
induce a person to give
credit, money, gaming
tokens, benefit,
advantage, valuable
consideration or security.
Venue operator must not
loan or extend credit.
Limit of $200 on
withdrawals from cash
facilities and no advances
allowed from credit
account through a cash
facility.
Accumulated credits of
$1000 or more must be
paid entirely by cheque
that is not payable to
cash.
Accumulated credits must
be paid by cheque at
patron request.
Venue operator cheque
cannot be cashed to play
a gaming machine.
Venue operators cannot
exchange cheques for
cash if value is $400 or
more.
Venue operators cannot
exchange more than one
cheque for cash per
person within 24 hours.
Venue operators must not
allow an intoxicated
person to gamble on
gaming machines
Gaming machine
advertising prohibited
outside gaming venue.
1000 or
2 yrs
prison o
both
3.5.28(2)
100 3.5.31
60 3.5.32
60 3.5.33(1)
60 3.5.33(2)
60 3.5.33(3)
40 3.5.33(3A)
40 3.5.33(3B)
40 3.5.33A
20 3.5.34(1)
19

A contract for gaming machine
advertising outside gaming
venue is prohibited.
Gaming machine related signs
prohibited.
A contract for gaming machine
signage is prohibited
A gambling provider must not
allow a minor to gamble.
A gambling employee must
not knowingly allow a minor to
gamble
A minor must not enter a
gaming machine area of an
approved venue
A gambling employee must
not knowingly allow a minor to
enter a gaming machine area
of an approved venue
A gambling provider must
cause to be displayed any
notice that the VCGR directs
under subsection (1)
Community Benefit Statement
must be lodged in approved
form by 30 September each
year.
Bank accounts must be kept
as approved by the VCGR,
and authorisation must be
provided to comply with a
requirement of an inspector.
Appropriate accounting
records must be kept.
Accounting records must be
kept in a form approved by the
VCGR, so as to enable true
and fair financial statements
and Community Benefit
Statements to be prepared
and audited as required.
Financial statements must be
prepared in accord with the
Act at the end of each
financial year.
All documents relating to the
gaming operations must be
kept at the venue or principal
place of business for not less
than three years.
20 3.5.34(2)
20 3.5.35(1)
20 3.5.35(2)
120 10.7.3(1)
20 10.7.3(2)
120 10.7.6(1)
20 10.7.6(2)
60 10.7.9(3)
60 3.6.9
100 3.7.3(1)
60 3.7.4(1)
60 3.7.4(2)
60 3.7.4(3)
60 3.7.5
VCGR must be notified of
specified changes of Venue
Operator and associates
within 14 days of them
occurring.
A person must hold a
Gaming Industry Employee
licence or be the approved
Nominee for the venue to be
allowed to perform the
functions of a gaming
industry employee.
Venue operator must
terminate gaming industry
employee functions of a
person if notified by the
VCGR that the person’s
licence is suspended or
cancelled.
Venue Operator must ensure
that employees working in
gaming machine area attend
initial and refresher training,
as specified by the Act, in the
responsible provision of
gaming.
An applicant for a licence
must provide updated
information if a change
occurs in the information
provided with the application
before the application is
determined.
A person must not provide
false or misleading
information to the VCGR.
60* 3.8.1
60 9A1.3(2)
100 9A1.16
20 9A1.18(2)
60 10.4.6
60 10.5.16
* 12 penalty units in the case of Infringement
Notices, which may be issued by the VCGR for
certain first offences.
A penalty unit for 2010-11 is valued at $119.45 and
is automatically indexed each financial year.
Current information about penalty units can be
found by clicking here.
20

Appendix 1A
GAMBLING REGULATION ACT 2003
DIRECTIONS UNDER SECTION 10.4A.4
TO VENUE OPERATORS
These are the directions approved by the Victorian Commission for Gambling Regulation
(“the Commission”), pursuant to section 10.4A.4 of the Gambling Regulation Act 2003
(“the Act”). They specify the following changes in the situation of the holder of a Venue
Operator’s licence (“the Licensee”) that require written notice be given to the Commission
within 14 days after the change takes place:
1. A proposed change to an agreement with a gaming operator regarding the number
of gaming machines to be provided, or a change of operator.
2. Any change in the Licensee’s name, registered address, business address or legal
status.
3. Any removal of an associate, within the meaning of section 1.4 of the Act.
(Note that under section 10.4A.6 of the Act, the Licensee must also notify the
Commission in writing within 7 days of any person becoming an associate, within
the meaning of section 1.4 of the Act, and that failure to notify is an offence which
may result in a fine of up to 60 penalty units).
4. Any change in the Licensee’s legal or corporate structure.
5. Any change in the Licensee’s management arrangements for its gaming or liquor
business or in the manner of tenure of the approved venue(s) including, but not
limited to, the sale of the freehold of the premises, or the renegotiation of the lease
of the approved venue(s).
6. Any renegotiation of the Licensee’s financing arrangements or any change in its
equity partners or lenders.
7. Any finding of guilt for any offence under statute or at common law recorded in any
jurisdiction against the Licensee.
8. The commencement of bankruptcy, winding up or liquidation proceedings, the
appointment of a receiver or other controller, the appointment of an administrator or
the entry into a formal or informal scheme of arrangement (however it is described)
with the Licensee’s creditors.
9. Details of the outcome of any litigation against the Licensee, or to which the
Licensee was a co-defendant.
10. Details of the outcome of any investigation into the affairs of the Licensee by the
Australian Securities and Investments Commission (ASIC), by the Registrar of
Incorporated Associations under the Associations Incorporation Act 1981, by the
Australian Prudential Regulation Authority (APRA) or the Australian Competition &
Consumer Commission (ACCC) exercising their statutory functions or by any other
regulatory body or law enforcement agency in any jurisdiction.
11. The result of any disciplinary action taken against a gaming, bingo or casino licence,
approval or authorisation held by the Licensee, outside Victoria.
21

Definitions:
“any jurisdiction” means any country, place, state or territory, within or outside
Australia, within which judgments of a court or other legal authority can be enforced.
NOTE
In accordance with section 10.4A.4 of the Gambling Regulation Act 2003, failure to notify
the Commission in writing of a change as specified above is an offence, which may result
in a fine of up to 60 penalty units.
In addition, section 3.4.25 provides that the following disciplinary action may be taken
against a venue operator that has been found guilty of an offence against section
10.4A.4:
(a) the cancellation or suspension of the venue operator's licence;
(b) the variation of the conditions of the venue operator's licence;
(c) the issuing of a letter of censure to the venue operator;
(d) the imposition of a fine not exceeding an amount that is 5,000 times the
value of a penalty unit fixed by the Treasurer under section 5(3) of the
Monetary Units Act 2004 on the venue operator.
These directions under section 10.4A.4 of the Gambling Regulation Act 2003 commence
on 1 January 2011 and replace any previous directions.
PETER COHEN
Executive Commissioner
Dated: 16 December 2010
22

Appendix 1B
GAMBLING REGULATION ACT 2003
DIRECTIONS UNDER SECTION 10.4A.4
TO NOMINEES AND ASSOCIATES
These are the directions approved by the Victorian Commission for Gambling Regulation
(“the Commission”) pursuant to section 10.4A.4 of the Gambling Regulation Act 2003
(“the Act”). They specify the following changes in the situation of an associate or
nominee of a Bingo Centre Operator, Commercial Raffle Organiser, Registered
Bookmaker, Venue Operator, or an associate of a person listed on the Roll of
Manufacturers, Suppliers and Testers that require written notice be given to the
Commission within 14 days of the change taking place:
Associated Individuals and Nominees
1. Any change in your name or address.
2. A new business association you have with a person, body or association or a change
to an existing business association.
3. Any finding of guilt for any offence under statute or at common law recorded in any
jurisdiction against you (excluding traffic offences for which a non-custodial sentence
was imposed) and, in addition, details of any proceedings leading to your participation
in a court ordered Diversion Program or any similar program.
4. The commencement of any bankruptcy or liquidation proceedings, the appointment of
a receiver or other controller, the appointment of an administrator or the entry into a
formal or informal scheme of arrangement (however it is described) with your
creditors.
5. Your disqualification from acting as a director of a company.
6. If you are a company director or officer of an incorporated association, details of the
outcome of any investigation into the affairs of the company or the incorporated
association by the Australian Securities and Investments Commission (ASIC), by the
Registrar of Incorporated Associations under the Associations Incorporation Act 1981,
by the Australian Prudential Regulation Authority (APRA) or the Australian
Competition & Consumer Commission (ACCC) exercising their statutory functions or
by any other regulatory body or law enforcement agency in any jurisdiction.
7. Details of the outcome of any litigation against you, or to which you were a codefendant,
whether personally (i.e. as an individual) and/or via business associations
(e.g. legal action that involved a company, joint venture, incorporated association or
partnership of which you are or were respectively a director, public officer, partner or
joint venturer).
8. The result of any disciplinary action taken outside Victoria against a gaming, bingo or
casino licence, approval or authorisation held by you, or any entity with which you
have a business association.
23

Associated Entities
1. Any change in the entity’s name, registered address, business address or legal
status.
2. Any change involving the appointment, addition, removal or resignation of a director,
business partner, trustee, executive officer, company secretary, committee member or
shareholder of the entity.
3. A new business association the entity has with a person, company, body or
association or a change to an existing business association.
4. Any change in the entity’s legal or corporate structure.
5. Any finding of guilt for any offence under statute or at common law recorded in any
jurisdiction against the entity.
6. The commencement of bankruptcy, winding up or liquidation proceedings, the
appointment of a receiver or other controller, the appointment of an administrator or
the entry into a formal or informal scheme of arrangement (however it is described)
with the entity’s creditors.
7. Details of the outcome of any investigation into the affairs of the entity by the
Australian Securities and Investments Commission (ASIC), by the Registrar of
Incorporated Associations under the Associations Incorporation Act 1981, by the
Australian Prudential Regulation Authority (APRA) or the Australian Competition &
Consumer Commission (ACCC) exercising their statutory functions or by any other
regulatory body or law enforcement agency in any jurisdiction.
8. Details of the outcome of any litigation against the entity, or to which the entity was a
co-defendant
9. The result of any disciplinary action taken outside Victoria against a gaming, bingo or
casino licence, approval or authorisation held by the entity, or any entity with which it
has a business association.
Definitions:
“associate” has the meaning given in section 1.4 of the Act.
“any jurisdiction” means any country, place, state or territory, within or outside
Australia, within which judgments of a court or other legal authority can be enforced.
“business association” includes a partnership, joint venture, collaboration or similar
relationship, however described.
NOTE
In accordance with section 10.4A.4 of the Gambling Regulation Act 2003, failure to notify
the Commission in writing of a change as specified above is an offence which may result
in a fine of up to 60 penalty units.
These directions under section 10.4A.4 of the Gambling Regulation Act 2003 commence
on 1 January 2011 and replace any previous directions.
PETER COHEN
Executive Commissioner
Dated: 16 December 2010
24

Appendix 2
Duties of a Gaming Industry Employee
Duties of a gaming industry employee
working for a Venue Operator
For the purposes of section 9A.1.2(1)(a)
of the Act, the prescribed duties of a
gaming industry employee employed by
or working for a Venue Operator are –
(a) to investigate gaming machine
irregularities and disputes players
have about a gaming machine and
report them to the gaming
operator;
(b) to validate a win by a player on a
gaming machine;
(c) to pay prizes and refunds;
(d) to provide gaming tokens to
players, redeem gaming tokens for
players and physically or
electronically store gaming tokens;
(e) to possess and issue gaming
equipment keys to other persons
holding a gaming industry
employee’s licence;
(f) to access the locked area of a
gaming machine;
(g) to maintain accounts and perform
reconciliations in relation to
returns and payments required
under the Act;
(h) to secure data within gaming
equipment relating to games and
gaming, the electronic monitoring
system and player accounts;
(i) in relation to gaming equipment
software─
a. to program the software;
b. to prepare, collate and
access documentation in
relation to the software;
c. to secure the software;
(j) to transfer gaming equipment
software into operational mode;
(k) to vary a gaming machine or game
in accordance with an approval
given under section 3.5.5 of the
Act;
(l) to manually activate or re-activate
a gaming machine or game
approved under section 3.5.4 of
the Act.
(m) to supervise persons carrying out
any of the duties referred to in
paragraphs (a) to (l).
Other duties of a gaming industry
employee
For the purposes of section 9A.1.2 (1)
(g) of the Act, the prescribed duties of a
gaming industry employee are─
(a) to install gaming equipment;
(b) to connect gaming equipment to
an electronic monitoring system at
the premises of a gaming operator
or at an approved venue;
to supervise persons carrying out any of
the duties referred to in paragraphs (a)
and (b).
25

Gambling Regulation Act 2003 - section 3.5.23(1)
Appendix 3
VICTORIAN COMMISSION FOR GAMBLING REGULATION RULES
as in force on 21 February 2007
PART 1 - PRELIMINARY
Title
1. These Rules may be cited as the Victorian Commission for Gambling Regulation
Rules 2007.
Application
2. (1) These Rules are in addition to the requirements of the Act and of a venue
operator's licence, including licence conditions
(2) These Rules revoke all previous Rules made by the Victorian Commission
for Gambling Regulation, or its predecessors, under section 3.5.23(1) of the
Gambling Regulation Act 2003 or section 78 of the Gaming Machine Control Act
1991.
PART 2 - CONDUCT OF GAMING
Gaming periods
3. (1) A venue operator may offer gaming to a person only –
(a)
(b)
during the period or periods when a licence granted under the Liquor Control
Reform Act 1998 in respect of the premises authorises the consumption on
those premises of liquor supplied on those premises; or
in the case of premises licensed under Part I of the Racing Act 1958, during
a race meeting --
but not during any break from gaming that the venue operator takes in order to
comply with a condition of a premises approval or a venue operator's licence.*
(2) A venue operator must, during any period in which the venue operator offers
gaming to a person, afford members of the public aged 18 and over unfettered
access to the gaming areas of the venue, provided that –
(a)
(b)
(c)
(d)
the venue operator may impose and enforce a code of dress that is
reasonable in the circumstances;
the venue operator may exclude from the venue a person whose behaviour
would be unacceptable in a public place;
the venue operator may exclude from the venue a person who has sought to
be excluded from gaming venues under a voluntary self-exclusion scheme;
the venue operator may exclude a person engaged in “syndicate play”.**
26

Supervision of gaming machine areas generally
4. A venue operator must ensure that the operation of the gaming machine area and
each gaming machine is subject to continual supervision. Supervision may be
electronic or physical or a combination of both.
PART 3 - GAMING MACHINE AREAS
Provision of cash for the purposes of gaming
5. (1) Automatic teller machines (ATM) and electronic funds transfer (EFTPOS) devices
must not be accessible by any person within the gaming machine area of an
approved venue for the purposes of withdrawing cash.
(2) Cash must not be provided to a patron through a credit card or charge card
transaction for the purposes of gaming.
Explanatory Notes
* Compliance with the Act requires a continuous 4 hour break from gaming after every 20
hours of gaming and that there must not be more than 20 hours of continuous gaming
each day unless expressly approved by the VCGR and indicated in the Notice of
Approved Venue.
** “Syndicate play” occurs when two or more persons act in concert to affect the chance
of any person or persons winning a linked jackpot arrangement.
27