Queensland Gaming Commission annual report 2008–09 Queensland Gaming Commission annual report 2008–09 p 1 12 March 2010 The Honourable Peter Lawlor MP Minister for Tourism and Fair Trading GPO Box 1141 Brisbane Qld 4001 Dear Mr Lawlor The Queensland Gaming Commission annual report has been prepared for the 12 months ended 30 June 2009, as required under the provisions of section 27(1) of the Gaming Machine Act 1991. The report summarises the activities of the Commission, gives an overview of legislative and other changes within Queensland’s machine gaming industry and provides summary statistical information on the gaming industry for the year under review. Yours faithfully Dr M F Wilson Chairperson T J Dare L Drennan I S Macdonald G McCallum K L Newton B Sheehan 33 Charlotte Street Brisbane Locked Bag 180 City East Qld 4002 Telephone 07 3872 0999 Facsimile 07 3872 0998 p 2 Contents 1 Covering letter 3 Queensland Gaming Commission 4 Commissioners 5 Functions under gaming legislation 5 Commission update 2008–09 8 Gaming machine update 2008–09 9 Conclusion 10 Gaming machine statistics as at 30 June 2009 12 Top 50 licensed clubs and hotels based on machine gaming taxable metered wins 14 Clubs operating 51 or more gaming machines 16 Hotels operating 40 gaming machines Queensland Gaming Commission annual report 2008–09 p 3 Queensland Gaming Commission The Queensland Gaming Commission is The number of meetings attended by an independent statutory body set up each Commissioner is presented in under the provisions of the Gaming Table 2. Machine Act 1991. The Commission is Table 2 Commissioner attendance empowered to and carries out various functions and responsibilities under the Commissioner Meetings attended Act, namely: M F Wilson 11 • granting, cancelling and suspending T J Dare* 6 various licences including gaming I S Macdonald* 6 (1 via teleconference) machine licences, monitoring G McCallum 11 operators licences and major dealers K Newton 10 (1 leave of absence) licences L Drennan~ 5 • determining the permitted hours of B Sheehan~ 5 gaming at sites and other operational * 2 commissioners retired in December 2008 conditions ~ 2 new commissioners appointed on 19 December • determining the maximum number of 2008 machines operable at sites. The Gaming Machine Act 1991 provides Commission’s operational costs for a minimum of five and a maximum As prescribed in the Gaming Machine of seven commissioners. Act 1991, OLGR provided the Commission with the required Commissioners Tracy Joy Dare and Ian administration and advisory services Sinclair McDonald retired in December and funded its expenses for the year 2008. Dr Lyndal Drennan and Barry ended 30 June 2009 as detailed in Sheehan were appointed as Table 3. commissioners on 19 December 2008. Table 3 Commission’s expenses All Commission meetings were held at the Queensland Office of Liquor and 2007–08 2008–09 Gaming Regulation’s (OLGR) office at Commissioners’ $19 244.00 $24 164.00 33 Charlotte Street, Brisbane. remuneration Administrative $3 794.84 $5 367.19 The Commission met 11 times during expenses the year ending 30 June 2009. These Travel expenses $2 625.64 $1 773.38 dates are listed in Table 1. Total $25 664.48 $31 304.57 Table 1 Meeting dates 2008–09 2008 2009 29 July 24 February 26 August 24 March 23 September 28 April 28 October 26 May 25 November 23 June 16 December p 4 Commissioners Dr Michael Francis Wilson Kerryn Lee Newton (chairperson) LLM, MBA, MA, GAICD BE (Hons) BAB (Hons) DPhil (Oxon) Management consultant Barrister at the Brisbane with extensive experience Private Bar with extensive working in the public, experience in tourism and private, non-profit and hospitality sectors and the community sectors. Areas gaming industry. of expertise include legal and social policy development and review, strategic and Tracy Joy Dare business planning, corporate governance, BBus (Acct) AICAA, GAICD, FAIM Grad leadership, and human resource Dip Adv Acc management. A member of a number of Senior executive and boards. established leader in commercial and business Dr Lyndal Drennan restructuring. Currently, PhD, BCom, MBA, AMusA, FCPA, FAICD, Business Development, RSL Care. Formerly, FAIM national manager of Corporate Banking with A business consultant and Suncorp Metway, and Senior Partner with Fellow of the Australian KPMG for over 23 years. Also acts on a Institute of Company number of government and charity boards. Ms Directors, with extensive Dare retired from the Commission in experience in industry, across manufacturing, December 2008. service, and finance businesses, and recently in education. Experience in governance, audit, Gregory McCallum financial management, strategy and risk. Now BA BCom CPA FAIM FAICD also a Professor and MBA Director with James Experienced senior Cook University. Formerly a senior academic manager, including directing postgraduate studies at Queensland periods as managing University of Technology. A non-Executive director of CITEC and Director and chair of numerous community executive officer for and private company boards. Queensland of the ABC. Also has significant commercial experience on the boards of Barry Sheehan various companies. BPsych (Hons) Registered psychologist with Ian Sinclair Macdonald 20 years experience in BD L Th Adv Dip Rel Couns clinical and management A foundation member (and positions with Government, later chair) of the non-Government and Queensland Responsible business sectors. Experience with numerous Gambling Advisory government and private sector regional, state Committee (RGAC) and a and national boards. Currently, Director of former Executive Director of Relationships Centacare Toowoomba, and Regional Australia (Qld) Inc. Mr Macdonald retired Queensland’s community representative on from the Commission in December 2008. the RGAC being its deputy chairperson in 2004 and Chairperson in 2005. Also a member of Catholic Social Services Australia and Lourdes Aged Care boards. Queensland Gaming Commission annual report 2008–09 p 5 Functions under gaming Commission update 2008–09 legislation For the 12 months to 30 June 2009, the Licensing Commission’s primary role remained The vast majority of the Queensland the consideration of applications for Gaming Commission’s endeavours gaming machine licences and during 2008–09 concerned its associated matters under the Gaming responsibilities with machine gaming. Machine Act 1991. It also had appellate functions under other gaming acts The Gaming Machine Act 1991 confers administered by the former1 Office of on the Commission the role of granting Liquor, Gaming and Racing. gaming machine licences and suppliers’ licences associated with machine With the enactment of the Interactive gaming operations in Queensland. The Gambling (Player Protection) Act 1998 Chief Executive has the responsibility and the Wagering Act 1998, the of granting licences for gaming Commission was given the function of employees, gaming nominees, key hearing appeals against certain monitoring employees, repairers and decisions under those Acts. That service contractors. function was increased in 1999 when the Commission was given the power to OLGR’s Executive Director, as delegate hear appeals against certain decisions of the Chief Executive, conducted made under the Keno Act 1996, the investigations in relation to licence Lotteries Act 1997 and the Charitable applications and, upon consideration of and Non-Profit Gaming Act 1999. The the applications and the findings of those function was again extended in 2002 investigations, made recommendations to with the inclusion of certain appeals the Commission on the granting or under the Casino Control Act 1982 and refusal of licences. the Gaming Machine Act 1991. Under authority delegated to the No appeals were heard by the Executive Director by the Commission, Commission during 2008–09. the Executive Director granted gaming machine licence applications where: 1 On 1 July 2008, the new Office of Liquor, Gaming and Racing was created in the Queensland • there was a liquor licence transfer Department of Treasury. It brought together the application functions of the former Liquor Licensing Division, the Queensland Office of Gaming Regulation and • they met all OLGR’s probity and the Office of Racing. financial stability standards On 1 April 2009, the Office of Liquor Gaming and Racing was transferred to the newly formed • they did not involve an increase in Department of Employment, Economic the number of gaming machines that Development and Innovation (DEEDI). The Office of Racing was separated from the Office of Liquor and were operated by the previous Gaming Regulation (OLGR). gaming machine licensee. Throughout the year, the Commission received regular monthly updates on the following significant actions taken by the Executive Director relating to gaming machine matters: • prosecution proceedings • licensees requested to show cause as to why their gaming machine licence should not be suspended or cancelled p 6 • licences suspended for non-payment the work being undertaken to develop a of taxes similar but not identical scheme for the • licensees on periodical tax payment reallocation of machines under the club arrangements gaming machine cap. • clubs subject to external administration The Commission also continued to keep and outstanding debts owed to OLGR informed of developments in the • sites and matters of interest. gambling industry and noted the review of the Australian gambling The report, provided to the Commission industry being undertaken by the on