Annual Report 2009–2010 Victorian Commission for Gambling Regulation Office
Level 5 35 Spring Street Melbourne Victoria 3000
Postal Address
PO Box 1988 Melbourne Victoria 3001
Website: www.vcgr.vic.gov.au
Office Hours
9.00 am to 5.00 pm Monday to Friday
Switchboard Telephone: 61 3 9651 3333 Facsimile: 61 3 9651 3777 E-mail contact address: [email protected] Complaints hotline: 61 3 9651 3737
Inspectors at Melbourne Casino Southbank: Telephone: 61 3 9690 4657 (24 hours a day 7 days a week) Chairman’s Letter
14 September 2010
Minister for Gaming Parliament House Spring Street MELBOURNE VIC 3002
Dear Minister
I am pleased to present the Annual Report of the Victorian Commission for Gambling Regulation for 2009–2010. This Annual Report is prepared in accordance with the provisions of the Financial Management Act 1994, the Gambling Regulation Act 2003 and the Casino Control Act 1991 and covers the period between 1 July 2009 and 30 June 2010.
Yours sincerely
BRUCE THOMPSON Chairman
1 2 Contents
Chairman’s Letter to Minister 1 Chairman’s Report 5 Highlights in 2009–2010 7 Output Performance 12
Part 1 – The Victorian Commission for Gambling Regulation 13 Overview 14 Objectives 15 Functions 16 Commission Members as at 30 June 2010 17 Organisational Chart as at 30 June 2010 18 Organisational Structure 20 Corporate Governance 21
Part 2 – Report of Operations 2009–2010 by Intended Outcomes 23 1 Gambling Activities: The conduct of gambling properly protects players and other stakeholders 24 2 Gambling Participants: Gambling is conducted honestly, is free from criminal influence and commercial licensees deliver on their obligations 36 3 Gambling Benefits: The Victorian community receives the benefits arising from gambling 49 4 Gambling Harm Minimisation: The harm caused by problem gambling is minimised 53 5 VCGR Resources: VCGR fulfils its Government and legislative responsibilities and achieves its service delivery objectives by innovative, effective and efficient use of resources 58 Summary of Financial Results 67
Part 3 – Financial Statements 2009–2010 71
Part 4 – Appendices 109 1A Principal Legislation Administered by the Minister for Gaming 111 1B Commencement Dates of Legislation 112 1C Subordinate Legislation 114 2 Ministerial Direction 115 3 Ministerial Determinations – Community Benefit Statements 118 4 Victorian Commission for Gambling Regulation Rules 120 5 Commission Decisions on Applications for New Premises and Venue Operator Licence Amendments 123 6 Commission Meetings, Inquiries and Hearings 2009–2010 126 7 Gaming Venues as at 30 June 2010 128 8 Registered Bookmakers as at 30 June 2010 141 9 Bingo Centres and Commercial Raffle Organisers as at 30 June 2010 145 10 Licensing Activities 146 11 Number of Active Licences at 30 June 2009 and 30 June 2010 148 12 Roll of Manufacturers, Suppliers and Testers as at 30 June 2010 149 13 Responsible Gaming Training Course Providers as at 30 June 2010 150 14 Community Benefit Statements – Summary of the Total Claims Made by Club Gaming Venues 152 15 Gambling Player Loss and Taxes and Levies Paid 2009–2010 153 16 Distribution of Taxes from Gambling 155 17 Player Loss from Gaming Machines – Statistical Data Fact Sheet 157 18 Distribution of Player Loss from Gaming Machines 158 19 Municipal Limits 159 20 Regional Caps 161 21 Representation on Working Parties 164 22 Commission Whistleblower Procedures 165 23 Staff Profile by Position 2009–2010 175 24 Other Information Available on Request 176 25 Disclosure Index 177 26 Glossary 179 3 4 Chairman’s Report
This is my first period as Chairman of the Commission, having been appointed on September 12 last year. Not surprisingly, I have been on a steep learning curve since then, but by working closely with the Executive Commissioner, Peter Cohen, and his staff, as well as Deputy Chair, Judith King, my transition from the private sector to a government regulatory authority has been relatively straightforward. I thank those people for sharing their considerable knowledge and experience.
By law the role of the Commission is very clear. Fundamentally From a VCGR standpoint we clearly have the expertise, depth of it is to ensure all forms of gambling are conducted honestly and experience and systems for a smooth transition. As this unfolds free of any criminal influence and exploitation. The legislation our organisation will increase the focus on process management also requires us to foster responsible gambling in order to and process improvement to ensure that this phase is as minimise harm caused by problem gambling. seamless as possible. During the first few months in the role I had the opportunity At the same time, we are aware of the Premier’s statement to to meet with many of our key stakeholders in order to gain Parliament that the Government will streamline the regulatory insight into the industry from their standpoint, particularly functions of the Director of Liquor Licensing and the VCGR to with respect to the regulatory environment they face. It increase efficiency, reduce administrative costs and increase the was gratifying to learn that, by and large, the VCGR was capacity to enforce liquor and gaming laws. We must recognise, perceived to be effective in delivering on its statutory however, that making a significant organisational change such obligations and no doubt much credit for this must go to as this at the same time as radical structural change is being the immediate past Chairman, Ian Dunn. We are grateful made to the gaming industry creates a potentially challenging for the strong leadership he provided during his tenure. environment. However, it is my belief that the VCGR team is up Whilst we are seen to be effective, I do not underestimate the to meeting that challenge should this change occur. challenges we face, particularly over the next couple of years My background in a world of highly-competitive businesses as the transition continues from the Tatts and Tabcorp gaming means that one’s work and achievements could always be operator duopoly. With the gaming machine entitlements auction measured by a single yardstick: success against one’s rivals. process now behind us we must move quickly to ensure that the Naturally, as a statutory authority, the VCGR is different from a organisation is positioned and equipped to maintain the same business entity, but there are strong similarities. For instance, high standard of regulatory oversight in the new environment as in business the focus is on serving the customers, or risk losing exists today. them. The VCGR’s ‘customers’ are its stakeholders, not only the From my observation, the gaming operators, Tatts and Tabcorp, pubs and clubs (and others in the gambling industry) but also share a large portion of the regulatory burden and do so with the public. For venue operators we set out to both consult and a high level of professionalism and integrity. The help and help them do their regulatory tasks better. The public gets a support provided by the gaming operators to clubs and hotels well-run, honest world of gaming, free of any wrongful influences around the State will not be available in this form after 2012, so and maintained in a way that allows enjoyment of legitimate it is of critical importance that all stakeholders in the industry pleasures without undue harm. collectively adapt to the new environment and ensure that current high standards of integrity are maintained.
5 Chairman’s Report continued
As I mentioned earlier, an important deliverable for the Commission is the promotion of responsible gambling. The widespread adoption and implementation of mandatory Responsible Gambling Codes of Conduct for all commercial gambling licensees and Self-Exclusion Programs in gaming venues across Victoria are evidence of the progress that has been made in this important area. I note that funding for the work undertaken by the Responsible Gambling Team is finite and will conclude in June next year, but it is my earnest hope that we can work with the Government and find ways to continue to fund this very important activity. Last year our then Chairman, Ian Dunn, made a plea for an enlarged Commission. As a result we have been very pleased to welcome two new non-Executive Commissioners, Gail Owen and Ches Baragwanath. Naturally we are delighted to have two such highly experienced and talented people whose input will be highly valued and key to our future success. I am also extremely pleased to note that both Judith King and Peter Cohen continue in their roles as Commissioners. In conclusion I would like to recognise the significant work that has been undertaken this year by all of the VCGR staff. The high standards of integrity within the industry today do not come about by accident, and reflect well on the capability and endeavour of the VCGR team. In many respects this year has been particularly challenging with the establishment of a ‘second Commission’ to operate behind probity walls and undertake the industry restructure, including the lead-up to the gaming machine entitlements auction as well as assessments for the Wagering and Betting, Monitoring and Keno licences. Both the ‘re-structure’ team and the day-to-day operational team have come through this challenge with flying colours.
Bruce Thompson Chairman
6 Highlights in 2009–2010
Fair Gambling • an effective system of gambling regulation and implementation of Government policy was supported by: – granting 58 new venue operator licences in the period leading up to the post-2012 entitlements auction, thus enabling the recipients to take part in the auction; – the implementation of legislative changes requiring venue operator licences to be classified as either ‘club’ or ‘hotel’ venue operator licences; – undertaking a social and economic impact assessment of proposed changes to the Casino Management Agreement; – implementing changes resulting from the Ninth Deed of Variation to the Casino Management Agreement; – introducing processes to reduce the regulatory burden of gambling regulation including the on-line lodgement of trade promotion lottery permit applications and smart forms for gaming industry employee applications, with smart forms to be systematically introduced for all application types; – the continuation of on-line lodgement and the publication on the VCGR website of Community Benefit Statements for club venue operators; • player confidence in the integrity of gambling products was promoted by: – providing a range of gambling product approval programs including product rules, systems and equipment; and – approving 4,102 trade promotion lotteries and one new sports controlling body application, from the Australian Rugby Union, and reviewing the integrity systems applied by the National Rugby League and Australian Football League for betting related to matches controlled by those organisations; • the risk and impact of gambling regulatory breaches was minimised by: – supervising the casino, conducting 4,296 compliance audits and investigations of licensed gambling venues and minor gaming, lotteries and race track activities; – investigating 75 gaming venue patron complaints;
7 Highlights in 2009–2010 continued
– improving information access through new or revised publications including a Bingo Booklet, updated Guidelines for Summary Gaming Transactions, updated Nominee Handbook for venue operators; improved general guidance for new venue operator licence applicants on the website and through face-to-face meetings and updated frequently asked questions (‘FAQs’); and website information regarding Community Benefit Statements, bingo, poker, declaration of community and charitable organisations and gaming industry employees; – conducting information sessions in Bendigo, Geelong and also at the invitation of the Victorian Local Governance Association to communicate legislative changes to the timelines for assessment of applications for approval of new premises and additional gaming machines; – identifying illegal gambling activities, resulting in the seizure of 42 illegal gaming machines and a VenueNet kiosk alleged to enable unauthorised betting. Crime Free Gambling Industry • confidence that gambling industry participants are suitable was enhanced by: – conducting probity and financial checks and issuing 5,613 licences and approvals to gaming machine manufacturers, suppliers and testers, casino suppliers, venue operators, bingo centre operators, commercial raffle organisers, casino special employees, gaming industry employees and registration of bookmakers and their key employees; – continuing to refine systems and processes to enable the efficient registration of around 1,300 bookmakers and their key employees, for which the VCGR assumed responsibility from January 2009; – monitoring licence and registration holders for any changes in structure, addition of associates or issues of a probity, commercial or financial nature that may have an adverse impact on suitability; • a high standard of probity within the gambling industry was supported by taking disciplinary action against 82 licensed industry employees for breaches of gambling legislation; • the fulfillment of obligations to the State by commercial participants in the gambling industry was monitored by assessing the performance of the major licence holders including, at the request of the Minister for Gaming, a review of Intralot Australia Pty Ltd.
8 Gambling Benefits • community benefit arising from the new gambling industry structure post-2012 was facilitated by the activities of the Gambling Licensing Project including: – assisting with:
• the pre-auction Club Offer of Gaming Machine Entitlements completed on 23 November 2009;
• preparing for the publication of ownership details on the VCGR Entitlements Register following the allocation of gaming machine entitlements; and
• preparing for the operation of the Transfer Market website; – continuing investigations of the inquiries conducted, and providing reports to the Secretary, Department of Justice in relation to the awarding of the Monitoring, Wagering and Betting, and Keno licences. • the benefit to the community and charitable organisations from minor gaming was assisted by: – preparing for the renewal of over 2,000 community and charitable organisation declarations from 1 January 2011 by developing administrative processes and a communications strategy; – implementing new processes for community and charitable organisations running bingo aimed at streamlining regulation and improving its effectiveness for fundraising by the abolition of bingo permits and developing the rules of bingo to more easily provide for new game variations and the application of technology; • provision of appropriate gambling returns was demonstrated by: – monitoring all gambling products to ensure players received their appropriate entitlements and verifying, collecting and transferring all gambling taxes; – monitoring and reviewing 275 Community Benefit Statements submitted by club venue operators; – monitoring and reviewing returns submitted by organisations conducting bingo and raffles.
9 Highlights in 2009–2010 continued
Gambling Harm Minimisation • the gambling industry was supported in the responsible delivery of its products by: – facilitating negotiations between the Australian Hotels Association and Clubs Victoria Inc, resulting in a change in the administration of Self-Exclusion Programs (‘SEPs’) to streamline the process for persons wanting to be excluded from a number of gaming venues, being a mixture of clubs and hotels, whereby such persons only have to approach one of the two SEP administrators to ensure that self-exclusion is implemented at all selected venues; – continuing the Responsible Gambling Project to implement and evaluate Responsible Gambling Codes of Conduct (‘Codes’) and SEPs, which included implementing a Bookmakers’ Code, formulating self-assessment tools for venues and contributing to an outreach program to promote best working practice as well as developing a monitoring and compliance program; – surveying over 200 gaming industry staff and over 125 gaming venues regarding their Code and SEP experiences to better tailor education materials and assistance regarding these initiatives; – implementing initiatives arising from the Government’s Taking Action on Problem Gambling Strategy including the prohibition of gaming machine-related trade promotion lotteries and restrictions associated with ATMs and EFTPOS machines, with a $5 bet limit applying to all gaming machines located in hotels and clubs from 1 January 2010; – providing expert and technical advice with respect to the establishment of the Government’s pre-commitment scheme for gaming machines; – participating in Responsible Gambling Awareness Week 2010 and providing printed material and speakers for information sessions throughout Victoria;
10 • potential harm from gambling to communities and individuals was minimised by: – conducting 13 public inquiries, including two from applications lodged in the previous year, to assess the net socio-economic impact on the local community of applications for approval of new premises as suitable for gaming and for additional gaming machines at approved gaming venues; – enhancing the application and consultation processes for the conduct of such public hearings; and – determining and implementing municipal limits for gaming machines, undertaking a review of regional caps and monitoring the removal of 29 gaming machines from municipal districts to prevent the maximum permissible number from being exceeded.
11 Output Performance
VCGR targets formed part of the Gaming and Racing Management and Regulation output in 2009–2010.
The following table outlines the major output deliverables for which the VCGR is responsible. The table shows actual performance against targets as specified in State Budget Paper No.3 for 2009–2010. Output measured below involves the monitoring and regulation of gambling in Victoria.
Performance Measures Annual Year End Target Actual Quantity (number) Regulatory Services including Licensing and Compliance Activities 29,024 26, 892 Quality (%) Accuracy of Regulatory Compliance Activities 100 100 Timeliness Regulatory Compliance and Licensing Activities progressed within set timeframes 85 89
Commentary on 2009–2010 results
Quantity Performance was lower than the target by 7.3 per cent due to: • the Global Financial Crisis reducing industry demand for trade promotion lotteries; • changes to reporting timelines for Responsible Gambling Codes of Conduct; and • re-direction of resources to the post-2012 licence-awarding process with the associated outputs not included in this report.
Quality Performance was on target.
Timeliness Performance was on target.
12 Part 1
Victorian Commission for Gambling Regulation
13 Overview
History Purpose
The Victorian Commission for Gambling Regulation (‘VCGR’) The VCGR seeks to provide a fair, responsible and crime free came into operation on 1 July 2004 following the proclamation gambling industry which optimises the benefits for all Victorians. of the Gambling Regulation Act 2003. As at 30 June 2010, To achieve this outcome, the VCGR strives to be at the forefront the responsible Minister was the Minister for Gaming, of effective regulation of the gambling industry, guided by its the Honourable Tony Robinson, MP. Principal legislation legislated objectives and functions as set out at sections 10.1.3 administered by the Minister for Gaming is listed at Appendix 1A and 10.1.4 of the Gambling Regulation Act 2003. of this report. These objectives and functions are set out in detail at pages 15 The VCGR assumed responsibility for the regulation of gambling and 16 of the report. from the Victorian Casino and Gaming Authority, the Director The Government has reviewed its guiding principles in the of Gaming and Betting and the Director of Casino Surveillance. context of the new gambling licensing structure that will These statutory entities ceased to exist as at 30 June 2004 apply from 2012. While similar in essence to the original as did the Office of Gambling Regulation, the administrative Guiding Principles of 2003, the revised principles are a better unit within the Department of Justice which assisted the representation of the State’s future priorities for gambling in aforementioned statutory entities. Victoria. As at 30 June 2010, the VCGR is comprised of the The regulation of gambling by the VCGR must be consistent with Commissioners indicated at page 17 of this report. the Government’s guiding principles, namely: On 2 June 2010 the Minister for Gaming announced the • recognising that gambling is a legitimate recreational activity appointment of Mr Ches Baragwanath AO, the former for many, and Victorians are entitled to expect the highest Victorian Auditor-General, as a member of the VCGR, with the standards of choice and service from gambling providers in a appointment to commence from 1 July 2010. competitive and innovative marketplace; As at 30 June 2010, there are no sessional commissioners • commitment to ensuring that the legitimate financial benefits supporting the activities of the VCGR. of gambling are transparent, recognisable, and fairly distributed to the community; • commitment to reducing the harm caused to people experiencing the effects of problem gambling, and recognising that the State, the gambling industry and community partners have a shared responsibility to deliver effective solutions; • ensuring the highest standards of transparency, probity, integrity and accountability in the development of evidence- based gambling policy, and engaging the community on the decisions that affect them; and • commitment to providing an environment that promotes a viable and sustainable future for the racing industry which is a vital part of Victoria’s economic and social fabric.
14 Objectives
The objectives of the VCGR are as stated in section 10.1.3 of the Gambling Regulation Act 2003, namely – • to ensure that gaming on gaming machines is conducted honestly; • to ensure that the management of gaming machines and gaming equipment is free from criminal influence and exploitation; • to ensure that other forms of gambling permitted under this or any other Act are conducted honestly and that their management is free from criminal influence and exploitation; • to foster the development of sport by promoting equitable and fair information and revenue sharing between sports betting providers and sports controlling bodies and to foster the integrity of betting on sports betting events; • to act as a source of advice to the Minister for Gaming on gambling issues and ensure that the Government’s policy on gambling is implemented; • to foster responsible gambling in order to minimise harm caused by problem gambling and accommodate those who gamble without harming themselves or others; and • any objectives set out in the Casino Control Act 1991 or any other Act.
15 Functions
The functions of the VCGR are as conferred on it by or under the gambling legislation or any other Act and include – • regulating the operation and use of gaming machines in the casino and approved gaming venues; • ensuring that the conduct of gaming at approved gaming venues and the casino is supervised; • detecting offences committed in, or in relation to, approved gaming venues and the casino; • receiving and investigating complaints from gaming patrons concerning the conduct of gaming in approved gaming venues and the casino; • regulating the activities of key operatives in the gaming machine industry, including those who manufacture, supply, repair or own, or provide venues for and operate, gaming machines; • regulating the activities of key operatives in the wagering, Club Keno, interactive gaming, community and charitable gaming, bingo, on-board gaming and public lottery industries and other functions relating to sports betting; • ensuring that all taxes, charges and levies are paid; • advising the Minister for Gaming on community concerns about the economic and social impact of gambling on the well-being of the community; • advising the Minister for Gaming concerning policy in relation to the supervision and inspection of casinos, and reporting on the casino operator’s suitability and licence; • informing itself in the manner it sees fit of current and emerging issues and practices in Victoria and elsewhere with respect to gambling, including responsible gambling, probity, game security and integrity, sports betting and facility development; and • informing and educating the public as to the regulatory practices and requirements of the VCGR.
16 Commission Members as at 30 June 2010
Commissioners Mr Bruce Thompson, Chairman (from 12 September 2009) Ms Judith King, Deputy Chair Ms Gail Owen OAM, Commissioner (from 27 January 2010) Mr Peter Cohen, Executive Commissioner and CEO Additional Commissioners His Honour Gordon Lewis AM, Deputy Chair Mr Ken Loughnan AO, Commissioner Ms Suzanne Jones, Commissioner Mr Warren Hodgson, Deputy Chair (from 19 January 2010) Ms Andrea Hassett, Commissioner (from 19 January 2010)
Note: Commissioners The current Chairman was appointed following the retirement of the Commission’s inaugural Chair, Mr Ian Dunn, whose term ceased on 11 September 2009. The appointments in relation to the Deputy Chair and Executive Commissioner and CEO commenced 1 July 2004 and were renewed with effect from 1 July 2009. The membership of the Commission expanded from three to four during the year with the appointment in January 2010 of Ms Gail Owen OAM. The Chairman, Deputy Chair and Ms Gail Owen OAM are part-time appointees.
Sessional Commissioners Two part-time Sessional Commissioners, initially appointed for three years to assist the Commission with its public inquiries process were re-appointed for a further period in March 2008, but had ceased as members of the Commission by 31 July 2009.
Additional Commissioners On 22 October 2008, a Deputy Chair and two additional Commissioners were appointed to perform the VCGR functions in relation to the licence-awarding phase of the Gambling Licences Review being conducted by the Department of Justice. The Commissioners, appointed on a part-time basis, are: • His Honour Gordon Lewis AM, Deputy Chair; • Mr Ken Loughnan AO, Commissioner; and • Ms Suzanne Jones, Commissioner. These Commissioners are currently appointed until 30 September 2010 and do not have a role in any day-to-day matters, which continue to be the responsibility of the other Commissioners. Additionally, in January 2010, the following persons were appointed by the Governor in Council to perform the function of auctioneer at the gaming machine entitlements auction conducted on 10 May 2010: • Mr Warren Hodgson, Deputy Chair; • Ms Andrea Hassett, Commissioner. These part-time appointments have been made for the period from 19 January to 30 July 2010 inclusive. These additional Commissioners do not have a role in any day-to-day matters of the VCGR. The number of VCGR meetings and inquiries held during 2009–2010 are set out at Appendix 6 of this report.
17 Organisational Chart as at 30 June 2010
Secretary Department of Justice Mr Bruce Thompson, Ms Judith King, Chairman Deputy Chair Ms Penny Armytage
Executive Director Gaming and Racing Mr Ross Kennedy
Ms Gail Owen OAM, Mr Peter Cohen, Commissioner Executive Commissioner and CEO
Deputy Director Director Director Licensing Operations Gambling Operations Compliance and and Policy and Audit Investigation Mr Steve Thurston Mr Phillip Shelton Mr Max Priestley • Corporate and • Gambling Product • Investigation and individual gaming approvals and monitoring Prosecution licences and • Operational, Revenue and • Casino Regulation approvals Systems Audits • Venue Audit • Trade promotion, • Premises Approvals • Stakeholder raffle, bingo and Gaming Machine area and community lucky envelope modifications education permits • Social and Economic • approved industry Impact Assessments participants and • Responsible Gaming permit activities Training Courses monitoring • Technical Compliance • stakeholder and community education • Lottery Supervision
18 Minister The Hon Tony Robinson MP Minister for Gaming
Victorian Commission for Gambling Regulation
Commissioners Additional Commissioners Mr Bruce Thompson, Chairman His Honour Gordon Lewis AM, Ms Judith King, Deputy Chair Deputy Chair Ms Gail Owen OAM, Commissioner Mr Ken Loughnan AO, Commissioner Mr Peter Cohen, Executive Commissioner and CEO Ms Suzanne Jones, Commissioner Mr Warren Hodgson, Deputy Chair Ms Andrea Hassett, Commissioner
Director Director Information Director Director Legal and Technology and Corporate Services Gambling Licences Legislation Management Project
Ms Sylvia Grobtuch Mr Abhendra Singh Ms Meredith Brown Ms Lynne Bertolini • Legal Advice • Information • Corporate • Post-2012 Technology Governance, gambling licences • Legislation • Information Planning and Risk • Post-2012 • Freedom of Management Management Transition Planning Information • Human Resources and Policy • Privacy • Secretariat/ • Commission Executive Hearings • Finance • Casino Commercial • Office Management Arrangements
19 Organisational Structure
Management
Mr Peter Cohen, Executive Commissioner and Chief Mr Max Priestley, Director Compliance and Investigation Executive Officer As Director of the Compliance and Investigation Branch, Max Peter became Executive Commissioner of the VCGR with effect has responsibility for investigations, as well as enforcement on 1 July 2004 following his appointment by the Governor in of, and compliance with, gambling legislation. Max also has Council and he has specific statutory duties under gambling responsibility for Inspectors who monitor the operation of the legislation. As the Executive Commissioner, Peter is also Casino, 24 hours per day, seven days a week. The role also the Chief Executive Officer and leads the management team involves the provision of stakeholder and community education. comprised of Directors and a Deputy Director in charge of each of the Branches of the VCGR. Peter is also the Chairman of the Mr Abhendra Singh, Director Information and Technology International Association of Gaming Regulators. Management As Director of the Information and Technology Management Ms Lynne Bertolini, Director Gambling Licences Project Branch, Abhendra has responsibility for the control, development As Director of the Gambling Licences Project, Lynne has and maintenance of the VCGR Information Technology responsibility for investigations and inquiries, and for supporting infrastructure, databases and applications, and also for the Commissioners appointed to perform the functions of the provision of its records management services. Both Branch VCGR in relation to the licence-awarding phase of the Gambling functions enable the VCGR to undertake its statutory role Licences Review being conducted by the Department of Justice. efficiently and effectively. Lynne is also responsible for post-2012 transition planning and the provision of relevant advice and policy development Mr Phillip Shelton, Director Gambling Operations and Audit to ensure the VCGR effectively implements all new roles and As Director of the Gambling Operations and Audit Branch, responsibilities arising from the post-2012 arrangements. Phillip has responsibility for advising whether the conduct of gambling, and the associated computer gambling systems and Ms Meredith Brown, Director Corporate Services related operational procedures for the casino, electronic gaming As Director of the Corporate Services Branch, Meredith has machines, wagering, interactive gambling, Club Keno, approved responsibility for providing strategic and operational advice betting competitions, lotteries and bingo, is consistent with and delivering business-specific support services including enabling legislation and is delivered responsibly. corporate governance, planning and risk management, budget and financial management, human resources, secretariat and Mr Steve Thurston, Deputy Director Licensing Operations office management. The Branch facilitates and assists the VCGR and Policy in meeting its legislative responsibilities and service delivery As Deputy Director of the Licensing Operations and Policy objectives. Branch, Steve has responsibility for the licensing, registration and ongoing monitoring of participants in the gambling industry. Ms Sylvia Grobtuch, Director Legal and Legislation This includes initial checks and ongoing suitability monitoring As Director of the Legal and Legislation Branch, Sylvia has and disciplinary action for commercial participants in the casino responsibility for advising on how the regulation of gambling in and gaming industry, individuals employed in those industries, the State should be carried out so that it is consistent with the bookmakers and their key employees, trade promotion lotteries, requirements of gambling legislation. The Branch also advises and community and charitable gaming participants and activities. on VCGR contractual obligations under commercial agreements to which it is a party and provides counsel assisting functions at hearings (public and private) and prosecutes criminal matters in the Magistrates’ Court.
20 Corporate Governance
Audit Committee Membership and Role
The Audit Committee is comprised of Mr Trevor Brown AM, Chairman, Ms Judith King, Deputy Chair of the VCGR, and Mr David Beatty. The Audit Committee undertakes the oversight of: • financial performance and the financial reporting process, including the annual financial statements; • the scope of work, performance and independence of internal and external audit; • the operation and implementation of the risk management framework; • matters of accountability and internal control affecting the operations of the VCGR; • the effectiveness of management information systems and other systems of internal control; • the acceptability of, and correct accounting treatment for and disclosure of, significant transactions which are not part of the normal course of VCGR business and sign-off of accounting policies; • the VCGR process for monitoring compliance with laws and regulations and its own Code of Conduct and Code of Financial Practice. During 2009–2010 the Audit Committee met formally on four occasions. Attendance details are contained in Appendix 6 of this report.
Annual Report
The VCGR Annual Report for 2008–2009 was tabled in the Parliament by the due date.
21
Part 2
Report of Operations 2009–2010 by Intended Outcomes
23 Intended Outcome 1
Gambling Activities The conduct of gambling properly protects players and other stakeholders
Goal 1.1: – reform the regulation of the conduct of bingo by or on behalf of community or charitable organisations; The system of gambling regulation is effective – clarify the Secretary’s powers in relation to wagering and and implements the Government’s policy betting licensing and keno licensing; Gambling Regulation – make other miscellaneous amendments; • to make consequential amendments to the Casino Control Legislation Act 1991 and the Racing Act 1958.
The following legislative provisions came into operation during Justice Legislation Amendment Act 2009 (25/2009) the year. Further information relevant to legislation changes The Justice Legislation Amendment Act 2009 was assented to during the year is contained in Appendix 1B of this report. on 17 June 2009 and sections 12 to 17 of the Act affecting the Gambling Legislation Amendment (Responsible Gambling Gambling Regulation Act 2003 came into operation on 1 October and Other Measures) Act 2008 (71/2008) 2009. The purposes of the Justice Legislation Amendment Act 2009 The Gambling Legislation Amendment (Responsible Gambling include: and Other Measures) Act 2008 was assented to on 25 November 2008. • to amend various Acts, including the Gambling Regulation Act 2003, to provide for search warrants to be issued for The Act, other than Parts 2, 3 and 4, came into operation on particular vehicles located in public places; and 26 November 2008. Part 2, except sections 3, 9, 10 and 14, came into operation on 1 March 2009. Section 3 and Part 4 • to amend the Gambling Regulation Act 2003 – came into operation on 1 June 2009. Part 3 came into operation – to provide for further restrictions and exemptions in on 25 November 2009. The remainder of the Act, sections 9 and relation to gambling advertising; and 10, came into operation on 1 January 2010. – to require registered bookmakers to have a Responsible The purposes of this Act are – Gambling Code of Conduct. • to amend the Gambling Regulation Act 2003 to – The amendments to the Gambling Regulation Act 2003 are – consolidate offences in relation to minors; contained in Part 4 and Division 4 of Part 2 of the Act. – provide for the banning of irresponsible gambling products and practices;
24 Gambling Regulation Amendment (Licensing) Act 2009 Racing Legislation Amendment (Racing Integrity Assurance) (29/2009) Act 2009 (52/2009) The Gambling Regulation Amendment (Licensing) Act 2009 The Racing Legislation Amendment (Racing Integrity Assurance) was assented to on 23 June 2009. The Act, except sections 63 Act 2009 was assented to on 8 September 2009. Section 16, in and 64, Division 2 of Part 4, sections 76 and 77 and Division Part 5 of the Act, which repeals section 2.5.18 of the Gambling 5 of Part 4, came into operation on 24 June 2009. Sections Regulation Act 2003, came into operation on 15 October 2009. 63(1), 64, Division 2 of Part 4 and sections 76 and 77 came into operation on 1 January 2010. Sections 63(2), (3), (4) and (5) and Gambling Regulation Further Amendment Act 2009 (58/2009) Division 5 of Part 4 will come into operation on 1 July 2012 if not The Gambling Regulation Further Amendment Act 2009 was proclaimed earlier. assented to on 21 October 2009. The Act, with the exception The main purposes of this Act are to amend the Gambling of sections 4, 6 to 8, 10, 12 to 16, 18, 19(1), 21 to 24, 44, 45, 51 Regulation Act 2003: to 54, 85(2), 108 to 110, Part 7 and Division 1 of Part 9, came into operation on 21 October 2009. Part 7 of the Act came into • to substantially restructure the gaming industry by – operation on 25 November 2009. The remaining provisions will – providing for a new licence for the monitoring of the come into operation on 1 September 2012, if not proclaimed conduct of gaming; earlier. – providing for the creation and allocation of gaming The purpose of this Act is to make miscellaneous amendments machine entitlements under which gaming by means of to the Gambling Regulation Act 2003 to improve the operation of gaming machines will be authorised; and that Act. – imposing certain ownership and related person restrictions in relation to licensees and person on the Roll of Liquor Control Reform Amendment (Licensing) Act 2009 Manufacturers, Suppliers and Testers; (59/2009) • to authorise the conduct of a betting exchange; The Liquor Control Reform Amendment (Licensing) Act 2009 was assented to on 21 October 2009. Section 33 of the Act, • to make further provision in relation to simulated games and which amended the definition of ‘pub licence’ in section 1.3(1) simulated racing events; of the Gambling Regulation Act 2003, came into operation on • to make further provision in relation to the placement of 1 January 2010. automatic teller machines in approved venues; • to make provision in relation to gaming machine pre- Gambling Regulation Amendment (Racing Club Venue commitment mechanisms; and Operator Licences) Act 2009 (63/2009) • to otherwise improve the operation of that Act. The Gambling Regulation Amendment (Racing Club Venue Operator Licences) Act 2009 was assented to on 17 November The purpose of this Act is also to amend the Casino Control Act 2009 and came into operation on 18 November 2009. 1991 to make further provision in relation to the placement of automatic teller machines in a casino. The purpose of this Act is to amend the Gambling Regulation Act 2003 to provide for certain transitional arrangements that will Gambling Regulation Amendment Act 2009 (43/2009) apply to venue operator licences held by specified racing clubs. The Gambling Regulation Amendment Act 2009 was assented to The Act inserted a new clause 22.1AC of Schedule 7 of the on 5 August 2009 and came into operation on 6 August 2009. Gambling Regulation Act 2003.
The main purposes of this Act are to amend the Gambling Criminal Procedure Amendment (Consequential and Regulation Act 2003: Transitional Provisions) Act 2009 (68/2009) • to provide for an extension of the term of the gaming The Criminal Procedure Amendment (Consequential and operator’s licence; Transitional Provisions) Act 2009 was assented to on • to increase the amount of prescribed profit that a venue 24 November 2009 and the Schedule thereto, affecting the operator must pay to the Treasurer upon the transfer of a Gambling Regulation Act 2003 and the Casino Control Act 1991, gaming machine entitlement under section 3.4A.18 of that came into operation on 1 January 2010. Act; Item 62 of the Schedule to the Act amends the terminology in • to make further provision in relation to who can be a various sections of the Gambling Regulation Act 2003 to reflect participant for the conduct and promotion of club keno changes instituted by the Criminal Procedure Act 2009. games; Item 16 of the Schedule to the Act amends terminology in • to make further provision in relation to the holder of the section 60(4) of the Casino Control Act 1991 to reflect changes monitoring licence; and instituted by the Criminal Procedure Act 2009. • to make further provision in relation to applications for club venue operator licences.
25 Intended Outcome 1 continued
Statute Law Amendment (Evidence Consequential Subordinate Legislation Provisions) Act 2009 (69/2009) The following subordinate legislation came into operation this The Statute Law Amendment (Evidence Consequential year. Further information relevant to subordinate legislation is Provisions) Act 2009 was assented to on 24 November 2009 and contained in Appendix 1C of this report. came into operation on 1 January 2010. The purposes of this Act are to revise the statute law of Victoria Gambling Regulation Amendment (Fees) Regulations 2009 as a consequence of the enactment of the Evidence Act 2008 (108/2009) and to make other amendments to that Act and for other The Gambling Regulation Amendment (Fees) Regulations 2009 purposes. came into operation on 1 October 2009. The Act made a consequential amendment to section These Regulations prescribe certain fees in relation to the 10.2A.11(3)(b) of the Gambling Regulation Act 2003. transfer of gaming machine entitlements.
Casino Legislation Amendment Act 2009 (84/2009) Gambling Regulation (Prescribed Connection and Prescribed The Casino Legislation Amendment Act 2009 was assented to Profit) Regulations 2009 (114/2009) on 15 December 2009. The Act, other than Part 2, came into The Gambling Regulation (Prescribed Connection and operation on 16 December 2009. Part 2 comes into operation on Prescribed Profit) Regulations 2009 came into operation on 1 July 2012. 1 October 2009. The purposes of this Act are: These regulations prescribe, for the purposes of Chapter 3 of the • to amend the Casino Control Act 1991 to abolish the health Gambling Regulation Act 2003 – benefit levy from 1 July 2012; and • various interests, rights and powers, and relationships as • to amend the Casino (Management Agreement) Act 1993 to prescribed connections for the purpose of determining ratify a ninth Deed of Variation to the management agreement whether two or more entitlement holders together hold more for the Melbourne Casino. than 35 per cent of all hotel gaming machine entitlements; and Consumer Affairs Legislation Amendment Act 2010 (1/2010) • the profit of which a percentage must be paid by a venue The Consumer Affairs Legislation Amendment Act 2010 was operator to the Treasurer upon the transfer of a gaming assented to on 9 February 2010. machine entitlement to which section 3.4A.18 of the Act Section 89 in Part 10, Division 2 of this Act repeals section applies. 9A.1.8(2)(a) of the Gambling Regulation Act 2003. Section Gambling Regulation Amendment (Bingo) Regulations 2009 9A.1.8(2) of the Gambling Regulation Act 2003 relates to the (141/2009) wearing of identification by gaming industry employees and states that identification worn in compliance with the Private The Gambling Regulation Amendment (Bingo) Regulations 2009 Agents Act 1966 is sufficient compliance. The relevant provisions came into operation on 25 November 2009. of the Private Agents Act 1966 were repealed and re-enacted These Regulations make amendments to reform the regulation of in the Private Security Act 2004 making redundant section the conduct of bingo by or on behalf of community or charitable 9A.1.8(2)(a) of the Gambling Regulation Act 2003. Section 89 will organisations. commence on 1 January 2011 if not proclaimed earlier. Gambling Regulation Amendment (Advertising) Regulations Justice Legislation Amendment Act 2010 (30/2010) 2009 (167/2009) The Justice Legislation Amendment Act 2010 was assented to The Gambling Regulation Amendment (Advertising) Regulations on 8 June 2010, and will commence operation on 1 July 2010. 2009 came into operation on 1 January 2010. Sections 78 and 79 of the Justice Legislation Amendment Act These Regulations prescribe terms and symbols that are 2010 amend section 2.5.19D of the Gambling Regulation Act exceptions to the prohibition on publishing gaming machine 2003 relating to the publication and use of race fields and insert advertising by or on behalf of venue operators and casino section 2.5.19DA into the Gambling Regulation Act 2003. operators.
26 Appeals Relating to Commission Decisions Reduced Regulatory Burden During 2009–2010 the Victorian Civil and Administrative Tribunal (‘VCAT’), affirmed two Commission decisions that had been Art Union, Raffles and Trade Promotion Lottery appealed to the Tribunal for merits review. Working Party One of the applications for merits review by VCAT dated back The VCGR participates in the Australasian Casino and Gaming to 2007, when application was made by Romsey Hotel Pty Ltd Regulators’ CEOs Working Party, established in 2007 to for review of the Commission’s decision to refuse an application review regulatory issues arising from art unions, raffles and for approval of gaming premises at Romsey, in the Shire of trade promotion lotteries conducted nationally or across Macedon Ranges. The Tribunal had set aside the Commission’s multiple jurisdictions. Objectives of the group include achieving decision and in lieu thereof granted the application. harmonisation in regulatory requirements between the States The Shire appealed to the Supreme Court on a point of law, and Territories and identifying and addressing contemporary namely, the Tribunal’s failure to take into account community regulatory concerns. opposition to the proposal. The Shire’s appeal was upheld, In late 2008, Victoria assumed the role of the Chair of the and the Court of Appeal remitted the matter to VCAT for Working Party, which has participating representatives from determination according to law. The application was re-heard each Australian State and Territory except Tasmania (which by the then President of VCAT, Justice Bell, and in November nevertheless monitors minutes and other correspondence 2009 His Honour handed down his decision affirming the generated by the group). Commission’s decision to refuse the application by Romsey During the year under review the Working Party met once, in Hotel Pty Ltd. September 2009, with representatives sharing information on The other application for merits review by VCAT concerned the arrangements for activities within their jurisdictions. The group Commission’s decision to grant an application by Footscray has continued to identify similarities and differences between Football Club Ltd for approval of gaming premises with 70 jurisdictions and to enhance knowledge and cooperation gaming machines in the City of Maribyrnong. In December 2009 between regulatory agencies, along with progressing priority the Tribunal affirmed the Commission’s decision to grant the topics for action, including national application forms and application. guidelines. Further information regarding VCGR representation on national Gambling Policy and Legislation Advice and other working parties is contained in Appendix 21 of this report. The formulation of Government policy in relation to gambling regulation in Victoria is the responsibility of the Office of Gaming On-line Lodgement of Trade Promotion Lottery and Racing within the Department of Justice portfolio. The VCGR Permit Applications is responsible for the implementation and ongoing monitoring of The capacity to lodge a trade promotion lottery permit industry compliance with the Government’s policy directives. application form and pay the associated fee on-line was introduced by the VCGR in November 2009. This option The objectives of the VCGR under the Gambling Regulation is designed to simplify the process of submitting permit Act 2003 require, amongst other things, that the VCGR act applications and is particularly useful for the significant number as a source of advice to the Minister for Gaming on gambling of businesses that regularly conduct trade promotion lotteries issues. The VCGR has amassed a wide range of statistical within Victoria. data in respect of authorised gambling activities conducted in Victoria. This information provides a valuable resource for the As of 30 June 2010, 158 organisations have registered to State Government when considering policy initiatives in relation use the VCGR’s on-line permit application facility. Together, to gambling. During 2009–2010, the VCGR received requests these organisations have submitted 1,042 on-line applications, for advice and statistical data from the Minister and his office, representing approximately 30 per cent of the total number the Department of Justice and the Office of Gaming and Racing, of trade promotion lottery permit applications lodged for responding to all. 2009–2010.
27 Intended Outcome 1 continued
Introduction of ‘smart forms’ for Gaming Industry Deregulation of Bingo Employee Applications On 25 November 2009, legislative changes came into effect Gaming industry employee licence application forms became regarding the conduct of bingo for fundraising purposes by available as on-line smart forms in December 2009, as an declared community and charitable organisations. alternative to filling out a paper application form. Smart forms are These changes: designed to be completed on a computer by an applicant before • reduced the regulatory burden of declared community and being printed, signed and submitted. charitable organisations in relation to having to apply for a Smart form technology highlights errors or inconsistencies and minor gaming permit to conduct bingo, and to renew that requests amendments before the application form can be printed permit every two years; for lodgement. The introduction of smart forms for gaming • enabled the VCGR to make standard rules for bingo as well industry employee applications has helped to reduce the number as approve alternative rules, which would allow for more than of incomplete forms submitted to the VCGR, thus reducing one form of bingo to be played; and delays in processing. • deregulated bingo sessions where no fee is charged, Take-up of the smart form by applicants has been pleasing. Data providing it is played as a private game and is not advertised collected during the 2009–2010 year indicates that take-up has or open to the public, such as in nursing homes, for example. risen to approximately 50 per cent of gaming industry employee applications submitted. Bingo patrons continue to be protected, as the VCGR has to be notified by community and charitable organisations of their It is anticipated that all VCGR application forms will progressively proposed bingo activities and of large prizes. Community and be made available as on-line smart forms. charitable organisations conducting bingo sessions must also Mutual Recognition for Gaming Industry and Casino continue to nominate a nominee responsible for the conduct of Special Employees sessions of bingo, and must keep appropriate records. Bingo premises are also required to display a ‘Notice of Authorised The Mutual Recognition Act 1992 provides for the recognition Bingo Sessions’ at the entrance, in the interest of public within each State and Territory of the Commonwealth of awareness. regulatory standards adopted elsewhere in Australia regarding The VCGR implemented these legislative changes following goods and occupations. To ensure full and effective mutual extensive consultation with stakeholders and undertook an recognition of occupations between jurisdictions, the legislation education program including mailouts, newsletter articles, requires a two-stage registration process for a licence: firstly, a frequently asked questions (‘FAQs’) and information made transitional ‘deemed’ registration, which lasts for a set period of available on the VCGR website at www.vcgr.vic.gov.au. time until any necessary probity checks have been performed; and, secondly, ‘substantive’ registration. In December 2009, the VCGR implemented procedures reflecting these legal requirements to enable interstate gaming industry employees, casino special employees and their equivalents to obtain registration in Victoria.
10 Year Licences for Venue Operators On 24 June 2009, legislative changes came into effect that deemed existing venue operator licences to have been granted for a term of 10 years from the date on which those licences were originally granted, that is, increased from five years to 10 years. At the same time, all existing venue operator licences were deemed to become either a club venue operator’s licence, if the licensee held a club liquor licence or racing club licence, or a hotel venue operator’s licence, if the licensee held a pub liquor licence. During the year under review, the VCGR implemented these legislative changes, and also developed subsequent legislative amendments to adjust some parts of the initial legislative provisions so that they were operationally more workable.
28 Commercial Agreements
New Casino Arrangements – Crown Melbourne Limited
Ninth Deed of Variation to the Casino Management Agreement On 16 December 2009, the Ninth Deed of Variation to the Casino Management Agreement (‘Deed’) was ratified by Parliament, in accordance with the ratifying provisions of the Casino Legislation Amendment Act 2009, and became operative from that date. The Deed was the result of an agreement reached between the State and Crown Melbourne Limited in May 2009, which included amendments to the Casino Control Act 1991 and changes to the tax applying to electronic gaming machines at the Casino. The new tax rate for gaming machines applied from 1 January 2010. Further information is contained in Appendix 16 of this report.
Amendments to Casino Licence The Casino Licence amendments were approved by the VCGR in June 2009, in accordance with section 16 of the Casino Control Act 1991, and conditional upon ratification of the Deed by Parliament. The Casino Licence amendments are: • an increase in the number of gaming tables from 350 to 400; • those gaming tables out of the 400 gaming tables which are fully automated table games may have no more than 200 stations in aggregate; • a separate maximum of 100 poker tables which may include semi and fully automated poker table games; and • the number of semi and fully automated table games is to be determined by the number of base units. The Casino Licence and Casino Agreement can be viewed on the VCGR website at www.vcgr.vic.gov.au.
29 Intended Outcome 1 continued
Goal 1.2: Fully Automated Table Games Players have confidence in the integrity of On 2 June 2009 the Commission amended the Casino Licence gambling products issued to Crown Melbourne Limited (‘Crown’) to permit, among other things, the offering of Fully Automated Table Games. Product Approvals and Monitoring Fully Automated Table Games are defined as ‘a Table Game which comprises multi-terminal stations that access and have Equipment connectivity with a base unit that is delivered via the use of a fully automated, animated or electronic system with no part Approvals were granted for: of any mechanical or manual device remaining (including all • five types of electronic gaming machines and 110 gaming such fully automated, animated or electronic versions of games machine games for the Tabcorp, Tatts and Crown gaming identified in clause 27.1 of the Casino Agreement)’. networks; Under section 60(1) of the Casino Control Act 1991 the VCGR • 306 changes and modifications to existing electronic gaming may approve the games that may be played in a casino and machine types, games and systems in the Tabcorp, Tatts and the rules for those games. This Act also states that the casino Crown gaming networks; operator must not permit a game to be conducted or played in • 118 modifications to the Tabcorp Wagering, Trackside and a casino unless the game is conducted in accordance with the Sportsbet systems; approved rules and these rules are made available for inspection in the casino and are available on the casino operator’s website. • two Club Keno system modifications; At its meeting on 15 December 2009, the VCGR approved • 18 modifications to Tatts lottery products and systems the game named ‘Fully Automated Table Game’ and the rules including the Internet lottery system. relating to this game. Subsequent amendments to the rules of • three modifications to Intralot lottery products and systems, Fully Automated Table Games were approved on 16 February including the Internet lottery system. 2010.
National Standard for Electronic Gaming Machines Installation of Gambling Equipment and Ongoing and the Commission’s Standards Compliance The Gambling Regulation Act 2003 gives the VCGR the Inspectors undertook gaming industry professional development discretion to take into consideration whether a gaming machine to keep abreast of technical changes in the industry. Five type or game complies with any Commission standards in force. hundred and forty technical compliance inspections were This legislation also empowers the VCGR, with the approval of undertaken throughout the year to ensure gaming equipment the Minister for Gaming, to make and amend the Commission’s was operating in the manner in which it was approved to standards for gaming machine types and games. function. The Australian/New Zealand National Standard for Gaming Machines Version 10 has been developed together with the Commission’s Rules Victorian Appendix Version 10 and became effective as Version Under the provisions of section 3.5.23 of the Gambling 10 of the Commission’s standards from 27 September 2009. Regulation Act 2003, the VCGR may make rules for, or with The National Standard has been developed by the National respect to, gaming machines in gaming venues and at the Standard Working Party consisting of participants from gaming Casino. These rules are known as the Commission’s Rules, regulators in Australia and New Zealand and in consultation with separate rules applying to gaming venues and the Casino. with gaming manufacturers and gaming operators. The purpose There were no changes to the Commission’s Rules during of the National Standard is to create a common standard for the year. gaming machines throughout Australia and New Zealand. The Commission’s Rules in their current form are at Appendix 4 Victoria continues to participate actively in the development of of this report. the National Standard. In addition to various technical requirements that have been developed to ensure that gaming machine types and games are secure, auditable and fair to players, the Victorian Appendix includes a chapter on responsible gambling requirements that are a pre-requisite for the approval of any gaming machine type or game.
30 Rules Approved by the Commission Further amendments included rules regarding: • the addition of two new versions of bingo; Lottery Rules • ensuring that participants are aware of the range of tickets The VCGR received one submission from Tattersall’s Sweeps available and the varying levels of automation; Pty Ltd pertaining to a consolidation of the rules for the six • capability for the call-back of ticket numbers to be existing lotteries, Tattslotto, Oz Lotto, Powerball, Monday/ communicated visually; Wednesday Lotto, Super 66 and The Pools and it was approved. • the announcement of numbers by a person or by electronic Seven submissions were received from Intralot Australia Pty Ltd means; for amendments to rules relating to the public lotteries known as Lucky Lines, Lucky Keno 70, Lucky 3, Lucky 5 Red or Black, • the use of electronic tickets; and Lucky Tix and Lucky Bingo Star and these were approved. • administrative arrangements to manage the conduct of bingo. The VCGR also approved one submission from Intralot for Possession of Gaming Machines a change to the details of its licence conditions, which was required to introduce a new version of Lucky Keno 70. The VCGR issued 22 authorisations under sections 3.2.2 and 3.5.1 of the Gambling Regulation Act 2003 to permit possession Club Keno Rules of electronic gaming machines or restricted components. The There were no submissions for amendments to the rules relating authorisations included inoperative electronic gaming machines to Club Keno. on cruise ships whilst in port in Victorian waters and electronic gaming machines in the possession of accredited testing Betting Rules (Pari-mutuel) facilities, held by collectors of antique gaming machines, in bulk There was one submission for amendments to the Rules relating storage facilities and used for research into problem gambling. to Betting Transactions in Victoria (Pari-mutuel betting) involving the substitute rules for the Big6 bet type. General Approvals for the Sale or Disposal of Gaming Equipment/Gaming Machines Betting Rules (Fixed Odds) Pursuant to the Gambling Regulation Act 2003 and the Casino There were no submissions to amend fixed odds betting rules. Control Act 1991, the VCGR has issued general approvals to Tabcorp, Tatts and Crown for the sale or disposal of gaming Rules for Casino Games equipment including electronic gaming machines. Under section 60 of the Casino Control Act 1991, the VCGR The general approvals were updated during the year and now approved 21 amendments to the rules of the games that may be allow the gaming operators to sell gaming machines to a person played in the Casino. issued with an authority under the applicable legislation where Bingo Rules the gaming machine is for use outside Victoria. On 25 November 2009 the Rules of Bingo were revoked, thus In 2009–2010 a total of 1,554 electronic gaming machines were removing them from the Gambling Regulation Regulations disposed of or sold. 2005. The VCGR, acting under powers given to it enabling the separate creation and administration of new rules, subsequently Sports Betting Approvals approved new standard Rules of Bingo in Victoria with effect from that date. Sports Controlling Bodies and New Betting Events Development of these Rules of Bingo by the VCGR included stakeholder participation via an industry consultation process Provisions within the Gambling Regulation Act 2003 allow for which resulted in three formal submissions being made to the VCGR to approve sports controlling bodies and approved the VCGR. betting events either at fixed odds or pari-mutuel. Bingo centre operators and community and charitable These provisions have been designed to strengthen public organisations can now request approvals from the VCGR for confidence in the integrity of sporting events and the betting that variations to the Rules of Bingo as they apply to their particular takes place on those events. In addition, the legislation enables bingo sessions. sporting bodies to receive their fair share of revenue from the betting that takes place on their sport. In March 2010, in response to industry requests, the Commission, following due consultation, approved variations to the Rules to enable the introduction of electronic bingo.
31 Intended Outcome 1 continued
Sports Controlling Bodies and New Betting Events Trade Promotion Lotteries (continued) Trade Promotion Lottery Permits On 16 February 2010 the VCGR approved the Australian Rugby Union (‘ARU’) as a sports controlling body for the following rugby A number of significant legislative changes impacting upon the matches controlled and regulated by the ARU: conduct of trade promotion lotteries and other gambling-related promotional activities have been introduced during the 2009– • Super 14 matches; 2010 year and implemented by the VCGR. • matches featuring the Wallabies; The new legislation provides that: • Men’s Australia Sevens matches; • wagering service providers must not offer any credit, voucher • Women’s Australia Sevens matches; or reward as an inducement to open a betting account; • Australia A matches; and • the gaming operators, Tabcorp Holdings Limited and Tatts • Australia Under 20s matches. Group Limited, can no longer conduct trade promotion lotteries in relation to their gaming business; On 2 February 2010 the VCGR approved the following fixed odds betting events: • trade promotion lotteries must not allow as a precondition for participation that entrants have played a gaming machine • New South Wales State Elections; or take part in a loyalty scheme that makes it compulsory • Queensland State Elections; for them to spend money playing a gaming machine as a • Victorian State Elections; and condition for participation in the scheme or receive gaming • Western Australian State Elections. machine advertising; and • if a venue operator or casino operator conducts a trade Review of NRL and AFL Integrity Procedures promotion lottery and the conditions of entry require the Section 4.5.15 of the Gambling Regulation Act 2003 empowers entrant to incur an expense per entry, they must include the Commission to approve an organisation as a sports in any trade promotion lottery advertisement a statement controlling body and section 4.5.17 enables the Commission to of the gaming machine play restrictions and ensure that vary or revoke the approval for any reasonable cause. the statement is displayed in the manner determined by the VCGR. During 2009–2010, the National Rugby League (‘NRL’) faced public scrutiny after media reports alleging match-fixing and The VCGR has conducted a series of mailouts to the casino salary cap breaches. In response, the VCGR sought comment operator, gaming operators, venue operators and wagering from the NRL. In reply, the NRL confirmed that these allegations service providers (including interstate wagering service had been thoroughly investigated and that the NRL recognised providers) informing them of these legislative changes and the the importance of protecting the sport’s integrity. The VCGR dates from which these changes take effect. The VCGR has also continues to monitor the situation pertaining to reported salary included articles addressing these changes in the VCGR News cap breaches and will seek further comment from the NRL and updated relevant information on its website. should it be required. The VCGR issued a draft direction for comment by industry In August 2009 the VCGR contacted the Australian Football in relation to the advertising of trade promotion lotteries League (‘AFL’) in response to media reports of ‘tanking’ within conducted by venue operators and the casino operator. The the sport. The Commission requested the AFL to provide its view draft direction specified how relevant licensees should meet as to the impact of the alleged ‘tanking’ on the integrity of the the abovementioned obligations for trade promotion lottery sport together with information indicating any action taken by advertising. Some responses had been received by 30 June the AFL to address the allegations. The VCGR was satisfied with 2010 with the direction expected to be finalised shortly the response received from the AFL and is also satisfied that the thereafter. AFL is taking the necessary action to protect the integrity of the events it controls.
32 Goal 1.3: On 24 July 2009, the Commission approved a temporary redefinition of the Casino boundary to include Studio 3 on Level The risk and impact of gambling regulatory three of the Casino Complex for the purpose of conducting breaches is minimised segments of the Aussie Millions Poker Tournament. Studio 3 was redefined for a temporary period of ten days in accordance with Premises Approval and Monitoring a Temporary Extension Notice provided by Crown. On 10 September 2009, the Commission approved a redefinition Modification of Gaming Machine Areas of the Casino boundary involving a redesign of the Sante entry Under section 3.3.16 of the Gambling Regulation Act 2003 the to the Casino and an extension of the control zone at the West VCGR approved 177 modifications to the gaming machine area End entry for the purpose of satisfying cash withdrawal facility in gaming venues during 2009–2010. requirements of two Automatic Teller Machines located near the West End entry. The requested changes reduced the Casino Casino Layout boundary area by approximately 68 square metres. Twenty-six applications were approved by the VCGR under On 14 December 2009, the Commission approved a temporary section 59 of the Casino Control Act 1991 for re-configuration of redefinition of the Casino boundary on Level 36 of Crown Towers gaming tables and electronic gaming machines at the Casino. Hotel as a result of major refurbishment work undertaken on Level 38. One of the gaming salons on Level 36 was used as Specified Areas villa accommodation for a temporary period to compensate for Casino the loss of villa accommodation on Level 37. The gaming salon Restrictions on large denomination note acceptors, autoplay reverted back to gaming space upon completion of the works. facilities, spin rates, the payment of winnings by cash and On 24 February 2010, the Commission approved a redefinition bet limits apply to all electronic gaming machines located in of the Casino boundary for the purpose of relocating VIP gaming the Casino. machines to the Mahogany Room. A public lounge, back of The restrictions do not apply to a game played on a gaming house area and extended section of the southern wall were machine located in an area specified by notice of the VCGR added to the area within the Casino boundary. The net effect published in the Government Gazette if the casino operator of the redefinition resulted in an increase to the area within the complies with certain responsible gambling provisions specified Casino boundary of approximately 807 square metres. in the notice. The total number of gaming machines available Each application from Crown complied with all statutory to a casino operator complying with responsible gambling requirements, including payment of the fee prescribed by the provisions specified in such a notice is 1,000. Casino Control (Boundary Redefinition Fee) Regulations 2005. As a notice of this type has been issued in relation to specified The areas approved were within the location for which the areas within the Casino, the VCGR monitored operations at Casino Licence was granted, that is, the ‘Casino Site’, as defined the Casino to ensure that, at all times, the maximum number in the Casino Control Act 1991. of gaming machines in operation remained within the permitted limit. Venue Audits A further requirement for the removal of the $10 bet limit restriction in a specified area of the Casino is that the gaming Compliance Inspections and Operational machines can only be played by means of a card, Personal Reviews Identification Number (‘PIN’) or similar technology that requires the player to nominate limits on time and net loss before play Compliance inspections and operational reviews include can commence. unannounced surveillance, formal inspections and financial audits of gaming venues, racetracks, bingo centres and other During 2009–2010 the VCGR approved one submission for minor gaming activities. changes to the specified area at the Casino. They are performed to assess whether the activities being Gaming venues conducted comply with the requirements of the relevant Similar specified area provisions applied in gaming venues. legislation, regulations, directions and Commission Rules. However these provisions were repealed by the Gambling Auditing and verification of player return and financial data Regulation Amendment (Licensing) Act 2009 with effect from occurred for each electronic gaming machine and gaming venue 1 January 2010. connected to the gaming operator’s on-line real-time monitoring and control system. Casino Boundary The type and number of compliance inspections and audits During 2009–2010, Crown applied four times to change the conducted in 2009–2010 are shown in the following table. boundary of the Casino gaming area pursuant to section 17 of the Casino Control Act 1991. 33 Intended Outcome 1 continued
Compliance Inspections and Operational Reviews (continued)
Activity Number Gaming venue inspections 1,412 Gaming venue financial audits 69 Gaming venue responsible gambling codes of conduct audits 324 Gaming venue self-exclusion program audits 320 Bingo inspections 132 Bingo Centre responsible gambling code of conduct audits 15 Intralot lottery outlet audits 306 Intralot lottery outlets responsible gambling code of conduct audits 108 Tatts lottery outlet audits 910 Tatts lottery outlets responsible gambling code of conduct audits 117 Lucky envelope outlet inspections 66 Racetrack inspections 339 Raffle draw inspections 111 Trade promotion lottery draw inspections 67 Total 4,296
Patron Complaints Internal Control Manual Twenty-five submissions from Crown to amend the Crown Patron Complaints at Gaming Venues Internal Control Manual were approved by the VCGR under Seventy-five patron complaints were received and investigated section 121 of the Casino Control Act 1991. These submissions in respect of the conduct of gaming and Club Keno at gaming included further proposals to convert sections of the Internal venues. These complaints included allegations of machine Control Manual to the new Internal Control Statement and malfunctions, misleading pay tables, varying returns to players, Standard Operating Procedures format as part of the ongoing breaches of Responsible Gambling Codes of Conduct and Crown project to streamline the Internal Control Manual. Self-Exclusion Programs, barring of players, syndicate play, unlicensed staff and minors in gaming areas. Lotteries Supervision Following investigation of those complaints, no breaches of legislation, regulations, directions or Commission Rules were Section 5.2.6 of the Gambling Regulation Act 2003 requires that detected. Fourteen complaints remained under investigation as a public lottery must not be determined by draw unless a person at 30 June 2010. nominated by the VCGR supervises the draw. Patron Complaints at the Casino Government Supervisors nominated by the VCGR supervised all lottery draws as follows: Patrons lodged 53 complaints relating to the conduct of gaming in the Casino. Investigations by Inspectors found that, in respect of these complaints, gaming was conducted in accordance with Draw Type Number of Draws Supervised the rules and procedures of the game as approved by the VCGR. Lucky Keno 70 622 One complaint is under investigation as at 30 June 2010. Lucky Lines 365 Lucky Bingo Star 52 Casino Supervision Lucky 3 365 Lucky 5 Red or Black 365 Casino Surveillance Super 66 52 Inspectors maintained a 24 hour per day, seven days per week Tattslotto 52 supervisory presence at the Casino. In 2009–2010 the Casino at all times operated within the limits applying for the maximum Oz Lotto 52 number of gaming tables and electronic gaming machines Powerball 52 permitted. The casino operator has 81 different types of table Monday/Wednesday Lotto 105* games, including variations, approved for play and 791 different games approved for play on electronic gaming machines. * Draw no longer held in Melbourne but supervised by persons nominated by the VCGR. 34 Education Illegal Gambling
Improved Provision of Licensing and Registration Illegal Poker Machines seized Information In August 2009, following an audit of websites, gaming inspectors seized 42 illegal poker machines, as well as 46 Better Guidance for new Venue Operator Licence applicants restricted poker machine components, in a raid at two locations The information given to applicants for a venue operator’s in Melbourne’s northern suburbs. licence has been updated in both the application form and A number of machines were listed for sale, while others were the frequently asked questions (‘FAQs’) provided on the being converted to be offered for sale. Mr Nick Anagnostou was VCGR website. These actions have assisted applicants in fully subsequently charged under summons under the Gambling completing application forms in the required manner, thereby Regulation Act 2003 with being in illegal possession of gaming minimising delays in processing times. machines and restricted components. This offence carries a Update of the Guide for Nominees of Venue Operators maximum penalty of six years’ gaol. The booklet ‘Being the Nominee of a Venue Operator: What Mr Anagnostou pleaded guilty and the matter was determined you need to know’ has been revised and updated to provide in the Melbourne Magistrates’ Court on 22 March 2010. He additional legislative changes and other related information to received a 12 months good behaviour bond without conviction nominees. A copy of the updated guide was mailed to all venue and was ordered to pay costs of $3,500. In addition, an order operators in July 2009 and is available on the VCGR website. was made for the forfeiture and destruction of the gaming machines and restricted components. Update of the Guidelines for Summary Gaming Transactions VenueNet Kiosk The ‘Guidelines for Summary Gaming Transactions’ booklet was revised and updated with additional information. A copy of the In August 2009, an alleged betting kiosk was removed by updated Guidelines was mailed to all venue operators in July gaming inspectors from the Rising Sun Hotel, South Melbourne. 2009 and is available on the VCGR website. The VCGR alleged that the kiosk allowed patrons with accounts to place bets at the kiosk with Sportsbet, a bookmaker licensed Update of the Gaming Industry Employees Booklet in the Northern Territory, on horse racing and sports events. The second edition of the ‘Gaming Industry Employees Booklet’ The screen on the kiosk carries the name VenueNet. Under was developed and published on the VCGR website in April a court-issued search warrant gaming inspectors seized the 2010 to provide these licence holders with additional and kiosk and other documents including the contents of a laptop updated information. belonging to a director of the owners of the kiosk, VenueNet Pty Ltd, for forensic examination. Publication of Bingo Booklet After examining the material seized, the VCGR issued criminal The ‘Bingo Booklet’ was published on the VCGR website in charges against VenueNet Pty Ltd and the Rising Sun Hotel April 2010. This Booklet was developed to assist community South Melbourne Pty Ltd: eight charges are against VenueNet and charitable organisations and their responsible nominees in and four against the hotel. understanding their legal obligations regarding the running of bingo sessions. This Booklet includes the new Rules for Bingo VenueNet is charged under the Gambling Regulation Act that applied for the conduct of bingo from 25 November 2009. 2003 with possessing an unauthorised instrument of betting at the hotel on 16 June and 31 July 2009. It is also charged with helping the Rising Sun Hotel run a betting house with Publishing of Race Fields and Unauthorised an unauthorised kiosk on these dates. Further charges cover Betting allegations of helping the hotel commit an offence on these dates by allowing unlawful betting. Rising Sun Hotel South To ensure compliance with the relevant legislation, the VCGR Melbourne Pty Ltd, operators of the Rising Sun Hotel, face continues to work with Racing Victoria Limited, Harness Racing charges of allowing betting on an unauthorised kiosk on Victoria and Greyhound Racing Victoria to maintain current 16 June and 31 July 2009 and possessing the kiosk on those information about who is authorised to conduct betting and dates. The matter is yet to be determined. publish race fields.
35 Intended Outcome 2
Gambling Participants Gambling is conducted honestly, is free from criminal influence and commercial licensees deliver on their obligations
Goal 2.1: Tatts Group Limited Under section 3.4.37C of the Gambling Regulation Act 2003, Commercial participants and their employees a person has a prohibited shareholding interest in Tatts Group are suitable gambling industry participants Limited if that person is entitled to voting shares of more than Commercial Licensing 10 per cent of the total on issue. If a prohibited shareholding is detected, the Minister for Gaming may require that person to dispose of the relevant number of shares. Shareholder Monitoring No person held a prohibited shareholding during the reporting period. Crown Melbourne Limited Approval from the VCGR is necessary for any person to be Licence Holder Monitoring entitled to more than five per cent of the total number of shares on issue in Crown Melbourne Limited. Public Lottery Licences – Ongoing Monitoring During 2009–2010 there was no change in shareholding in Crown Melbourne Limited. The VCGR continues to monitor the corporate structures of the two public lottery licensees, Tattersall’s Sweeps Pty Ltd and Tabcorp Holdings Limited Intralot Australia Pty Ltd, under the requirements of sections Under section 4.3.20 of the Gambling Regulation Act 2003, 5.6.1 and 5.6.1(3) of the Gambling Regulation Act 2003. a person has a prohibited shareholding interest in Tabcorp During 2009–2010 four new associates were approved by Holdings Limited if that person is entitled to voting shares of the VCGR. more than 10 per cent of the total on issue. If a prohibited shareholding is detected, the Minister for Gaming may require that person to dispose of the relevant number of shares. No person held a prohibited shareholding during the reporting period.
36 Probity Monitoring This involves probity checking, financial background checks and fingerprinting. In addition, bookmakers are required to Business associates of Key Gaming Operatives demonstrate that, in compliance with the Racing Act 1958, they The VCGR continues to monitor the business associations of have a bond arrangement in place to protect their clients. key gaming operatives. Business associations may be formed As a result of new legislation, all bookmakers were required, by when a key gaming operative enters a joint venture with another 18 December 2009, to adopt a VCGR-approved Responsible entity. The joint venture partner may or may not be regulated by Gambling Code of Conduct (‘Code’) as a requirement of their the VCGR in its own right, but the Gambling Regulation Act 2003 registration. The Victorian Bookmakers’ Association developed allows the VCGR to investigate the suitability of the relationship a Code on behalf of its members, which was approved by the from a probity perspective. VCGR on 24 November 2009. All bookmakers have subsequently During 2009–2010 the VCGR did not object to any of the adopted this Code. The VCGR facilitated the development and business associations with associates of the gaming operators, adoption of the Code through extensive consultation with the casino operator, public lottery and wagering licensees or of any industry and is ensuring the effectiveness of the Code through entity listed on the Roll of Manufacturers, Suppliers and Testers. ongoing monitoring and education. All bookmaker and bookmakers’ key employee registrations approved prior to the VCGR assuming responsibility for Gaming Industry Employee Licensing registration expire on 30 September 2010. Up to nine months The VCGR continues to maintain high standards of probity for before this expiry date, these registration holders can apply gaming industry employees, including scrutiny of criminal and for renewal of their current registrations. The VCGR has financial history. provided information about the renewal process, together with appropriate application forms, to affected bookmakers and Employees seeking to work for the casino operator, gaming their key employees through a mailout, information in the official operators, venue operators, bingo centre operators or newsletter, VCGR News, and information published on the VCGR companies listed on the Roll of Manufacturers, Suppliers and website. Testers in capacities relating to gaming machines and bingo must apply for, and be approved to hold, a gaming industry employee or casino special employee licence. Breaches of Gambling Legislation Applicants must provide information so that an assessment can be made of their integrity, responsibility, personal background, Disciplinary Matters Involving Commercial Licensees financial stability and reputation. All applicants for a gaming In 2009–2010 the VCGR took disciplinary action against the industry employee or casino special employee licence are casino operator on nine occasions. required to undergo a fingerprint check. The VCGR also took disciplinary action against nine venue Employers of gaming industry employees continue to be able to operators and one bookmaker. check that members of staff are validly licensed by referencing the Licence Search portal available via the VCGR website. This The summary of offences and action taken is outlined in the on-line facility has been accessed 304 times during the year tables at pages 38 and 39 of this report. under review, with up to 10 employees checked per search. In addition to disciplinary action, one club venue, the Alma Sports Club, failed to lodge its Community Benefit Statement Bookmaker Registrations (‘CBS’) by the due date of 30 September 2009 and was required to pay into the Community Support Fund an additional 8.33 During the year under review, the VCGR has continued to receive per cent of the Club’s revenue from the due date until the Club applications for registration from corporate bookmakers, sole lodged its CBS with the VCGR. The amount of additional tax trader bookmakers and bookmakers’ key employees, as well as paid was $6,989.75. applications for approval of bookmaking partnerships. The assessment processes implemented by the VCGR for bookmakers and bookmakers’ key employees are consistent with those used for other commercial licensing applicants and gaming industry employees.
37 Intended Outcome 2 continued
Disciplinary Matters Involving Commercial Licensees (continued)
Casino Operator – Crown
Grounds Decision Date Result
Contravened a provision of the Casino Control Act 1991 when, on 31 May 2008 the game 29 Sep 2009 Letter of censure of Manila Poker was played in the Casino with an incomplete deck of cards, in breach of the approved rules of the game
Contravened a provision of the Casino Control Act 1991 when, on 7 September 2008 the 24 Nov 2009 Fine $7,500 game of Texas Hold’em Poker was played in the Casino with an incomplete deck of cards containing less than the required 52 cards, in breach of the approved rules of the game
Contravened a provision of the Casino Control Act 1991 when on 18 October 2008 a 16 24 Nov 2009 Fine $2,500 year old minor entered the Melbourne Casino in company with his father and friends
Contravened a provision of the Casino Control Act 1991 when on 4 January 2009, the 24 Nov 2009 Fine $5,000 game of Bonus Texas Hold’em Poker was played in the Casino with an incomplete deck of cards containing less than the required 52 cards, in breach of the approved rules of the game
Contravened a provision of the Casino Control Act 1991 when, on 16 July 2008, 14 August 2 Feb 2010 Fine $2,500 2008 and 5 September 2008 minors gained entry to the Casino
Contravened a provision of the Casino Control Act 1991 when, on 23 April 2009 the game 8 June 2010 Fine $10,000 of Blackjack was played in the Casino with an incomplete deck of cards, in breach of the approved rules of the game
Contravened a provision of the Casino Control Act 1991 when, on 8 June 2009 the game 8 June 2010 Fine $5,000 of Texas Hold’em Poker was played in the Casino with an incomplete deck of cards, in breach of the approved rules of the game
Contravened a provision of the Casino Control Act 1991 when, on 24 May 2009, a minor in 8 June 2010 Fine $2,500 a pram gained entry to the Casino
Contravened a provision of the Casino Control Act 1991 when, in both 2007–2008 8 June 2010 Fined $5,000 (first and 2008–2009, the casino operator breached the expenditure threshold applying to a breach) controlled contract, in breach of section 30 of the Act Fined $10,000 (second breach)
Venue Operators
Venue Venue Grounds Decision Date Result Operator M. & S. Whelan Star Hotel Failed to provide required information by not advising of 14 Jul 2009 Letter of censure Investments court judgements (3 counts) and the commencement of and fined $1,000 Pty Ltd winding up of the company (2 counts)
Collingwood Various Contravened the GRA 2003, failed to provide required 11 Aug 2009 Fined $2,000 Football Club information by not advising the Commission in writing Ltd of the outcomes for three litigation matters within 14 days, not advising of the appointment of a new company secretary and failing to ensure the new company secretary did not become an associated individual without prior written approval of the Commission
38 Venue Operators (continued)
Venue Venue Grounds Decision Date Result Operator Darley Football N/A Contravened the GRA 2003 and failed to provide 27 Oct 2009 Letter of censure Club Inc required information by not complying with a written notice pursuant to section 10.4.10 of the GRA 2003 requiring confirmation of the adoption of an approved Responsible Gambling Code of Conduct and Self- Exclusion Program
Club Italia Club Italia The venue operator and its nominee were found guilty 24 Nov 2009 Licensee fined Sporting Club Sporting of a ‘relevant offence’, namely, allowing a minor to enter $2,000 Inc Club a gaming area (2 counts) and failing to remove a minor from the gaming area (2 counts)
Reidy Pty Ltd N/A Contravened the GRA 2003 and failed to provide 24 Nov 2009 Letter of censure required information by not complying with a written notice pursuant to section 10.4.10 of the GRA 2003 requiring confirmation of the adoption of an approved Responsible Gambling Code of Conduct and Self- Exclusion Program
Rumjo N/A Contravened the GRA 2003 and failed to provide 24 Nov 2009 Letter of censure Consulting Pty required information by not complying with a written Ltd notice pursuant to section 10.4.10 of the GRA 2003 requiring confirmation of the adoption of an approved Responsible Gambling Code of Conduct and Self- Exclusion Program
Geelong Geelong Failed to provide required information by not advising 30 Mar 2010 Letter of censure Combined Combined of the appointment of new committee members within Leagues Club Leagues 14 days Ltd Club
Manningham Manningham Contravened the GRA 2003 by failing to notify of the 30 Mar 2010 Letter of censure Club Ltd Club resignation of its nominee and associate within 14 days in accordance with section 3.8.1 and failing to nominate a nominee and lodge a nominee application within 60 days of the resignation of its nominee
McKinnon Hotels McKinnon Contravened the GRA 2003 by employing or using the 30 Mar 2010 Fined $1,000 Pty Ltd Hotel services of a person to perform functions of a gaming industry employee and by allocating or permitting or allowing to be allocated to a person the performance of a function of a gaming industry employee whilst the person was unlicensed
Note: GRA 2003 – Gambling Regulation Act 2003
Bookmakers
Surname Given Licence Grounds Decision Result Name(s) Number Date Macciotta Richard B10700208 Failed to 30 Mar 2010 Licence suspended pending receipt of provide required evidence of adoption of an approved information Responsible Gambling Code of Conduct
39 Intended Outcome 2 continued
Goal 2.2: Those involved in the gambling industry maintain high standards of probity Probity Matters
Gaming Venues and Community and Charitable Gaming Inspectors examined the operation of all approved gaming venues in Victoria. In addition, unannounced inspections were made of minor gaming activities, including bingo and raffles and the drawing of trade promotion lotteries, to ensure compliance with regulatory requirements. During the year 595 investigations were conducted. These were carried out as a result of complaints, unannounced surveillance and in relation to licence applications, permits and other approvals. Following the completion of an investigation, a warning notice may be issued for technical or minor breaches of gaming legislation. During the year, 37 warning notices were issued to individuals and organisations who were advised that any future contravention of gaming legislation may result in prosecution proceedings. Five people were prosecuted in the Magistrates’ Court for 11 offences. In addition, three organisations were prosecuted in the Magistrates’ Court for nine offences. Offences and Court results are shown in the following table.
Prosecutions under the Gambling Regulation Act 2003 (‘GRA 2003’)
Defendant Defendant Offence Court Date Court Result Address Club Italia Sunshine Minor in an approved venue (2 counts) and failure to 26 Aug 2009 Without conviction, Sporting Club remove a minor from the gaming room (2 counts) placed on a 12 months Inc GRA 2003, section 3.5.48(1) and (2) good behaviour bond and ordered to pay $500
Angelo Tenaglia Deer Park Minor in an approved venue (2 counts) and failure to 26 Aug 2009 Without conviction, remove a minor from the gaming room (2 counts) placed on a three months GRA 2003, section 3.5.48(1) and (2) good behaviour bond
Serene Hotels Epping Used the services of a person to perform the duties 23 Feb 2010 Without conviction, fined Pty Ltd of a gaming industry employee when that person $600 and ordered to pay was not licensed costs of $373 GRA 2003, section 9A.1.3(2)
Frank Rumoro Essendon Used the services of a person to perform the duties 23 Feb 2010 Without conviction, fined of a gaming industry employee when that person $600 was not licensed GRA 2003, section 9A.1.3(2)
Nick Airport West Possession of 42 gaming machines and restricted 22 Mar 2010 Without conviction, Anagnostou components as part of a commercial enterprise placed on a 12 months GRA 2003, section 3.5.1(2) good behaviour bond with orders issued for costs of $3,500. and forfeiture and destruction of items seized
40 Prosecutions under the Gambling Regulation Act 2003 (‘GRA 2003’) (continued)
Defendant Defendant Offence Court Date Court Result Address Hampton Bowls Hampton Allowing a minor to gamble on electronic gaming 8 June 2010 Without conviction, 12 Club Inc machines (2 counts) months good behaviour GRA 2003, section 10.7.3(1); bond, with orders issued allowing a minor to enter the gaming machine area to pay $1,200 to the of the venue Youth Connect Step GRA 2003, section 10.7.6(1) Program and costs of $296
Raymond Hampton Allowing a minor to gamble on electronic gaming 8 June 2010 Entered into a Diversion Westcott machines (2 counts) Program and ordered to GRA 2003, section 10.7.3(1); pay costs of $296 allowing a minor to enter the gaming machine area of the venue GRA 2003, section 10.7.6(1)
Martin Corkill Diggers Rest Possession of three gaming machines in breach of 17 June 2010 Entered into a Diversion the GRA 2003, section 3.5.1(1) Program and orders made for costs of $296 and forfeiture and destruction of items seized
Note: Offences under the Crimes Act 1958 and the Summary Offences Act 1966 are the responsibility of the Victoria Police, with the assistance of VCGR Inspectors when required.
Warnings, Penalty Infringement Notices and Prosecutions – Casino During the year official warnings were issued to 113 excluded persons who had breached their exclusion orders. In September 2009, the Commission commenced issuing Penalty Infringement Notices to excluded persons who were found inside Crown Casino. Fifty- nine Penalty Infringement Notices were issued during the year, with each costing $584. Seven excluded persons were prosecuted for 64 offences relating to breaching of exclusion orders under section 77 of the Casino Control Act 1991. These exclusions were non-voluntary in nature, that is, the persons involved were not self-excluded persons. As at 30 June 2010, no excluded persons are awaiting prosecution for breaching their exclusion orders. Details of the nine prosecutions are shown in the following table.
Prosecutions under the Casino Control Act 1991 (‘CCA 1991’)
Defendant Defendant Offence Court Date Court Result Address Xiang Wu Nunawading Breach Casino Exclusion Order, 27 Aug 2009 Without conviction, fined CCA 1991, section 77 $250 plus costs of $250
Cheang Srey Noble Park Breach Casino Exclusion Order, (10 occasions) CCA 2 Sep 2009 Matter adjourned and an 1991, section 77 arrest warrant issued
41 Intended Outcome 2 continued
Prosecutions under the Casino Control Act 1991 (‘CCA 1991’) continued
Defendant Defendant Offence Court Date Court Result Address Jackie Lam North Breach Casino Exclusion Order, 10 Sep 2009 Convicted and fined $300 Melbourne CCA 1991, section 77
Jian Ma North Breach Casino Exclusion Order, (21 occasions) 28 Sep 2009 Convicted and fined Caulfield CCA 1991, section 77 $1,000
Viet Nguyen Collingwood Breach Casino Exclusion Order, (three occasions) 17 Dec 2009 Convicted, fined $750 CCA 1991, section 77 and ordered to pay costs of $358.28
Thi Nhu Hoang Point Cook Breach Casino Exclusion Order, (seven occasions) 17 Dec 2009 Without conviction, fined CCA 1991, section 77 $500 and ordered to pay costs of $371.28
Cheang Srey Noble Park Breach Casino Exclusion Order, (19 occasions) 8 Feb 2010 Both matters were CCA 1991, section 77; and adjourned and an arrest threaten an inspector (one count), warrant issued Gambling Regulation Act 2003 section 10.5.15(a)
Thi M L Nguyen Richmond Breach Casino Exclusion Order, 25 Feb 2010 Convicted, fined $1,000 CCA 1991, section 77 and ordered to pay costs of $298
Viet Nguyen Collingwood Breach Casino Exclusion Order, 26 May 2010 Convicted, fined $750 CCA 1991, section 77 and ordered to pay costs of $314
Note: Offences under the Crimes Act 1958 and the Summary Offences Act 1966 are the responsibility of the Victoria Police, with the assistance of VCGR Inspectors when required.
Controlled Contracts Section 29(2) of the Casino Control Act 1991 requires the VCGR to ‘…publish in its annual report all classes of matter and all classes of contract specified by the Commission under paragraph (c), (ca) or (d) of the definition of ’controlled contract’ in sub-section (1) during the previous year.’ Paragraphs (c), (ca) and (d) relate to contracts that the VCGR, by notice in writing, specifies as not being a controlled contract. In the year under review, no new classes of controlled contract were exempted under these provisions. Under section 30 of the Casino Control Act 1991 and the provisions of the Internal Control Statement, Crown Melbourne Limited must not enter into a contract with a provider of goods and services, other than those exempted, prior to the VCGR determining that it does not object to the contract. During 2009–2010, Crown did not seek to enter into any new controlled contracts.
Anti Money Laundering Monitoring The VCGR continued its rigorous program of monitoring every gaming machine to identify all irregular transaction activity. Each irregular transaction identified, being a potential indicator of possible money laundering, was closely examined and where necessary an explanation sought for the irregularity. On every occasion, an explanation entirely consistent with reasons other than money laundering was provided.
Exclusions by Chief Commissioner of Police The Chief Commissioner of Police has the power to issue a written order to a person, prohibiting the person from entering or remaining in the Melbourne Casino Complex as well as specified racetracks. A copy of an exclusion order issued by the Chief Commissioner of Police is provided to the VCGR and the casino operator. The role of the VCGR is to supervise and monitor the Casino and racetracks to ensure that breaches of exclusion orders, if any, are brought to the attention of the Chief Commissioner of Police.
42 Appeals against Exclusion Orders During the 2009–2010 reporting period, seven persons lodged appeals against exclusion orders prohibiting them from entering or remaining in the Casino. Of these seven appeals, three were outside the allowable time period for lodging an appeal, three were rejected and one appeal was pending as at 30 June 2010. In addition, six of the 15 appeals lodged in the previous year were determined in 2009–2010. These appeals were rejected.
Employee Disciplinary Matters: Casino Control Act 1991 and Gambling Regulation Act 2003
During 2009–2010 the VCGR took disciplinary action against 58 gaming industry employees and 24 casino special employees. No disciplinary action was required to be taken during 2009–2010 in relation to bookmakers’ key employees. The summary of offences and form of disciplinary action taken is outlined in the tables that follow at pages 43 to 47 of this report. When a casino special employee or gaming industry employee licence holder has failed to advise of a change of name and/or address within 14 days of the change taking place, but has not previously breached a gaming Act or gaming regulations, then an educative letter is issued to that licensee rather than the matter being dealt with through the formal disciplinary action process. During the 2009–2010 year, 150 educative letters were issued to gaming industry employee licensees and 33 were issued to casino special employee licensees.
Casino Special Employees
Surname Given Name(s) Licence Grounds Decision Date Result Number Anders Eliza Alice C06103052 Considered to be no longer a suitable 1 Sep 2009 Licence person to hold the licence cancelled
Nicolosi Cosimo Tony C02100218 Found guilty of a ‘relevant offence’ and 1 Sep 2009 Licence failed to provide required information cancelled
Ellis Cash McLachlan C08104467 Considered to be no longer a suitable 22 Sep 2009 Licence person to hold the licence cancelled
Cao Ting C08104341 Considered to be no longer a suitable 6 Oct 2009 Licence person to hold the licence cancelled
Li Yun C07103990 Considered to be no longer a suitable 6 Oct 2009 Licence person to hold the licence cancelled
Piyaphanee Nopparuj C06103042 Considered to be no longer a suitable 13 Oct 2009 Licence person to hold the licence cancelled
Lim-It Julie C00097822 Found guilty of a 'relevant offence', 27 Oct 2009 Licence failed to provide required information cancelled and considered to be no longer a suitable person to hold the licence
Sagolj Robert C00098898 Found guilty of a 'relevant offence' and 29 Oct 2009 Letter of failed to provide required information censure
Bandong Karl Aaron C08105124 Considered to be no longer a suitable 10 Nov 2009 Licence person to hold the licence cancelled
43 Intended Outcome 2 continued
Casino Special Employees (continued)
Surname Given Name(s) Licence Grounds Decision Date Result Number Hussey- Christopher Colin C06103586 Considered to be no longer a suitable 10 Nov 2009 Licence cancelled Smith person to hold the licence
Salvo Bobby C9500768 Failed to provide required information 10 Nov 2009 Letter of censure
Wilks Taylor Eric C08104852 Found guilty of a 'relevant offence', 8 Dec 2009 Licence cancelled failed to provide required information and considered to be no longer a suitable person to hold the licence
Wu Siliang C05102580 Found guilty of a 'relevant offence', 8 Dec 2009 Licence cancelled failed to provide required information and considered to be no longer a suitable person to hold the licence
Flanagan Kaylene C9500209 Failed to provide required information 12 Jan 2010 Letter of censure
Marguglio Robert C00097809 Failed to provide required information 12 Jan 2010 Licence cancelled and considered to be no longer a suitable person to hold the licence
Pepi Teresa Ann C99097269 Failed to provide required information 12 Jan 2010 Letter of censure
Stones Darran C99097136 Failed to provide required information 12 Jan 2010 Letter of censure
Vu Nghia Trong C01099400 Failed to provide required information 19 Jan 2010 Licence cancelled and considered to be no longer a suitable person to hold the licence
Shiels Christopher C9802604 Failed to provide required information 28 Jan 2010 Letter of censure
Ngo Hieu C01099640 Found guilty of a 'relevant offence', 16 Feb 2010 Licence cancelled failed to provide required information and considered to be no longer a suitable person to hold the licence
Bondoux Jeremy C09106297 Contravened a condition of the licence 27 Apr 2010 Licence cancelled Christopher and considered to be no longer a suitable person to hold the licence
Dhanavani Vishal Pyarali C09105879 Contravened a condition of the licence 27 Apr 2010 Licence cancelled and considered to be no longer a suitable person to hold the licence
Dubin Andrew Joshua C09105863 Considered to be no longer a suitable 27 Apr 2010 Licence cancelled person to hold the licence
Williams Hamish Anthony C06103267 Considered to be no longer a suitable 11 May 2010 Licence cancelled person to hold the licence
44 Gaming Industry Employees
Surname Given Name(s) Licence Grounds Decision Date Result Number Celalettin Metin C G04132284 Failed to provide required information 14 Jul 2009 Letter of censure
Rotman Darren Maurice G07141171 Contravened a condition of the licence 14 Jul 2009 Licence and failed to provide information cancelled
Godden Jasmine Renee G99101677 Failed to provide required information 28 Jul 2009 Letter of censure
Williams Dennis Keith G9522342 Failed to provide required information 11 Aug 2009 Letter of censure
Anders Eliza Alice S05134996 Considered to be no longer a suitable 1 Sep 2009 Licence person to hold the licence suspended for 12 months
Charles Brett Andrew 599101927 Failed to provide required information 1 Sep 2009 Letter of censure
Nicolosi Cosimo Tony S02124707 Found guilty of a 'relevant offence' and 1 Sep 2009 Letter of censure failed to provide required information
Sciberras Jennifer S02124066 Found guilty of a ‘relevant offence’ and 1 Sep 2009 Letter of censure failed to provide required information
Tynan Wendy Michelle S98098150 Failed to provide required information 1 Sep 2009 Letter of censure
Boss Daniel Edward G06138629 Found guilty of a ‘relevant offence’, 22 Sep 2009 Licence failed to provide required information cancelled and considered to be no longer a suitable person to hold the licence
Clark Kellie Leigh S9824254 Failed to provide required information 6 Oct 2009 Licence and considered to be no longer a cancelled suitable person to hold the licence
Crane Julie Ann S99104948 Failed to provide required information 6 Oct 2009 Letter of censure
Howe Tamara Leanne G02127547 Failed to provide required information 6 Oct 2009 Letter of censure
McGuigan Cheryl S99102221 Failed to provide required information 6 Oct 2009 Letter of censure
Brealey Jeanine Margaret S9620241 Found guilty of a 'relevant offence' and 13 Oct 2009 Letter of censure failed to provide required information
Child Jo-Ann Frances S99106220 Failed to provide required information 27 Oct 2009 Letter of censure
Clark Bruce James S9621567 Failed to provide required information 27 Oct 2009 Letter of censure
D'Alessandro Laurence Templar S03130374 Failed to provide required information 27 Oct 2009 Licence and considered to be no longer a cancelled suitable person to hold the licence
Guinane Craig Dennis S9680490 Failed to provide required information 27 Oct 2009 Letter of censure
Karaga Miroslav S02125576 Failed to provide required information 27 Oct 2009 Licence and considered to be no longer a cancelled suitable person to hold the licence
McCracken Sharon G9620031 Failed to provide required information 27 Oct 2009 Letter of censure
45 Intended Outcome 2 continued
Gaming Industry Employees (continued)
Surname Given Name(s) Licence Grounds Decision Date Result Number Miles Andrew George S99102484 Failed to provide required information 27 Oct 2009 Letter of censure
Young Stephen Barlow S99104310 Failed to provide required information 27 Oct 2009 Letter of censure
Holland Helen G99101179 Found guilty of a 'relevant offence' and 29 Oct 2009 Letter of censure failed to provide required information
Giannopoulos George S9680271 Failed to provide required information 10 Nov 2009 Letter of censure
Browne Louise Margaret S99105493 Failed to provide required information 24 Nov 2009 Letter of censure
Lenehan Stephen Rodney S00111422 Failed to provide required information 24 Nov 2009 Letter of censure
Adams Glenn Cameron S99107823 Failed to provide required information 24 Nov 2009 Letter of censure
Black Robert Lee G06138831 Failed to provide required information 8 Dec 2009 Letter of censure
Campbell Lorna G07141412 Contravened a condition of the 8 Dec 2009 Licence licence and failed to provide required cancelled information
Levy Melissah Faye S04132222 Failed to provide required information 8 Dec 2009 Licence cancelled
Nicholas John S99102289 Failed to provide required information 8 Dec 2009 Letter of censure
Pelikan Michelle Ann S04132950 Found guilty of a 'relevant offence', 8 Dec 2009 Licence failed to provide required information cancelled and considered to be no longer a suitable person to hold the licence
Cini Natalie Maree S03129683 Failed to provide required information 12 Jan 2010 Letter of censure
Smithwick Mark S98100043 The licence was improperly obtained 12 Jan 2010 Licence in that, when it was granted there were cancelled grounds for refusing it; the licensee was found guilty of a 'relevant offence', failed to provide required information and considered to be no longer a suitable person to hold the licence
Eastwood Andrew James G9623352 Failed to provide required information 19 Jan 2010 Letter of censure
McLeod Tracy G9622344 Failed to provide required information 28 Jan 2010 Letter of censure
Ross Catherine G06139574 Failed to provide required information 28 Jan 2010 Letter of censure
Beekes Martin Stephan S9720043 Failed to provide required information 2 Feb 2010 Letter of censure
Cooper Jodi Elizabeth S9622272 Failed to provide required information 2 Feb 2010 Letter of censure
Corp Daniel Scott G06139344 Failed to provide required information 2 Feb 2010 Letter of censure
Faull Frederick Imre S99106633 Failed to provide required information 2 Feb 2010 Letter of censure
46 Surname Given Name(s) Licence Grounds Decision Date Result Number Plummer Sally-Anne S9621514 Failed to provide required information 2 Feb 2010 Letter of censure
Belsey Daryl Gregory G9622866 Failed to provide required information 16 Feb 2010 Letter of censure
Kiely Chantel Margaret S02125311 Failed to provide required information 16 Feb 2010 Letter of censure
McDowell Kymme S00117945 Found guilty of a 'relevant offence', 16 Feb 2010 Licence failed to provide required information cancelled and considered to be no longer a suitable person to hold the licence
Modrich Katherine Jane G06139109 Failed to provide required information 16 Feb 2010 Licence and considered to be no longer a cancelled suitable person to hold the licence
Oliva Luis Eduardo S02127335 Failed to provide required information 16 Feb 2010 Letter of censure
Thomas Kylie May G08144054 Contravened a condition of the 16 Feb 2010 Licence licence and failed to provide required cancelled information
Wilson Marshall Leigh S00118001 Failed to provide required information 2 Mar 2010 Letter of censure
Lajoie Dominique Marie G9624018 Failed to provide required information 16 Mar 2010 Letter of censure
Christianson Bree Adele G06138819 The licensee failed to provide required 30 Mar 2010 Licence information and considered to be no cancelled longer a suitable person to hold the licence
Robertson Andrew G01120590 The licensee failed to provide required 30 Mar 2010 Licence information and considered to be no cancelled longer a suitable person to hold the licence
Mann Gwenda S9623926 Failed to provide required information 22 Apr 2010 Letter of censure
Cunningham Steven John G07140804 Failed to provide required information 27 Apr 2010 Letter of censure
Topp Joanne Patricia G09150616 Failed to provide required information 27 Apr 2010 Letter of censure
Allen Malcolm Henry G09150354 Failed to provide required information 11 May 2010 Letter of censure Gerald
Havis Joanne Louise S9624323 Failed to provide required information 22 Jun 2010 Letter of censure
Note: In relation to the above tables, ‘Relevant offence’ in relation to a licensee means – • an offence against a gaming Act or gaming regulations; or • an offence arising out of or in connection with the employment of the licensee under a gaming Act; or • an offence (wherever occurring) involving fraud or dishonesty punishable on conviction by imprisonment for three months or more (whether or not in addition to a fine).
47 Intended Outcome 2 continued
Goal 2.3: Commercial participants in the gambling industry fulfil their obligations to the State Commercial Obligations Review
Casino Operator Obligations to the State The VCGR continues to monitor the performance of Crown Melbourne Limited to ensure that the casino operator fulfils its obligations to the State as required by the Casino Licence, the Casino Agreement and the Casino Management Agreement.
Intralot Obligations to the State On 17 March 2009, the VCGR determined to conduct a compliance review of Intralot Australia Pty Ltd (ACN 114 435 531). The Commission established a working party to conduct a review of Intralot’s operations with a view to assessing Intralot’s compliance with its obligations to the State of Victoria and whether any of these areas may be contributing to Intralot’s sales forecasts not being met. As a regulator, it is part of the role of the VCGR to monitor compliance by licence-holders with their obligations. Accordingly, the review looked at a number of aspects of Intralot’s operations, in order to assist in considering whether any of these was affecting its ability to satisfy its obligations, including its ability to meet its forecasts.
Tatts Obligations to the State The VCGR continues to monitor the performance of Tattersall’s Sweeps Pty Ltd under the Category 1 Public Lottery Licence and related agreements.
48 Intended Outcome 3
Gambling Benefits The Victorian community receives the benefits arising from gambling
Goal 3.1: Gaming Machine Entitlements The structure of the gambling industry In July 2009, the Government announced the method for optimises community benefits allocating gaming machine entitlements to allow clubs and hotels to operate gaming machines post–2012. Post–2012 Transition Planning The first phase of allocation was for clubs operating gaming venues to be offered the opportunity to purchase a limited Background number of club entitlements for each venue (‘Club Offer’). The number of entitlements offered to a club was determined by the In April 2008, the Government announced its decision on a new number of gaming machines licensed at its venue(s) on 4 June structure for gambling in Victoria beyond 2012. 2009. The number of entitlements offered was 40 or the number From 2012, the gaming machine industry will move from the of gaming machines licensed at the venue, whichever was the current gaming operator duopoly to new arrangements where lesser. The price to be paid for each entitlement was based on venue operators can own and operate gaming machines. a formula related to each club’s share of gaming expenditure at In order to operate gaming machines, clubs and hotels the venue in 2008–2009. have purchased 10-year gaming machine entitlements. The A letter was sent to eligible clubs in August 2009 providing new arrangements will be supported by the creation of an them with the opportunity to confirm or dispute the number of independent Monitor with an exclusive licence being awarded. entitlements being offered and the price to be paid for each one. In addition, a single, exclusive Keno Licence and a single, The VCGR was responsible for determining any dispute from a exclusive pari-mutuel and fixed odds Wagering and Betting club in relation to the number of entitlements offered or the price Licence will also be awarded. of an entitlement. In August 2008 the Gambling Licences Project Branch was The Club Offer was completed on 23 November 2009 when established to take lead responsibility for transitioning the VCGR eligible clubs had to confirm acceptance of the offer by lodging to meet its regulatory functions in the new gambling structure. the required information, including together with a five per cent deposit of the entitlement price.
49 Intended Outcome 3 continued
Gaming Machine Entitlements (continued)
The second phase of allocation was the conduct of a Gaming Goal 3.2: Auction in April and May 2010. Eligible bidders were required to register for the Gaming Auction by 21 December 2009 by The Victorian racing industry benefits lodging the required information, including payment of a default appropriately from approved wagering bond. Due to mail disruptions in December 2009, the closing activities date for registration was extended until 8 January 2010. Racing Industry Support The VCGR was the Auctioneer in the conduct of the Gaming Auction. On 19 January 2010, Mr Warren Hodgson was appointed as a Deputy Chair and Ms Andrea Hassett was Enforcing Obligations appointed as a Commissioner to enable the VCGR to fulfil this The wagering licence issued to Tabcorp Holdings Limited requirement. The VCGR was responsible for ensuring that the (Tabcorp) under section 4.3.1 of the Gambling Regulation Act conduct of the Gaming Auction complied with the Gaming 2003 authorises Tabcorp to provide wagering in Victoria on Machine Entitlement Allocation and Transfer Rules and for events staged by the three racing codes (thoroughbred racing, determining procedures to be adopted to perform its functions harness racing and greyhounds) via the totalisator at race as Auctioneer. At the Gaming Auction, all hotel entitlements and meetings, at authorised outlets (agencies, hotels, and gaming the club entitlements remaining after the Club Offer were made venues with wagering facilities) and via telephone and on-line. available in a competitive bidding process. The licence also authorises Tabcorp to offer approved betting The Gaming Auction was completed on 10 May 2010 and competitions in relation to approved betting events. entitlements will be allocated to successful venue operators. The Victorian racing industry has in place an agreement When allocation of entitlements is completed, the VCGR will with Tabcorp through which it receives funding based on a be responsible for regulating the ownership and payment percentage of profits, including profits from Tabcorp’s wagering of entitlements. This will include publishing an Entitlements operations, which are distributed to the participant racing codes. Register on the VCGR website to record ownership details of The Victorian racing industry also derives revenue from fees for each entitlement. racing products, programs and marketing. The VCGR will also be responsible for operating the transfer Under the Gambling Regulation Act 2003, the VCGR is scheme, which will enable venue operators to trade entitlements responsible for enforcing and monitoring compliance with the with each other through a Transfer Market website. regulatory requirements and regime established and authorised by that Act. In addition to its regulatory duty to scrutinise licensees and the operation and conduct of lawful gambling Licence Awarding Support activities in Victoria, the VCGR acts to protect the integrity of The Minister for Gaming called for Registrations of Interest these activities by investigating allegations of illegal conduct or in the grant of a Keno Licence on 17 September 2008. The products and by prosecuting breaches of the law. closing date for the lodgement of Registrations of Interest was Diligent pursuit and investigation of reported illegal activities 14 November 2008. During 2009, the VCGR provided a number by the VCGR ensures regulatory compliance and instils player of reports to the Secretary, Department of Justice, regarding confidence in the integrity of authorised wagering in Victoria. As the inquiries and investigations it conducted. The Registration well as product integrity assurance, the VCGR’s investigation of of Interest stage concluded in February 2010 when the three the illegal use of Victorian racing industry product by wagering continuing registrants were announced and the Invitation to providers also supports the Victorian racing industry through Apply stage commenced. the protection provided to its revenue streams. Specific VCGR The Minister for Gaming called for Registrations of Interest in the actions in relation to illegal gambling activities are detailed grant of a Wagering and Betting Licence on 5 November 2008. elsewhere in this report at page 35. The closing date for the lodgement of Registrations of Interest Racing Integrity Commissioner was 16 January 2009. During 2009–2010, the VCGR conducted inquiries and investigations on registrants for this licence and On 10 February 2010 the Victorian Government announced provided a number of reports to the Secretary, Department of the appointment of Mr Sal Perna to the new position of Racing Justice, regarding the inquiries and investigations it conducted. Integrity Commissioner. The Executive Commissioner has met The Minister for Gaming called for Expressions of Interest in the with Mr Perna and proffered the VCGR’s commitment to the grant of a Monitoring Licence on 25 March 2009. The closing establishment of a close and cooperative working relationship date for the lodgement of Expressions of Interest was 29 May with the Racing Integrity Commissioner to bolster and support 2009. During 2009–2010, the VCGR conducted inquiries and his task of strengthening integrity assurance in the Victorian investigations on registrants for this licence and provided a racing industry. number of reports to the Secretary, Department of Justice, regarding the inquiries and investigations it conducted.
50 Goal 3.3: Further information, relating to player loss from the total amounts wagered on gaming machines at approved gaming venues, Appropriate gambling returns are provided to is contained in Appendix 15, Appendix 16, Appendix 17 and players, operators and government Appendix 18 of this report. Financial Entitlements Data for gaming machine expenditure, or player loss, by individual gaming venues is now regularly published on the VCGR website, with fresh information provided at six-monthly Verification of Gambling Revenue and intervals for the calendar periods ended June and December Government Duty each year. The VCGR is responsible for ensuring that all gambling revenue was correctly calculated and that all taxes and levies under the Gambling Systems Risk Assessment and Audit Casino Control Act 1991 and the Gambling Regulation Act 2003 are paid as required by licensees. Seventeen audits were undertaken of: During 2009–2010, activities undertaken to verify the calculation • the gaming central monitoring and control systems provided of the gaming tax payable under these Acts were: by Tabcorp, Tatts and Crown; • reconciliation of all taxes and levies payable under the Casino • the wagering, Sportsbet and Trackside systems operated by Control Act 1991 and the Gambling Regulation Act 2003 to Tabcorp; independent calculations performed on behalf of the VCGR. • the lottery system, including the Internet lotteries system, • audits of each day’s electronically monitored gaming machine operated by Tatts; financial transactions and jackpot pools for the casino • the operation of Intralot lottery games including Instant operator and each gaming operator; Lottery tickets; • audits of the daily financial reports and electronically • the Club Keno computer system operated by Tatts on behalf monitored gaming transactions from the Club Keno system; of the joint operators, Tatts and Tabcorp; and • audits of the daily financial reports from the pari-mutuel • the electronic table games operated by Crown. wagering system; As required, corrective action was undertaken by the gambling • audits of the weekly financial reports from fixed odds system operators to minimise the risk on the approved systems approved betting competitions comprising Sportsbet and and maintain data and system integrity. Trackside; The audits of the approved systems were conducted to verify • verification of the daily sales figures and dividends payable for whether contributions, prizes, pool balances and player each public lottery; and entitlements were in accordance with VCGR approvals. In • audits of the gross gaming revenue of casino gaming tables addition, the audits confirmed the system and data integrity of all and audits of each day’s electronic gaming data received approved gambling systems and that all systems were operating from the casino operator. as approved. The VCGR also undertook work on the gambling systems Duty Paid to Participating Jurisdictions proposed for the post-2012 gaming environment, including: Under agreement with other States, Territories and international • proactively evaluating different scenarios to develop new jurisdictions for their share of taxes from lottery product sales, audit strategies; and the amounts payable to these jurisdictions were verified prior to • continued audits of existing gambling systems to maintain payment. system and data integrity. Returns to Players Further, ongoing reviews of all proposed products and systems were undertaken. These reviews focused on security, Operational audits are undertaken to ensure that gaming accountability, auditability, manageability and control together operators comply with the statutory obligation of returning to with all other related risks and compliance issues to ensure players not less than 87 per cent of the total amounts wagered system and data integrity on the proposed systems that are in a year at each gaming venue. The audits undertaken for the being considered for approval by the VCGR. 2009–2010 year confirmed that all gaming venues complied with the statutory requirements under section 3.6.1 of the Gambling Regulation Act 2003.
51 Intended Outcome 3 continued
Community Benefit Statements Goal 3.4: Minor gaming is conducted for the benefit of Operators of club gaming venues were required to submit the community and charitable organisations Community Benefit Statements (‘CBS’) in respect of the 2008– 2009 financial year by 30 September 2009. Community or Charitable Organisation Declarations The 2008–2009 financial year was the first year in which a new Ministerial order in relation to CBS, dated 8 February 2008, came The declaration of an organisation as a community or charitable into effect. This new order redefined the kind of activities or organisation by the VCGR will be valid for 10 years rather than purposes that constitute community purposes claimable within being ongoing after legislative changes came into effect on the CBS. 1 January 2010. Community or charitable organisations must be declared in order to continue to lawfully conduct bingo, Claimable items are now divided into three classes as follows: raffles, fundraising events and sell lucky envelopes for • Class A items are 100 per cent claimable and include gifts, fundraising purposes. donations and sponsorships; A community or charitable organisation may apply for a renewal • Class B items are expenses such as capital expenditure, of its declaration status up to nine months before its declaration financing, retained earnings and employment costs and these expires. Those organisations whose declared status was are only partially claimable; approved more than 10 years ago need to apply for a renewal of • Class C items are 100 per cent claimable and are their declared status by 31 December 2010. Other community or miscellaneous activities including the reimbursement of charitable organisations will be progressively required to apply expenses incurred by volunteers. for renewal in subsequent years according to the year in which The CBS information provided by club venue operators in they were declared. relation to the 2008–2009 financial year was published on the During the year under review, the VCGR began implementing VCGR website. these legislative changes by undertaking an education program To ensure that all club venue operators are aware of the comprised of mailouts, newsletter articles and new information obligation to submit a CBS, the VCGR has put in place a made available on the VCGR website. Renewal application communications program utilising mailouts to all nominees and forms have been distributed to all community or charitable articles in the VCGR newsletter, VCGR News. The VCGR again organisations whose declared status is due for renewal by provided a secure on-line system to enable club venue operators 1 January 2014. to more easily and reliably submit their CBS on time. Following initial CBS community information sessions in mid- Minor Gaming Activities 2008, to which club venue operators and their auditors were invited, material was developed for the VCGR website to provide Bingo/Raffle Returns stakeholders with comprehensive information on all aspects of CBS, incorporating many questions raised by attendees at the Community and charitable organisations that conduct either information sessions. bingo or large raffles are required to submit to the VCGR a statement of account in accordance with the Gambling As reported at page 37 of this report, the Alma Sports Club Regulation Regulations 2005 (for bingo) or their permit conditions failed to lodge its Community Benefit Statement (‘CBS’) by the (for large raffles). Failure by organisations to submit returns may due date of 30 September 2009 and was required to pay into result in disciplinary action being taken against them. the Community Support Fund an additional 8.33 per cent of the Club’s revenue from the due date until the Club lodged its CBS The VCGR continued to ensure that returns were submitted with the VCGR. by community and charitable organisations conducting bingo and large raffles, and to monitor returns to the community and Further information about CBS is contained in Appendix 3 and charitable sector. Appendix 14 of this report. Bingo returns for sessions conducted in 2008–2009 were due to be lodged with the VCGR by 31 October 2009. During 2009– 2010, there were 437 of these returns submitted by community and charitable organisations. Large raffle permit holders must submit a raffle return to the VCGR within 42 days after each draw.
52 Intended Outcome 4
Gambling Harm Minimisation The harm caused by problem gambling is minimised
Goal 4.1: • monitored compliance with the requirements of Codes and SEPs using a strategy that has been guided in its The gambling industry delivers its products development by the expectation of the Minister for Gaming responsibly that the VCGR would put an emphasis on education during the first year of Code and SEP operation and operating Responsible Gambling Codes of Conduct and an inspection program that ensures compliance with the Self-Exclusion Programs requirements of Codes and SEPs, including –
From 1 June 2009, it became mandatory for certain – displaying and making available responsible gambling organisations that hold gaming industry licences to implement information; an approved Responsible Gambling Code of Conduct (‘Code’). – ensuring the licence holder is keeping and maintaining Gaming venue operators must also conduct an approved Self- records relating to the Code and, in the case of gaming Exclusion Program (‘SEP’). venues, the SEP; and The requirement to have a Code applies to all gaming venue – ensuring fulfillment of the requirement for an annual review operators, bingo centre operators, commercial raffle organisers, by commercial licence holders of both the Code and SEP; the casino operator, the holder of the wagering licence or the • communicated and consulted extensively with industry wagering operator, public lotteries licence holders, the Club representative groups, peak bodies and individual licence Keno participants, and interactive gaming licensees. holders as well as a range of other stakeholders such as On 18 December 2009 the requirement to have a Code became Gambler’s Help services and local government; a condition of registration for bookmakers. To help bookmakers • visited gaming venues, racecourses and commercial bingo meet their obligations the VCGR, on 24 November 2009, centres in regional and metropolitan areas as part of an approved a generic Code which had been developed by the educational program to address issues related to the effective Victorian Bookmakers’ Association, the peak body for Victoria’s implementation of Codes and SEPs; registered bookmakers, in consultation with the VCGR. All • held face to face surveys with staff of 124 gaming venue registered bookmakers subsequently adopted this Code. operators across Victoria and conducted an on-line survey To assist industry with implementation of its responsibilities for with a wide cross-section of venue operators, for the purpose Codes and SEPs, the VCGR undertook a number of actions of surveying the impact of Code and SEP implementation in in addition to its regular program of auditing and inspecting gaming venues; premises during 2009–2010:
53 Intended Outcome 4 continued
Responsible Gambling Codes of Conduct and Self-Exclusion Programs (continued) • undertook a desktop review to assess whether public Responsible Gambling Reference Group lotteries licence holders, the holder of a wagering licence The VCGR continued to provide information and support and commercial raffle organisers are adhering to their Code to industry through the Responsible Gambling Reference requirements, including – Group, which was established by the VCGR in April 2008 to – completion of a checklist by licensees; and provide input on its role in implementing responsible gambling – meetings between these licensees and representatives of initiatives introduced by the Gambling Legislation Amendment the VCGR to discuss any potential non-compliance issues (Problem Gambling and Other Measures) Act 2007. Of particular and suggest areas where improvements could be made; importance was the role of the VCGR in overseeing the • included on its website a range of responsible gambling development and implementation by gambling providers of information, publications and resources on Codes and SEPs, responsible gambling Codes and SEPs. The establishment of including – the Reference Group provided an efficient avenue for industry consultation. – Fact Sheets on Codes and SEPs, Best Practice Guidelines, a guide to Gaming Signage and Problem Gambling The Reference Group continued to meet on a quarterly basis Resources and a self-assessment checklist for gaming during 2009–2010 and remained a valuable source of information venues, and advice to the VCGR in implementing the legislated requirements regarding Codes and SEPs. – a list of Codes and SEPs for all gaming venue operators; Several key industry and community sector groups participated – industry contacts points and details of local Gambler’s in the Reference Group to ensure that a cross-section of relevant Help services; and views was considered. – an archive page for storage of and access to previously Industry representatives participating in the Reference Group approved Codes; during 2009–2010 included the Australian Hotels Association • facilitated negotiations with the SEP administrators, the (Victoria), Clubs Victoria Inc, the Community Clubs Association of Australian Hotels Association (Victoria) and Clubs Victoria Inc, Victoria, the ALH Group Pty Ltd, the Bingo Industry Association, to resolve a long-standing issue about streamlining the two Intralot Australia Pty Ltd, Tatts Group Limited, Tabcorp Holdings approved SEPs, which resulted in – Limited, Crown Melbourne Limited, Victorian Bookmakers’ – the two administrators agreeing, in April 2010, that Association and the Returned and Services League (Victorian persons wishing to self-exclude from both clubs and hotels Branch) Inc. Community representatives included The Council need only attend a single interview with either program of Gambler’s Help Services, the Victorian Local Governance administrator, rather than attend separate interviews as Association and The Salvation Army. before; and The Reference Group assisted with identification of information – approval by the VCGR of amendments to the SEP and gaming industry employee training needs, identification administered by Clubs Victoria Inc on 25 May 2010; and dissemination of best practice examples, linkages between • maintained a responsible gambling telephone hotline and a gambling providers and problem gambling services at a local dedicated email inbox for industry enquiries on responsible level and providing input to the VCGR on appropriate evaluation gambling with enquiries received from hotels, clubs, bingo methodologies and indicators to measure the effectiveness of centres, racecourses, commercial raffle organisations and the implementation and operation of Codes. nightclubs as well as responsible service of gaming approved trainers, Gambler’s Help agencies, community services and Compliance with Responsible Gambling members of the public. Requirements The Responsible Gambling Project Team During the year inspections were conducted at gaming A Responsible Gambling Project Team operates within the VCGR venues, bingo centres, lottery outlets and the Casino to ensure for the purposes of working with commercial gambling providers compliance with the responsible gambling requirements of the and venue operators to guide development and provide legislation. information on Codes and SEPs. Inspections were made to check that: The Responsible Gambling Project, which includes the • gaming machines displayed the correct time; Responsible Gambling Project Team plus additional inspectors • lighting in gaming machine areas and external views comply appointed to resource compliance inspections, is funded from with requirements; the Community Support Fund to work with commercial gambling providers to enable compliance, guide development and • printed information (posters, talkers and brochures) and provide information on Codes and, in the case of gaming venue electronic information including jackpot information were operators, SEPs. Funding for this program is confirmed until available to patrons; 30 June 2011.
54 • gaming machine advertising was not published outside a The VCGR played an active role on the RGAW Steering gaming machine area; Committee, which is convened by the Department of Justice • gaming machine signage was compliant with the legislation; (Office of Gaming and Racing) and aims to build community resilience to problem gambling and educate community • in gaming venues, winnings from a gaming machine in excess members at risk of developing a gambling problem. of $1,000 were paid by cheque; In support of RGAW in 2010, the VCGR produced a special • gaming industry employees have completed an approved edition of its newsletter, VCGR News, devoted exclusively to responsible provision of gaming training course; responsible gambling issues and aimed at raising awareness • each gaming venue had a Code and SEP in place; around the importance of responsible gambling at a personal, • the casino, bingo centres and lottery outlets had Codes venue and community level. The newsletter included a message in place. from the Minister for Gaming and a range of articles on best Information regarding disciplinary action taken by the business practice, interviews with gaming industry employees, VCGR can be found in the tables commencing at page 38 news from the community sector, and updates on other of this report. responsible gambling measures. The VCGR was invited to present at a series of Gambler’s Help information sessions intended to facilitate contact between Responsible Gaming Training – Gaming Industry gaming venues and their local problem gambling support Employees service. Arranged by Gambler’s Help and the gaming operators, The Gambling Regulation Act 2003 requires all gaming Tabcorp Holding Limited and Tatts Group Limited, these industry employees to complete an approved training course. sessions were held at clubs and hotels in Melbourne, Geelong, Employees are also required to complete an approved Bendigo, Ballarat and Morwell during May and June 2010. refresher course at least once every three years following The VCGR attended all sessions and delivered a presentation completion of the approved training course. The Act requires titled ‘Responsible Gambling Codes of Conduct and Self- the VCGR to approve training courses and refresher courses exclusion programs – Your responsibilities’ which reviewed the that relate to the responsible provision of gaming. implementation of the Code and SEP regimes to date, advised The VCGR has approved THHADG03B Provide Responsible gaming venues of the annual review processes built into Codes Gaming Services as a course that relates to the responsible and SEPs as well as addressing a range of compliance matters. provision of gaming, with approval taking effect from The VCGR also held its own well-attended industry information 19 September 2006. This course has since been superseded session at Traralgon, with support from the Latrobe Community by SITHGAM006A. Health Service and hosted by the Latrobe City Council. The In addition to the learning outcomes of SITHGAM006A, providers VCGR provided registered attendees with information on best are also required to demonstrate to the VCGR that the course practice, record keeping, gaming signage and problem gambling they are offering meets the learning outcome criteria developed resources, emerging compliance issues, a list of branch contact by the Responsible Gambling Ministerial Advisory Council. details at the VCGR as well as disseminating a range of VCGR responsible gambling publications. Any newly-licensed gaming industry employee must complete a responsible service of gaming training course approved by the Approximately 170 people from approved gaming venues, VCGR within six months of commencing work within the gaming local government and the community sector attended these machine area of an approved venue. information sessions during RGAW in 2010. As at 30 June 2010, the training course has been approved Responsible Gambling Information to be offered by 35 training providers, with a refresher course approved to be offered by 20 training providers. In 2009–2010, the VCGR has produced a range of responsible gambling information and educational materials for industry and A list of all providers is available at Appendix 13 of this report as VCGR stakeholders, including: well as on the VCGR website at www.vcgr.vic.gov.au. • Fact Sheets on Codes and SEPs; • Best Practice Guidelines; Participation in Responsible Gambling • a comprehensive guide to Gaming Signage and Problem Awareness Week Gambling Resources; and • a self-assessment checklist for gaming venues. The three themes of the 2010 Responsible Gambling Awareness These information materials are intended to educate commercial Week (‘RGAW’), held between 17 and 23 May 2010, were licence holders, local government authorities, Gambler’s ‘Knowledge, Balance and Control’. Help and other stakeholders about the introduction and RGAW is a partnership between industry, local government, the implementation of Codes and SEPs to assist with compliance community sector and the Victorian Government. and promote best practice in responsible gambling.
55 Intended Outcome 4 continued
Responsible Gambling Information (continued)
In 2009–2010, approximately 2,000 responsible gambling Goal 4.2: information kits were disseminated to staff and managers at gaming venues, peak bodies, Gambler’s Help services, local Potential harm from gambling to communities government, approved training providers, commercial licensees, and individuals is minimised bingo centre operators, the casino operator, commercial raffle organisers, the holder of the wagering licence or the wagering Public Inquiries and Social and Economic Impact operator, public lotteries licence holders, registered bookmakers, Assessments Club Keno participants and other VCGR stakeholders. In accordance with the Gambling Regulation Act 2003, all The VCGR produced a Responsible Gambling Workbook applications for approval of new premises as suitable for – a practical guide to understanding Codes and SEPs, an gaming, and licence variations to authorise increased gaming education resource of particular use to Gambler’s Help machine numbers, are subject to economic and social impact services and community educators. A total of 146 workbooks assessments. Under the legislation, the responsible planning were distributed to the community sector across regional and authorities have the right to make a submission as to the social metropolitan Victoria. and economic impact of such applications. Established in late 2004, the Responsible Gambling Ministerial A social and economic impact assessment is also required when Advisory Council (‘RGMAC’) is the pre-eminent source of a venue operator seeks to amend the venue operator’s licence to stakeholder advice on responsible gambling to the Minister for enable gaming premises within the Melbourne Statistical Division Gaming. The Victorian Government, through the Minister for to offer gaming for 24 hours on any day. Gaming, seeks advice from the RGMAC about how to ensure The following table shows the number of applications received that the Victorian gambling industry operates in a balanced way by the VCGR in 2009–2010: that minimises problem gambling whilst creating an environment where those who choose to gamble can do so safely. Applications Number The RGMAC, consisting of representatives drawn mainly from For increases in gaming machine numbers 9 industry, academia, local government and community groups, For new premises 10 has established a number of working groups to progress work on specific initiatives and projects. For 24-hour trading 0 During 2009–2010, senior managers of the VCGR participated in Total received 19 the following working groups: • Research; All applications for new premises approvals, increases in • Product Safety; gaming machine numbers and 24-hour gaming on any day • Industry Best Practice; and are determined at public inquiries. Two of the public inquiries • Responsible Service of Gambling Training. conducted during 2009–2010 concerned applications received in the previous year. Reduction in Maximum Bet Limit The following table summarises the results of VCGR public In April 2008 the Minister for Gaming issued a new Ministerial inquiries for 2009–2010: Direction under section 3.2.3(1) of the Gambling Regulation Public Inquiry Number Act 2003 that reduces the maximum bet limit for all gaming Conducted 13 machines outside the Casino from $10 to $5. Decided 12 This Direction, set out in full at Appendix 2 of this report, requires that all gaming machines approved on or after 1 July 2008 must Decisions pending 5 comply with the new bet limit of $5. For those gaming machines Decisions appealed to VCAT 3 that were approved prior to 1 July 2008, the bet limit of $10 continued to apply until 1 January 2010, after which date the In addition to those matters that proceeded to public inquiry, new bet limit of $5 applies to all gaming machines in club and one application was withdrawn before the scheduled public hotel gaming venues. inquiry date. Approval of Gaming Machine Types and Games Each public inquiry decision, together with written reasons for the decision, is published on the VCGR website at When approving any electronic gaming machine type or game www.vcgr.vic.gov.au. the VCGR considers responsible gaming matters by ensuring A table showing, for 2009–2010, the net effect on gaming compliance with all responsible gaming requirements of machine numbers of all determinations made by the VCGR, the Commission’s standards, in particular Chapter 9 of the both at meetings and public inquiries, is at Appendix 5. Victorian Appendix.
56 Municipal Limits This new Order required the VCGR to determine the maximum permissible number of gaming machines available for gaming in On 19 June 2009, the Minister for Gaming published an Order each of the capped regions based on a gaming machine density in the Government Gazette requiring the VCGR to determine the per thousand adults specified in the Order. The Order also maximum permissible number of gaming machines available for created a twentieth region, being the area covered as at the date gaming for each municipal district within the State. of the Order by that part of the Shire of Yarra Ranges included in The Order does not apply to any municipal district, or any part of the Melbourne Statistical Division. a municipal district, already subject to a regional cap. Excluded Only Region 11, City of Hume postcode areas 3043, 3047, 3048, from the Order is the area within the City of Melbourne made 3060 and 3061, required a reduction in the maximum permissible up of the precincts of the Melbourne central business district, number of gaming machines, with a total of 14 gaming machines Docklands and Southbank, as defined by the map included with removed by 31 December 2009. A full list of the twenty capped the Order. regions is available from the VCGR website at www.vcgr.vic.gov. The criterion specified in the Order, which the VCGR used au >Industry Participants > Regional Caps. to determine the maximum permissible number of gaming The Minister’s Order, together with a list of capped regions and machines available for gaming within a Victorian municipal the number of gaming machines approved for each as at district, is a maximum of 10 gaming machines per 1,000 adults. 30 June 2010, is at Appendix 20 of this report. The Order further specified the criteria the VCGR must apply when determining how gaming machines are to be removed from Fixed-term Ban Order – a municipal district if the number of gaming machines available Moneyless Gaming Machines for gaming in the municipal district exceeds the maximum permissible number. On 4 March 2009, the Minister for Gaming made an interim ban In accordance with the Order, the VCGR made a determination order, banning a moneyless gaming machine. The main feature as to the maximum permissible number of gaming machines for of a moneyless gaming machine is that it is a machine that was each municipal district in Victoria. The VCGR further determined originally manufactured for use as a gaming machine, as defined the number and location of gaming machines to be removed by the Gambling Regulation Act 2003, but has since been from any municipal district exceeding its limit. modified so that it cannot accept or pay out money. Further, Three municipal districts exceeded the municipal limit set, these machines still retain other features of a gaming machine requiring gaming machines to be removed from the Shire of that enable them to be otherwise played as a gaming machine. East Gippsland, the Shire of Central Goldfields and the Shire of The Minister then directed the VCGR to investigate these Wellington. A total of 29 gaming machines was removed from moneyless gaming machines and to provide a written report these three municipal districts by 31 December 2009. making recommendations as to whether these machines should A list of municipal limits and the relevant removals is available be made the subject of a fixed-term ban order. from the VCGR website at www.vcgr.vic.gov.au > Industry Subsequently, the Minister made a fixed-term ban order banning Participants > Municipal Limits. these moneyless gaming machines for a period of 12 months The Minister’s Order, together with a list of municipal limits and commencing on 9 March 2010. the number of gaming machines approved for each municipality Whilst a fixed-term ban order is in force a person must not offer as at 30 June 2010, is at Appendix 19 of this report. or provide a gambling product or adopt a gambling practice that is the subject of the fixed-term ban order. Regional Caps The maximum penalty for breaching the order is 1,000 penalty units. The VCGR announced on 4 May 2009 that it would undertake a review of the number of gaming machines in capped regions within Victoria before the end of 2009. This review ultimately did not proceed, as a new Ministerial Order was issued for regional caps on 20 October 2009, specifying new criteria for the VCGR to use and requiring a new determination on regional caps.
57 Intended Outcome 5
VCGR Resources VCGR fulfils its Government and legislative responsibilities and achieves its service delivery objectives by innovative, effective and efficient use of resources
Goal 5.1: KPMG was engaged to conduct stages 1 and 2 of the review. After consulting widely with Ministers, the Secretary and Appropriate services support its people to senior staff of the Department of Justice, the Commissioners, deliver the VCGR strategic directions in a management and staff of the VCGR, other Victorian government changing operational environment agencies, industry and community stakeholders and other regulators, KPMG completed this task in late-2009. The report that was submitted to the VCGR found, in summary, Organisational Review that the VCGR: In June 2009 the VCGR decided to commence an • is perceived to be a respected and competent organisation; organisational review across its operations to ensure that • regulates within a complex framework; the Victorian gambling regulator would be well-prepared for • has the necessary integrity and detailed knowledge; and the future, recognizing that a number of new challenges had • has positive relationships with stakeholders. arisen, including: This report made a number of recommendations for changes • forthcoming changes as a result of the Gambling to structure, processes and culture that are considered to be of Licences Review; benefit to the VCGR in fulfilling its responsibilities going forward. • the full implementation of the Victorian Government’s Plans announced by the Government for streamlining liquor and approach to minimising social harm; gambling regulation may impact on implementation, in particular • new responsibilities; and as to timing, and KPMG has been re-engaged to assist with the • other changes to the industry arising from technology. implementation stage of the review. The review process involves three stages: • a review of responsibilities, functions, processes and structures; • an assessment of possible areas of improvement; and • implementation of the proposed changes.
58 Freedom of Information Report Victorian Industry Participation Policy
Requests received 12 There are no issues relating to compliance with the Victorian Initial decision – Industry Participation Policy. Granted in full 0 National Competition Policy Partially granted* 10 Denied 2 There are no issues relating to compliance with the National Previously released 0 Competition Policy. In process 0 Disclosure of Major Contracts Non-existent document requested 0 Not proceeded with 2 There were no major contracts entered into by the VCGR in Withdrawn 0 2009–2010. Total 14 Human Resource Management Transferred from another Agency 0 Transferred to another Agency 0 Human Resource Strategy Average processing time (days)** 48 The VCGR has adopted a strategy of providing an encouraging Internal review conducted 3 and supportive environment for staff and actively promotes the Applications to the Victorian Civil and Administrative Tribunal 1 understanding that the success of the VCGR is a product of the Complaints to the Ombudsman 0 contribution of all staff and that people are recognised for their contribution. A range of development opportunities is provided * Includes two requests received in the previous year. for staff. ** Extension of processing time granted for two requests. The VCGR also actively promotes occupational health and Statement under Section 104 Whistleblowers safety, and a non-discriminatory working environment. Protection Act 2001 Staff Development and Training The VCGR has procedures that comply with the requirements During the 2009–2010 year the VCGR continued to offer a wide of the Whistleblowers Protection Act 2001. These procedures range of training and other development opportunities in order require disclosures of improper conduct or detrimental action to ensure staff members are equipped with the knowledge by the VCGR, its members or staff to be reported to the and skills required for their present and future roles. Staff Ombudsman. Disclosures may be made by members and staff members are encouraged to extend their professional skills of the VCGR or the public. There were no disclosures made this through individually-agreed performance management plans. year to the Protected Disclosure Coordinator and there were no Assistance includes funding support, study and related leave to recommendations made by the Ombudsman that relate directly assist staff members undertaking certificate, undergraduate and to the VCGR. postgraduate studies. The procedures for disclosures are included in this report at The primary driver of individual training for each staff member Appendix 22. of the VCGR is the performance management plan. This plan, which is developed as part of performance management Privacy planning commencing July each year, identifies agreed training needs across the financial year and is reviewed after six months. The VCGR is an ‘organisation’ within the meaning of the In addition to the specific training arising out of individual Information Privacy Act 2000 and the Health Records Act 2001 performance management plans, some of the broader training and is required to comply with the Information Privacy Principles programs undertaken by staff included: and the Health Privacy Principles in those pieces of legislation. • workshops for all new and current Harassment Contact The VCGR has established a privacy policy to reflect the Officers delivered by presenters from the Equal Opportunity principles in the legislation, and a Privacy Policy Statement and Human Rights Commission; is published on the VCGR website, outlining what personal information the VCGR collects for the purposes of its functions, • in-house training on the Charter of Human Rights and its how the information is used and how an individual can access implications for VCGR business; and/or amend his or her personal information held by the VCGR. • technical training including CPA, information technology, legal During 2009–2010 the VCGR did not receive any privacy and auditing seminars and; complaints. • gambling industry conferences and presentations. 59 Intended Outcome 5 continued
Human Resource Management (continued)
Occupational Health and Safety (OHS) • initial and regular refresher training for fire wardens; • formal office safety inspections; Commitment to the health and safety of its staff and a pro-active • participation by the VCGR in an Employee Assistance approach in ensuring a safe working environment has been Program that operates within the Department of Justice maintained. The Occupational Health and Safety Committee met and provides assistance through financial and personal quarterly to discuss relevant issues. Quarterly meetings of VCGR counselling; fire wardens and first aid officers were also held. • offering individual health checks; and Assessments and measures undertaken to improve occupational health and safety of employees during the 2009–2010 year were: • offering staff the opportunity to receive subsidised influenza vaccinations. • undertaking of individual ergonomic assessments as required, with staff being supplied with necessary equipment; An on-line OHS Induction Program has been developed for all staff in relation to Occupational Health and Safety obligations • providing staff with appropriate warnings of activities that and liabilities. may impact on work safety whenever necessary; • appointment of, and training for, additional members of the OHS Incidents – Work cover Emergency Evacuation Team; Claim Numbers – There was one new claim during the 2009– • provision of CPR training for staff; 2010 reporting period. Estimated cost of the claim was $14,710.
Workforce Data Staffing trends – Full Time Equivalents (‘FTE’)*
2004 2005 2006 2007 2008 2009 2010 135.62 131.80 134.02 135.42 131.59 166.75 194.91
Aggregate Workforce Data – Full Time Equivalents (‘FTE’)*
As at 30 June 2010 As at 30 June 2009 Employee Status Male Female Total Male Female Total Ongoing 70.80 46.98 117.78 79.00 51.52 130.52 Executive Officers 2.00 2.00 4.00 2.00 2.00 4.00 Fixed Term VPS Staff 26.00 45.50 71.50 12.00 18.60 30.60 Casual 0.63 0.00 0.63 0.63 0.00 0.63 Sub-total 99.43 94.48 193.91 93.63 72.12 165.75 Statutory Appointments 1.00 0.00 1.00 1.00 0.00 1.00 Total 100.43 94.48 194.91 94.63 72.12 166.75
* These tables include the Accountable Officer (Executive Commissioner) but exclude part time statutory appointments of the Chairman, Deputy Chairs of the Commission, and other Commissioners.
The increase of 28.16 for the FTE number in 2009–2010 reflects the increase in staffing requirements for the Government’s new initiatives in respect of gambling licences and responsible gambling.
60 Staff Profile by Position Cultural Diversity Staff profile by position information is included in the report at Appendix 23. Culturally and Linguistically Diverse Communities The VCGR has continued to respond to the cultural and linguistic Executive Officer Definition diversity of the Victorian community and in particular the An executive officer is a person employed as an executive community in which it operates by maintaining a number of staff under Part 3, Division 5 of the Public Administration Act 2004. with language aid accreditation. The VCGR plans to continue Additionally, the total group of executives must be classified into to support language aid accreditation amongst its staff with two distinct categories based on the following definitions: LOTE skills and pay the appropriate allowances to such staff as • ‘Ongoing’ executives are executives who are responsible for recognition of those skills. functions or outputs that are expected to be ongoing at the Youth reporting date; and • ‘Special projects’ executives are executives who are The VCGR has continued to participate successfully as an employed for a specific project, generally for a fixed period of employer in the Youth Employment Scheme (‘YES’), with one time and relating to a specific government priority. staff member having successfully completed the Scheme and then obtaining further employment in a fixed term role. The The actual number of executive officers, and the remuneration VCGR plans to continue its involvement in the Scheme across paid to them over the course of the reporting period, is contained the coming year. in Note 22 to the Financial Statements at page 101 of this report under the heading ‘Remuneration of Executives’. Indigenous Communities The definition of an executive officer does not include Governor Given its administrative links to the Department of Justice, in Council appointments as statutory office holders. the VCGR continues to have available the resources of the Department’s response to indigenous issues. Executive Officer Details The VCGR will continue to monitor broader programs in this area 2009–2010 2008–2009 to identify opportunities for participation. Class Male Female Total Male Female Total EO-1 0 0 0 0 0 0 Merit and Equity Principles EO-2 0 1 1 0 1 1 Commitment to the principles of employment set out in the EO-3 2 1 3 2 1 3 Public Administration Act 2004 has been maintained and actively implemented through adherence to the directions of the Public Notes: Sector Standards Commissioner, policy development, training • All executive officers were employed in ongoing positions. and employment practices. • The Accountable Officer (the Executive Commissioner) is a statutory appointee and is not classified as an executive officer. Directions from the Public Sector Standards Commissioner Industrial Relations Selecting on Merit The VCGR has continued to develop a sound working relationship with the relevant employee representative One situation arose in the 2009–2010 year in which an exemption organisation, with quarterly meetings of the Consultative from the advertising of vacancies was made and approved. Committee having been maintained since their inception Grievances in 2004–2005. No time was lost during the year through industrial disputes. There were no formal grievances lodged in relation to Staff participated in the State Services Authority People employment matters or recruitment and selection matters in the Matter Survey, providing important information on areas of key 2009–2010 year. concern to staff for inclusion in business planning and policy setting processes. There were no recorded days lost as a result of accidents during 2009–2010.
61 Intended Outcome 5 continued
Managing and Valuing Diversity
Managing and valuing diversity continues to be a focus of the VCGR. Our EEO policies were reviewed and new Harassment Contact Officers were trained. A significant proportion of new employees continued to come from non-English speaking backgrounds.
Upholding the Victorian Public Sector Code of Conduct
The VCGR continued to place emphasis on appropriate conduct in the Victorian Public Sector (‘VPS’) through supporting the VPS Code of Conduct with a VCGR Code of Conduct as guidance for all staff. This is particularly emphasised when inducting new staff.
Consultancies
There was no expenditure on consultancies during 2009–2010.
Report on Overseas Travel
Officer Destination Purpose Outcome
Executive USA To Chair a Steering Primarily allowed planning for the next IAGA/IAGR Commissioner Committee meeting of the annual conference. In his capacity as Chairman of IAGR, International Association the Executive Commissioner was able to influence the of Gaming Regulators conference program to ensure topics of specific interest to (‘IAGR’) and to attend the Victoria are considered such as sports betting, the future of 2010 International Masters pari-mutuel wagering in the internet age and methodologies of Gaming Law Spring of regulation (ie, prescriptive versus risk-based), which have Conference not been covered by the last four IAGA/IAGR conferences. The 2010 Steering Committee meeting was scheduled concurrently with the 2010 International Masters of Gaming Law Spring Conference in New York
Director, Gambling USA To attend the 10th National Attendance at these conferences provided valuable Operations and Center for Responsible information with respect to the latest advances in gaming Audit Branch Gaming (‘NCRG’) Annual technology, responsible gambling initiatives, regulatory Conference on Gambling matters and strategies that continue to assist in the regulation and Addiction and the of the honest and responsible conduct of gaming and casino annual Global Gaming play in the Victorian environment. Of particular interest to the Expo and Conference Victorian gaming market are the advances being made with (‘G2E’) held in Las Vegas respect to the trend towards Server-based Downloadable and meet with USA gaming Gaming (‘SBG’), current monitoring technology and features regulators and other that would be expected in a modern monitoring system and industry participants the technological solutions that might be implemented in Victoria for a pre-commitment system for gaming machines
Officers within USA and To undertake extensive To assess suitability of organisations and their associates to the Compliance Europe probity investigations hold necessary approvals to operate in the gambling industry and Investigation within Victoria. Branch
Building Works
The VCGR does not have any buildings under its direct control and did not enter into works that required compliance under the Building Act 1993 in the reporting period.
62 Public Finance and Accountability Bill
The Public Finance and Accountability Bill 2009 (‘the Bill’) will establish a framework in Victoria for public finance, accountability and resource management, and will replace the Financial Management Act 1994. Implementation of various elements of the Bill will be staggered. For example, changes to whole of government and public reporting requirements will be implemented from 1 July 2010, with earlier reporting timelines required for September 2011 (for financial year reporters such as hospitals and water authorities) or March 2011 (for calendar year reporters such as TAFEs). The Bill will establish four public body categories. This will be supported by the introduction of a differential framework that will outline specific requirements for financial and non-financial planning and reporting for each public body category. Below is a summary of the reporting requirements to be applied by each of the four public body categories.
Requirement Departments and Category 2 Category 3 Category 4 Category 1* Annual Reporting Financial Statements Financial Statements Financial Statements Basic set of accounts with full note disclosure with full note disclosure with full note disclosure (template) Auditing Subject to Audit Subject to Audit Subject to Audit Subject to Audit Tabling Tabled in Parliament Tabled in Parliament Tabled in Parliament Provided to portfolio Minister and made available upon request * The distinction between requirements for Category 1 and Category 2 is mainly in the area of governance and planning.
The Bill was introduced into Parliament on 8 December 2009. The VCGR and the Audit Committee have considered information available to date and noted progress of the Bill and actions taken towards implementing the Public Finance Framework. Further information about the Bill can be found at www.dtf.vic.gov.au, while the Bill itself can be found on the Parliament of Victoria website under Legislation & Bills (Victorian Legislation and Parliamentary Documents) at www.parliament.vic.gov.au.
Office-based Environmental Impacts Actions taken during the year to reduce general environmental impacts include: The VCGR Environment Management System (‘EMS’) was set • recycling of mobile phones, mobile phone chargers and up to meet Government requirements and to reduce the VCGR’s accessories; impact on the environment. The initial focus has been on office- • recycling of computers and furniture to community-based based activities in the areas of energy and paper consumption, organisations such as the University of the 3rd Age; transportation, waste generation and green procurement. • participation in Earth Hour; The EMS objectives include: • progressive replacement of fluorescent starters with green • reducing the amount of waste, and maximising the amount starters which are radioactive-free and lead-free; and reused and recycled; • inclusion of a hybrid vehicle in the VCGR operational fleet. • purchasing Green Power; • separating office waste into recyclable, compost and true Environmental purchasing waste parts; The VCGR continued to carry out the following activities, which • reducing passenger vehicle fleet emissions; support the Government’s Environmental Purchasing Policy: • ensuring new capital works incorporate environmental • purchased only Australian-manufactured copy paper, which sustainability principles; has a recycled paper content; and • making environmentally-sound purchasing decisions for • operated photocopiers and laser printers which are capital items and consumables; and environmentally endorsed. • communicating environmental performance through regular While value for money is the core principle governing reporting. procurement activities, purchasing also requires environmental considerations to be included in the procurement planning stage, tender specifications and in the tender evaluation criteria where applicable.
63 Intended Outcome 5 continued
Sustainable Energy Authority Victoria – Waste Production ResourceSmart The property manager of 35 Spring Street Melbourne has As part of the Government’s Business and Environmental engaged a recycling company to improve the environmental Strategy (Sustainable Energy Authority Victoria), the VCGR is performance of the building to gain ‘Waste Wise’ certification committed to responsible energy management. This is practised with Ecorecycle Victoria. This ‘whole of building project’ throughout all rented premises and energy efficient equipment is commenced in late May 2005. purchased wherever it is cost-effective to do so. Work projects For the period July 2009 to June 2010 some 47.3 tonnes of that facilitate a reduction in energy usage will continue to be building waste has been diverted from landfill through recycling. evaluated as they come to hand. The volume of waste now recycled building-wide is 42 per cent, up from nine per cent before the program started. Annual energy consumption and expenditure for 2009–2010, compared with corresponding results for the previous year, is as The VCGR has been involved for the last five years in a toner indicated in the energy consumption table immediately below. recycle project operating through ‘Close the Loop’. This service guarantees that no office printing product waste ends up in landfill. No figures are available on quantities of waste recycled.
Energy Consumption*
Year Peak Off-peak Total kWh per Green Energy Green Total** kWh kWh kWh FTE Units $ $ 2008–2009 297,066 164,250 461,316 2,766.5 59,568 1,828 43,277 2009–2010 356,732 224,404 581,137 2,981.5 75,552 2,633 60,226
* Information supplied by Brookfield Multiplex on behalf of the Department of Treasury and Finance. ** Includes Green $ but excludes GST.
Transportation Paper Use Operational vehicles are hired from the Department of Treasury The VCGR used the following amounts of paper in 2009–2010 and Finance, State Government Vehicle Pool, and all operating compared with 2008–2009: costs are covered under the hire arrangements for each vehicle. Category 2009–2010 2008–2009 Individual consumption figures are therefore not available. Paper used per FTE* 22.49 23.05 Paper used in total (reams) 4,385** 3,844 Operational Vehicles 2009–2010 2008–2009 Kilometres travelled 241,717 234,312 * FTE: Full Time Equivalent ** Reflects an increase in staff numbers and increased workload.
For 2008–2009 the VCGR maintained a fleet of nine operational Water Consumption vehicles. In 2009–2010 this number increased by one to 10. The water consumption in the 35 Spring Street Melbourne Annual fuel usage for Executive vehicles for 2009–2010, building is not individually metered and therefore there are no compared with usage for the previous year, is as follows: figures available.
Executive Vehicles* 2009–2010 2008–2009 Litres of petrol used 10,430 12,385
Litres per vehicle 2,607 2,477
* The number of Executive vehicles reduced by one during 2009–2010.
64 Goal 5.2: On-line VCGR Survey systems Information which underpins business Development and implementation of the on-line VCGR Survey activities, and the technology which supports system has been successfully completed and it is now live on it, is both relevant and accessible the VCGR production website. Information Systems Website smart application forms Smart form versions of VCGR application forms are being The VCGR maintains and controls its own system of integrated, progressively introduced and a number of smart forms are now customised applications and databases which reside on available for use on the VCGR website. its highly-secure, latest-technology, high-capacity network infrastructure to form a solid basis for its operations. In response to the ever-increasing amount of data and Website information required by the VCGR in its operations, the The VCGR website has continued to provide a large range capacity and functionality of information storage, retrieval and of information and services to the industry, public and other transmission has continued to be enhanced during 2009–2010. stakeholders during the year. This has included a further increase in the capacity of VCGR Decisions from Commission hearings and from the public and communication links, both external/internet and WAN. private sessions of Commission meetings are published on the Information security and integrity has always been a key focus website regularly, consistent with legislated requirements. for VCGR and with the ever-increasing demands caused by A key feature of the website is that it provides a considerable external ‘threats’, such as malicious electronic ‘viruses’, it is amount of high-value, frequently-updated data in relation to an area where VCGR undertakes continuous monitoring and the gaming industry. A twice-daily automated updating and enhancements to minimize the risk to its data, records and publishing module ensures a significant section of information operations. displayed in relation to gaming venues and associates is A range of systems enhancements has been implemented, always current. including latest-technology gateway/firewall upgrades; and a Gaming industry participants can use the website to obtain program of disaster recovery testing is ongoing. relevant legislative and regulatory requirements and access a New and upgraded business applications were implemented and store of other information. There are comprehensive FAQs and progressed in all Branches during 2009–2010. downloadable industry application forms available to streamline In particular, the following were key business projects the application process. undertaken: Prospective or current employers, including venue operators, Oracle Database Upgrade bingo centre operators, manufacturers, suppliers, testers and gaming operators, can check on-line whether an employee The VCGR Oracle databases upgrade project was successfully or prospective employee holds a current gaming industry completed in January 2010. employee licence.
Information Security Classification System The Community Benefit Statement on-line service provides venue operators with a convenient place for lodgement and The VCGR Information Security Classification System was 2009–2010 again saw a high percentage of returns lodged progressed further during the year and is due to be completed electronically through the website. and rolled-out, including database and staff training, early in the The VCGR has introduced the ‘eForm’, also known as a smart 2010–2011 year. form, to assist applicants and reduce application processing Gaming Machine Entitlements Register time. The eForm is filled out on the applicant’s computer, with prompts to guide insertion of information requested. The A gaming machine entitlements database and register has been applicant can then print off the eForm, sign the document and developed to manage the ownership details of gaming machine submit it to the VCGR in the usual way. Applicants who use entitlements. Details from the Register will be published on the the eForms are more likely to have their applications accepted VCGR website following the final allocation of entitlements. and processed without delay than those who hand-write the application and run the risk of errors and omissions. Transfer Market Website A Transfer Market website system has been developed to allow for the trading of gaming machine entitlements. This system is expected to commence operations on the VCGR website in the first half of 2010–2011.
65 Intended Outcome 5 continued
Goal 5.3: Attestation on Compliance with the Australian/ New Zealand Risk Management Standard VCGR practices are known to stakeholders To ensure that risks are being managed in a consistent manner, Corporate Communications public sector entities are required to attest in annual reports that entities have in place risk management processes consistent VCGR Newsletter with the Australian/New Zealand Risk Management Standard. These processes are effective in controlling the risks to a The VCGR News, as the newsletter is known, is a quarterly satisfactory level and a responsible body or audit committee publication focussed on providing relevant information to the verifies that view. gaming industry and other stakeholders about the role and responsibilities of the VCGR. The VCGR has applied the requirements of the Victorian Government Risk Management Framework published by During the year, four issues of the newsletter were published the Department of Treasury and Finance in confirming its as scheduled, in July and October 2009, January and April compliance status. 2010. Matters reported included VCGR initiatives, such as technological improvements to make the VCGR website more user-friendly, changes to gambling laws that impact on the regulatory regime, deadlines for submitting various returns, Attestation responsible gambling developments and VCGR prosecutions I, Bruce Thompson, Chairman of the Victorian Commission and disciplinary actions taken. for Gambling Regulation (‘VCGR’), certify that the VCGR Additionally, the VCGR produced a special issue of the has risk management processes in place consistent with newsletter dedicated to responsible gambling issues which the Australian/New Zealand Risk Management Standard was released to coincide with Responsible Gambling and an internal control system is in place that enables the Awareness Week which was held between Monday 17 and Executive to understand, manage and satisfactorily control Sunday 23 May 2010. risk exposures. The VCGR verifies this assurance and that the risk profile of the VCGR has been critically reviewed VCGR: A Guide to How We Work within the 2009–2010 financial year. In October 2009 the VCGR published the booklet ‘VCGR: A Guide to How We Work’ as a means of helping interested parties to understand more about the VCGR and how it goes about monitoring and regulating the Victorian gambling industry. This booklet canvasses the positioning of the VCGR within the wider public sector regulatory framework, its vision and Bruce Thompson mission, its guiding principles, the organisational structure of Chairman the VCGR, regulatory and educational activities undertaken, the Victorian Commission for Gambling Regulation approach to undertaking these activities, the strategic direction On this Date: 3 August 2010 of the VCGR as set out in the 2009–2012 Three Year Plan and accountability for its decisions as a statutory regulator. Copies of this booklet are available on request or via the VCGR website at www.vcgr.vic.gov.au/About VCGR. Other Information Available on Request
In compliance with the requirements of the Ministerial Directions Commissioner Stakeholder Consultations of the Minister for Finance, the VCGR has retained details in respect of those information items required by public entities The VCGR regularly invites key industry stakeholders to meet to be available on request for relevant Ministers, Members of with VCGR Commissioners. The meetings, conducted with Parliament and the public. stakeholders from across Government, peak bodies and community groups, provide a valuable opportunity to exchange The applicable information items are set out at Appendix 24 of information and share views on gambling in Victoria, which this report. benefits both the VCGR and stakeholders alike. Meeting invitations from the VCGR to stakeholders have been extremely well received with VCGR Commissioners meeting with key representatives of all stakeholders to whom a meeting invitation was issued.
66 Summary of Financial Results
Background The VCGR also collects revenue on behalf of Government in relation to Gaming Taxation, Casino Taxation, Public Lotteries The VCGR receives Grant funding for the provision of outputs and Licence Fees and other gaming and related activities which from the Department of Justice for its operations. are paid into the Consolidated Fund and disclosed in the Notes Capital expenditure is funded by the generation of depreciation to the Financial Statements. The VCGR also makes payments expense which forms part of annual grant revenue recognised. from the Consolidated Fund to other jurisdictions (Payments Where necessary, appropriation funding is also provided in the made on behalf of the State) in relation to their share of public form of Additions to the Net Asset Base. lottery taxes which are collected in Victoria.
67 Summary of Financial Results continued
2009–2010 Operating Result Key highlights for 2009–2010 are as follows: • the operating result for the 2009–2010 year was a surplus of $15,268 as compared to a surplus of $547 in 2008–2009; • the funding position of the VCGR as at 30 June 2010 is a net equity of $1.998 million. The overall net asset position of the VCGR has increased by $0.470 million from $1.528 million in 2008–2009, reflecting the operating result for the 2009–2010 financial year of $15,268 and an injection of equity by the State Government for the additions to net asset base of $0.455 million; and • there were no abnormal or extraordinary items to report.
The VCGR is not aware of any events that adversely affected the achievement of operational objectives of the VCGR for the year. There were no other events subsequent to balance date that would have a significant effect on the operations of the VCGR.
2009–2010 Capital Expenditure Depreciation expense, which funds VCGR capital expenditure, was $0.706 million for 2009–2010 as compared to $0.619 million for 2008–2009. Total capital expenditure for the 2009–2010 year was $1.161 million as compared to $1.008 million in 2008–2009.
68 Comparative Financial Results
The table below summarises information on the financial results and financial position prepared on an accrual basis, of the VCGR for the financial year 2009–2010 and comparisons with the preceding four financial years.
Notes 2009–2010 2008–2009 2007–2008 2006–2007 2005–2006 $ $ $ $ $
Income Grant revenue (a) 28,792,514 22,462,200 18,572,300 19,634,100 17,510,000
Other revenue - - - - -
Total income 28,792,514 22,462,200 18,572,300 19,634,100 17,510,000
Expenses (b) 28,721,734 22,348,354 18,359,868 19,530,384 17,296,998
Other economic flows (c) 55,512 113,299 119,162 - -
Net result 15,268 547 93,270 103,716 213,002
Total assets (d) 8,267,980 7,557,480 6,437,753 6,957,058 5,759,563
Total liabilities (e) 6,269,460 6,029,104 5,298,877 5,911,452 4,817,673
Net increase/(decrease) in cash held (f) 99,338 32,522 (47,054) 52,692 4,829
Capital expenditure (g) 1,161,441 1,008,291 599,968 646,114 601,526
Notes: Movements between 2008–2009 and 2009–2010 (a) Income received increased by $6.330 million (28.1 per cent), reflecting ERC and supplementation funding for the activities of the Gambling Licences Review Project. (b) Expenses have increased by $6.373 million (28.5 per cent). This largely reflects the continuation of the activities of the Gambling Licences Review Project. (c) Total other economic flows decreased by $0.057 million (51 per cent). This mainly reflects gains arising from revaluation of long service liability due to movements in bond rates. (d) Total assets increased by $0.710 million (9.4 per cent). This mainly reflects an upward movement in intangible assets specifically software developed associated with the activities of the Gambling Licences Review Project. (e) Total liabilities increased by $0.240 million (3.9 per cent) largely reflecting increased employee benefit provisions associated with the activities of the Gambling Licences Review Project. (f) The net movement in the cash position was an increase of $0.066 million (205.4 per cent). This reflects the timing of cash reimbursements from the Consolidated Fund relating to operating and capital expenses at and around balance date. (g) Capital expenditure increased by $0.153 million (15 per cent)
69 Summary of Financial Results continued
Transactions on behalf of Government – Comparative Financial Results
The table below summarises information on the amounts collected/receivable and amounts paid/payable by the VCGR in relation to gambling activities on behalf of Government, prepared on an accrual basis, for the financial year 2009–2010 and comparisons with the preceding four financial years.
Notes 2009–2010 2008–2009 2007–2008 2006–2007 2005–2006 $’000 $’000 $’000 $’000 $’000
Income Total amount collected/ receivable (a) 1,684,641 1,700,592 1,648,703 1,561,535 1,512,059
Expenses Total amount paid/payable (b) 43,370 43,118 46,214 44,953 44,394
Notes: Movements between 2008–2009 and 2009–2010 (a) Income collected/receivable on behalf of Government decreased by $16.131 million (0.9 per cent), reflecting decreased income from Gaming Taxation. (b) Expenses paid/payable on behalf of Government to other jurisdictions (for their share of Lottery Taxes) have increased by $0.252 million (0.5 per cent).
70 Part 3
Financial Statements 2009–2010
71 Comprehensive Operating Statement For the financial year ended 30 June 2010
Notes 2010 2009 $ $ Continuing operations Income from transactions Grant revenue 2, 3 28,792,514 22,462,200 Total income from transactions 28,792,514 22,462,200
Expenses from transactions Employee expenses 4 (a) (17,145,039) (13,952,452) Depreciation and amortisation expense 4 (b) (706,567) (619,337) Supplies and services 4 (c) (10,870,128) (7,776,565) Total expenses from transactions (28,721,734) (22,348,354) Net result from transactions (net operating balance) 70,780 113,846 Other economic flows included in net result Net gain/(loss) on non-financial assets(a) 5(a) (57,148) (58,219) Other gains/(losses)from other economic flows 5(b) 1,636 (55,080) Net result from continuing operations 15,268 547
Comprehensive result 15,268 547
The comprehensive operating statement should be read in conjunction with the accompanying notes included on pages 76–104.
Notes: (a) Net gain/(loss) on non-financial assets include unrealised and realised gains/(loss) from revaluations, impairments, and disposals of all physical assets and intangible assets.
72 Balance Sheet As at 30 June 2010
Notes 2010 2009 $ $ Assets Financial assets Cash and cash equivalents 16, 17 537,095 437,757 Receivables 6, 16 3,412,085 3,924,032 Total financial assets 3,949,180 4,361,789
Non-financial assets Plant and equipment 7 2,322,742 2,300,483 Intangible assets 8 1,069,100 693,633 Other non-financial assets 9 926,958 201,575 Total non-financial assets 4,318,800 3,195,691 Total assets 8,267,980 7,557,480
Liabilities Payables 10, 16 1,310,334 1,311,166 Provisions 11 4,959,126 4,717,938 Total liabilities 6,269,460 6,029,104
Net assets 1,998,520 1,528,376
Equity Accumulated surplus/(deficit) (3,462,819) (3,478,087) Contributed capital 5,461,339 5,006,463 Net worth 1,998,520 1,528,376
Commitments for expenditure 14 Contingent assets and contingent liabilities 15
The balance sheet should be read in conjunction with the accompanying notes included on pages 76–104.
73 Statement of Changes in Equity For the financial year ended 30 June 2010
Equity at Total Transactions Equity at 1 July 2009 Comprehensive with owner in its 30 June 2010 Result capacity as owner 2010 $ $ $ $ Accumulated surplus/(deficit) (3,478,087) 15,268 0 (3,462,819) (3,478,087) 15,268 0 (3,462,819) Contributions by owners 5,006,463 0 0 5,006,463 Capital contributions 0 0 454,876 454,876 5,006,463 0 454,876 5,461,339 Total equity at end of financial year 1,528,376 15,268 454,876 1,998,520
Equity at Total Transactions Equity at 1 July 2008 Comprehensive with owner in its 30 June 2009 Result capacity as owner 2009 $ $ $ $ Accumulated surplus/(deficit) (3,478,634) 547 0 (3,478,087)
(3,478,634) 547 0 (3,478,087) Contributions by owners 4,617,510 0 0 4,617,510 Capital contributions 0 0 388,953 388,953 4,617,510 0 388,953 5,006,463 Total equity at end of financial year 1,138,876 547 388,953 1,528,376
The statement of changes in equity should be read in conjunction with the accompanying notes included on pages 76–104.
74 Cash Flow Statement For the financial year ended 30 June 2010
Note(s) 2010 2009 $ $ Cash flows from operating activities Receipts Receipts from Government 29,304,460 21,739,848 Goods and Services Tax recovered from the ATO 1,229,256 785,057 Total receipts 30,533,716 22,524,905 Payments Payments to suppliers and employees (29,554,675) (21,827,254) Goods and Services Tax paid to the ATO (173,138) (45,791)
Total payments (29,727,813) (21,873,045) Net cash flows from/(used in) operating activities 17(b) 805,903 651,860 Cash flows from investing activities Payment for non-financial assets (1,161,441) (1,008,291)
Net cash flows from/(used in) investing activities (1,161,441) (1,008,291)
Cash flows from financing activities Owner contributions by State Government 454,876 388,953 Net cash flows from/(used in) financing activities 454,876 388,953
Net increase / (decrease) in cash and cash equivalents 99,338 32,522 Cash and cash equivalents at the beginning of the financial year 437,757 405,235 Cash and cash equivalents at the end of the financial year 17(a) 537,095 437,757
The cash flow statement should be read in conjunction with the accompanying notes included on pages 76–104.
75 Notes to the Financial Statements For the Financial Year ended 30 June 2010
Contents
Note
1 Summary of Significant Accounting Policies 2 VCGR Outputs 3 Income from Transactions 4 Expenses from Transactions 5 Other Economic Flows Included in Net Result 6 Receivables 7 Plant and Equipment 8 Intangible Assets 9 Other Non-financial Assets 10 Payables 11 Provisions 12 Superannuation 13 Leases 14 Commitments for Expenditure 15 Contingent Assets and Contingent Liabilities 16 Financial Instruments 17 Cash flow Information 18 Summary of Compliance with Grant Funding 19 Ex-gratia Payments 20 Transactions on Behalf of Government 21 Responsible Persons 22 Remuneration of Executives 23 Remuneration of Auditors 24 Related Party Transactions 25 Subsequent Events 26 Glossary of Terms
76 Note 1 Summary of Significant Accounting Policies
The annual financial statements represent the audited general purpose financial statements for the Victorian Commission for Gambling Regulation.
To gain a better understanding of the terminology used in this report, a glossary of terms can be found in Note 26.
(a) Statement of compliance
These financial statements have been prepared in accordance with the Financial Management Act 1994, and applicable Australian Accounting Standards and Interpretations (AASs). AASs include Australian equivalents to International Reporting Standards. These financial statements also comply with relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and Finance, and relevant Standing Directions (SD) authorised by the Minister for Finance.
(b) Basis of preparation
The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.
In the application of AAS’s, management is required to make judgments, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgments. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision, and future periods if the revision affects both current and future periods. Judgments made by management in the application of AASs that have significant effects on the financial statements and estimates, with a risk of material adjustments in the subsequent reporting period, are disclosed throughout the notes to the financial statements.
The financial report has been prepared in accordance with the historical cost convention with the exception of non-current physical assets which, subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value.
Historical cost is based on the fair values of the consideration given in exchange for assets.
Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.
The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2010 and the comparative information presented in these financial statements for the year ended 30 June 2009.
(c) Reporting entity
The financial statements include all the controlled activities of the Victorian Commission for Gambling Regulation (VCGR) which was established on 1 July 2004 pursuant to section 10.1.1 of the Gambling Regulation Act 2003.
Amounts collected/received on behalf of Government The VCGR collects revenue amounts on behalf of the Government which are paid directly into the consolidated fund. The VCGR does not gain control over these resources and accordingly they are not recognised as income in the comprehensive operating statement. The VCGR is accountable for the transactions involving these resources, but does not have the discretion to deploy the resources for achievement of its own objectives. Transactions and balances relating to these resources (except as otherwise disclosed), are accounted for on the same basis and using the same accounting policies as for VCGR items. Specific financial disclosures related to these transactions can be found in Note 20.
Objectives and funding The VCGR’s objectives are prescribed in section 10.1.3 of the Gambling Regulation Act 2003. It regulates gambling in Victoria to ensure the integrity and probity of the gambling industry. The VCGR receives grant funding from the Department of Justice to be applied for the purposes of delivering outputs associated with the regulation of gambling.
77 Notes to the Financial Statements For the financial year ended 30 June 2010 (continued)
Note 1 Summary of Significant Accounting Policies (continued)
(d) Scope and presentation of financial statements
Comprehensive operating statement Income and expenses in the comprehensive operating statement are classified according to whether or not they arise from ‘transactions’ or ‘other economic flows’. This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation of financial statements. ‘Transactions’ and ‘other economic flows’ are defined by the Australian system of government finance statistics: concepts, sources and methods 2005 Cat.No. 5514.0 published by the Australian Bureau of Statistics (see Note 26 - the Glossary). ‘Transactions’ are those economic flows that are considered to arise as a result of policy decisions, usually interactions between two entities by mutual agreement. Transactions also include flows within an entity, such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutually agreed interactions between the Government and taxpayers. Transactions can be in kind (e.g. assets provided/ given free of charge or for nominal consideration) or where the final consideration is cash. ‘Other economic flows’ are changes arising from market re-measurements. They include gains and losses from disposals, revaluations and impairments of non-current physical and intangible assets; actuarial gains and losses arising from defined benefit superannuation plans; fair value changes to financial instruments and agricultural assets; and depletion of natural assets (non- produced) from their use or removal. The net result is equivalent to profit or loss derived in accordance with AASs. Balance sheet Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and non-financial assets. Current and non-current assets and liabilities (those expected to be recovered or settled beyond 12 months) are disclosed in the notes, where relevant. Statement of changes in equity The statement of changes in equity presents reconciliations of each non-owner and owner equity opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately movements due to amounts recognised in the comprehensive result and amounts recognised in other comprehensive income related to other non-owner changes in equity. Cash flow statement Cash flows are classified according to whether or not they arise from operating activities, investing activities or financing activities. This classification is consistent with requirements under AASB 107 Statement of cash flows.
(e) Income from transactions
Income is recognised to the extent that it is probable that the economic benefits will flow to the entity and the income can be reliably measured. Annual grant revenue received for the production of outputs is recognised when those VCGR outputs have been deemed by the Department of Justice to have been delivered in accordance with specified performance targets. The Department of Justice has central budget management arrangements whereby portfolio entities can only recognise output revenue consistent with global departmental appropriation and certification. Accordingly, the Department of Justice withdraws from output revenue the difference between final capital expenditure and depreciation expense funding, and the difference between depreciation expense and capital expenditure.
(f) Expenses from transactions
Expenses are recognised as they are incurred and reported in the financial year to which they relate.
Employee expenses Employee expenses include all costs related to employment including wages and salaries, leave entitlements, redundancy payments and superannuation contributions. These are recognised when incurred, except for contributions in respect of defined benefit plans.
78 Superannuation – defined benefit plans
Contributions to superannuation plans are expensed when incurred. The amount recognised in the comprehensive operating statement in respect of superannuation represents the contributions made by the VCGR to the superannuation plan in respect to the current services of current VCGR staff. Superannuation contributions are made to the plans based on the relevant rules of each plan. The VCGR does not recognise any defined benefit liability in respect of the superannuation plan because the VCGR has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance administers and discloses the State’s defined benefit liabilities in its financial report.
Depreciation and amortisation Depreciation is provided on plant and equipment. Depreciation is calculated on a straight-line basis so as to write off the net cost of each asset over its expected useful life to its estimated residual value. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period. The following are typical estimated useful lives for the different asset classes for both current and prior years.
Asset Class Useful life Office fit-out 20 years Office furniture & equipment 8–10 years Gaming equipment 6–7 years EDP hardware 4 years Motor vehicles 3 years
The VCGR has capitalised internal use software expenditure related to development of information technology systems. Costs associated with the acquisition or development of computer software which is greater than $10,000 are capitalised and amounts below this threshold are expensed in the period in which they are incurred. Intangible assets with finite useful lives are amortised on a straight-line basis over the asset’s useful life. Amortisation begins when the asset is available for use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The estimated useful lives, residual values and amortisation method are reviewed at the end of each annual reporting period. In addition, an assessment is made at each reporting date to determine whether there are indicators that the intangible asset concerned is impaired. If so, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Supplies and services Supplies and services generally represent the day to day running costs incurred in the normal operations of the entity. These items are recognised as an expense in the reporting period in which they are incurred.
(g) Other economic flows included in net result
Other economic flows measure the change in volume or value of assets or liabilities that do not result from transactions. Net gain/(loss) on non-financial assets Net gain/(loss) on non financial assets and liabilities includes realised and unrealised gains and losses from revaluations, impairments, and disposals of all physical assets and intangible assets.
Disposal of non-financial assets Any gain or loss on the sale of non financial assets is recognised at the date that control of the asset is passed to the buyer and is determined after deducting from the proceeds the carrying value of the asset at that time.
79 Notes to the Financial Statements For the financial year ended 30 June 2010 (continued)
Note 1 Summary of Significant Accounting Policies (continued)
(g) Other economic flows included in net result (continued)
Impairment of non-financial assets All assets are assessed annually for indications of impairment. If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written-off as an other economic flow. It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated or amortised replacement cost and fair value less costs to sell.
Other gains/(losses) from economic flows Other gains/(losses) from other economic flows include the gains or losses from reclassifications of amounts from reserves and/or accumulated surplus to net result, and from the revaluation of the present value of the long service leave liability due to changes in the bond interest rates.
(h) Financial assets
Cash and cash equivalents Cash and cash equivalents comprise cash on hand and cash at bank. Receivables Receivables consist predominantly of amounts owing from the Victorian Government, debtors in relation to goods and services and GST input tax credits recoverable. Receivables that are contractual are classified as financial instruments. Amounts owing from the Victorian Government, taxes and other statutory receivables are not classified as financial instruments.
(i) Non-financial assets
Plant and equipment Non-current physical assets held by the VCGR are those used in the day to day operations and are primarily plant and equipment. These assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and accumulated impairment. Intangible assets Intangible assets represent identifiable non-monetary assets without physical substance. Intangible assets are recognised at cost less accumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to the VCGR.
(j) Other non-financial assets Prepayments Other non-financial assets include prepayments which represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period.
(k) Liabilities
Payables Payables consist predominantly of accounts payable and other sundry liabilities and are recognised at fair value. Payables represent liabilities for goods and services provided to the VCGR prior to the end of a financial year that are unpaid, and arise when the VCGR becomes obliged to make future payments in respect of the purchase of these goods and services. Fair value is as described in Note 16. Provisions Provisions are recognised when the VCGR has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cashflows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
80 Employee benefits Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to the reporting date.
(i) Wages and salaries and annual leave Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employee services up to the reporting date, classified as current liabilities and measured at their nominal values. Those liabilities which are not expected to be settled within 12 months are recognised in the provision for employee benefits as current liabilities measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.
(ii) Long service leave Liability for long service leave (‘LSL’) is recognised in the provision for employee benefits. • Current liability – unconditional LSL is disclosed as a current liability even where the VCGR does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months. The components of this current LSL liability are measured at: – Nominal value – component that the VCGR expects to settle within 12 months. – Present value – component that the VCGR does not expect to settle within 12 months; and • Non-current liability – conditional LSL is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non-current LSL liability is measured at present value. Any gain or loss following revaluation of the present value of non- current LSL liability is recognised as a transaction, except to the extent that a gain or loss arises due to changes in bond rates for which it is then recognised as an other economic flow (refer to Note 1(g) Other economic flows included in net result).
(iii) Employee benefits on-costs Employee benefits on-costs such as payroll tax, workers compensation and superannuation are recognised separately from the provision for employee benefits.
(l) Equity
Contributions by owners Additions to net assets which have been designated as contributions by owners are recognised as contributed capital. Other transfers that are in the nature of contributions or distributions have also been designated as contributions by owners.
(m) Commitments
Commitments include those operating, capital and other outsourcing commitments arising from non-cancellable contractual or statutory sources and are disclosed at the nominal value inclusive of the GST payable.
(n) Contingent assets and liabilities
Contingent assets and contingent liabilities are not recognised in the balance sheet but are disclosed by way of note and, if quantifiable, measured at their nominal value inclusive of GST receivable or payable respectively.
81 Notes to the Financial Statements For the financial year ended 30 June 2010 (continued)
Note 1 Summary of Significant Accounting Policies (continued)
(o) Goods and Services Tax (‘GST’)
Income, expenses and assets are recognised net of the amount of associated goods and services tax (‘GST’), except: • where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or • for receivables and payables which are recognised inclusive of GST. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables. Cash flows are presented on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.
(p) Events after the reporting period
Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between the VCGR and other parties, the transactions are only recognised when the agreement is irrevocable at or before the end of the reporting period. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting period and before the date the financial statements are authorised for issue, where those events provide information about conditions which existed at the reporting period. Note disclosure is made about events between the end of the reporting period and the date the financial statements are authorised for issue where the events relate to conditions which arose after the end of the reporting period and which may have a material impact on the results of subsequent reporting periods.
(q) Functional and presentation currency
The functional currency of the VCGR is the Australian dollar, which has also been identified as the presentation currency of this entity.
(r) Rounding of amounts
Amounts in the financial statements have been rounded to the nearest dollar, or in the case of amounts collected/receivable on behalf of Government and amounts paid/payable to other jurisdictions (see note 20), to the nearest thousand dollars.
(s) AASs issued that are not yet effective
Certain new AASs have been published that are not mandatory for the 30 June 2010 reporting period. The Department of Treasury and Finance assesses the impact of these new standards and advises departments and other entities of their applicability and early adoption where applicable. As at 30 June 2010, the following standards and interpretations had been issued but were not mandatory for the financial year ending 30 June 2010. The VCGR has not early adopted these standards.
AASB 2009-11 Amendments to Australian This gives effect to Beginning Detail of impact is still being Accounting Standards arising from AASB 9 [AASB consequential changes 1 Jan 2013 assessed. 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, arising from the issuance 128, 131, 132, 136, 139, 1023 and 1038 and of AASB 9. Interpretations 10 and 12] AASB 2009-13 Amendments to Australian Consequential amendment Beginning The VCGR does not extinguish Accounting Standards arising from interpretation to AASB 1 arising 1 Jul 2010 financial liabilities with 19 [AASB 1] from publication of equity instruments, therefore Interpretation 19. requirements of Interpretation 19 and related amendments have no impact. AASB 2009-14 Amendments to Australian Amendment to Beginning Expected to have no Interpretation – Prepayments of a minimum funding Interpretation 14 arising 1 Jan 2011 significant impact requirement [AASB Interpretation 14] from the issuance of Prepayments of a minimum funding requirement.
82 AASB 9 Financial instruments This standard simplifies Beginning Detail of impact is still being requirements for the 1 Jan 2013 assessed. classification and measurement of financial assets resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial Instruments: recognition and measurement (AASB 139 Financial Instruments: recognition and measurement). AASB 124 Related party disclosures (Dec 2009) Government related Beginning Preliminary assessment entities have been 1 Jan 2011 suggests that impact is granted partial exemption insignificant. However, the with certain disclosure VCGR is still assessing the requirements. detailed impact and whether to early adopt. AASB 2009-5 Further amendments to Australian Some amendments will Beginning Terminology and editorial Accounting Standards arising from the annual result in accounting 1 Jan 2010 changes. Impact minor. improvements project [AASB 5, 8, 101, 107, 117, changes for presentation, 118, 136 and 139] recognition or measurement purposes, while other amendments will relate to terminology and editorial changes. Erratum General Terminology changes Editorial amendments Beginning Terminology and editorial to a range of Australian 1 Jan 2010 changes. Impact minor. Accounting Standards and Interpretations.
AASB 2010-2 Amendments to Australian This standard makes Beginning Does not affect financial Accounting Standards arising from Reduced amendments to many 1 July 2013 measurement or recognition, Disclosure Requirements Australian Accounting so is not expected to have Standards, including any impact on financial result Interpretations, to or position. May reduce some introduce reduced note disclosures in financial disclosure requirements statements. to the pronouncement for application by certain types of entities.
83 Notes to the Financial Statements For the financial year ended 30 June 2010 (continued)
Note 2 VCGR Outputs
The VCGR activities form part of the Department of Justice Gaming and Racing Management and Regulation output. The focus of this output is policy development, regulation, research and community education and the delivery of problem gambling services to achieve responsible, safe and sustainable gambling and racing environments.
The outputs delivered by the VCGR are comprised of Regulatory Services consisting of licensing and compliance activities. The activities undertaken to deliver this output are geared towards achieving “the best community outcomes from gambling activities for all Victorians”. Performance targets include quantity, quality and timeliness measures.
The Licensing sub-group incorporates all activities undertaken to ensure that all licences, permits and authorisations are issued within the necessary legislative framework. This includes assessments for probity, social and economic impact assessments, game fairness and responsible gambling.
The Compliance Services sub-group covers the on-going monitoring of participants, products, equipment and systems, investigation of complaints and possible breaches of legislation and revenue verification.
Note 3 Income from Transactions
2010 2009 $ $ Revenue from Government Grant revenue 28,792,514 22,462,200 Total revenue from Government 28,792,514 22,462,200
The VCGR’s income is by way of Grant funding from the Department of Justice’s appropriations for the production of VCGR outputs and which are deemed to have been delivered by the Department of Justice.
84 Note 4 Expenses from Transactions
2010 2009 $ $ (a) Employee expenses Salaries and wages 13,298,630 10,684,903 Annual leave 1,237,245 1,151,585 Long service leave 574,943 418,263 Superannuation 1,288,295 1,049,161 Other on-costs (payroll tax, workcover levy and fringe benefits tax) 745,926 648,540 Total employee expenses 17,145,039 13,952,452
(b) Depreciation and amortisation expense Depreciation of plant and equipment Electronic data processing (EDP) hardware 243,277 243,425 Office fitout 98,895 92,089 Other assets 64,212 58,513 Amortisation expense Internal-use software 300,183 225,310 Total depreciation and amortisation 706,567 619,337
(c) Supplies and services Probity and credit check payments 198,810 299,242 IT Licence and maintenance 485,811 457,220 Professional services 5,560,058 2,848,884 Telephone and other communication expenses 240,013 242,782 Occupancy costs 2,241,067 1,741,755 Postage and advertising 189,613 211,965 Printing, stationery and office requisites 835,227 949,065 Travel and related expenses 399,775 273,124 Training and development 199,598 261,643 Motor vehicle running costs 288,868 313,467 Other 231,288 177,418 Total supplies and services 10,870,128 7,776,565
85 Notes to the Financial Statements For the financial year ended 30 June 2010 (continued)
Note 5 Other Economic Flows Included in Net Result
2010 2009 $ $ (a) Net gain/(loss) on non-financial assets Impairment of plant and equipment 0 (4,925) Net gain/(loss) on disposal of plant and equipment (57,148) (53,294) Total net gain/(loss) on non-financial assets (57,148) (58,219)
(b) Other gains/(losses) from other economic flows Net gain/(loss) arising from revaluation of long service leave liability(a) 1,636 (55,080) Total other gains/(losses) from other economic flows 1,636 (55,080)
Notes: (a) Revaluation gain/(loss) due to changes in bond rates.
Note 6 Receivables
2010 2009 $ $ Current receivables Contractual Other receivables 125,394 239,587 125,394 239,587
Statutory Amounts owing from the Department of Justice(a) 1,310,588 2,142,987 GST Input tax credits recoverable 41,438 62,205 1,352,056 2,205,192 Total current receivables 1,477,420 2,444,779
Non-current receivables Statutory Amounts owing from the Department of Justice(a) 1,934,665 1,479,253 Total non-current receivables 1,934,665 1,479,253
Total receivables 3,412,085 3,924,032
Notes: (a) The amounts recognised from the Department of Justice represent funding for all commitments incurred for the appropriation and are drawn down from the Consolidated Fund as the commitments fall due.
86 Note 7 Plant and Equipment
All assets of the VCGR are measured at cost. Reconciliations of the carrying amounts of each class of plant and equipment at the beginning and end of the current financial year are set out in the following table:
Table 7.1: Classification by ‘Purpose Group’ (a) Carrying Amount:
Public safety and environment 2010 2009 $ $ Plant and equipment EDP Hardware At Fair value 2,400,151 2,214,934 Less: Accumulated depreciation (1,866,856) (1,651,061) 533,295 563,873
Office Fit-out At Fair value 2,114,002 1,863,324 Less: Accumulated depreciation (732,188) (633,293) 1,381,814 1,230,031
Other Assets At Fair value 680,804 728,596 Less: Accumulated depreciation (273,171) (222,017) 407,633 506,579
Total Plant and Equipment At Fair value 5,194,957 4,806,854 Less: Accumulated depreciation (2,872,215) (2,506,371) 2,322,742 2,300,483
Notes: (a) Plant and equipment are classified primarily by the ‘purpose’ for which the assets are used according to one of six ‘Purpose Groups’ based upon Government Purpose Classifications (‘GPC’). Management has determined that, of the six, the Purpose Group most applicable to VCGR’s activities is ‘Public Safety and Environment’.
Table 7.2: Classification by Purpose Group ‘Public Safety and Environment’(a) Movements in Carrying Amount:
EDP Hardware Office Fitout Other Assets Total 2010 2009 2010 2009 2010 2009 2010 2009 $ $ $ $ $ $ $ $ Opening balance 563,873 459,858 1,230,031 1,284,483 506,579 444,853 2,300,483 2,189,194 Additions 212,699 350,413 250,678 37,637 22,414 175,485 485,791 563,535 Disposals 0 (2,973) 0 0 (57,148) (55,246) (57,148) (58,219) Depreciation expense (243,277) (243,425) (98,895) (92,089) (64,212) (58,513) (406,384) (394,027) Closing balance 533,295 563,873 1,381,814 1,230,031 407,633 506,579 2,322,742 2,300,483
87
Notes to the Financial Statements For the financial year ended 30 June 2010 (continued)
Note 8 Intangible Assets
2010 2009 $ $ Gross carrying amount Opening balance 4,437,672 3,992,916 Additions from internal development 675,650 444,756 Closing balance 5,113,322 4,437,672
Accumulated amortisation Opening balance (3,744,039) (3,518,729) Amortisation expense (300,183) (225,310) Closing balance (4,044,222) (3,744,039) Net book value at end of the financial year 1,069,100 693,633
Note 9 Other Non-financial Assets
2010 2009 $ $ Current other assets Prepayments 926,958 201,575 Total current other assets 926,958 201,575
Total other non-financial assets 926,958 201,575
Note 10 Payables
2010 2009 $ $ Current payables Contractual Creditors 11,461 23,525 Accrued wages and salaries 557,338 433,884 Accrued expenses 741,535 853,757 Total current payables 1,310,334 1,311,166
Total payables 1,310,334 1,311,166
Notes: (a) Maturity analysis of payables. Please refer to section (c) in Note 16 for the ageing analysis of payables. (b) Nature and extent of risk arising from payables. Please refer to Note 16 for the nature and extent of risk arising from payables.
88 Note 11 Provisions
2010 2009 $ $ Current provisions (i) Employee benefits (Note 11(a)) – annual leave (ii) Unconditional and expected to settle within 12 months 373,887 350,111 (iii) Unconditional and expected to settle after 12 months 727,712 649,554 (i) Employee benefits (Note 11(a)) – long service leave (ii) Unconditional and expected to settle within 12 months 189,149 182,086 (iii) Unconditional and expected to settle after 12 months 2,780,054 2,678,506 Provisions relating to employee benefit on-costs (note 11(a)) (ii) Unconditional and expected to settle within 12 months 92,777 90,038 (iii) Unconditional and expected to settle after 12 months 608,328 580,960 Total current provisions 4,771,907 4,531,255
Non-current provisions (i) Employee benefits (Note 11(a)) 167,122 161,644 Employee benefit on-costs (Note 11(b)) 20,097 25,039 Total non-current provisions 187,219 186,683
Total provisions 4,959,126 4,717,938
(a) Employee benefits and related on-costs (a)
2010 2009 $ $ Current employee benefits Annual leave entitlements 1,101,599 999,655 Long service leave entitlements 2,969,203 2,860,592 Non-current employee benefits Long service leave entitlements 167,122 161,644 Total employee benefits 4,237,924 4,021,901 Current on-costs 701,105 670,998 Non-current on-costs 20,097 25,039 Total on-costs 721,202 696,037 Total employee benefits and related on-costs 4,959,126 4,717,938
Notes: (i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs. (ii) The amounts disclosed are nominal amounts. (iii) The amounts disclosed are discounted to present values.
89 Notes to the Financial Statements For the financial year ended 30 June 2010 (continued)
Note 11 Provisions (continued)
(b) Movement in provisions
On-costs 2010 $
Opening balance 696,037 Additional provisions recognised 237,473 Reductions arising from payments/other sacrifices of future economic benefits (212,308) Closing balance 721,202 Current 701,105 Non-current 20,097 721,202
Note 12 Superannuation
Employees of the VCGR are entitled to receive superannuation benefits and the VCGR contributes to both defined benefit and defined contribution plans. The defined benefit plan(s) provides benefits based on years of service and final average salary. The VCGR does not recognise any defined benefit liability in respect of the plan(s) because the entity has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance recognises and discloses the State’s total defined benefit liabilities in its financial statements. However, superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the comprehensive operating statement of the VCGR. The name and details of the major employee superannuation funds and contributions made by the VCGR are as follows:
Paid contribution Contribution outstanding for the year at year end
2010 2009 2010 2009 $ $ $ $ Defined benefit plans: Government Superannuation Scheme – revised and new 438,119 423,913 0 0
Defined contribution plans: Victorian Superannuation Scheme 587,303 452,025 0 0 Various other 262,872 173,223 0 0 Total 1,288,294 1,049,161 0 0
Notes: (a) The bases for determining the level of contributions is determined by the various actuaries of the superannuation plans. (b) The above amounts were measured as at 30 June of each year, or in the case of employer contribution plans they relate to the years ended 30 June.
Note 13 Leases
At 30 June 2010 the VCGR had no finance or operating leases (nil at 30 June 2009). The Department of Treasury and Finance has operating lease arrangements with the service provider for the premises occupied by the VCGR. The VCGR’s obligation extends only to payment to the service provider on a monthly basis.
90 Note 14 Commitments for Expenditure
The following commitments have not been recognised as liabilities in the financial statements.
2010 2009 $ $ Operating expenditure commitments Plant and equipment operation and maintenance commitments Payable: Not longer than one year 29,627 14,775 Longer than one year and not longer than five years 10,692 3,967 Longer than five years - - Total operating expenditure commitments 40,319 18,742
All amounts shown in the commitments note are nominal amounts inclusive of GST.
Note 15 Contingent Assets and Contingent Liabilities
At 30 June 2010 the VCGR had no contingent assets (nil at 30 June 2009) and no contingent liabilities (nil at 30 June 2009).
91 Notes to the Financial Statements For the financial year ended 30 June 2010 (continued)
Note 16 Financial Instruments (a) Financial risk management objectives and policies Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset and financial liability are disclosed in note 1 to the financial statements. The carrying amounts of the VCGR’s contractual financial assets and financial liabilities by category are in table 16.1 below:
Table 16.1: Categorisation of financial instruments
Contractual financial assets- Contractual financial liabilities loans and receivables at amortised cost Total $ $ $ 2010 Contractual financial assets Cash and cash equivalents 537,095 - 537,095 Receivables (a) 125,394 - 125,394 Total contractual financial assets 662,489 - 662,489 Contractual financial liabilities Payables - 1,310,334 1,310,334 Total contractual financial liabilities - 1,310,334 1,310,334 2009 Contractual financial assets Cash and cash equivalents 437,757 - 437,757 Receivables (a) 239,587 - 239,587 Total contractual financial assets 677,344 - 677,344 Contractual financial liabilities Payables - 1,311,166 1,311,166 Total contractual financial liabilities - 1,311,166 1,311,166 Notes: (a) The total amount disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).
92 (b) Credit risk Credit risk arises from the financial assets of the VCGR, which comprise cash and cash equivalents and receivables. The VCGR’s exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in financial loss to the VCGR. Credit risk is measured at fair value and is monitored on a regular basis. Credit risk associated with the VCGR’s financial assets is minimal because the main debtor is the Victorian Government. The carrying amount of financial assets recorded in the financial report represents the VCGR’s maximum exposure to credit risk as indicated in Table 16.2.
Table 16.2: Credit quality of contractual financial assets that are neither past due nor impaired
Financial institutions Government agencies (AA credit rating) AAA credit rating Total $ $ $ 2010 Contractual financial assets Cash and cash equivalents 537,095 - 537,095 Receivables (a) - 125,394 125,394 Total contractual financial assets 537,095 125,394 662,489 2009 Contractual financial assets Cash and cash equivalents 437,757 - 437,757 Receivables (a) - 239,587 239,587 Total contractual financial assets 437,757 239,587 677,344
(a) The total amount disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).
Currently the VCGR does not hold any collateral as security nor credit enhancements relating to any of its financial assets. There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The following table indicates the ageing analysis of contractual financial assets.
93 Notes to the Financial Statements For the financial year ended 30 June 2010 (continued)
Note 16 Financial Instruments (continued)
Table 16.3: Ageing analysis of financial assets
Past due but not impaired
Not past Impaired Carrying due and not Less than 1–3 3 months – financial amount impaired 1 month months 1 year 1–5 years assets $ $ $ $ $ $ $ 2010 Receivables Other receivables 125,394 125,394 28,107 97,287 - - - 125,394 125,394 28,107 97,287 - - - 2009 Receivables Other receivables 239,587 239,587 142,004 97,583 - - - 239,587 239,587 142,004 97,583 - - -
(c) Liquidity risk Liquidity risk is the risk that the VCGR would be unable to meet its financial obligations as they fall due. The VCGR operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, make payments within 30 days from the date of resolution. The VCGR’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed on the face of the balance sheet. The VCGR’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk. The following table discloses the contractual maturity analysis for the VCGR’s financial liabilities:
Table 16.4: Maturity analysis of financial liabilities
Maturity dates
Carrying Nominal Less than 1–3 3 months – amount amount 1 month months 1 year 1–5 years $ $ $ $ $ $ 2010 Payables Other payables 1,310,334 1,310,334 1,310,334 - - - 1,310,334 1,310,334 1,310,334 - - - 2009 Payables Other payables 1,311,166 1,311,166 1,311,166 - - - 1,311,166 1,311,166 1,311,166 - - -
94
(d) Market risk The VCGR’s exposure to market risk is considered to be insignificant. The VCGR does not engage in financial trading and does not have exposure to foreign currency and other price risks. None of the classes of financial assets and liabilities are readily traded on organised markets in standardised form.
Table 16.5: Interest rate exposure of financial instruments
Interest rate risk exposure
Weighted average Fixed Variable effective Carrying interest interest Non-interest interest rate amount rate rate bearing % $ $ $ $ 2010 Financial assets Cash and cash equivalents N/A 537,095 - - 537,095 Receivables N/A 125,394 - - 125,394 Total financial assets 662,489 - - 662,489
Financial liabilities Other payables N/A 1,310,334 - - 1,310,334 Total financial liabilities 1,310,334 - - 1,310,334
2009 Financial assets Cash and cash equivalents N/A 437,757 - - 435,757 Receivables N/A 239,587 - - 239,587 Total financial assets 677,344 - - 677,344
Financial liabilities Other payables N/A 1,311,166 - - 1,311,166 Total financial liabilities 1,311,166 - - 1,311,166
95 Notes to the Financial Statements For the financial year ended 30 June 2010 (continued)
Note 16 Financial Instruments (continued)
(e) Fair value The VCGR considers that the carrying amount of financial assets and financial liabilities recorded in the financial statements approximates their fair values because of the short term nature of the financial instruments and the expectation that they will be paid in full. The following table shows that the fair values of most of the contractual financial assets and liabilities are the same as their carrying amounts.
Table 16.6: Comparison between carrying amount and fair value
Carrying Fair Carrying Fair Amount value Amount value 2010 2010 2009 2009 $ $ $ $ Contractual financial assets Cash and cash equivalent 537,095 537,095 437,757 437,757 Receivables(a) 125,394 125,394 239,587 239,587 Total contractual financial assets 662,489 662,489 677,344 677,344 Contractual financial liabilities Payables 1,310,334 1,310,334 1,311,166 1,311,166 Total contractual financial liabilities 1,310,334 1,310,334 1,311,166 1,311,166
(a) The total amount disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).
96 Note 17 Cash Flow Information
(a) Reconciliation of cash and cash equivalents For the purposes of the cash flow statement, cash includes cash on hand and in banks. Cash at the end of the financial year as shown in the cash flow statement is reconciled to the related items in the balance sheet as follows:
2010 2009 $ $ Total cash and cash equivalents disclosed in the balance sheet(a) 537,095 437,757 Balance as per Cash Flow Statement 537,095 437,757
Notes: (a) Due to the State of Victoria’s investment policy and government funding arrangements, government departments and agencies generally do not hold a large cash reserve in their bank accounts. Cash received by a department or agency from the generation of revenue is generally paid into the State’s bank account, known as the public account. Similarly, any departmental or agency expenditure, including those in the form of cheques drawn by a department or agency for the payment of goods and services to its suppliers and creditors are made via the public account. The process is such that the public account would remit to the department or agency the cash required for the amount drawn on the cheques. This remittance by the public account occurs upon the presentation of the cheques by the department or agency’s suppliers or creditors.
(b) Reconciliation of net result for the period to net cash flows from operating activities
2010 2009 $ $ Net result for the period 15,268 547 Non cash movements: (Gain)/loss on disposal of non-current assets 57,148 53,294 Depreciation and amortisation of non-current assets 706,567 619,337 Impairment of non-current assets 0 4,925 Movements in assets and liabilities (Increase)/decrease in receivables 511,947 (722,352) (Increase)/decrease in other non-financial assets (725,383) (34,118) Increase/(decrease) in payables (832) 345,306 Increase/(decrease) in provisions 241,188 384,921 Net cash flows from/(used in) operating activities 805,903 651,860
97 Notes to the Financial Statements For the financial year ended 30 June 2010 (continued)
Note 18 Summary of Compliance with Grant Funding
The following table discloses the details of the funding received by the VCGR for the year through the Department of Justice appropriations.
Grant Funding Funding Available Funding Advice 2010 Applied Variance $ $ $ $ 2010 Grant revenue – Provision for outputs 28,792,500 28,792,500 28,792,500 - Capital contribution – Addition to net assets - 454,876 454,876 - Total Funding 28,792,500 29,247,376 29,247,376 -
2009 Grant revenue – Provision for outputs 22,664,900 22,664,900 22,462,200 202,700 Capital contribution – Addition to net assets - 388,953 388,953 - Total Funding 22,664,900 22,053,853 22,851,153 202,700
The variance between Grant funding available and Grant funding applied reflects the return of revenue to the Department of Justice in respect of depreciation expense generated in excess of capital expenditure, variations between budgeted and generated depreciation, and deemed revenue associated with output delivery.
Note 19 Ex-gratia Payments
As at 30 June 2010 the VCGR had not made any ex-gratia payments (nil at 30 June 2009).
Note 20 Transactions on behalf of Government
In addition to the specific VCGR operations which are included in the comprehensive operating statement, balance sheet, statement of changes in equity and cash flow statement, the VCGR collects revenue amounts on behalf of Government which are paid directly into the consolidated fund. Revenue collected includes taxes, fees and fines and the proceeds from the sale of non-current assets. Sections 3.6.5, 4.6.7 and 5.4.2 of the Gambling Regulation Act 2003 provide for determination by the Treasurer, after consultation with the Minister for Gaming, of the supervision charges payable by Tabcorp, Tattersall’s and Intralot. This charge is determined annually and reflects the recoupment of expenses incurred in the regulation of gaming, including the processing of licences, conducting investigations and compliance audits, reviewing operator systems and procedures, testing and evaluating gambling equipment and monitoring gambling activities. This charge is also paid into the consolidated fund. The VCGR also makes payments from consolidated fund revenue to other jurisdictions (Payments made on behalf of Government) for their share of public lottery taxes which are collected in Victoria. During the period ended 30 June 2010, the VCGR also collected amounts on behalf of Government related to the electronic gaming machine entitlements (licences) which become operational during 2012. The amount representing the total value of the first instalment payable during the reporting period is $76.3 million. This amount is initially recognised as a receivable until settled, with a corresponding amount recognised as unearned revenue. Amounts paid during the period were $71.3 million. The balance, representing outstanding first instalments of $5 million, is reflected against receivables.
98 Note 20 Transactions on behalf of Government (continued)
2010 2009 Consolidated Fund $’000 $’000 Income – Amounts collected/receivable on behalf of Government Gaming Taxation 984,106 1,010,626 Licence Fees 703 786 Minor Gaming 1,184 1,298 Club Keno 1,416 1,600 Casino Taxation and Licence Fees 151,219 141,011 Racing Taxation and Licence Fees 136,987 133,503 Tattersall’s Lotteries 379,769 381,209 Intralot Lotteries 16,309 18,466 Tabcorp Supervision Fee 3,967 3,847 Tattersall’s Supervision Fee 4,109 4,251 Intralot Supervision Fee 907 457 Lottery Premium Payment 3,243 3,240 Miscellaneous 722 298 Total amount collected/receivable 1,684,641 1,700,592
Expenses – Amounts paid/payable on behalf of Government Payments made to other jurisdictions 43,370 43,118 Total amount paid/payable 43,370 43,118
Assets Receivables 71,056 70,532 Total assets 71,056 70,532 Liabilities Current liabilities Prepaid income 11,429 12,859 Payables 4,086 6,549 Trust Fund 2,830 0 Total current liabilities 18,345 19,408
Non-current liabilities Unearned income 76,289 0 Total non-current liabilities 76,289 0 Total liabilities 94,634 19,408
99 Notes to the Financial Statements For the financial year ended 30 June 2010 (continued)
Note 21 Responsible Persons
In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period.
Names The persons who held the position of Responsible Minister, Members of the Commission and Accountable Officer in the VCGR are as follows:
Responsible Minister – Minister for Gaming: The Hon Tony Robinson, MP 1 July 2009 to 30 June 2010 The Hon Bob Cameron, MP (Acting) 28 September 2009 to 4 October 2009 The Hon Bob Cameron, MP (Acting) 14 December 2009 to 24 December 2009 The Hon John Lenders, MLC (Acting) 25 December 2009 to 29 December 2009 The Hon Bob Cameron, MP (Acting) 9 January 2010 to 13 January 2010 The Hon Tim Holding, MP (Acting) 20 January 2010 to 26 January 2010 The Hon Bob Cameron, MP (Acting) 16 April 2010 to 17 April 2010 The Hon Bob Cameron, MP (Acting) 26 June 2010 to 30 June 2010
Commission Members: Mr Ian Dunn (Chair) 1 July 2009 to 11 September 2009 Mr Bruce Thompson (Chairman) 12 September 2009 to 30 June 2010 Mrs Judith King (Deputy Chair) 1 July 2009 to 30 June 2010 Ms Gail Owen, OAM (Commissioner) 27 January 2010 to 30 June 2010 Mr Peter Cohen 1 July 2009 to 30 June 2010
Additional Commissioners: His Honour Gordon Lewis AM (Deputy Chair) 1 July 2009 to 30 June 2010 Mr Ken Loughnan AO (Commissioner) 1 July 2009 to 30 June 2010 Ms Suzanne Jones (Commissioner) 1 July 2009 to 30 June 2010 Mr Warren Hodgson (Deputy Chair) 19 January 2010 to 30 June 2010 Ms Andrea Hassett (Commissioner) 19 January 2010 to 30 June 2010
Accountable Officer – Executive Commissioner Mr Peter Cohen 1 July 2009 to 30 June 2010
The additional Commissioners were engaged for activities associated with the Gambling Licences Project and the electronic gaming machine entitlements auction.
100 Note 21 Responsible Persons (continued)
Remuneration Remuneration received or receivable by members of the Commission including the Accountable Officer in connection with the management of the VCGR during the reporting period was in the range:
2010 2009 Income Band No No $20,000 to $29,999 4 - $70,000 to $79,999 1 1 $80,000 to $89,999 1 1 $90,000 to $99,999 - 2 $190,000 to $199,999 - 1 $200,000 to $209,999 1 1 $220,000 to $229,999 1 - $230,000 to $239,999 1 - $410,000 to $419,999 1 - Total numbers 10 6 Total Amount 1,329,396 749,946
Amounts relating to the Minister for Gaming are reported in the financial statements of the Department of Premier and Cabinet.
Note 22 Remuneration of Executives
The number of executive officers, other than Responsible Persons, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits.
Total remuneration Base remuneration 2010 2009 2010 2009 No No No No Income Band $140,000 – $149,999 - 1 2 2 $150,000 – $159,999 1 1 1 - $160,000 – $169,999 2 1 - 1 $170,000 – $179,999 - - 1 1 $180,000 – $189,999 - 1 - - $190,000 – $199,999 1 - - - Total numbers 4 4 4 4 Total amount $680,121 $674,119 $632,462 $656,820
101 Notes to the Financial Statements For the financial year ended 30 June 2010 (continued)
Note 23 Remuneration of Auditors
2010 2009 $ $ Victorian Auditor-General’s Office Audit of the financial statements 87,500 80,190
Note 24 Related Party Transactions
Related party transactions requiring disclosure have been considered and there are no matters to report.
Note 25 Subsequent Events
The financial statements for the VCGR are prepared for the reporting period ending 30 June 2010. As at the date of signing there are no events subsequent to the balance date which would have a significant impact on the financial position of the VCGR.
Note 26 Glossary of Terms
Actuarial gains or losses on superannuation defined benefit plans
Actuarial gains or losses reflect movements in the superannuation liability resulting from differences between the assumptions used to calculate the superannuation expense from transactions and actual experience.
Comprehensive result
Total comprehensive result is the change in equity for the period other than changes arising from transactions with owners. It is the aggregate of net result and other non-owner changes in equity.
Commitments
Commitments include those operating, capital and other outsourcing commitments arising from non-cancellable contractual or statutory sources.
Employee benefits expenses
Employee benefits expenses include all costs related to employment including wages and salaries, leave entitlements, redundancy payments and superannuation contributions.
Financial asset
A financial asset is any asset that is:
(a) cash; (b) an equity instrument of another entity; (c) a contractual right – • to receive cash or another financial asset from another entity; or • to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity; or (d) a contract that will or may be settled in the entity’s own equity instruments and is – • a non-derivative for which the entity is or may be obliged to receive a variable number of the entity’s own equity instruments; or • a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments.
102 Note 26 Glossary of Terms (continued)
Financial liability
A financial liability is any liability that is:
(a) a contractual or statutory obligation – • to deliver cash or another financial asset to another entity; or • to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or (b) a contract that will or may be settled in the entity’s own equity instrument and is – • a non-derivative for which the entity is or may be obliged to deliver a variable number of the entity’s own equity instruments; or • a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose the entity’s own equity instruments do not include instruments that are themselves contracts for the future receipt or delivery of the entity’s own equity instruments. Financial statements
Depending on the context of the sentence where the term ‘financial statements’ is used, it may include only the main financial statements (i.e. comprehensive operating statement, balance sheet, cash flow statements, and statement of changes in equity); or it may also be used to replace the old term ‘financial report’ under the revised AASB 101 (Sept 2007), which means it may include the main financial statements and the notes.
Grants and other transfers
Transactions in which one unit provides goods, services, assets (or extinguishes a liability) or labour to another unit without receiving approximately equal value in return. Grants can either be operating or capital in nature. While grants to governments may result in the provision of some goods or services to the transferor, they do not give the transferor a claim to receive directly benefits of approximately equal value. Receipt and sacrifice of approximately equal value may occur, but only by coincidence. For example, governments are not obliged to provide commensurate benefits, in the form of goods or services, to particular taxpayers in return for their taxes. For this reason, grants are referred to by the AASB as involuntary transfers and are termed non-reciprocal transfers.
Grants can be paid as general purpose grants which refer to grants that are not subject to conditions regarding their use. Alternatively, they may be paid as specific purpose grants which are paid for a particular purpose and/or have conditions attached regarding their use.
Grants for on-passing
All grants paid to one institutional sector (e.g. a State general government) to be passed on to another institutional sector (e.g. local government or a private non-profit institution).
Intangible assets
Intangible assets represent identifiable non-monetary assets without physical substance.
Interest expense
Costs incurred in connection with the borrowing of funds. Interest expenses include interest on bank overdrafts and short-term and long-term borrowings, amortisation of discounts or premiums relating to borrowings, interest component of finance leases repayments, and the increase in financial liabilities and non-employee provisions due to the unwinding of discounts to reflect the passage of time.
Interest income
Interest income includes unwinding over time of discounts on financial assets and interest received on bank term deposits and other investments.
103 Notes to the Financial Statements For the financial year ended 30 June 2010 (continued)
Note 26 Glossary of Terms (continued)
Net acquisition of non financial assets (from transactions)
Purchases (and other acquisitions) of non-financial assets less sales (or disposals) of non-financial assets less depreciation plus changes in inventories and other movements in non-financial assets. Includes only those increases or decreases in non-financial assets resulting from transactions and therefore excludes write-offs, impairment write-downs and revaluations.
Net result
Net result is a measure of financial performance of the operations for the period. It is the net result of items of revenue, gains and expenses (including losses) recognised for the period, excluding those that are classified as ‘other non-owner changes in equity’.
Net result from transactions/net operating balance
Net result from transactions or net operating balance is a key fiscal aggregate and is revenue from transactions minus expenses from transactions. It is a summary measure of the ongoing sustainability of operations. It excludes gains and losses resulting from changes in price levels and other changes in the volume of assets. It is the component of the change in net worth that is due to transactions and can be attributed directly to government policies.
Non-financial assets
Non-financial assets are all assets that are not ‘financial assets’.
Other economic flows
Other economic flows are changes in the volume or value of an asset or liability that do not result from transactions. It includes gains and losses from disposals, revaluations and impairments of non-current physical and intangible assets; actuarial gains and losses arising from defined benefit superannuation plans; fair value changes of financial instruments and agricultural assets; and depletion of natural assets (non-produced) from their use or removal. In simple terms, other economic flows are changes arising from market re-measurements.
Payables
Includes short and long term trade debt and accounts payable, grants and interest payable.
Receivables
Includes short and long term trade credit and accounts receivable, grants, taxes and interest receivable.
Sales of goods and services
Refers to revenue from the direct provision of goods and services and includes fees and charges for services rendered, sales of goods and services, fees from regulatory services, work done as an agent for private enterprises. It also includes rental income under operating leases and on produced assets such as buildings and entertainment, but excludes rent income from the use of non- produced assets such as land. User charges includes sale of goods and services revenue.
Supplies and services
Supplies and services generally represent cost of goods sold and the day-to-day running costs, including maintenance costs, incurred in the normal operations of the entity.
Transactions
Transactions are those economic flows that are considered to arise as a result of policy decisions, usually an interaction between two entities by mutual agreement. They also include flows within an entity such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutually agreed interactions between the government and taxpayers. Transactions can be in kind (e.g. assets provided/given free of charge or for nominal consideration) or where the final consideration is cash. In simple terms, transactions arise from the policy decisions of the government.
104 Declaration by the Accountable Officer and the Chief Finance and Accounting Officer
We certify that the attached financial statements for the Victorian Commission for Gambling Regulation has been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian accounting standards and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and notes forming part of the financial statements, presents fairly the financial transactions during the year ended 30 June 2010 and financial position of the Victorian Commission for Gambling Regulation at 30 June 2010. We are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate. We authorise the attached financial statements for issue on 11 August 2010.
Bruce Thompson Chairman Victorian Commission for Gambling Regulation
Peter Cohen Executive Commissioner Victorian Commission for Gambling Regulation
Elizabeth Tasevska Chief Finance and Accounting Officer Victorian Commission for Gambling Regulation
Dated: 11 August 2010 Melbourne
105 Auditor General’s Report
106 107
Part 4
Appendices
109 Appendices
Contents
1A Principal Legislation Administered by the Minister for Gaming
1B Commencement Dates of Legislation
1C Subordinate Legislation
2 Ministerial Direction
3 Ministerial Determinations – Community Benefit Statements
4 Victorian Commission for Gambling Regulation Rules
5 Commission Decisions on Applications for New Premises and Venue Operator Licence Amendments
6 Commission Meetings, Inquiries and Hearings 2009–2010
7 Gaming Venues as at 30 June 2010
8 Registered Bookmakers as at 30 June 2010
9 Bingo Centres and Commercial Raffle Organisers as at 30 June 2010
10 Licensing Activities
11 Number of Active Licences at 30 June 2009 and 30 June 2010
12 Roll of Manufacturers, Suppliers and Testers as at 30 June 2010
13 Responsible Gaming Training Course Providers as at 30 June 2010
14 Community Benefit Statements – Summary of the Total Claims Made by Club Gaming Venues
15 Gambling Player Loss and Taxes and Levies Paid 2009–2010
16 Distribution of Taxes from Gambling
17 Player Loss from Gaming Machines – Statistical Data Fact Sheet
18 Distribution of Player Loss from Gaming Machines
19 Municipal Limits
20 Regional Caps
21 Representation on Working Parties
22 Commission Whistleblower Procedures
23 Staff Profile by Position 2009–2010
24 Other Information Available on Request
25 Disclosure Index
26 Glossary
110 Appendix 1A
Principal Legislation Administered by the Minister for Gaming
(Current as at 30 June 2010)
Casino Control Act 1991
Except sections 128H to 128L {except for section 128K(2)} which are administered by the Minister for Planning and section 128K(2) which is administered by the Minister for Finance, WorkCover and the Transport Accident Commission.
Casino (Management Agreement) Act 1993
Gambling Regulation Act 2003
Except for the following divisions, parts or sections which are administered jointly or wholly by the Ministers noted:
The Treasurer administers:
Section 3.4.33; and
Section 4.3.12.
The Minister for Racing jointly administers –
Division 5A of Part 5 of Chapter 2;
Division 2 of Part 2 of Chapter 4; and
Part 5 of Chapter 4; .
The Minister for Community Development administers:
Division 1 of Part 3 of Chapter 10.
111 Appendix 1B
Commencement Dates of Legislation Gambling Regulation Act 2003 (114/2003)
This Act was assented to on 16 December 2003.
All sections other than section 12.1.5 came into operation before 1 July 2007.
Section 12.1.5 came into operation on 1 July 2009.
Gambling Legislation Amendment (Responsible Gambling and Other Measures) Act 2008 (71/2008) This Act was assented to on 25 November 2008.
The Act, other than Parts 2, 3 and 4, came into operation on 26 November 2008.
Part 2, except sections 3, 9, 10 and 14, came into operation on 1 March 2009.
Section 3 and Part 4 came into operation on 1 June 2009.
Part 3 came into operation on 25 November 2009.
The remainder of the Act, sections 9 and 10, came into operation on 1 January 2010.
Justice Legislation Amendment Act 2009 (25/2009) This Act was assented to on 17 June 2009 and sections 12 to 17 of the Act affecting the Gambling Regulation Act 2003 came into operation on 1 October 2009.
Gambling Regulation Amendment (Licensing) Act 2009 (29/2009) This Act was assented to on 23 June 2009.
The Act (except sections 63 and 64, Division 2 of Part 4, sections 76 and 77 and Division 5 of Part 4) came into operation on 24 June 2009. Sections 63(1), 64, Division 2 of Part 4 and sections 76 and 77 came into operation on 1 January 2010. Sections 63(2), (3), (4) and (5) and Division 5 of Part 4 will come into operation on 1 July 2012 if not proclaimed earlier.
Gambling Regulation Amendment Act 2009 (43/2009) This Act was assented to on 5 August 2009 and came into operation on 6 August 2009.
Racing Legislation Amendment (Racing Integrity Assurance) Act 2009 (52/2009) This Act was assented to on 8 September 2009.
Section 16, in Part 5 of the Act, which repeals section 2.5.18 of the Gambling Regulation Act 2003, came into operation on 15 October 2009.
Gambling Regulation Further Amendment Act 2009 (58/2009) This Act was assented to on 21 October 2009.
The Act, with the exception of sections 4, 6 to 8, 10, 12 to 16, 18, 19(1), 21 to 24, 44, 45, 51 to 54, 85(2), 108 to 110, Part 7 and Division 1 of Part 9, came into operation on 21 October 2009.
Part 7 of the Act came into operation on 25 November 2009.
The remaining provisions will come into operation on 1 September 2012 if not proclaimed earlier.
112 Liquor Control Reform Amendment (Licensing) Act 2009 (59/2009) This Act was assented to on 21 October 2009.
Section 33 of the Act, which amended the Gambling Regulation Act 2003, came into operation on 1 January 2010.
Gambling Regulation Amendment (Racing Club Venue Operator Licences) Act 2009 (63/2009) This Act was assented to on 17 November 2009 and came into operation on 18 November 2009.
Criminal Procedure Amendment (Consequential and Transitional Provisions) Act 2009 (68/2009) This Act was assented to on 24 November 2009 and the Schedule thereto affecting the Gambling Regulation Act 2003 and the Casino Control Act 1991 came into operation on 1 January 2010.
Statute Law Amendment (Evidence Consequential Provisions) Act 2009 (69/2009) This Act was assented to on 24 November 2009 and came into operation on 1 January 2010.
The Act made a consequential amendment to section 10.2A.11(3)(b) of the Gambling Regulation Act 2003.
Casino Legislation Amendment Act 2009 (84/2009) This Act was assented to on 15 December 2009.
The Act, other than Part 2, came into operation on 16 December 2009.
Part 2 comes into operation on 1 July 2012.
Consumer Affairs Legislation Amendment Act 2010 (1/2010) This Act was assented to on 9 February 2010.
Section 89 in Division 2 of Part 10 of the Act repeals section 9A.1.8(2)(a) of the Gambling Regulation Act 2003.
As at 28 April 2010, section 89 was not proclaimed.
If not proclaimed beforehand, section 89 will commence on 1 January 2011.
Justice Legislation Amendment Act 2010 (30/2010) This Act was assented to on 8 June 2010.
Sections 78 and 79 affecting the Gambling Regulation Act 2003 will commence operation on 1 July 2010.
113 Appendix 1C
Subordinate Legislation
The following subordinate legislation came into operation during the year:
Gambling Regulation Amendment (Fees) Regulations 2009 (108/2009) The Gambling Regulation Amendment (Fees) Regulations 2009 came into operation on 1 October 2009.
Gambling Regulation (Prescribed Connection and Prescribed Profit) Regulations 2009 (114/2009) The Gambling Regulation (Prescribed Connection and Prescribed Profit) Regulations 2009 came into operation on 1 October 2009.
Gambling Regulation Amendment (Bingo) Regulations 2009 (141/2009) The Gambling Regulation Amendment (Bingo) Regulations 2009 came into operation on 25 November 2009.
Gambling Regulation Amendment (Advertising) Regulations 2009 (167/2009) The Gambling Regulation Amendment (Advertising) Regulations 2009 came into operation on 1 January 2010.
114 Appendix 2
Ministerial Directions Gambling Regulation Act 2003
(Current as at 30 June 2010)
I, Tony Robinson, MP, Minister for Gaming, under section 3.2.3(1) of the Gambling Regulation Act 2003 (the Act), revoke all previous directions to the Victorian Commission for Gambling Regulation (the Commission) and, in substitution, direct the Commission –
(a) that, under section 3.2.3(1)(a), the maximum number of gaming machines permitted to be available for gaming in all approved venues under the Act, other than the Melbourne Casino, is 27,500; and
(b) that, under section 3.2.3(1)(b), in respect of the 27,500 gaming machines permitted to be available for gaming in all approved venues under the Act, other than the Melbourne Casino, the maximum permissible number of gaming machines to be placed in any approved venue in the State is 105; and
(c) that, under section 3.2.3(1)(c), in respect of the 27,500 gaming machines permitted to be available for gaming in all approved venues under the Act, other than the Melbourne Casino, the proportion of gaming machines to be located outside the Melbourne Statistical Division is not less than 20 per cent; and
(d) that, under section 3.2.3(1)(d), in respect of the 27,500 gaming machines permitted to be available for gaming in all approved venues under the Act, other than the Melbourne Casino –
(i) prior to 1 July 2008, a bet limit of $10 will apply to gaming machine games (unless the games are being played on a gaming machine operating in a mode where spin rate, bet limit, autoplay and note acceptors are unrestricted and which is located in an area specified by notice under section 3.5.29(3) or 3.5.30(2) of the Act); and
(ii) on or after 1 July 2008, a bet limit of $10 will apply to all gaming machine games approved prior to 1 July 2008 (unless the games are being played on a gaming machine operating in a mode where spin rate, bet limit, autoplay and note acceptors are unrestricted and which is located in an area specified by notice under section 3.5.29(3) or 3.5.30(2) of the Act); and
(iii) prior to 1 January 2010, a bet limit of $5 will apply to gaming machine games approved on or after 1 July 2008 (unless the games are being played on a gaming machine operating in a mode where spin rate, bet limit, autoplay and note acceptors are unrestricted and which is located in an area specified by notice under section 3.5.29(3) or 3.5.30(2) of the Act); and
(iv) on or after 1 January 2010, a bet limit of $5 will apply to all gaming machine games (unless the games are being played on a gaming machine operating in a mode where spin rate, bet limit, autoplay and note acceptors are unrestricted and which is located in an area specified by notice under section 3.5.29(3) or 3.5.30(2) of the Act);
(e) that, under section 3.2.3(1)(e), in respect of the 27,500 gaming machines permitted to be available for gaming in all approved venues under the Act, other than the Melbourne Casino, the proportion to be placed in premises is –
(i) in the case of premises in respect of which a general licence under section 8 of the Liquor Control Reform Act 1998 is in force, 50 per cent; and
(ii) in the case of premises in which –
(A) a full club licence under section 10 of the Liquor Control Reform Act 1998 is in force; or
(B) a restricted club licence under section 10 of the Liquor Control Reform Act 1998 is in force; or
(C) a licence under Part 1 of the Racing Act 1958 is in force,
50 per cent; and
((f) that, under section 3.2.3(1)(f), in respect of the 27,500 gaming machines permitted to be available for gaming in all approved venues under the Act, other than the Melbourne Casino, the proportion of gaming machines which each gaming operator is permitted to operate is 50 per cent; and
(g) that, under section 3.2.3(1)(g), the Commission must apply the following criteria in determining whether to specify an area by notice under section 3.5.29(3) or 3.5.30(2) of the Act (area or areas):
(i) the specified area must be within an approved venue under the Act;
(ii) the proportion of gaming machines in all specified areas of the approved venue must not exceed 20 per cent of the total number of gaming machines in the approved venue;
115 Appendix 2 continued
Ministerial Directions (continued)
(iii) the total number of gaming machines which are operating at any time in a mode where spin rate, bet limit, autoplay and note acceptors are unrestricted operated by each gaming operator located in all specified areas must not exceed 1,000;
(iv) the proportion of gaming machines located in all specified areas in all approved venues under the Act, other than the Melbourne Casino, must not exceed:
(A) in the case of premises in respect of which a general licence under section 8 of the Liquor Control Reform Act 1998 is in force, 50 per cent;
(B) in the case of premises in respect of which a full club licence under section 10 of the Liquor Control Reform Act 1998 is in force; or a restricted club licence under section 10 of the Liquor Control Reform Act 1998 is in force; or a licence under Part 1 of the Racing Act 1958 is in force, 50 per cent; and
(v) the area must not be within an approved venue located –
(A) outside the Melbourne Statistical Division; or
(B) in a region determined pursuant to section 3.2.4 of the Act; and
(h) that, under section 3.2.3(1)(h), the conditions that the Commission must specify in a notice under section 62AB(4), 62(AC)(2) and 81AAB(2) of the Casino Control Act 1991, referred to in section 3.2.3(1)(g) of the Act are:
(i) the total of –
(A) the total number of gaming machines which are operating at any time in a mode where spin rate, bet limit, autoplay and note acceptors are unrestricted in all areas specified by notice under section 62AB(4) or 62AC(2) of the Casino Control Act 1991; plus
(B) the total number of gaming machines from which winnings or accumulated credits in excess of $2,000 may be paid out in cash in all areas specified by notice under section 81AAB(2) of the Casino Control Act 1991; minus
(C) the total number of gaming machines which are both operating in the mode referred to in sub paragraph (A) and from which winnings or accumulated credits in excess of $2,000 may be paid out in cash as referred to in sub paragraph (B),
must not exceed 1,000.
(ii) a gaming machine located in an area specified by a notice under sections 62AB(4), 62(AC)(2) and 81AAB(2) of the Casino Control Act 1991, referred to in section 3.2.3(1)(g) of the Act may only operate in a mode where spin rate, bet limit, autoplay and note acceptors are unrestricted if that gaming machine may only be played in that mode by means of a card, Personal Identification Number (PIN) or similar technology which requires the player to nominate limits on time and net loss before play can commence; and
(iii) the payment of winnings or accumulated credits in excess of $2,000 may only be paid by cash if the winnings or credits are from one of the up to 1,000 machines specified in condition (i)(B). This provision regarding the payment of winnings by cash applies to the up to 1,000 machines specified in condition (i)(B) regardless of whether or not the machine:
(A) was also a machine capable of operating in a mode described in condition (i)(A); and
(B) was actually being played in exempt mode by means of card, PIN or similar technology at the time of the accumulation or payment of winnings as described in condition (ii).
Dated 16 April 2008
TONY ROBINSON MP
Minister for Gaming
116 Table Showing Compliance with Ministerial Direction as at 30 June 2010
Electronic Gaming Number of Electronic Machine Limits imposed Gaming Machines by Ministerial Direction Authorised Number % Number % Total Number 27,500 100 26,682 97.02
Gaming Operator Split Tabcorp Holdings Ltd Total 13,750 50 13,344 48.52 Tatts Group Limited Total 13,750 50 13,338 48.50
Proportion of Electronic Gaming Machines Located Outside the Melbourne Statistical Division (‘MSD’) Outside MSD Minimum 5,500 20 7,362 26.77 Tabcorp 2,750 10 3,973 14.45 Tatts 2,750 10 3,389 12.32 Within MSD Maximum 22,000 80 19,320 70.25 Tabcorp 11,000 40 9,371 34.08 Tatts 11,000 40 9,949 36.17
Proportion of Electronic Gaming Machines Located in premises that are: Hotels Total 13,750 50 13,408 48.75 Tabcorp 6,875 25 6,708 24.39 Tatts 6,875 25 6,700 24.36 Clubs Total 13,750 50 13,274 48.27 Tabcorp 6,875 25 6,636 24.13 Tatts 6,875 25 6,638 24.14
117 Appendix 3
Ministerial Determination – Community Benefit Statements
Gambling Regulation Act 2003
I, Tony Robinson MP, Minister for Gaming, pursuant to section 3.6.9(3) of the Gambling Regulation Act 2003, make the following determination of the kind of activities or purposes that constitute community purposes. A venue operator may claim up to:
• 100 per cent of revenue applied to a Class A purpose or activity; • for revenue applied to Class B purposes or activities, an amount equal to the proportion of non-gaming revenue to the club’s total revenue1; • 100 per cent of revenue applied to a Class C purpose or activity.
Class A purposes and activities: Direct community benefits
(a) Donations, gifts and sponsorships, including cash, goods and services, to another person resident in Victoria for the purposes or activities set out below but excluding purposes or activities conducted for profit and excluding a gift or donation of alcohol2:
(i) any educational purpose, but excluding education provided for the benefit of the members of a professional or business association;
(ii) the provision of health services or care;
(iii) services for the prevention and treatment of problem gambling and drug and alcohol addictions;
(iv) housing assistance for disadvantaged persons, including the provision of housing support and assistance to those experiencing homelessness or at risk of becoming homeless;
(v) the relief of poverty;
(vi) the provision of services and assistance for the aged;
(vii) the provision of services and assistance for young people3;
(viii) the protection and preservation of the environment but excluding conservation or rehabilitation activities conducted on private land;
(ix) the provision of assistance to relieve distress caused by natural or other disasters;
(x) the provision of advice, support and services to ex-service personnel, their carers and families, including payments to the Victorian Veterans Fund or a patriotic fund under the Veterans Act 2005 or to any fund for that purpose established by the Returned and Services League Australia (Victorian Branch);
(xi) any other philanthropic or benevolent purpose including the promotion of art, culture, cultural diversity and community harmony, or charity including the benefiting of organisations designated by the Australian Taxation Office as ‘Income Exempt Charities’;
(xii) any sporting or recreational purpose, including the benefiting of any sporting or recreational club or association, but excluding any club that holds a venue operator’s licence.
(b) The cost of providing and maintaining sporting facilities for use by club members4.
(c) The cost of any subsidy provided for the provision of goods or services but excluding the provision of alcohol5.
(d) Voluntary services provided by members and staff of the club to the community in fulfilment of those purposes or activities (i) to (xii) in paragraph (a) but excluding those voluntary services provided by club members to the club itself or to another club that holds a venue operator’s licence. The maximum amount that can be claimed is $20 per hour per volunteer6.
(e) Where the club that holds the venue operator’s licence is a sub-branch of the Returned and Services League Australia (Victorian Branch), the provision of advice, support and services provided by that club to ex- service personnel, their carers and families, including payments to the Victorian Veterans Fund or a patriotic fund under the Veterans Act 2005 or to any fund for that purpose established by the Returned and Services League Australia (Victorian Branch).
118 Class B purposes and activities: Indirect community benefits
(a) Capital expenditure7.
(b) Financing costs (including principal and interest)8.
(c) Retained earnings accumulated during the year for which the community benefit is claimed9.
(d) The provision of buildings, plant or equipment but excluding any building, plant and equipment with a value of less than $10,000 per item and excluding the provision of gaming equipment or the gaming machine area of an approved venue10.
(e) Operating costs11.
Class C purposes and activities: miscellaneous
(a) The provision of responsible gambling measures and activities but excluding those required by law12.
(b) Reimbursement of expenses reasonably incurred by volunteers.
(c) The preparation and audit of a community benefit statement required under section 3.6.9 (1) of the Gambling Regulation Act 2003 to a maximum of $3,000.
Dated Tuesday 8 February 2008
HON TONY ROBINSON MP Minister for Gaming
Notes:
1. For example, where a club derives 60 per cent of its revenue from gaming, it can claim 40 per cent of the amounts it has spent under Class B. 2. Paragraph (a) only applies to donations, gifts and sponsorships by a club to another person (including an incorporated entity) as a club cannot make a donation or give a gift to, or sponsor, itself. It is intended to include as community purposes all donations, gifts and sponsorships for the purposes set out in paragraphs (i) to (xii) but to exclude all activities conducted on a commercial basis or for profit. The free use of club facilities such as meeting and function rooms by community groups is claimable under paragraph (a). 3. for the purposes of this order, a young person is a person aged 25 years or less. 4. This would include the cost of a racing club maintaining a racetrack and a football club its football stadium. Where the cost of providing sporting facilities is claimed, a claim cannot also be made for a subsidy under paragraph (c). 5. This would also include goods or services provided to club members and non-members at no cost or at less than commercial rates. The use of club facilities such as meeting and function rooms by community groups at a discounted rate is claimable under paragraph (c). 6. Volunteer services only include services to another person (including an incorporated entity) for the purposes set out in (i) to (xii) paragraph (a). Volunteer services by club members to the club cannot be claimed. 7. Buildings, plant and equipment that have a value of less than $10,000 and gaming equipment or capital expenditure relating to the gaming machine area of an approved venue cannot be claimed under paragraph (a). A motor vehicle can only be claimed where the motor vehicle is used for club purposes. 8. If financing costs are claimed, a claim cannot also be made in relation to the items financed. 9. Retained earnings can only be claimed for the year during which they were earned. If retained earnings are claimed, a claim cannot also be made when those funds are expended. 10. Where multiples of the same item forms one purchase, the total cost of all those items may be claimed. 11. Operating costs include employment costs, but do not include the cost of staff whose principal place of employment is outside Victoria. Employment costs also include wages and salaries plus all on-costs such as superannuation and other entitlements, and benefits to the employee that attract fringe benefits tax. Operating costs also include management fees, electricity, rent, etc. Payments made to players and officials of sporting clubs are claimable as operating costs. 12. Responsible gambling measures and activities required by law including any measures or activities required by statute, licence, contract, agreement, deed, memorandum of understanding, etc.
119 Appendix 4
Victorian Commission for Gambling Regulation Rules – Gaming Venues other than the Casino
Gambling Regulation Act 2003 – section 3.5.23(1)
(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) 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 (b) 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) the venue operator may impose and enforce a code of dress that is reasonable in the circumstances; (b) the venue operator may exclude from the venue a person whose behaviour would be unacceptable in a public place; (c) 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; (d) the venue operator may exclude a person engaged in ‘syndicate play’.**
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.
120 Victorian Commission for Gambling Regulation Rules – Casino
Gambling Regulation Act 2003 – section 3.5.23 (3)
(as in force on 21 February 2007) Part 1 – Preliminary
1. These Rules may be cited as the Victorian Commission for Gambling Regulation Rules – Casino (‘the Rules’). 2. (a) These Rules are in addition to the requirements of the Gambling Regulation Act 2003, the Casino Control Act 1991 (‘the Act’), all relevant Regulations and a casino operator’s system of internal controls and administrative and accounting procedures for the casino approved under section 121 of the Act. (b) These Rules revoke all previous Rules made by the Victorian Commission for Gambling Regulation, or its predecessors, under section 3.5.23(3) of the Gambling Regulation Act 2003 or section 78 of the Gaming Machine Control Act 1991.
Part 2 – Breach of The Rules
3. If a casino operator decides that a person has breached one of these Rules or the Act in relation to, or when playing, a gaming machine, a casino operator may prohibit the person from entering or remaining in the casino under section 72 of the Act.
Part 3 – Conduct of Gaming
4. A player is entitled to receive a cash or cheque payment from a casino operator, in place of an equivalent value of gaming machine winnings or credits, only when the player has verified the amount of payment and then acknowledges receipt of the correct payment by signing the appropriate form.
5. If a player does not want to play out any remaining credits on a gaming machine that amount to less than $1.00, the casino operator must not refuse to make a manual or ‘hand’ payment of the credits to the player.
6. Subject to rule 7, a casino operator must pay, immediately upon request, monetary prizes, coin issues, token issues, and coin or token redemption in the form requested by the player, except where the Act requires payment in a specific form.
7. (a) If a casino operator has a concern about a person’s entitlement to receive a prize, coin issue or token issue, including for reasons that the person may have acted fraudulently or used a prohibited device, or a gaming machine or gaming equipment may have malfunctioned, the casino operator may −
(i) request appropriate forms of personal identification from the player; (ii) withhold the payment of any prize, coin issue or token issue or demand the return of any prize, coin issue or token issue from the player until the casino operator has completed an investigation and made a determination; (iii) confiscate a prohibited device in the possession of a person in accordance with section 80(3) of the Act; and (iv) cause the person who was in possession of a prohibited device to be detained in accordance with section 81 of the Act. (b) In these Rules, ‘prohibited device’ means any equipment, device or thing that permits or facilitates cheating or stealing.
8. All coins or tokens in gaming machines remain the property of the casino operator until won by or refunded to a player in accordance with the Act, the correct operation of the machine and the approved rules of the game and these Rules.
9. A malfunction of a gaming machine or gaming equipment, including jackpot display meter or jackpot controller, voids all gaming machine game plays, winning of jackpots, prizes and payments. All prizes won or monies paid from a gaming machine or gaming machine equipment that has malfunctioned remain the property of the casino operator. The casino operator may adjust the value of the jackpot prize in accordance with approved procedures.
10. Unless otherwise permitted or instructed by a Gaming Machine Operations Manager or Gaming Machine Area Manager, a player may play up to three gaming machines provided that –
(i) The gaming machines are adjacent to each other and all on the same side of a bank of gaming machines; and
(ii) The player has not been requested by a Gaming Machine Operations Manager or Gaming Machine Area Manager to surrender the additional gaming machine(s) to allow other players to play one of the gaming machines.
121 Appendix 4 continued
Victorian Commission for Gambling Regulation Rules – Casino (continued)
11. The multi gaming machine player can choose which of the gaming machines he or she wishes to continue playing, unless otherwise instructed by a Gaming Machine Operations Manager or Gaming Machine Area Manager.
12. The player of a gaming machine must clear credits from the gaming machine when a ‘close of play’ warning or notification is broadcast by the casino operator.
13. A person must not tilt, rock or in any way damage or interfere with a gaming machine or attempt to operate a gaming machine with any object or device other than legal tender, valid gaming tokens or authorized Crown issued card.
14. A person must not occupy a gaming machine without actively playing it or occupy an area adjacent to it so that he or she restricts another player from gaining access to play that gaming machine.
15. Where a gaming machine does not provide a ‘reserve button’ to reserve a gaming machine, an employee of the casino operator may, at the request of the gaming machine player, reserve or hold a particular gaming machine for a reasonable period so as to allow that player to obtain more coin or to attend to any personal matter. Unless this request occurs, a player does not have any reservation rights over any particular gaming machine.
16. A person must not interfere with any part of a gaming machine being played by a player to the annoyance of the player.
17. A person must not hinder, harass, intimidate or interfere in any way with another person’s playing of a gaming machine or with any employee of the casino operator performing duties related to a gaming machine.
18. ‘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. A person must not engage or participate in Syndicate Play. Where a casino operator suspects on reasonable grounds that two or more persons are engaged in Syndicate Play, the casino may restrict the play of those persons.
19. A person must not induce a gaming machine player to vacate a gaming machine or to engage in Syndicate Play, whether by threats, unpleasant behaviour, financial offer or any other method.
20. A person must not solicit or accept an inducement to engage in Syndicate Play.
Part 4 – Player Complaints
21. A player may complain to a casino operator about their experience of playing a gaming machine or the operation of a gaming machine.
22. Where a player complaint remains unresolved or the player is dissatisfied with the outcome of a complaint, the player must be advised of the presence of, and their right to refer the complaint to, an inspector appointed by the Executive Commissioner of the Victorian Commission for Gambling Regulation.
122 Appendix 5
Commission Decisions on Applications for New Premises and Venue Operator Licence Amendments
Note: The following table summarises approvals of new premises, including the approved number of licensed gaming machines, as well as amendments to increase licensed gaming machine numbers at already-approved venues. These decisions have been made at VCGR public inquiries, or, upon appeal, at VCAT. These numbers do not necessarily indicate that the physical movement of gaming machines has taken place. Some decisions are subject to specified conditions which are included in the reasons for the decisions published on the VCGR website. In cases of gaming machine decreases, these decisions have been made at VCGR meetings after the physical removal of gaming machines.
Hearing/ Venue Increase Decrease Capped LGA Gaming Decision/ Region Operator Meeting Sought Granted Not Date Granted 15 Jul 2009 Bridge Inn Hotel, Mernda 40 40 City of Tatts Whittlesea 24 Jul 2009 Bell's Hotel 40 40 City of Port Tatts Phillip 30 Jul 2009 Mail Exchange Hotel 80 80 City of Tatts Melbourne 31 Jul 2009 Matthew Flinders 21 16 5 Region 15 – City of Monash Tatts Taverner City of Monash 19 Aug 2009 Waurn Ponds Hotel 21 21 Region 8 – City of Greater Tabcorp City of Greater Geelong Geelong and the Borough of Queenscliffe 04 Sep 2009 Prince Mark Hotel 15 Region 5 – City of Casey Tatts City of Casey 22 Sep 2009 Cranbourne RSL 9 Region 5 – City of Casey Tatts City of Casey 29 Sep 2009 The Grand at Dandenong 45 Region 6 – City of Greater Tatts City of Greater Dandenong Dandenong 13 Oct 2009 Oasis Oz Hotel (22) Region 14 – City of Tatts City of Melbourne Melbourne 14 Oct 2009 Oakleigh-Carnegie RSL 20 Region 15 – City of Monash Tatts Sub-Branch City of Monash 27 Oct 2009 Oakleigh Junction Hotel 1 Region 15 – City of Monash Tatts City of Monash 27 Oct 2009 Mountain View Hotel 15 City of Monash Tatts 20 Nov 2009 Footscray Football Club 48 Region 13 – City of Tatts City of Maribyrnong Maribyrnong 07 Dec 2009 Sylvania Hotel 1 Region 11 – City of Hume Tabcorp City of Hume 14 Dec 2009 Coolaroo Taverner 2 Region 11 – City of Hume Tatts City of Hume
123 Appendix 5 continued
Commission Decisions on Applications for New Premises and Venue Operator Licence Amendments (continued) Hearing/ Venue Increase Decrease Capped LGA Gaming Decision/ Region Operator Meeting Sought Granted Not Date Granted 14 Dec 2009 Meadow Inn Hotel 3 Region 11 – City of Hume Tatts City of Hume
14 Dec 2009 Lakes Entrance RSL 2 Shire of East Tabcorp Gippsland
14 Dec 2009 Lakes Entrance Bowls 2 Shire of East Tabcorp Club Gippsland
14 Dec 2009 Bairnsdale Bowls Club 1 Shire of East Tabcorp Gippsland
14 Dec 2009 Bairnsdale Sporting and 2 Shire of East Tabcorp Convention Centre Gippsland
14 Dec 2009 The Orbost Club 1 Shire of East Tabcorp Gippsland
15 Dec 2009 Gladstone Park Hotel 4 Region 11 – City of Hume Tabcorp City of Hume
15 Dec 2009 Sporting Legends Club 1 Shire of Tabcorp Wellington
15 Dec 2009 Maryborough Golf Club 7 Shire of Central Tatts Goldfields
17 Dec 2009 Bairnsdale RSL 3 Shire of East Tatts Gippsland
17 Dec 2009 The Lakes Entertainment 2 Shire of East Tatts Centre Gippsland
21 Dec 2009 Maryborough Highland 8 Shire of Central Tabcorp Society Goldfields
22 Dec 2009 Roxburgh Park Hotel 3 Region 11 – City of Hume Tabcorp City of Hume
23 Dec 2009 Broadmeadows Sporting 1 Region 11 – City of Hume Tabcorp Club City of Hume
16 Feb 2010 The Beach 2 City of Port Tatts Phillip
26 Feb 2010 Turfside Tabaret 10 10 Region 12 – City of Latrobe Tabcorp City of Latrobe
15 Mar 2010 Laurimar Tavern 40 40 City of Tatts Whittlesea
24 Mar 2010 Grovedale Hotel 10 10 Region 8 – City of Greater Tabcorp City of Greater Geelong Geelong and the Borough of Queenscliffe
124 Hearing/ Venue Increase Decrease Capped LGA Gaming Decision/ Region Operator Meeting Sought Granted Not Date Granted 01 Apr 2010 New Bay Hotel 50 50 City of Bayside N/A
13 Apr 2010 Cranbourne RSL 8 Region 5 – City of Casey Tatts City of Casey
21 Apr 2010 Wantirna Club 10 10 City of Knox Tatts
06 May 2010 Highlands Hotel 60 60 City of Hume Tatts
25 May 2010 Richmond Tavern 30 City of Yarra Tatts
16 Jun 2010 Sanctuary Lakes Hotel 70 70 City of N/A Wyndham
22 Jun 2010 The Beach 4 City of Port Tatts Phillip
125 Appendix 6
Commission Meetings, Inquiries and Hearings 2009–2010
Number of Commission Meetings* Public Session 30 Private Session 36
Note: The private session meetings figure includes five extraordinary meetings.
Number of Meeting Sessions Attended by Members Public Private Bruce Thompson, Chairman (from 12 September 2009) 19 23 Ms Judith King, Deputy Chair 25 30 Mr Peter Cohen, Executive Commissioner 26 31 Ms Gail Owen OAM, Commissioner (from 27 January 2010) 9 10 Mr Ian Dunn, Chair (until 11 September 2009) 7 9
Note: On four further occasions an Acting Executive Commissioner attended both the public and private session of a meeting.
Number of Commission Inquiries and Hearings Public Inquiries** 13 Private Hearing Matters*** 24 Public Inquiry Sitting Days 15 Private Hearing Sitting Days 4
Number of Matters Heard/Sitting Days by Members # Public Private Matters Sitting Days Matters Sitting Days Mr Bruce Thompson, Chairman (from 12 September 2009) 8 10 19 3 Ms Judith King, Deputy Chair 8 12 24 4 Mr Peter Cohen, Executive Commissioner 3 4 Nil Nil Ms Gail Owen OAM, Commissioner (from 27 January 2010) 3 3 Nil Nil Mr Ian Dunn, Chair (until 11 September 2009) 1 1 5 1
* From November 2009 the meetings frequency shifted from weekly to fortnightly. ** To consider applications for new premises for gaming and increases in gaming machine numbers. *** To consider disciplinary action against licensees (12), appeals against certain licensing decisions (5), and appeals against casino exclusion orders (7). # In addition, four directions hearings were conducted for the purposes of setting hearing dates and/or making directions in relation to the proposed conduct of particular matters.
126 Number of Audit Committee Meetings 4
Number of Audit Committee Meetings Attended by Members Mr Trevor Brown, Chairman 4 Mr David Beatty 4 Ms Judith King 4
Number of Commission Meetings* * By Additional Commissioners performing VCGR functions in relation to the licence awarding phase of the Gambling Licences Review being conducted by the Department of Justice.
Private Session 48
Number of Meeting Sessions Attended by Members His Honour Gordon Lewis AM, Deputy Chair 48 Mr Ken Loughnan AO, Commissioner 46 Ms Suzanne Jones, Commissioner 46
Number of Commission Meetings* * By Additional Commissioners performing the VCGR function of auctioneer in relation to the gaming machine entitlements auction.
Private Session 6
Number of Meeting Sessions Attended by Members Mr Warren Hodgson, Deputy Chair 6 Ms Andrea Hassett, Commissioner 6
127 Appendix 7
Gaming Venues as at 30 June 2010
Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Abruzzo Club EAST BRUNSWICK Tatts C M 59 Aces Sporting Club KEYSBOROUGH Tabcorp C M 77 Albion Charles Hotel NORTHCOTE Tabcorp H M 65 Albion Hotel DANDENONG Tatts H M 24 Albion Inn Hotel COLLINGWOOD Tatts H M 20 Alexandra House Tabaret HAMILTON Tabcorp C C 35 Alma Sports Club NORTH CAULFIELD Tatts C M 26 Altona Bowling Club ALTONA Tabcorp C M 37 Altona RSL ALTONA Tatts C M 58 Altona Sports Club SEAHOLME Tatts C M 83 Amstel Golf Club CRANBOURNE Tabcorp C M 95 Angel Tavern MALVERN Tabcorp H M 45 Anglers Tavern MARIBYRNONG Tabcorp H M 24 Anglesea Golf Club ANGLESEA Tabcorp C C 34 Ararat RSL ARARAT Tatts C C 55 Ashley Hotel BRAYBROOK Tabcorp H M 50 Aspendale Edithvale RSL EDITHVALE Tabcorp C M 49 Austral Hotel COLAC Tatts H C 23 Australian Croatian Association FOOTSCRAY NIL C M 0 Australian Croatian National Hall BELL PARK Tabcorp C C 30 Bacchus Marsh Golf Club BACCHUS MARSH Tabcorp C C 30 Bairnsdale Bowls Club BAIRNSDALE Tabcorp C C 25 Bairnsdale Club BAIRNSDALE Tatts C C 15 Bairnsdale RSL BAIRNSDALE Tatts C C 69 Bairnsdale Sporting and Convention Centre BAIRNSDALE Tabcorp C C 35 Bakers Arms Hotel ABBOTSFORD Tabcorp H M 32 Balaclava Hotel BALACLAVA Tatts H M 56 Ballarat & District Trotting Club BALLARAT Tabcorp C C 50 Ballarat Golf Club BALLARAT Tabcorp C C 28 Ballarat Leagues Club BALLARAT Tatts C C 50 Ballarat RSL BALLARAT Tatts C C 33 Ballcourt Hotel SUNBURY Tabcorp H M 5 Barwon Heads Hotel BARWON HEADS Tatts H C 29 Batman’s Hill on Collins MELBOURNE Tabcorp H M 22 Baxter Tavern Hotel Motel BAXTER Tabcorp H M 30 Bayswater Hotel BAYSWATER Tatts H M 105 Beaumaris Ex-Services Club BEAUMARIS Tatts C M 30 Bell Park Sport & Recreation Club NORTH GEELONG Tatts C C 28 Bell’s Hotel SOUTH MELBOURNE Tatts H M 40 Benalla Bowls Club BENALLA Tatts C C 50 Benalla Golf Club BENALLA Tabcorp C C 25 Bendigo Club BENDIGO Tabcorp C C 44
128
Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Bendigo District RSL Club BENDIGO Tatts C C 81 Bentleigh RSL BENTLEIGH Tatts C M 75 Berwick Inn Taverner BERWICK Tatts H M 63 Birallee Tavern WODONGA Tabcorp H C 24 Blackburn Hotel BLACKBURN Tatts H M 102 Blazing Stump Hotel WODONGA Tatts H C 20 Blue Bell Hotel WENDOUREE Tabcorp H C 48 Boundary Taverner BENTLEIGH EAST Tabcorp H M 90 Bourke Hill’s Welcome Stranger MELBOURNE Tatts H M 100 Box Hill Golf Club BOX HILL Tatts C M 34 Box Hill RSL BOX HILL Tatts C M 100 Braybrook Taverner BRAYBROOK Tatts H M 31 Broadmeadows Sporting Club JACANA Tabcorp C M 64 Browns Corner COBURG Tabcorp H M 28 Bundoora Bowling Club BUNDOORA Tabcorp C M 20 Bundoora Taverner BUNDOORA Tatts H M 100 Burvale Hotel NUNAWADING Tatts H M 103 Cardinia Club PAKENHAM Tabcorp C M 105 Casa D’Abruzzo Club EPPING Tatts C M 60 Castello’s Berwick Hotel BERWICK Tabcorp H M 85 Castello’s Pakenham Hotel PAKENHAM Tabcorp H M 32 Caulfield Racecourse Tabaret CAULFIELD Tabcorp C M 105 Caulfield RSL ELSTERNWICK Tatts C M 52 Celtic Club MELBOURNE Tatts C M 46 Century City Entertainment GLEN WAVERLEY Tabcorp H M 75 Chalambar Golf Club ARARAT Tabcorp C C 33 Chelsea Heights Hotel CHELSEA HEIGHTS Tatts H M 40 Chelsea RSL CHELSEA Tatts C M 65 Cheltenham Moorabbin RSL CHELTENHAM Tatts C M 41 Cherry Hill Tavern DONCASTER EAST Tabcorp H M 50 Chirnside Park Country Club CHIRNSIDE PARK Tatts C M 37 City Bowls Club Colac COLAC Tabcorp C C 20 City Family Hotel BENDIGO Tatts H C 39 City Memorial Bowls Club WARRNAMBOOL Tatts C C 38 Clayton Bowls Club CLAYTON SOUTH Tatts C M 29 Clayton RSL CLAYTON Tatts C M 71 Clifton Springs Golf Club CLIFTON SPRINGS Tabcorp C C 40 Clocks at Flinders Street Station MELBOURNE Tatts C M 100 Club Fogolar Furlan Melbourne THORNBURY Tatts C M 52 Club Hawthorn HAWTHORN Tabcorp C M 43 Club Hotel (Ferntree Gully) FERNTREE GULLY Tabcorp H M 45 Club Hotel (Warragul) WARRAGUL Tatts H C 30
129 Appendix 7 continued
Gaming Venues as at 30 June 2010 (continued)
Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Club Italia Sporting Club NORTH SUNSHINE Tatts C M 38 Club Kilsyth BAYSWATER NORTH Tabcorp C M 100 Club Laverton LAVERTON Tabcorp C M 60 Club Leeds FOOTSCRAY Tatts C M 30 Club Ringwood RINGWOOD Tabcorp C M 75 Club Tivoli WINDSOR Tatts C M 18 Club Warrandyte WARRANDYTE Tabcorp C M 27 Cobden Golf Club COBDEN Tabcorp C C 28 Colac Bowling Club COLAC Tabcorp C C 20 Colac RSL COLAC Tatts C C 25 Commercial Hotel (Camperdown) CAMPERDOWN Tabcorp H C 29 Commercial Hotel (Swan Hill) SWAN HILL Tabcorp H C 18 Commercial Taverner WERRIBEE Tatts H M 75 Coolaroo Taverner COOLAROO Tatts H M 54 Corryong Sporting Complex CORRYONG Tabcorp C C 10 Court House Hotel (Bacchus Marsh) BACCHUS MARSH Tatts H C 40 Court House Hotel (Brunswick) BRUNSWICK Tabcorp H M 20 Court House Hotel (Footscray) FOOTSCRAY Tatts H M 21 Court Jester Hotel PRAHRAN Tatts H M 48 Cowes Golf Club COWES Tatts C C 8 Craigieburn Sporting Club CRAIGIEBURN Tabcorp C M 63 Craig’s Royal Hotel BALLARAT Tabcorp H C 37 Cramers Hotel PRESTON Tatts H M 100 Cranbourne RSL CRANBOURNE Tatts C M 45 Cross Keys Hotel ESSENDON Tabcorp H M 40 Croxton Park Hotel THORNBURY Tatts H M 100 Croydon Hotel CROYDON Tabcorp H M 95 Cumberland Hotel CASTLEMAINE Tatts H C 30 Daisey’s Club Hotel EAST RINGWOOD Tatts H M 75 Dandenong Club DANDENONG Tatts C M 86 Dandenong RSL DANDENONG Tatts C M 63 Dandenong Workers Social Club DANDENONG Tatts C M 77 Darebin RSL PRESTON Tatts C M 65 Dava Hotel MT MARTHA Tabcorp H M 32 Daylesford Bowling Club DAYLESFORD Tabcorp C C 32 Deer Park Club DEER PARK Tatts C M 68 Deer Park Hotel DEER PARK Tabcorp H M 100 Derrimut Hotel SUNSHINE Tabcorp H M 55 Diamond Creek Tavern DIAMOND CREEK Tabcorp H M 40 Dick Whittington Tavern ST KILDA Tatts H M 29 Dingley International Hotel DINGLEY Tabcorp H M 90 Doncaster Inn Hotel DONCASTER Tatts H M 100
130
Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Dorset Gardens Hotel CROYDON Tabcorp H M 97 Dromana Hotel DROMANA Tabcorp H M 41 Dromana Red Hill RSL DROMANA Tatts C M 20 Drums Hotel COBURG Tatts H M 85 East Malvern RSL MALVERN EAST Tatts C M 33 Eastwood Golf Club KILSYTH Tabcorp C M 19 Echuca Hotel ECHUCA Tabcorp H C 12 Echuca Workers and Services Club ECHUCA Tatts C C 84 Edwardes Lake Hotel RESERVOIR Tabcorp H M 100 Elsternwick Hotel ELWOOD Tatts H M 34 Eltham Hotel ELTHAM Tatts H M 57 Eltham RSL ELTHAM Tatts C M 20 Elwood RSL ELWOOD Tatts C M 34 Epping Hotel EPPING Tabcorp H M 40 Epping Plaza Hotel EPPING Tabcorp H M 100 Epping RSL EPPING Tatts C M 40 Esplanade Hotel QUEENSCLIFF Tatts H C 20 Essendon Football & Community Sporting Club ESSENDON Tatts C M 100 Excelsior Hotel THOMASTOWN Tabcorp H M 105 Fairfield & Alphington RSL FAIRFIELD Tatts C M 30 Family Hotel DROUIN Tatts H C 20 Fawkner RSL FAWKNER Tatts C M 35 Ferntree Gully Bowling Club FERNTREE GULLY Tabcorp C M 28 Ferntree Gully Hotel FERNTREE GULLY Tatts H M 90 First & Last Hotel FAWKNER Tatts H M 70 Flemington Racecourse Tabaret FLEMINGTON Tabcorp C M 80 Foresters Arms Hotel OAKLEIGH Tatts H M 46 Fortunes Bendigo BENDIGO Tabcorp C C 100 Foster Golf Club FOSTER Tabcorp C C 25 Fountain Gate Taverner NARRE WARREN Tabcorp H M 95 Frankston Football Club FRANKSTON Tabcorp C M 27 Frankston RSL FRANKSTON Tatts C M 82 Freccia Azzurra Club KEYSBOROUGH Tatts C M 35 Gateway Hotel CORIO Tatts H C 60 Geelong Combined Leagues Club BREAKWATER Tabcorp C C 105 Geelong Football Club GEELONG Tabcorp C C 100 Geelong RSL BELMONT Tatts C C 42 George Hotel BALLARAT Tatts H C 34 Gladstone Park Hotel TULLAMARINE Tabcorp H M 86 Glengala Hotel ARDEER Tatts H M 60 Glenroy RSL GLENROY Tatts C M 40 Golden Fleece Hotel MELTON Tabcorp H M 45
131 Appendix 7 continued
) Gaming Venues as at 30 June 2010 (continued)
Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Golden Nugget MELBOURNE Tabcorp H M 60 Golf House Hotel BALLARAT Tabcorp H C 20 Gordon Hotel PORTLAND Tatts H C 23 Goulburn Valley Hotel SHEPPARTON Tatts H C 40 Grand Central Hotel (Hamilton) HAMILTON Tatts H C 40 Grand Hotel MORNINGTON Tabcorp H M 70 Grand Junction Hotel TRARALGON Tabcorp H C 34 Grand Terminus Hotel BAIRNSDALE Tatts H C 21 Great Western Hotel NEWTOWN Tabcorp H C 36 Green Gully Soccer Club KEILOR DOWNS Tabcorp C M 70 Greensborough Hotel GREENSBOROUGH Tabcorp H M 24 Greensborough RSL GREENSBOROUGH Tatts C M 78 Grosvenor Hotel ST KILDA Tabcorp H M 22 Grovedale Hotel GROVEDALE Tabcorp H C 80 Hallam Taverner HALLAM Tabcorp H M 92 Hampton Bowls Club HAMPTON Tabcorp C M 30 Hampton Park Tavern HAMPTON PARK Tatts H M 73 Hampton RSL HAMPTON Tatts C M 20 Harp of Erin Hotel EAST KEW Tabcorp H M 47 Hastings Cricket & Football Social Club HASTINGS Tatts C M 50 Healesville RSL HEALESVILLE Tatts C M 50 Heidelberg RSL HEIDELBERG Tatts C M 25 Highett Returned & Services Club HIGHETT Tatts C M 41 Highpoint Taverner MARIBYRNONG Tabcorp H M 70 Hill Top Golf and Country Club TATURA Tabcorp C C 20 Hilton on the Park EAST MELBOURNE Tabcorp H M 44 Hogan’s Hotel WALLAN Tabcorp H C 30 Hoppers Crossing Club HOPPERS CROSSING Tabcorp C M 70 Hoppers Crossing Sports Club HOPPERS CROSSING Tabcorp C M 35 Horsham RSL HORSHAM Tatts C C 36 Horsham Sports & Community Club HORSHAM Tatts C C 54 Hotel Sorrento SORRENTO Tabcorp H M 16 Inverloch Esplanade Hotel INVERLOCH Tabcorp H C 17 Isle of Wight Hotel COWES Tatts H C 10 Italian Australian Sporting & Social Club of Gippsland MORWELL Tatts C C 36 Italian Sports Club of Werribee WERRIBEE Tatts C M 57 Ivanhoe Hotel IVANHOE Tatts H M 100 Jokers on Ryrie GEELONG Tatts H C 47 Junction Hotel PRESTON Tabcorp H M 46 Junction Tabaret MOONEE PONDS Tabcorp C M 80 Kangaroo Flat Sports Club KANGAROO FLAT Tabcorp C C 48 Karingal Bowling Club FRANKSTON Tabcorp C M 29
132
Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Kealba Hotel KEALBA Tabcorp H M 86 Keilor East RSL ESSENDON Tatts C M 25 Keilor Hotel KEILOR Tatts H M 50 Kerang Sports and Entertainment Venue KERANG Tatts C C 45 Keysborough Hotel KEYSBOROUGH Tabcorp H M 89 Kilmore Trackside KILMORE Tabcorp C C 56 Kings Creek Hotel HASTINGS Tabcorp H M 33 Kirkpatricks Hotel MORNINGTON Tatts H M 40 Knox Club WANTIRNA Tatts C M 100 Knox Tavern WANTIRNA SOUTH Tabcorp H M 77 Kooringal Golf Club ALTONA Tabcorp C M 49 Korumburra Hotel KORUMBURRA Tabcorp H C 16 Kyabram Club KYABRAM Tatts C C 53 Kyneton Bowling Club KYNETON Tatts C C 25 Kyneton RSL KYNETON Tabcorp C C 28 Lakes Entrance Bowls Club LAKES ENTRANCE Tabcorp C C 53 Lakes Entrance RSL LAKES ENTRANCE Tabcorp C C 35 Lalor Bowling Club LALOR Tabcorp C M 36 Langwarrin Hotel LANGWARRIN Tabcorp H M 52 Lara Hotel LARA Tatts H C 20 Lara Sporting Club LARA Tabcorp C C 50 Leighoak OAKLEIGH Tabcorp C M 92 Leongatha RSL LEONGATHA Tatts C C 40 Leopold Sportsmans Club LEOPOLD Tabcorp C C 35 Lilydale Crown Hotel LILYDALE Tatts H M 68 Lincolnshire Arms Hotel ESSENDON Tabcorp H M 38 Loch Sport RSL LOCH SPORT Tatts C C 10 London Tavern CAULFIELD Tabcorp H M 50 Long Beach Hotel CHELSEA Tabcorp H M 49 Lord of the Isles Tavern NEWTOWN Tatts H C 60 Lorne Hotel LORNE Tatts H C 22 Lower Plenty Hotel LOWER PLENTY Tabcorp H M 85 L’unico Bar & Bistro CLAYTON Tabcorp H M 28 Lynbrook Hotel LYNBROOK Tatts H M 32 Lyndhurst Club Hotel EAST BRUNSWICK Tatts H M 48 Mac’s Hotel (Melton) MELTON Tabcorp H M 82 Mac’s Hotel (Warrnambool) WARRNAMBOOL Tatts H C 31 Maffra Community Sports Club MAFFRA Tabcorp C C 35 Magpie and Stump Hotel WANDONG Tabcorp H C 24 Malvern Vale Club Hotel MALVERN Tabcorp H M 30 Manhattan Hotel RINGWOOD Tatts H M 103 Manningham Club BULLEEN Tatts C M 100
133 Appendix 7 continued
Gaming Venues as at 30 June 2010 (continued)
Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Mansfield Golf Club MANSFIELD Tabcorp C C 29 Marine Hotel BRIGHTON Tatts H M 40 Maroondah Sports Club EAST RINGWOOD Tabcorp C M 56 Maryborough Golf Club MARYBOROUGH Tatts C C 43 Maryborough Highland Society MARYBOROUGH Tabcorp C C 56 Matthew Flinders Taverner CHADSTONE Tatts H M 75 McCartins Hotel LEONGATHA Tabcorp H C 20 McKinnon Hotel McKINNON Tabcorp H M 19 Meadow Inn Hotel FAWKNER Tatts H M 73 Melton Country Club MELTON Tatts C M 90 Melton Entertainment Complex MELTON SOUTH Tabcorp C M 80 Mentone RSL MENTONE Tatts C M 25 Merbein Citizens Club MERBEIN Tabcorp C C 20 Mercure Grand Hotel on Swanston MELBOURNE Tabcorp H M 90 Midlands Golf Club BALLARAT Tatts C C 32 Milano’s Hotel BRIGHTON Tatts H M 60 Mildura Gateway Tavern MILDURA Tatts H C 75 Mildura Golf Club MILDURA Tabcorp C C 20 Mildura Grand Hotel Resort MILDURA Tabcorp H C 19 Mildura RSL MILDURA Tatts C C 45 Mildura Working Mans Sports & Social Club MILDURA Tabcorp C C 67 Mitcham Hotel MITCHAM Tatts H M 100 Mitcham RSL MITCHAM Tabcorp C M 25 Mitchell River Tavern BAIRNSDALE Tabcorp H C 20 Moe Hotel MOE Tatts H C 27 Moe RSL Club MOE Tatts C C 41 Monash Hotel CLAYTON Tabcorp H M 50 Monbulk Bowling Club MONBULK Tabcorp C M 30 Montmorency RSL MONTMORENCY Tatts C M 35 Moonee Valley Legends MOONEE PONDS Tatts C M 105 Mooroopna Golf Club MOOROOPNA Tabcorp C C 44 Moreland Hotel BRUNSWICK Tabcorp H M 70 Mornington on Tanti Hotel MORNINGTON Tabcorp H M 23 Morwell Bowling Club MORWELL Tabcorp C C 63 Morwell Club MORWELL Tatts C C 35 Morwell Hotel MORWELL Tatts H C 30 Morwell RSL MORWELL Tatts C C 42 Motor Club Hotel CRANBOURNE Tatts H M 70 Mount Beauty Country Club MT BEAUTY Tabcorp C C 19 Mountain View Hotel GLEN WAVERLEY Tatts H M 85 Mulgrave Country Club WHEELERS HILL Tabcorp C M 105 Myrtleford Savoy Sporting Club MYRTLEFORD Tabcorp C C 26
134
Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Nagambie Lakes Entertainment Centre NAGAMBIE Tatts C C 32 Newmarket Tavern NEWMARKET Tatts H M 68 Noble Park Football Social Club NOBLE PARK Tatts C M 46 Noble Park RSL NOBLE PARK Tatts C M 30 Norlane Hotel NORLANE Tabcorp H C 105 North Ballarat Sports Club BALLARAT Tatts C C 90 North Suburban Sports Club MOONEE PONDS Tatts C M 50 Northcote Park Football Club BRUNSWICK Tabcorp C M 85 Northcote RSL NORTHCOTE Tatts C M 56 Numurkah Golf & Bowls Club NUMURKAH Tabcorp C C 38 Oakleigh Junction Hotel OAKLEIGH Tatts H M 46 Oasis Oz Hotel NORTH MELBOURNE Tatts H M 22 Ocean Grove Bowling Club OCEAN GROVE Tabcorp C C 60 Old Dandy Inn DANDENONG Tabcorp H M 30 Old England Hotel HEIDELBERG Tatts H M 105 Olinda Creek Hotel LILYDALE Tabcorp H M 60 Olive Tree Hotel SUNBURY Tabcorp H M 43 Olympic Hotel PRESTON Tabcorp H M 80 Ouyen Club OUYEN Tabcorp C C 5 Pakenham Inn PAKENHAM Tatts H M 50 Pakenham Sports Club PAKENHAM Tatts C M 38 Palace Hotel CAMBERWELL Tatts H M 48 Parkview Hotel FITZROY NORTH Tatts H M 30 Pascoe Vale RSL PASCOE VALE Tatts C M 47 Pascoe Vale Taverner Hotel PASCOE VALE Tatts H M 51 Peninsula Hotel Motel NEWCOMB Tatts H C 55 Phillip Island RSL COWES Tatts C C 53 Phoenix Hotel GEELONG Tabcorp H C 28 Pier Hotel FRANKSTON Tatts H M 97 Pinsent Hotel WANGARATTA Tabcorp H C 44 Players Hotel DANDENONG Tabcorp H M 25 Players on Lygon CARLTON Tatts H M 75 Plough Hotel MILL PARK Tatts H M 100 Portarlington Golf Club PORTARLINGTON Tabcorp C C 55 Portland Football Netball Cricket Club PORTLAND Tabcorp C C 25 Portland RSL Memorial Bowling Club PORTLAND Tatts C C 25 Powell Hotel FOOTSCRAY Tatts H M 30 Prahran Football Social Club PRAHRAN Tabcorp C M 81 Preston Hotel PRESTON Tatts H M 41 Prince Mark Hotel DOVETON Tatts H M 88 Queenscliff Bowling Tennis and Croquet Club QUEENSCLIFF Tabcorp C C 30 Racecourse Hotel (Malvern East) MALVERN EAST Tabcorp H M 40
135 Appendix 7 continued
Gaming Venues as at 30 June 2010 (continued)
Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Racecourse Hotel (Werribee) WERRIBEE Tabcorp H M 52 Railway Club Hotel SEYMOUR Tabcorp H C 33 Red Cliffs Club RED CLIFFS Tabcorp C C 34 Red Lion Hotel BALLARAT Tatts H C 45 Reggio Calabria Club WEST BRUNSWICK Tatts C M 34 Reservoir Bowling Club RESERVOIR Tatts C M 23 Reservoir RSL RESERVOIR Tabcorp C M 68 Richmond Tavern RICHMOND NIL C M 0 Rifle Club Hotel WILLIAMSTOWN Tatts H M 59 Ringwood RSL RINGWOOD Tatts C M 70 Rising Sun Hotel BENDIGO Tatts H C 35 Riversdale Hotel HAWTHORN Tabcorp H M 42 Riviera Hotel SEAFORD Tabcorp H M 45 Robinvale Golf Club ROBINVALE Tabcorp C C 25 Rose Shamrock & Thistle Hotel EAST RESERVOIR Tatts H M 60 Rosebud Country Club ROSEBUD Tabcorp C M 48 Rosebud Hotel ROSEBUD Tatts H M 70 Rosebud RSL ROSEBUD Tatts C M 75 Rosstown Hotel CARNEGIE Tabcorp H M 103 Roxburgh Park Hotel COOLAROO Tabcorp H M 71 Royal Exchange Hotel TRARALGON Tatts H C 35 Royal Hotel (Benalla) BENALLA Tabcorp H C 20 Royal Hotel (Daylesford) DAYLESFORD Tatts H C 18 Royal Hotel (Essendon) ESSENDON Tabcorp H M 70 Royal Hotel (Horsham) HORSHAM Tatts H C 23 Royal Hotel (Sunbury) SUNBURY Tabcorp H M 31 Royal Oak Hotel CHELTENHAM Tabcorp H M 76 Royal Oak Richmond RICHMOND Tabcorp C M 80 Royal Taverner FERNTREE GULLY Tatts H M 90 Rubicon Hotel Motel THORNTON Tabcorp H C 16 Rye Hotel RYE Tatts H M 30 Rye RSL Club RYE Tatts C M 100 Sale & District Greyhound Racing Club SALE Tabcorp C C 70 Sale Community Sports Club SALE Tatts C C 33 Sandbelt Club Hotel MOORABBIN Tabcorp H M 100 Sandown Greyhounds Tabaret SPRINGVALE Tabcorp C M 93 Sandown Park Hotel NOBLE PARK Tatts H M 90 Sandown Racecourse - Highways Tabaret SPRINGVALE Tabcorp C M 90 Sandringham Hotel SANDRINGHAM Tabcorp H M 45 Sands Taverner CARRUM DOWNS Tatts H M 70 Seaford RSL SEAFORD Tatts C M 25 Seaford Taverner SEAFORD Tabcorp H M 105
136
Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Seagulls Nest NEWPORT Tabcorp C M 61 Sebastopol Bowling Club SEBASTOPOL Tatts C C 50 Seymour Club SEYMOUR Tatts C C 50 Shamrock Hotel BENDIGO Tabcorp H C 45 Shanghai Club MELBOURNE Tatts H M 48 Shell Club CORIO Tatts C C 100 Shepparton Club SHEPPARTON Tabcorp C C 61 Shepparton RSL SHEPPARTON Tatts C C 80 Sherbourne Terrace SHEPPARTON Tabcorp H C 39 Shoppingtown Hotel DONCASTER Tatts H M 100 Sir Henry Barkly Hotel HEIDELBERG Tatts H M 65 Skyways Taverner AIRPORT WEST Tatts H M 100 Somerville Hotel SOMERVILLE Tabcorp H M 39 South Oakleigh Club BENTLEIGH EAST Tatts C M 42 Sphinx Hotel NORTH GEELONG Tatts H C 63 Sporting Legends Club SALE Tabcorp C C 74 Sportspark Gaming and Entertainment Centre WENDOUREE Tabcorp C C 35 Springvale RSL Club SPRINGVALE Tatts C M 44 SS & A Wodonga WODONGA WEST Tatts C C 60 St Albans Hotel ST ALBANS Tatts H M 50 St Albans Sports Club ST ALBANS Tabcorp C M 30 St Arnaud Sporting Club ST ARNAUD Tabcorp C C 35 St George Workers Club GEELONG WEST Tabcorp C C 35 St Kilda Army & Navy Club ST KILDA Tatts C M 60 St Kilda Football Social Club MOORABBIN Tabcorp C M 83 Stamford Hotel ROWVILLE Tatts H M 103 Star Hotel (Bright) BRIGHT Tatts H C 18 Star Hotel (Sale) SALE Tatts H C 29 Stawell Harness Racing Club STAWELL Tabcorp C C 30 Steeples Tabaret MORNINGTON Tabcorp C M 85 Stoneys Club BACCHUS MARSH Tabcorp C C 40 Summerhill Hotel RESERVOIR Tabcorp H M 100 Sunbury Bowling Club SUNBURY Tatts C M 78 Sunbury Football Social Club SUNBURY Tabcorp C M 38 Sunbury United Sporting Club SUNBURY Tabcorp C M 27 Sunshine City Club SUNSHINE Tabcorp C M 23 Sunshine RSL SUNSHINE Tatts C M 60 Swan Hill Club SWAN HILL Tabcorp C C 35 Swan Hill RSL SWAN HILL Tatts C C 30 Sylvania Hotel CAMPBELLFIELD Tabcorp H M 87 Tankerville Arms Hotel FITZROY Tatts H M 49 Taylors Lakes Family Hotel TAYLORS LAKES Tatts H M 105
137 Appendix 7 continued
Gaming Venues as at 30 June 2010 (continued)
Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Templestowe Hotel LOWER TEMPLESTOWE Tabcorp H M 50 The Beach ALBERT PARK Tatts H M 32 The Bentleigh Club BENTLEIGH Tabcorp C M 80 The Borough Club EAGLEHAWK Tabcorp C C 40 The Bridge Hotel MORDIALLOC Tatts H M 50 The Brook on Sneydes POINT COOK Tatts C M 80 The Brunswick Club BRUNSWICK Tatts C M 43 The Chase Hotel FOREST HILL Tabcorp H M 90 The Club CAROLINE SPRINGS Tatts C M 60 The Coach and Horses RINGWOOD Tabcorp C M 80 The Cove Hotel PATTERSON LAKES Tabcorp H M 45 The Elsternwick Club ELSTERNWICK Tabcorp C M 32 The Grand Hotel Frankston FRANKSTON Tabcorp H M 64 The International LILYDALE Tatts C M 80 The Kingston Club MORDIALLOC Tabcorp C M 70 The Lakes Entertainment Centre LAKES ENTRANCE Tatts C C 36 The Meeting Place at Melbourne Central MELBOURNE Tabcorp C M 56 The Millers Inn Hotel ALTONA NORTH Tatts H M 70 The Old Town ‘N’ Country Tavern WANGARATTA Tatts H C 29 The Orbost Club ORBOST Tabcorp C C 23 The Prince Of Wales Hotel – Richmond RICHMOND Tatts H M 40 The Rex PORT MELBOURNE Tatts C M 57 The Richmond Henty Hotel PORTLAND Tabcorp H C 32 The Sale RSL & Community Sub-Branch SALE Tatts C C 36 The Settlement at Cranbourne CRANBOURNE Tabcorp H M 44 The Sugar Gum Hotel SYDENHAM Tabcorp H M 50 The Tigers Clubhouse HOPPERS CROSSING Tabcorp C M 65 The Union Club Hotel COLAC Tabcorp H C 22 The Vale Hotel MULGRAVE Tabcorp H M 56 The Whalers Inn WARRNAMBOOL Tabcorp H C 45 The Yarram Country Club YARRAM Tatts C C 37 Tooradin & District Sports Club TOORADIN Tabcorp C M 42 Torquay Golf Club TORQUAY Tatts C C 40 Torquay Hotel TORQUAY Tabcorp H C 15 Tower Hotel EAST HAWTHORN Tabcorp H M 25 Town Hall Hotel Stawell STAWELL Tatts H C 23 Traralgon Bowls Club TRARALGON Tabcorp C C 54 Traralgon RSL TRARALGON Tatts C C 37 Trios Tabaret CRANBOURNE Tabcorp C M 75 Tudor Inn Hotel CHELTENHAM Tatts H M 56 Turfside Tabaret MOE Tabcorp C C 65 Upper Yarra RSL YARRA JUNCTION Tatts C M 30
138
Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Vaucluse Hotel RICHMOND Tabcorp H M 31 Vegas at Waverley Gardens MULGRAVE Tatts C M 75 Veneto Club BULLEEN Tatts C M 90 Vermont Football Club WANTIRNA Tabcorp C M 60 Vic Inn Williamstown WILLIAMSTOWN Tabcorp C M 60 Victoria Hotel (Shepparton) SHEPPARTON Tatts H C 45 Victoria on Hyde Hotel YARRAVILLE Tabcorp H M 24 Victorian Tavern GISBORNE Tabcorp H C 42 Village Belle Hotel ST KILDA Tabcorp H M 20 Village Green Hotel MULGRAVE Tabcorp H M 79 Vine Hotel Richmond RICHMOND Tatts H M 26 Waltzing Matilda Hotel SPRINGVALE Tabcorp H M 80 Wangaratta Club WANGARATTA Tabcorp C C 25 Wangaratta RSL WANGARATTA Tatts C C 32 Wantirna Club WANTIRNA Tatts C M 77 Warragul Club WARRAGUL Tabcorp C C 80 Warragul Country Club WARRAGUL Tatts C C 45 Warrnambool Bowls Club WARRNAMBOOL Tabcorp C C 45 Warrnambool Football Club Social Club WARRNAMBOOL Tabcorp C C 51 Warrnambool RSL WARRNAMBOOL Tatts C C 24 Watergardens Hotel TAYLORS LAKES Tatts H M 70 Waterloo Cup Hotel MOONEE PONDS Tabcorp H M 70 Watsonia RSL WATSONIA Tatts C M 83 Waurn Ponds Hotel WAURN PONDS Tabcorp H C 35 Waverley RSL Club GLEN WAVERLEY Tatts C M 67 Werribee Bowling Club WERRIBEE Tabcorp C M 19 Werribee Plaza Tavern WERRIBEE Tabcorp H M 80 Werribee RSL WERRIBEE Tatts C M 60 West Bendigo Sports & Entertainment Centre – Bendigo Stadium GOLDEN SQUARE Tabcorp C C 75 West Heidelberg RSL WEST HEIDELBERG Tabcorp C M 31 West Side Tabaret HORSHAM Tabcorp C C 34 Westend Market Hotel SUNSHINE Tatts H M 88 Westernport Hotel HASTINGS Tatts H M 40 Westmeadows Tavern WESTMEADOWS Tatts H M 42 Westside Taverner LAVERTON NORTH Tabcorp H M 70 Wheelers Hill Hotel WHEELERS HILL Tabcorp H M 50 White Eagle House BREAKWATER Tabcorp C C 35 Whittlesea Bowls Club WHITTLESEA Tabcorp C M 40 Williamstown RSL WILLIAMSTOWN Tatts C M 42 Windermere Hotel KANGAROO FLAT Tatts H C 40 Wodonga Hotel WODONGA Tatts H C 80
139 Appendix 7 continued
Gaming Venues as at 30 June 2010 (continued)
Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Wonthaggi Club WONTHAGGI Tabcorp C C 58 Wonthaggi Golf Club WONTHAGGI Tabcorp C C 15 Wonthaggi Workmen’s Club WONTHAGGI Tatts C C 55 Yallourn Bowling Club NEWBOROUGH Tabcorp C C 23 Yarra Valley Country Club BULLEEN Tabcorp C M 100 Yarraville Club YARRAVILLE Tatts C M 78 Yarraville Club Cricket Club MAIDSTONE Tabcorp C M 76 Yarraville-Footscray Bowling Club SPOTSWOOD Tabcorp C M 29 York on Lilydale Taverner Resort MT EVELYN Tatts H M 72 Young & Jacksons Hotel MELBOURNE NIL H M 0 Zagame Boronia BORONIA Tabcorp H M 80 Zagame’s Ballarat Club Hotel BALLARAT Tabcorp C C 105 Zagame’s Brunswick Club Hotel BRUNSWICK Tabcorp H M 50 Zagame’s Caulfield Club Hotel CAULFIELD EAST Tabcorp H M 100 Total for 517 venues: 26,682
* Number of electronic gaming machines licensed to operate.
140 Appendix 8
Registered Bookmakers as at 30 June 2010 Sole Trader Last Name Given Name(s) Last Name Given Name(s)
ADAMS Graham Geoffrey DOUGHTY Anthony John ALLARDICE Craig William DOW Anthony ARCHBOLD Ian William DOW John Brendan ASH Stephen Robert DOW John Patrick ATCHISON Mark Anthony ELLIOTT Wayne Kenneth AVDULLA Peter ENGELLENER Greg John BAKER Adam John ERHARDT Reginald Martin BAKER Barry William ESKANDER Alan James BARBER Peter Robbie ESKANDER Lisa BARKER Alan Maxwell ESKANDER Michael BEASLEY Jeffree John FILGATE Mark Jonathan BEAVER Walter Frederick FITT Gerard Robert BELL Alexander Stewart FITZPATRICK Garry Michael BELL Arthur Kevin FOY Daryl John BICKERTON Deidre Elizabeth GALVAN Danny Albert BICKERTON Paul Anthony GALVAN Sharon Lee BON Peter Noel GILHAM Darren Paul BOWLES Alec GIRKE Paul BRILLIANT Ian GLEESON Damian John BROWN Peter Smalbroke GORDON Stuart Francis BULL John Alan GRAHAM Noel Ross BURKE John Daniel GRAHAM William Gerard BYRNE Brian Francis GREEN John Charles BYRNE Michael Kevin GRINDAL Brett Anthony CAMPAGNA Ernest Anthony HAHNEL Geoffrey Oswald CARVILL Jason Matthew HARRAK Michael CHALMERS Timothy William HART Kevin Francis CLEARY Brendan Allen HAY Wayne Reginald CLEARY Lyndon Allen HOLDERHEAD Murray David CLEARY Rodney Allen HSU Lyndon Mark COLLINS Keith Alfred HUDSON Frank Norman CONNOLLY Terence Richard HUMPHRIES Ian James CORONICA Giuseppe HUNTER William Edward Hugh COSTER Peter Graham HYLAND Geoffrey Thomas COSTER Siobhan Nellie JOHNSON Paul Antoney COX David Charles JONES Adrian Donald CRAMP Michael John KAFATARIS Con Peter CRIMMINS Daniel Thomas KAY Geoffrey William CROWE Carly Elizabeth KEAYS Kevin Robert DALTON Barry Francis KENNEDY Alistair James DE CAMPO Mark Sebastian KENNEDY James Grant DE CAMPO Michael KENNEDY Kasie Anne DONALD Geoffrey Charles KERR Brian Thomas DORRINGTON Joanne May KERR Calvin James DORRINGTON John Albert KILLIAN Eric Leslie DOUGHERTY Steven James KILMARTIN David John
141 Appendix 8 continued
Registered Bookmakers as at 30 June 2010 (continued) Sole Trader (continued) Last Name Given Name(s) Last Name Given Name(s)
KING Alfred Norman READ Kathryn Louise KING Andrea Therese RICHARDS Peter Gregory LAWRENCE Peter James ROBERTSON Angus Sinclair LEYDEN Desmond James ROWLANDS Jeffrey Hugh Dalton LILLIS Terry ROWLANDS John William Dalton LUCAS Michael George RYAN Gary Terrence LYNN Steven Thomas SABER Kevin Patrick MACCIOTTA Richard SABER Mark Kenneth MacLEOD Ian Robert SAMPIERI Anita MANNING Maxwell Henry SAMPIERI Graeme Charles MANN Brian Charles SAMPIERI Mark Anthony MANSOUR Gavin Anthony SCHULTZ Kevin John MARANTELLI Adrian Paul SCHWARZ Alan Gerald MARANTELLI Edward Peter SCHWARZ Rick Charlton MARANTELLI Gavin Patrick SHORT Norman Douglas MARANTELLI Mark Anthony SIMKIN Douglas Bruce MARSHMAN Kenneth Sydney SMEATON John Maurice MA Winnie STARR Philip John McCUTCHEON Campbell Raymond STILES Peter McGOWAN Rodger Geoffrey STOIOS Stephen David McGRATH Amy Judith SWANNIE Raymond John McGRATH Damien Joseph SYLVESTER Jason Mark McHENRY Dustin Tim TAYLOR Ian Wayne McHENRY Graeme Alfred THOMAS Garry Raymond McHENRY Stephen Graeme THOMPSON David Alan McLAUCHLAN David Ian TIDDY Peter Winston McLAUCHLAN Leah – Jane TODD Adrian John MILES Geoffrey Stephen VEALE Jack MILLS Daniel James WADDELL Denis Francis MONTGOMERY Leslie Robert WALKER John Lee MUSGROVE Gregory John WALLACE Haydn John MUSOLINO Bruno Anthony WALSH John Stewart NORRIS Charles Herbert WALSH Jonathan David NOTT Craig David WALSH Kevin John NOTT Philip John WARD Kevan Raymond O’BRIEN Brian Patrick WATERHOUSE Thomas Robert OKE Norman Leonard WATTS Fred Richard John PARKES Craig William WHITING Edward Thomas PARK Neil John WILLIAMS Gerald Neil PETERSON Paul WILSON Neil Thomas PETRAC Anthony Steven WRIGHT Marie Therese QUINN Raymond WRIGHT Roger Thomas
142 Approved Partnership
Name Members – Last Name Members – Given Name(s) B T & C J KERR KERR Brian KERR Calvin BELL / MANNING BELL Alex MANNING Max BOOLBET SPORTS AND RACING ATCHISON Mark Anthony LUCAS Michael George D & S GALVAN GALVAN Danny GALVAN Sharon DOUBLEBET COSTER Peter Graham COSTER Siobhan Nellie FLEMINGTON SPORTSBET SHORT Norm SYLVESTER Jason FONEBET SCHWARZ Alan SCHWARZ Rick G & A MARANTELLI MARANTELLI Gavin Patrick MARANTELLI Adrian Paul G & M SAMPIERI SAMPIERI Graeme SAMPIERI Mark GALLOP BET HSU Lyndon SAMPIERI Anita GEE GEE RACING GILHAM Darren GRINDAL Brett JO & JOHN DORRINGTON DORRINGTON Joanne DORRINGTON John JOHN AND JONATHAN WALSH BOOKMAKING WALSH John Stewart WALSH Jonathan David JW & JH ROWLANDS ROWLANDS Jeffrey ROWLANDS John K & M SABER SABER Kevin SABER Mark KING BET KING Alf KING Andrea L & G FITZPATRICK RACING FITZPATRICK Gary Michael MILLS Daniel James LISA ESKANDER PARTNERSHIP ESKANDER Lisa ESKANDER Michael LUCKY BET BAKER Adam HYLAND Geoff LYNN & CRIMMINS CRIMMINS Daniel LYNN Steven M & M DE CAMPO DE CAMPO Mark DE CAMPO Michael McGRATH & McGRATH McGRATH Amy McGRATH Damien P & C NOTT NOTT Craig David NOTT Phillip John P & D BICKERTON BICKERTON Dierdre BICKERTON Paul R & M WRIGHT WRIGHT Marie WRIGHT Roger
143 Appendix 8 continued
Registered Bookmakers as at 30 June 2010 (continued) Approved Partnership (continued)
Name Members – Last Name Members – Given Name(s) SUREBET ASH Stephen McHENRY Stephen TURFBET KILMARTIN David John LILLIS Terry WRIGHT ODDS WRIGHT Marie Therese WRIGHT Roger Thomas CROWE Carly Elizabeth YOUR BEST BET DONALD Geoff CRAMP Michael
Corporation Name
ALAN ESKANDER BOOKMAKING PTY LTD
CITYBET PTY LTD
KENSON (BOOKMAKERS) PTY LTD
TURF ACCOUNTANTS AUSTRALIA PTY LTD
WINBET (AUST) PTY LTD
144 Appendix 9
Bingo Centres and Commercial Raffle Organisers as at 30 June 2010
Bingo Centres
Bingo Centre Name Location
Aspendale Edithvale RSL Bingo Centre EDITHVALE Ballarat Bingo Centre BALLARAT Bingo City ALTONA NORTH Broadway Bingo Centre RESERVOIR Carrum Gardens Bingo Centre CARRUM DOWNS Club Bingo SHEPPARTON Community Bingo Centre BENDIGO Dorset Gardens Bingo Centre CROYDON Fawkner Bingo Centre FAWKNER Fountain Gate Bingo Centre NARRE WARREN Mornington Peninsula Bingo Centre MORNINGTON Northern Bingo Centre BRUNSWICK Prahran Bingo Centre PRAHRAN Raiders Bingo Centre BREAKWATER Shepparton Bingo Centre SHEPPARTON St Albans Bingo Centre ST ALBANS The Palais Bingo Centre GEELONG Werribee Plaza Bingo Centre HOPPERS CROSSING Western Suburbs Bingo Centre MAIDSTONE
Commercial Raffle Organisers
Apple Marketing Group Pty Ltd Level 12, 42 Marine Parade SOUTHPORT QLD 4215 Austview Holdings Pty Ltd 5/574 St Kilda Road MELBOURNE VIC 3004 Communication Direct Pty Ltd Level 1, 108–112 Johnston Street COLLINGWOOD VIC 3066 Contact Centres Australia Pty Ltd Level 5, 241 Commonwealth Street SURRY HILLS NSW 2010 Levac Pty Ltd 4th Floor, 11 Queens Road MELBOURNE VIC 3004 S.O. Asher Consultants Pty Ltd Pilot Partners Level 5, 175 Eagle Street BRISBANE QLD 4000
145 Appendix 10
Licensing Activities
Licence or Approval Type 2008–2009 2009–2010 Gaming industry employee Issued New 2,492 2,740 Renewal 892 1,693 Replacement 656 650 Refused 36 65 Appealed 7 5 Appeal granted 7 2 Appeal rejected 2 2 Appeal pending 0 1 Casino special employee Issued New 806 689 Renewal 243 320 Replacement 113 115 Upgrade 45 45 Refused 0 3 Appealed 0 1 Appeal granted 0 0 Appeal rejected 0 1 Casino operator New associate 1 2 Gaming operator New associate 16 4 Venue operator Issued New 12 59 Renewal 154 29 New nominee 198 89 New associate 354 343 Amendment 26 100 Endorsement 3 2 Refused 1 0 24-hour gaming applications Approved 0 0 Refused 0 0 Bookmakers Issued Sole Traders 3 7 Corporate 0 1 Partnerships 1 7 New nominee 2 0 Refused 0 0 Bookmaker key employees Issued New 8 25 Renewal 0 0 Replacement 6 0 Refused 0 0 Appealed 0 0
146
Licence or Approval Type 2008–2009 2009–2010 Bingo centre operator Issued New 0 1 Renewal 2 0 New nominee 2 3 New associate 1 1 Amendment 0 0 Refused 0 0 Withdrawn by applicant 0 0 Appealed 0 0 Appeal granted 0 0 Commercial raffle organisers Issued New 2 1 Renewal 0 0 New nominee 0 1 New associate 0 0 Amendment 0 0 Refused 0 0 Controlled contracts Issued New 1 0 Variations 0 0 Exemptions 0 0 Roll of Manufacturers, Suppliers and Testers Issued New 1 3 New associate 45 19 Refused 0 0 Voluntary removal 0 1 Premises approval Issued New 4 6 Refused 0 0 Minor gaming permits Issued Raffles 312 318 Bingo 313 489 Lucky Envelopes 351 199 Fundraising functions 239 212 Amendments 214 223 Refused 0 0 Trade promotion lottery permits Issued New 3,483 3,272 Amendments 786 830 Refused 3 3 Declaration of community or charitable organisation Issued 587 538 Refused 0 10 Revoked 0 0 Appealed 0 0 Appeal rejected 0 0 Reviewed 22 147
147 Appendix 11
Number of Active Licences at 30 June 2009 and 30 June 2010
There has been a further decline in the number of gaming industry employee licence holders during the 2009–2010 year. This is the second full year in which 10-year licences fell due for renewal, beginning in March 2008.
Again, renewal was not sought for most of the licences that fell due for renewal.
Category 2009 2010 Casino special employee 3,644 3,801 Gaming industry employee 43,076 37,685 Total 46,720 41,486
148 Appendix 12
Roll of Manufacturers, Suppliers and Testers as at 30 June 2010
Ainsworth Game Technology Limited 10 Holker Street, Konami Australia Pty Ltd Newington, New South Wales, AUSTRALIA 2128 28–40 Lord Street, Botany, New South Wales, AUSTRALIA 2019 Amtek Corporation Pty Ltd 1140 Nepean Highway, Konami Gaming Australia Pty Ltd Mornington, Victoria, AUSTRALIA 3931 28–40 Lord Street, Botany, New South Wales, AUSTRALIA 2019 Aristocrat Technologies Australia Pty Ltd Building A, Pinnacle Office Park, 85 Epping Road, PVS Australia Pty Ltd North Ryde, New South Wales, AUSTRALIA 2113 651 Portrush Road, Glen Ormond, South Australia, AUSTRALIA 5064 B.G.I. Australia Pty Ltd C/- Corporate Secretarial Practice, 10 Shelley Street, Qalab Pty Ltd Sydney, New South Wales, AUSTRALIA 2000 Suite 3, Level 3, Binary Centre, 3 Richardson Place, North Ryde, New South Wales, AUSTRALIA 2133 BMM Australia Pty Ltd Level 3, 810 Whitehorse Road, Southern Gaming Services Pty Ltd Box Hill, Victoria, AUSTRALIA 3128 44–60 Fenton Street, Huntingdale, Victoria, AUSTRALIA 3166 Bytecraft Systems Pty Ltd 2 Monterey Road, Shuffle Master Australasia Pty Ltd Dandenong South, Victoria, AUSTRALIA 3175 1 Sheridan Close, Milperra, New South Wales, AUSTRALIA 2214 Enex Pty Ltd 272 Keilor Road, Wintech Investments Pty Ltd Essendon North, Victoria, AUSTRALIA 3041 6 Monterey Road Dandenong, Victoria, AUSTRALIA 3175 Global Gaming Industries Pty Ltd Unit 3, 19–21 Bourke Road, WMS Gaming Inc. Alexandria, New South Wales, AUSTRALIA 2015 800 South Northpoint Boulevard, Waukegan, Illinois, USA 60085 GTA Pty Ltd 15–31 Ayliffes Road, St Marys, South Australia, AUSTRALIA 5042
I.G.T. (Australia) Pty Ltd 1 Rosebery Avenue, Rosebery, New South Wales, AUSTRALIA 2018
149 Appendix 13
Responsible Gaming Training Course Providers as at 30 June 2010
Trading as Provider Address Telephone Offers full Offers course? refresher course?
1 Advanced Career St Laurence Community 90 Station Lake Road, (03) 5282 0077 Yes No Training Services Inc Lara Vic, 3212 2 Bass Coast Adult Bass Coast Adult Education 239 White Road, (03) 5672 3115 Yes Yes Education Centre Inc Centre Inc Wonthaggi, Vic, 3995 3 Box Hill Institute Box Hill Institute of TAFE 465 Elgar Road, (03) 9286 9222 Yes No of TAFE Box Hill, Vic, 3128 4 BRACE Education BRACE Education Training 602 Urquhart Street, (03) 5337 9074 Yes Yes Training and and Employment Limited Ballarat, Vic, 3350 Employment Limited 5 Bridson Job Coaching Bridson Job Coaching 16 Bridge Street (02) 6948 3322 Yes Yes & Training Pty Ltd & Training Pty Ltd Tumbarumba, NSW, 2653 6 Quality Training and Bendigo Stadium Ltd Cnr Marong Road 03 5440 6264 Yes Yes Education Centre and Inglis Street, (QTEC) Bendigo, Vic, 3550 7 CFT International CFT International Pty Ltd PO Box 249, 1300 665 633 Yes Yes Pty Ltd Warburton, Vic, 3779 8 Chisholm Institute Chisholm Institute of TAFE 121 Stud Road, (03) 9238 8390 Yes Yes of TAFE Dandenong, Vic, 3175 9 COVE Training Centre of Vocational 54–56 Bardia Avenue, (03) 9776 4466 Yes No Training Pty Ltd Seaford, Vic, 3198 10 Crown Limited Crown Limited 8 Whiteman Street, (03) 9292 8888 Yes No Southbank, Vic, 3006 11 Diversitat Training Geelong Ethnic Communities Shop 7 (03) 5224 2329 Yes Yes Council Inc Centrepoint Arcade, Geelong, Vic, 3220 12 Djerriwarrh Employment Djerriwarrh Employment and 239 Station Road, (03) 8746 1000 Yes No and Education Education Services Inc Melton, Vic, 3337 Services Inc 13 East Gippsland Institute East Gippsland Institute 48 Main Street, (03) 5152 0741 Yes Yes of TAFE of TAFE Bairnsdale, Vic, 3875 14 Education Centre Education Centre Gippsland 88 Smith Street, (03) 5623 6075 Yes Yes Gippsland Warragul, Vic, 3820 15 FS Learning Brad Fenby and Associates 1st Floor, (03) 5977 2677 Yes Yes Pty Ltd 109 Main Street, Mornington, Vic, 3931 16 Gippsland Employment Gippsland Employment 7 Anzac Street, (03) 5127 4544 Yes No Skills Training Inc Skills Training Inc Moe, Vic, 3825 17 GippsTAFE Central Gippsland Institute Cnr Princess Drive (03) 5120 4572 Yes No of TAFE and Monash Way, Moe, Vic, 3825 18 Gordon Institute Gordon Institute of TAFE 2 Fenwick Street, (03) 5225 0500 Yes No of TAFE Geelong, Vic, 3220
150 Trading as Provider Address Telephone Offers full Offers course? refresher course?
19 Holmesglen Institute Holmesglen Institute 488 South Road, (03) 9209 5938 Yes Yes of TAFE of TAFE Moorabbin, Vic, 3189 20 Hospitality Training Hospitality Training Victoria Level 4, (03) 9639 5551 Yes No Australia Pty Ltd 250 Collins Street, Melbourne, Vic, 3000 21 LP Communications LP Communications 2 Downes Lane, (03) 5222 4358 Yes No Pty Ltd Pty Ltd Geelong, Vic, 3220 22 Murray Adult Community Murray ACE 429 Campbell Street, (03) 5032 3719 Yes No Education Swan Hill Inc Swan Hill, Vic, 3585 23 Peninsula Training and Peninsula Training and 1/10 Ninth Avenue, (03) 5986 4623 Yes Yes Employment Program Inc Employment Program Inc Rosebud, Vic, 3939 24 Precise Training Precise Training Australia Level 1, (03) 9761 2772 Yes Yes Pty Ltd 260 Dorset Road, Boronia, Vic, 3155 25 Pub School Iascend TAFE Pty Ltd Level 2, 1300 368 883 Yes Yes 108 Flinders Street, Melbourne, Vic, 3000 26 Security Training Amarni Investments Suite 29 Albert Square, 1300 308 795 Yes No College Pty Ltd Pty Ltd 37–39 Albert Road, Melbourne, Vic, 3000 27 Security Training Security Training Solutions 3/855 Ferntree (03) 9568 1906 Yes Yes Solutions Pty Ltd Pty Ltd Gully Road, Wheelers Hill, Vic, 3150 28 Smart OHS Buccaneer Group Pty Ltd Ground Floor, 1300 663 350 Yes Yes 434 St Kilda Road, Melbourne, Vic, 3004 29 Somers Elite Training Peter John Somers 27 Fig Court, (03) 5995 8817 Yes Yes Cranbourne North, Vic, 3977 30 STEPS Strategic Training & 3 Belair Avenue, (03) 9300 2466 Yes No Employment Placement Glenroy, Vic, 3046 Services Pty Ltd 31 Sunraysia Institute Sunraysia Institute Benetook Avenue, (03) 5022 3753 Yes No of TAFE of TAFE Mildura, Vic, 3500 32 The Good Taste L & M Gelb Consulting Suite 12, (03) 9349 2234 Yes No Company Services Pty Ltd 233 Cardigan Street, Carlton, Vic, 3053 33 Victorian Bar School Complete Hospitality 28 Elizabeth Street, (03) 9654 1554 Yes Yes Training (Vic) Pty Ltd Melbourne, Vic, 3000 34 William Angliss Institute William Angliss Institute 555 La Trobe Street, (03) 9606 2111 Yes Yes of TAFE of TAFE Melbourne, Vic, 3000 35 Wodonga Institute Wodonga Institute 87 McKoy Street, (02) 6055 6600 Yes Yes of TAFE of TAFE Wodonga, Vic, 3690
151 Appendix 14
Community Benefit Statements – Summary of the Total Claims made by Club Gaming Venues
This report shows information for Community Benefit Statements lodged in 2009–2010 in accordance with the determination of 8 February 2008 made by the Minister for Gaming. See Appendix 3 of this report for details.
Number of Community Benefit Statements lodged 275
$’000 Net Gaming Revenue (‘NGR’) for the financial year 2008–2009 953,909
Total Community Benefit Amounts Claimed by Category
Category $’000
Class A (a) Donations, gifts and sponsorships (including cash, goods and services) 15,923 (b) Cost of providing and maintaining sporting activities for use by club members 30,413 (c) Cost of any subsidy for the provision of goods and services but excluding alcohol 10,249 (d) Voluntary services provided by members and/or staff of the club to another person in the community 4,659 (e) Advice, support and services provided by the RSL (Victorian Branch) to ex-service personnel, their carers and families 1,120 Total Class A 62,364
Class B (a) Capital expenditure 9,174 (b) Financing costs (including principal and interest) 8,796 (c) Retained earnings accumulated during the year 1,420 (d) Provision of buildings, plant and equipment over $10,000 per item excluding gaming equipment or the gaming machine area of the venue 3,453 (e) Operating costs 219,890 Total Class B 242,733
Class C (a) Provision of responsible gambling measures and activities but excluding those required by law Nil (b) Reimbursement of expenses reasonably incurred by volunteers 187 (c) CBS preparation and auditing expenses 292 Total Class C 479 Grand Total 305,576
Percentage of NGR claimed for community purposes (%) 32.03
152 Appendix 15
Gambling Player Loss and Taxes and Levies Payable 2009–2010
For the year ended 30 June 2010, player loss in its various forms within Victoria amounted to $5,135.4 million and taxes and levies payable amounted to $1,625.2 million, made up as follows*:
Source Player Loss Taxes and Levies $m $m Gaming Machines – Hotels and Clubs 2,597.2 857.5 Health Benefit Levy - 126.4 Sub-Total – Gaming Taxes 2,597.2 983.9 Casino – Gaming Machines and Table Games 1,320.1 149.5 Wagering – racing (totalisator), football, Trackside and sports betting 768.8 137.7 Lotteries** 443.5 352.7 Club Keno 5.8 1.4 Total 5,135.4 1,625.2
Taxation rates applicable to the above expenditure include:
Gaming Machines – Hotels and Clubs
• Tabcorp Hotels and Clubs Gaming Tax 24.24% of player loss • Tattersall’s Hotels and Clubs Gaming Tax 31.24% of player loss • Community Support Fund Tax (Hotels only) 8.33% of player loss • Health Benefit Levy (per gaming machine) $4,333.33
Casino – Gaming Machines and Table Games
• General Player Casino Tax (tables only) 21.25% of player loss • General Player Casino Tax (gaming machines only) From 1 July to 31 December 2009 21.25% of player loss From 1 January to 30 June 2010 22.97% of player loss • Commission Based Player Tax (Tables only) 9.00% of player loss • Community Benefit Levy (all players) 1.00% of player loss • Health Benefit Levy (per gaming machine) $4,333.33 • ‘Super’ Tax***
* These figures may not necessarily match corresponding figures in the Financial Statements due to a different reporting basis and different categorisation. ** Previously reported data includes player loss and taxes received from interstate and overseas jurisdictions. For comparison with previous reports, the total player loss and taxes received for 2009–2010 were $497.8 million and $396.1 million respectively. *** Scaled tax rate, applied at the conclusion of the year, to gaming revenue in excess of a calculated base amount as set out in section 22.2 of Schedule 1 to the Casino (Management Agreement) Act 1993. Super tax received for 2009–2010 was $16.23 million. This amount is included in the schedule of Casino taxes above.
153 Appendix 15 continued
Gambling Player Loss and Taxes and Levies Payable 2009–2010 (continued) Wagering
• Totalisator (pari-mutuel) Betting 19.11% of player loss • Approved Betting Competitions 19.11% of player loss
Fixed Odds
• Fixed Odds Sportsbet and Trackside Wagering 10.91% of player loss
Lotteries
• Public Lottery Tax (Australian Sales) 79.40% of player loss • Public Lottery Tax (Overseas Sales) 90.00% of player loss • Soccer Pools Gaming Tax (Australian Sales) 57.52% of player loss • Soccer Pools Gaming Tax (Overseas Sales) 68.00% of player loss
Club Keno
• Gaming Tax 24.24% of player loss
154 Appendix 16
Distribution of Taxes from Gambling
Product Tax rate Application Public lotteries – 79.40% of player loss (local sales) Paid into Consolidated Fund and then • Tattslotto 90.00% of player loss (overseas sales) 100% redirected to the Hospitals and Charities Fund and Mental Health Fund in • Monday/Wednesday Lotto GRA 5.4.3.(2)(c) • Oz Lotto proportions determined by the Treasurer • Powerball GRA 5.4.6 • Super 66 • Lucky Tix (scratchies) • Lucky Keno 70 • Lucky Lines • Lucky 3 • Lucky 5 Red or Black • Lucky Bingo Star Public lotteries – 57.52% of player loss (local sales) Paid into Consolidated Fund and then • Soccer pools 68.00% of player loss (overseas sales) 100% redirected to the Hospitals and GRA 5.4.3(2)(b) Charities Fund and Mental Health Fund in proportions determined by the Treasurer. GRA 5.4.6 Wagering – 19.11% of player loss Paid into Consolidated Fund and then • Pari mutuel betting GRA 4.6.3(1) 100% redirected to the Hospitals and Charities Fund. GRA 4.6.8 Wagering – 19.11% of player loss Paid into Consolidated Fund and then • Approved betting competitions GRA 4.6.3(1) 100% redirected to the Hospitals and Charities Fund. GRA 4.6.8 Fixed Odds – 10.91% of player loss Paid into Consolidated Fund and then • Sportsbet competitions GRA 4.6.6(1) 100% redirected to the Hospitals and Charities Fund. GRA 4.6.8 Fixed Odds – 10.91% of player loss Paid into Consolidated Fund and then • Trackside GRA 4.6.6(1) 100% redirected to the Hospitals and Charities Fund. GRA 4.6.8 Gaming Machines – (in hotels and clubs) 24.24% of player loss Paid into Consolidated Fund and then • Tattersall's and Tabcorp GRA 3.6.6(2) 100% redirected to the Hospitals and Charities Fund and Mental Health Fund in proportions determined by the Treasurer Gaming Machines – (in hotels and clubs) 7.00% of player loss Additional Tax for Paid into Consolidated Fund • Tattersall's only holder of Gaming Operator's Licence under GRA 3.6.7
Gaming Machines – (in hotels only) 8.33% of player loss Paid into Consolidated Fund and then • Tattersall’s and Tabcorp GRA 3.6.6(2)(c) 100% redirected to the Community Support Fund Gaming Machines – (in hotels and clubs) $4,333.33 per gaming machine Paid into Consolidated Fund and then • Tattersall’s and Tabcorp Health Benefit Levy 100% redirected to the Hospitals and GRA 3.6.3(1) Charities Fund
155 Appendix 16 continued
Distribution of Taxes from Gambling (continued)
Product Tax rate Application For cost of supervision of public lotteries Amount determined by the Treasurer Paid into Consolidated Fund licensees (Tattersall’s and Intralot); calculated after taking advice from wagering licensee (Tabcorp), gaming the Minister for Gaming on the cost licensee (Tabcorp), gaming operator of supervision by the VCGR licensee (Tattersall’s); interactive gaming GRA 4.6.7 licensee (nil). Defined in legislation as (Wagering and Gaming licensee); a tax. GRA 5.4.2 (Public Lotteries licensees); GRA 3.6.5 (Gaming Operator licensee) Casino – 21.25% of player loss increased to Paid into Consolidated Fund • gaming machines 22.97% from 1 January 2010 CMAA Sch 1, 22.1(b)(ii) Casino – 21.25% of player loss Paid into Consolidated Fund • table games CMAA Sch 1, 22.1(b)(ii) Casino – 1.00% of player loss Community Paid into Consolidated Fund and then • gaming machines and table games Benefit Levy 100% redirected to the Hospitals and CMAA Sch 1, 22.1(d) Charities Fund Casino – 9.00% of player loss Paid into Consolidated Fund • table games and gaming machines CMAA Sch 3, 22A.1(a) (Commission Based Players)
Casino – $4,333.33 per gaming machine Paid into Consolidated Fund and then • gaming machines Health Benefit Levy 100% redirected to the Hospitals and CCA 114A Charities Fund Casino – Additional tax on sliding scale from 1% Paid into Consolidated Fund • Super tax to 20% on gross gaming revenue (player loss) from all sources if over $880 million per annum (adjusted for CPI) Club Keno 24.24% of player loss Paid into Consolidated Fund and then GRA 6.3.2 (2)(a) 100% redirected to the Hospitals and Charities Fund and Mental Health Fund in proportions determined by the Treasurer. GRA 6.3.3
Note: In this table – GRA = Gambling Regulation Act 2003; CCA = Casino Control Act 1991; CMAA = Casino (Management Agreement) Act 1993
156 Appendix 17
Player Loss from Gaming Machines – Statistical Data Fact Sheet
Date Adult No. of No. of Net EGM Average No. Average Average Average Population * Venues ** EGMs Expenditure*** EGMs per No. Adults Net EGM Net EGM 1,000 per Expenditure Expenditure Adults Venue per Adult per Hour# $ $ $ 30 June 2000 3,531,882 536 27,408 2,170,581,995 7.76 6,589 615 10.82 30 June 2001 3,572,889 537 27,444 2,366,016,584 7.68 6,653 662 11.81 30 June 2002 3,679,669 534 27,400 2,562,820,950 7.45 6,891 696 12.81 30 June 2003 3,720,628 532 27,260 2,334,294,514 7.33 6,994 627 11.73 30 June 2004 3,816,854 530 27,132 2,290,929,976 7.11 7,202 600 11.54 30 June 2005 3,870,537 523 27,124 2,393,030,966 7.01 7,401 618 12.09 30 June 2006 3,946,972 521 27,147 2,472,451,853 6.88 7,576 626 12.48 30 June 2007 4,016,568 522 27,279 2,543,175,356 6.79 7,695 633 12.77 30 June 2008 4,096,774 520 26,797 2,611,507,885 6.54 7,875 638 13.31 30 June 2009 4,173,152 515 26,772 2,707,278,436 6.42 8,103 649 13.85 30 June 2010 4,250,950 514 26,682 2,597,182,577 6.28 8,270 611 13.33
* Adult Population – Projections are sourced from Victoria in Future 2008, Department of Planning and Community Development. Note that the 2006, 2007 and 2008 figures have been revised to reflect new projections derived from the 2006 Census data. ** Only licensed venues with electronic gaming machines (‘EGMs’) are reported in this table. Licensed venues with zero EGMs have been excluded from the total number of venues for each year so that they are not included when formulating the above averages. *** Net EGM expenditure is the total amount lost by players.
# Average EGM Expenditure per Hour equals expenditure per EGM divided by operating hours in a year. Operating hours are calculated assuming that gaming venues are closed for the legislated minimum of 4 hours per day (operating hours = 20*365 or 20*366 in leap years).
157 Appendix 18
Distribution of Player Loss from Gaming Machines
Tatts Gaming Machines Distribution Hotels (%) Clubs (%) Victorian Government Consolidated Revenue 24.24 24.24 Community Support Fund 8.33 0.00 Licence Fee * 7.00 7.00 Sub-total 39.57 31.24 Payment to ATO (‘GST’) ** 9.09 9.09 Tatts #23.84 #23.01 plus GST input credit refund *** 2.50 *** 3.33 Sub-total 26.34 26.34 Venue Operator (hotel or club) 27.50 36.66 less GST payment *** (2.50) *** (3.33) Sub-total 25.00 33.33 Total 100.00 100.00
Tabcorp Gaming Machines Distribution Hotels (%) Clubs (%) Victorian Government Consolidated Revenue 24.24 24.24 Community Support Fund 8.33 0.00 Licence Fee 0.00 0.00 Sub-total 32.57 24.24 Payment to ATO (‘GST’) ** 9.09 9.09 Tabcorp #30.84 #30.01 plus GST input credit refund *** 2.50 *** 3.33 Sub-total 33.34 33.34 Venue Operator (hotel or club) 27.50 36.66 less GST payment *** (2.50) *** (3.33) Sub-total 25.00 33.33 Total 100.00 100.00
* Tatts pays a licence fee into Consolidated Revenue as a percentage of player loss. Tabcorp paid a lump sum fee at the time of its public float. ** These amounts are paid by the gaming operator to the Australian Taxation Office (‘ATO’) as GST payments and are compensated by reduced State tax. *** These amounts reflect the GST input tax credits paid/refundable between gaming operators and gaming venues, the net result being that the distribution is the same, post-GST, as it was pre-GST. # Effect of rounding.
158 Appendix 19
Ministerial Order for Municipal Limits (pursuant to section 3.2.4 of the Gambling Regulation Act 2003)
(Current as at 30 June 2010)
I, Tony Robinson, MP, Minister for Gaming, under section 3.2.4 of the Gambling Regulation Act 2003 (‘the Act’) hereby: 1. Require the Victorian Commission for Gambling Regulation to determine under section 3.2.4(1)(b)(ii) of the Act, in accordance with the criterion specified in paragraph two of this Order, the maximum permissible number of gaming machines available for gaming for each municipal district in Victoria. 2. Specify under section 3.2.4(1)(b)(ii) of the Act, that the criterion for determining the maximum permissible number of gaming machines available for gaming in a municipal district in Victoria is a maximum of ten gaming machines per thousand persons in the municipal district who are aged 18 years and above. 3. Exclude from this Order the precincts of Melbourne central business district, Docklands and Southbank in the municipal district of the City of Melbourne as defined by the map of those precincts that is included in this Order. 4. Require the Victorian Commission for Gambling Regulation to determine, under section 3.2.4(1)(c)(ii) of the Act, on the basis of the criteria specified in paragraph 5 of this Order, how gaming machines are to be removed from a municipal district if the number of gaming machines available for gaming in the municipal district exceeds the maximum permissible number. 5. Specify under section 3.2.4(1)(c) of the Act, the following criteria for determining how gaming machines are to be removed from a municipal district if the number of gaming machines available for gaming exceeds the maximum number permissible for the municipal district under this Order: a) in the first instance, the determination is to be made on a proportional basis by relative share of gaming machines available for gaming in each approved venue in the municipal district b) the number of gaming machines to be removed from a gaming venue should not exceed 70 per cent of the total number of gaming machines at that venue c) no gaming machines should be removed from a venue with less than 20 gaming machines d) a minimum of 20 gaming machines must remain in a gaming venue after gaming machines have been removed. 6. Specify under section 3.2.4(1)(d) of the Act that the Victorian Commission for Gambling Regulation must make a determination under paragraph 4 of this Order by 30 September 2009. 7. Specify under section 3.2.4(1)(e) of the Act that the maximum period within which gaming machines available for gaming that exceed the maximum permissible number are to be removed, is 3 months from 30 September 2009.
Dated 10 June 2009
HON TONY ROBINSON MP Minister for Gaming
159 Appendix 19 continued
Compliance with Municipal Limits
Permitted EGMs Permitted EGMs Number Licensed Number Licensed as at as at as at as at Municipal District 31 Dec 2009* 30 June 2010 Municipal District 31 Dec 2009* 30 June 2010 Alpine Shire 99 63 Melbourne City# 188 44 Ararat Rural City 91 88 Melton Shire 659 407 Banyule City# 851 620 Mildura Rural City 390 285 Baw Baw Shire 299 175 Mitchell Shire 239 193 Bayside City 726 225 Moira Shire 219 38 Benalla City 107 95 Monash City# 770 382 Boroondara City 1,295 205 Moorabool Shire 199 110 Brimbank City# 241 50 Moreland City# 445 138 Buloke Shire 53 0 Mornington Peninsula Shire 1,127 842 Campaspe Shire 286 149 Mount Alexander Shire 141 30 Cardinia Shire 458 225 Moyne Shire 121 0 Casey City# 1,017 285 Murrindindi Shire 111 16 Central Goldfields Shire 99 99 Nillumbik Shire 464 117 Colac-Otway Shire 163 110 Northern Grampians Shire 95 88 Corangamite Shire 127 57 Port Phillip City 830 384 East Gippsland Shire 332 332 Pyrenees Shire 53 0 Frankston City 954 596 South Gippsland Shire 207 101 Gannawarra Shire 88 45 Southern Grampians Shire 133 75 Glen Eira City 1,061 774 Stonnington City 825 295 Glenelg Shire 159 105 Strathbogie Shire 78 32 Golden Plains Shire 127 0 Surf Coast Shire 184 111 Greater Bendigo City 756 547 Swan Hill Rural City 161 108 Hepburn Shire 112 50 Towong Shire 48 10 Hindmarsh Shire 48 0 Wangaratta Rural City 214 130 Horsham Rural City 148 147 Wellington Shire 324 324 Hume City# 725 327 West Wimmera Shire 35 0 Indigo Shire 117 0 Whitehorse City 1,217 554 Kingston City 1,135 944 Whittlesea City# 212 40 Knox City 1,173 855 Wodonga Rural City 259 184 Loddon Shire 62 0 Wyndham City 952 663 Macedon Ranges Shire 298 95 Yarra City 666 308 Manningham City 928 617 Yarra Ranges Shire 4 0 Mansfield Shire 58 29 Yarriambiack Shire 59 0 Maroondah City 806 770
Note: * date by which all gaming machines in excess of the maximum permissible number determined by the VCGR for each municipal district in Victoria had to be removed. # Applies to that part of the municipal district not covered by a regional cap. Refer Appendix 20 for a listing of capped regions.
160 Appendix 20
Ministerial Order for Regional Caps (pursuant to section 3.2.4(1) of the Gambling Regulation Act 2003)
(Current as at 30 June 2010)
I, Tony Robinson, MP, Minister for Gaming in the State of Victoria, pursuant to section 3.2.4(1) of the Gambling Regulation Act 2003 (‘the Act’), hereby: (a) Revoke the order made pursuant to section 3.2.4(1) of the Act on 12 October 2006. (b) Determine under section 3.2.4(1)(a) of the Act the following 19 regions in the State of Victoria for the purposes of Chapter 3 of the Act to be: Region 1: the area covered by the local government area of the City of Ballarat as at 12 October 2006. Region 2: the area covered by that part of postcode 3081 included in the local government area of the City of Banyule as at 12 October 2006. Region 3: the area covered by the local government area of the Shire of Bass Coast as at 12 October 2006. Region 4: the area covered by that part of postcodes 3012, 3020, 3021, 3022, 3023 and 3038 included in the local government area of the City of Brimbank as at 12 October 2006. Region 5: the area covered by: (i) that part of postcodes 3177, 3803, 3975 and 3976 included in the local government area of the City of Casey as at 12 October 2006; and (ii) that part of postcode 3977 located north of Browns Road included in the local government area of the City of Casey as at 12 October 2006. Region 6: the area covered by the local government area of the City of Greater Dandenong as at 12 October 2006. Region 7: the area covered by the local government area of the City of Darebin as at 12 October 2006. Region 8: the area covered by the local government areas of the City of Greater Geelong and the Borough of Queenscliffe as at 12 October 2006. Region 9: the area covered by the local government area of the City of Greater Shepparton as at 12 October 2006. Region 10: the area covered by the local government area of the City of Hobsons Bay as at 12 October 2006. Region 11: the area covered by that part of postcodes 3043, 3047, 3048, 3060 and 3061 included in the local government area of the City of Hume as at 12 October 2006. Region 12: the area covered by the local government area of the City of Latrobe as at 12 October 2006. Region 13: the area covered by the local government area of the City of Maribyrnong as at 12 October 2006. Region 14: the area covered by that part of postcodes 3031, 3051 and 3053 included in the local government area of the City of Melbourne as at 12 October 2006. Region 15: the area covered by that part of postcodes 3147, 3148, 3166, 3167, 3168 and 3170 included in the local government area of the City of Monash as at 12 October 2006. Region 16: the area covered by the local government area of the City of Moonee Valley as at 12 October 2006. Region 17: the area covered by that part of postcodes 3055, 3056, 3057, 3058 and 3060 included in the local government area of the City of Moreland as at 12 October 2006. Region 18: the area covered by the local government area of the City of Warrnambool as at 12 October 2006. Region 19: the area covered by that part of postcodes 3074, 3075, 3076, 3082 and 3083 included in the local government area of the City of Whittlesea as at 12 October 2006. (c) Specify under section 3.2.4(1)(b)(ii) of the Act, in respect of the regions referred to in paragraph (b) of this order, that the maximum permissible number of gaming machines available for gaming in the region should be determined by the Victorian Commission for Gambling Regulation using the following criteria: Region 1: 9.49 gaming machines per thousand persons aged 18 years and above in that region. Region 2: 2.93 gaming machines per thousand persons aged 18 years and above in that region. Region 3: 9.44 gaming machines per thousand persons aged 18 years and above in that region. Region 4: 7.95 gaming machines per thousand persons aged 18 years and above in that region.
161 Appendix 20 continued
Ministerial Order for Regional Caps (continued)
Region 5: 8.87 gaming machines per thousand persons aged 18 years and above in that region. Region 6: 9.48 gaming machines per thousand persons aged 18 years and above in that region. Region 7: 8.85 gaming machines per thousand persons aged 18 years and above in that region. Region 8: 8.573 gaming machines per thousand persons aged 18 years and above in that region. Region 9: 7.32 gaming machines per thousand persons aged 18 years and above in that region. Region 10: 8.69 gaming machines per thousand persons aged 18 years and above in that region. Region 11: ten gaming machines per thousand persons aged 18 years and above in that region. Region 12: 9.36 gaming machines per thousand persons aged 18 years and above in that region. Region 13: 9.03 gaming machines per thousand persons aged 18 years and above in that region. Region 14: 6.73 gaming machines per thousand persons aged 18 years and above in that region. Region 15: 9.85 gaming machines per thousand persons aged 18 years and above in that region. Region 16: 8.12 gaming machines per thousand persons aged 18 years and above in that region. Region 17: 8.75 gaming machines per thousand persons aged 18 years and above in that region. Region 18: 9.52 gaming machines per thousand persons aged 18 years and above in that region. Region 19: 7.02 gaming machines per thousand persons aged 18 years and above in that region. (d) Require the Victorian Commission for Gambling Regulation to determine, under section 3.2.4(1)(c)(i) of the Act, on the basis of the criteria specified in paragraph (e) of this order, how gaming machines are to be removed from each of the regions referred in paragraph (b) of this order if the number of gaming machines available for gaming in the region exceeds the maximum permissible number. (e) Specify, in respect of the regions referred to in paragraph (b) of this order, the criteria that the Victorian Commission for Gambling Regulation must use in determining how gaming machines are to be removed from a region where the number of gaming machines available for gaming exceeds the maximum permissible number available for gaming in the region to be: (i) the method for determining where gaming machines will be removed from should be calculated by postcode in the first instance and then by venue in each postcode; (ii) a higher proportion of gaming machines should be removed from hotspot postcodes and venues; that is, postcodes and venues that have above average expenditure per gaming machine; (iii) removal of gaming machines should be initially determined on a proportional basis by relative share of gaming machines; (iv) for hotspot postcodes/venues, a weighting, equivalent to 33 per cent of the amount by which expenditure exceeds average expenditure per gaming machine, should be applied to determine the number of machines to be removed; (v) the number of gaming machines to be removed from a gaming venue should not exceed 70 per cent of the total number of gaming machines at that venue; (vi) a minimum of 20 gaming machines must remain in a gaming venue after gaming machines have been removed; and (vii) no gaming machines should be removed from a venue with less than 20 gaming machines. (f) Determine under section 3.2.4(1)(a) of the Act the following region in the State of Victoria, in addition to those regions referred to in paragraph (b), to be: Region 20: the area covered as at the date of this order by that part of the Shire of Yarra Ranges which is included in the Mlebourne Statistical Division. (g) Specify under section 3.2.4(1)(b)(ii) of the Act, that the criterion for determining the maximum permissible number of gaming machines available for gaming in the region referred to as ‘Region 20’ in paragraph (f) of this order is a maximum of ten gaming machines per thousand persons aged 18 years and above in that region. (h) Require the Victorian Commission for Gambling Regulation to determine, under section 3.2.4(1)(c)(i) of the Act, on the basis of the criteria specified in paragraph (i) of this order, how gaming machines are to be removed from the region referred to as ‘Region 20’ in paragraph (f) of this order if the number of gaming machines available for gaming in the region exceeds the maximum permissible number.
162 (i) Specify under section 3.2.4(1)(c) of the Act, the following criteria for determining how gaming machines are to be removed from the region referred to as ‘Region 20’ in paragraph (f) of this order if the number of gaming machines available for gaming exceeds the maximum permissible number in that region, under this order: i) in the first instance, the determination is to be made on a proportional basis by relative share of gaming machines available for gaming in each approved venue in that region ii) the number of gaming machines to be removed from a gaming venue should not exceed 70 per cent of the total number of gaming machines at that venue iii) no gaming machines should be removed from a venue with less than 20 gaming machines iv) a minimum of 20 gaming machines must remain in a gaming venue after gaming machines have been removed.
Dated 16 October 2009
HON TONY ROBINSON MP Minister for Gaming
Compliance with Regional Caps
Permitted Number EGMs Licensed Region as at 31 Dec 2009* as at 30 June 2010 1 City of Ballarat 663 657 2 City of Banyule –postcode area 3081 31 31 3 Shire of Bass Coast 216 216 4 City of Brimbank –postcode areas 3012, 3020, 3021, 3022, 3023 and 3038 903 903 5 City of Casey –postcode areas 3177, 3803, 3975 and 3976 614 614 6 City of Greater Dandenong 989 944 7 City of Darebin 986 986 8 City of Greater Geelong and the Borough of Queenscliffe 1,421 1,383 9 City of Greater Shepparton 329 329 10 City of Hobsons Bay 579 579 11 City of Hume –postcode areas 3043, 3047, 3048, 3060 and 3061 435 435 12 City of La Trobe 522 522 13 City of Maribyrnong 511 463 14 City of Melbourne –postcode areas 3031, 3051 and 3053 177 177 15 City of Monash –postcode areas 3147, 3148, 3166, 3167, 3168 and 3170 623 618 16 City of Moonee Valley 746 746 17 City of Moreland –postcode areas 3055, 3056, 3057, 3058 and 3060 640 627 18 City of Warrnambool 234 234 19 City of Whittlesea –postcode areas 3074, 3075, 3076, 3082 and 3083 581 581 20 Shire of Yarra Ranges 1,092 427
Note: * date by which all gaming machines in excess of the maximum permissible number determined by the VCGR for each capped region in Victoria had to be removed.
163 Appendix 21
Representation on Working Parties
The Commission is represented on the following national working parties:
Regulators Responsible Gambling Working Party National Assessment Panel – Accredited Testing Facilities Gaming Machine National Standard Working Party Lottery Regulators Working Party Inter-jurisdictional Probity Working Party and Conference Wagering Regulators Working Party Art Union, Raffles and Trade Promotion Lottery Working Party
Note: The Executive Commissioner is also a member and Chairman of the Steering Committee of the International Association of Gaming Regulators.
164 Appendix 22
Commission Whistleblower Procedures
1. Statement of Support for Whistleblowers
The Victorian Commission for Gambling Regulation is committed to the aims and objectives of the Whistleblowers Protection Act 2001 (‘the Act’). The Commission does not tolerate improper conduct by its employees, officers or members, nor the taking of reprisals against those who come forward to disclose such conduct.
The Commission recognises the value of transparency and accountability in its administrative and management practices and supports the making of disclosures that reveal corrupt conduct involving substantial mismanagement of public resources or conduct involving substantial risk to public health and safety, or to the environment.
The Commission will take all reasonable steps to protect people who make such disclosures from any detrimental action in reprisal for making the disclosure. It will also afford natural justice to any person who is the subject of a disclosure.
2. Purpose of These Procedures
These procedures establish a system for reporting disclosures of improper conduct or detrimental action by the Commission, its employees, members or officers. The system enables such disclosures to be made to the protected disclosure coordinator or to one of the nominated protected disclosure officers.
3. Whistleblower
A whistleblower is someone who makes a disclosure about improper or corrupt conduct, or detrimental action by a public body or public official with the view to the matter being investigated and appropriate action being taken.
4. Objects of the Act
The Act commenced operation on 1 January 2002. The purpose of the Act is to encourage and facilitate the making of disclosures of improper conduct by public officers and public bodies. The Act provides protection to whistleblowers that make disclosures in accordance with the Act, and establishes a system for the matters disclosed to be investigated and rectifying action to be taken.
5. Definitions of Key Terms
Three key concepts in the reporting system are improper conduct, corrupt conduct and detrimental action. Definitions of these terms are set out below.
5.1 Improper conduct A disclosure may be made about improper conduct by a public body or public officer.
‘Public officer’ is defined in the Act to include all members, officers and employees of public bodies. ‘Public body’ is defined to include a very wide range of state government, local government and semi-government organisations. The Commission is a public body for the purposes of the Act.
‘Improper conduct’ means conduct that is corrupt, a substantial mismanagement of public resources, or conduct involving substantial risk to public health or safety or to the environment. The conduct must be serious enough to constitute, if proved, a criminal offence or reasonable grounds for dismissal.
165 Appendix 22 continued
5. Definitions of Key Terms (continued)
5.2 Corrupt conduct ‘Corrupt conduct’ means:
• conduct of any person (whether or not a public officer) that adversely affects the honest performance of a public officer’s or public body’s functions;
• the performance of a public officer’s functions dishonestly or with inappropriate partiality;
• conduct of a public officer, former public officer or a public body that amounts to a breach of public trust;
• conduct by a public officer, former public officer or a public body that amounts to the misuse of information or material acquired in the course of the performance of their official functions; or
• a conspiracy or attempt to engage in the above conduct.
5.3 Detrimental action The Act makes it an offence for a person to take detrimental action against a person in reprisal for a protected disclosure. ‘Detrimental action’ includes:
• action causing injury, loss or damage; • intimidation or harassment; and • discrimination, disadvantage or adverse treatment in relation to a person’s employment, career, profession, trade or business, including the taking of disciplinary action.
6. The Reporting System
6.1 Contact persons within the Commission Disclosures of improper conduct or detrimental action by the Commission, its employees, members or officers, may be made to the following:
The protected disclosure coordinator:
Peter Cohen Executive Commissioner Level 5, 35 Spring Street Melbourne VIC 3000 9651 3118
The protected disclosure officers:
Karen Stewart Senior Inspector, Compliance and Investigation Branch Level 5, 35 Spring Street MELBOURNE VIC 3000 9651 3487
Judith Foreman (vacant as at 1 May 2010) Manager, Licensing Operation & Policy Branch Level 5, 35 Spring Street MELBOURNE VIC 3000 9651 3430
All correspondence, phone calls and emails from internal or external whistleblowers will be referred to the protected disclosure coordinator.
Where a person is contemplating making a disclosure and is concerned about approaching the protected disclosure coordinator or a protected disclosure officer in the workplace, he or she can call the relevant officer and request a meeting in a discreet location away from the workplace.
166 6.2 Alternative contact persons A disclosure about improper conduct or detrimental action by the Commission, its employees, members or officers, may also be made directly to the Ombudsman:
The Ombudsman Victoria Mr George Brouwer Level 3, 459 Collins Street Melbourne VIC 3000 (DX 210174, Melbourne)
Internet: www.ombudsman.vic.gov.au Email: [email protected] Telephone: 9613 6222 Toll Free: 1800 806 314
The following table sets out where disclosures about persons and bodies other than the Commission, its employees, members or officers, should be made.
Person who is the subject of the Disclosure Person/body to whom the disclosure must be made
A public body or an employee, officer or member of a public body That public body or the Ombudsman
Member of Parliament (Legislative Assembly) Speaker of the Legislative Assembly
Member of Parliament (Legislative Council) President of the Legislative Council
Councillor The Ombudsman
Chief Commissioner of Police The Ombudsman or Deputy Ombudsman
Member of the police force The Ombudsman, Deputy Ombudsman or Chief Commissioner of Police
7. Roles and Responsibilities
7.1 Employees, members and officers generally Employees, members and officers are encouraged to report known or suspected incidences of improper conduct or detrimental action in accordance with these procedures.
All employees, members and officers of the Commission have an important role to play in supporting those who have made a legitimate disclosure. They must refrain from any activity that is, or could be perceived to be, victimisation or harassment of a person who makes a disclosure. Furthermore, they should protect and maintain the confidentiality of a person they know or suspect to have made a disclosure.
7.2 Protected disclosure officers
Protected disclosure officers will:
• be a contact point for general advice about the operation of the Act for any person wishing to make a disclosure about improper conduct or detrimental action; • make arrangements for a disclosure to be made privately and discreetly and, if necessary, away from the workplace; • receive any disclosure made orally or in writing (from internal and external whistleblowers); • commit to writing any disclosure made orally; • impartially assess the allegation and determine whether it is a disclosure made in accordance with Part 2 of the Act (that is, a ‘protected disclosure’); • take all necessary steps to ensure that the identity of the whistleblower and the identity of any person who is the subject of the disclosure are kept confidential; and
167 Appendix 22 continued
7. Roles and Responsibilities (continued)
• forward all disclosures and supporting evidence to the protected disclosure coordinator. 7.3 Protected disclosure coordinator Under procedures adopted by the Commission, the chief executive officer (i.e. the Executive Commissioner) also performs the functions of protected disclosure coordinator. The protected disclosure coordinator has a central ‘clearinghouse’ role in the internal reporting system. He or she will:
• receive all disclosures forwarded from the protected disclosure officers; • receive all phone calls, emails and letters from members of the public or employees seeking to make a disclosure; • impartially assess each disclosure to determine whether it is a public interest disclosure; • refer all public interest disclosures to the Ombudsman; • be responsible for carrying out, or appointing an investigator to carry out, an investigation referred to the public body by the Ombudsman; • be responsible for overseeing and coordinating an investigation where an investigator has been appointed; • appoint a welfare manager to support the whistleblower and to protect him or her from any reprisals; • advise the whistleblower of the progress of an investigation into the disclosed matter; • establish and manage a confidential filing system; • collate and publish statistics on disclosures made; and • take all necessary steps to ensure that the identity of the whistleblower and the identity of the person who is the subject of the disclosure are kept confidential.
7.4 Investigator The investigator will be responsible for carrying out an internal investigation into a disclosure where the Ombudsman has referred a matter to the public body. An investigator may be a person from within an organisation or a consultant engaged for that purpose.
7.5 Welfare manager The welfare manager is responsible for looking after the general welfare of the whistleblower. The welfare manager will:
• examine the immediate welfare and protection needs of a whistleblower who has made a disclosure and seek to foster a supportive work environment; • advise the whistleblower of the legislative and administrative protections available to him or her; • listen and respond to any concerns of harassment, intimidation or victimisation in reprisal for making a disclosure; and • ensure that the expectations of the whistleblower are realistic.
8. Confidentiality
The Commission will take all reasonable steps to protect the identity of a whistleblower. Maintaining confidentiality is crucial in ensuring that reprisals are not made against a whistleblower.
The Act requires any person who receives information due to the handling or investigation of a protected disclosure not to disclose that information except in certain limited circumstances. Disclosure of information in breach of section 22 constitutes an offence that is punishable by a maximum fine of 60 penalty units or six months imprisonment or both.
The circumstances in which a person may disclose information obtained about a protected disclosure include:
• where exercising the functions of the public body under the Act; • when making a report or recommendation under the Act; • when publishing statistics in the annual report of a public body; and • in criminal proceedings for certain offences in the Act. However, the Act prohibits the inclusion of particulars in any report or recommendation that are likely to lead to the identification of the whistleblower. The Act also prohibits the identification of any person who is the subject of a disclosure in any particulars included in an annual report.
168 The Commission will ensure that all files, whether paper or electronic, are kept in a secure room and can be accessed only by the protected disclosure coordinator, protected disclosure officers, the investigator or welfare manager (in relation to welfare matters).
The Commission will not email documents relevant to a whistleblower matter and will ensure that all phone calls and meetings are conducted in private.
9. Receiving and Assessing Disclosures
9.1 Has the disclosure been made in accordance with Part 2 of the Act? Where a disclosure has been received by the protected disclosure officer or by the protected disclosure coordinator, he or she will assess whether the disclosure has been made in accordance with Part 2 of the Act and is, therefore, a protected disclosure. This includes being satisfied of the following:
• that the disclosure been made to the appropriate person; • That the disclosure contains the essential elements of a protected disclosure; • Where a disclosure is assessed to be a protected disclosure, is it a public interest disclosure. 9.1.1 Has the disclosure been made to the appropriate person?
For the disclosure to be responded to by the Commission, it must concern the Commission or its employee, member or officer. If the disclosure concerns another public body, or an employee, officer or member of another public body, the person who has made the disclosure must be advised of the correct person or body to whom the disclosure should be directed. (See the table at 6.2, above.) If the disclosure has been made anonymously, it should be referred to the Ombudsman. 9.1.2 Does the disclosure contain the essential elements of a protected disclosure? To be a protected disclosure, a disclosure must satisfy the following criteria: • did a natural person (that is, an individual person rather than a corporation) make the disclosure? • does the disclosure relate to conduct of a public body or public officer acting in their official capacity? • is the alleged conduct either improper conduct or detrimental action taken against a person in reprisal for making a protected disclosure? • does the person making the disclosure have reasonable grounds for believing that the alleged conduct has occurred? Where a disclosure is assessed not to be a protected disclosure, the matter does not need to be dealt with under the Act. The protected disclosure officer will decide how the matter should be responded to in consultation with the protected disclosure coordinator. 9.1.3 Is the disclosure a public interest disclosure? Where the protected disclosure officer or coordinator has received a disclosure that has been assessed to be a protected disclosure, the protected disclosure coordinator will determine whether the disclosure amounts to a public interest disclosure. This assessment will be made within 45 days of the receipt of the disclosure.
In reaching a conclusion as to whether a protected disclosure is a public interest disclosure, the protected disclosure coordinator will consider whether the disclosure shows, or tends to show, that the public body or public officer to whom the disclosure relates: • has engaged, is engaging or proposes to engage in improper conduct in its, his or her capacity as a public body or public officer; or • has taken, is taking or proposes to take detrimental action in reprisal for the making of a protected disclosure. Where the protected disclosure coordinator concludes that the disclosure is a public interest disclosure, he or she will: • notify the person who made the disclosure of that conclusion; and • refer the disclosure to the Ombudsman for formal determination as to whether it is indeed a public interest disclosure.
169 Appendix 22 continued
9. Receiving and Assessing Disclosures (continued)
9.1.3 Is the disclosure a public interest disclosure? (continued) Where the protected disclosure coordinator concludes that the disclosure is not a public interest disclosure, he or she will: • notify the person who made the disclosure of that conclusion; and • advise that person that he or she may request the public body to refer the disclosure to the Ombudsman for a formal determination as to whether the disclosure is a public interest disclosure, and that this request must be made within 28 days of the notification. In either case, the protected disclosure coordinator will make the notification and the referral within 14 days of the conclusion being reached by the public body. Notification to the whistleblower is not necessary where the disclosure has been made anonymously.
10. Investigations
Where the Ombudsman refers a protected disclosure to the Commission for investigation, the protected disclosure coordinator will appoint an investigator to carry out the investigation. The objectives of an investigation will be: • to collate information relating to the allegation as quickly as possible. This may involve taking steps to protect or preserve documents, materials and equipment; • to consider the information collected and to draw conclusions objectively and impartially; • to maintain procedural fairness in the treatment of witnesses and any person who is the subject of the disclosure; and • to make recommendations arising from the conclusions drawn concerning remedial or other appropriate action. Before commencing an investigation, the protected disclosure coordinator will draw up terms of reference. The terms of reference will set a date by which the investigation report is to be concluded, and will describe the resources available to the investigator to complete the investigation within the time set. The terms of reference will require the investigator to make regular reports to the protected disclosure coordinator who, in turn, is to keep the Ombudsman informed of the general progress. The investigator will prepare an investigation plan for approval by the protected disclosure coordinator. The plan will list the issues to be substantiated and describe the avenues of inquiry. It will address the following issues: • what is being alleged? • what are the possible findings or offences? • what are the facts in issue? • how is the inquiry to be conducted? • what resources are required? At the commencement of the investigation, the whistleblower should be: • notified by the investigator that he or she has been appointed to conduct the investigation; • asked to clarify any matters; and • provide any additional material he or she might have. The investigator will be sensitive to the whistleblower’s possible fear of reprisals and will be aware of the statutory protections provided to the whistleblower. The principles of natural justice will be followed in any investigation of a public interest disclosure. The Commission will have regard to the following issues in ensuring procedural fairness: • any person who is the subject of the disclosure is entitled to know the allegations made against him or her and must be given the right to respond. (This does not mean that the person must be advised of the allegation as soon as the disclosure is received or the investigation has commenced); • if the investigator is contemplating making a report adverse to the interests of any person, that person should be given the opportunity to put forward further material that may influence the outcome of the report and that person’s defence should be fairly set out in the report; • all relevant parties to a matter should be heard and all submissions should be considered; • a decision should not be made until all reasonable inquiries have been made;
170 • the investigator or any decision maker should not have a personal or direct interest in the matter being investigated; • all proceedings must be carried out fairly and without bias. Care should be taken to exclude perceived bias from the process; and • the investigator must be impartial in assessing the credibility of the whistleblower and any witnesses. Where appropriate, conclusions as to credibility should be included in the investigation report.
10.1 Conduct of the investigation The investigator will make contemporaneous notes of all discussions and phone calls, and all interviews with witnesses will be taped. All information gathered in an investigation will be stored securely. Interviews will be conducted in private and the investigator will take all reasonable steps to protect the identity of the whistleblower. Where disclosure of the identity of the whistleblower cannot be avoided, due to the nature of the allegations, the investigator will warn the whistleblower and his or her welfare manager of this probability.
It is in the discretion of the investigator to allow any witness to have legal or other representation or support during an interview. If a witness requests legal representation, the interview should be suspended for a reasonable time to allow the witness to obtain a lawyer. 10.2 Referral of an investigation to the Ombudsman The protected disclosure coordinator will make a decision regarding the referral of an investigation to the Ombudsman where, on the advice of the investigator: • the investigation is being obstructed by, for example, the non-cooperation of key witnesses; or • the investigation has revealed conduct that may constitute a criminal offence.
10.3 Reporting requirements The protected disclosure coordinator will ensure that the whistleblower is kept regularly informed concerning the handling and investigation of a protected disclosure.
The protected disclosure coordinator will report to the Ombudsman about the progress of an investigation.
Where the Ombudsman or the whistleblower requests information about the progress of an investigation, that information will be provided within 28 days of the date of the request.
11. Action Taken After an Investigation
11.1 Investigator’s final report At the conclusion of the investigation, the investigator will submit a written report of his or her findings to the protected disclosure coordinator. The report will contain:
• the allegation(s); • an account of all relevant information received and, if the investigator has rejected evidence as being unreliable, the reasons for this opinion being formed; • the conclusions reached and the basis for them; and • any recommendations arising from the conclusions. Where the investigator has found that the conduct disclosed by the whistleblower has occurred recommendations made by the investigator will include: • the steps that need to be taken by the Commission to prevent the conduct from continuing or occurring in the future; and • any action that should be taken by the Commission to remedy any harm or loss arising from the conduct. This action may include bringing disciplinary proceedings against any person responsible for the conduct, and referring the matter to an appropriate authority for further consideration.
171 Appendix 22 continued
11. Action Taken After an Investigation (continued)
11.1 Investigator’s final report (continued) The report will be accompanied by: • the transcript or other record of any oral evidence taken, including tape recordings; and • all documents, statements or other exhibits received by the investigator and accepted as evidence during the course of the investigation. Where the investigator’s report is to include an adverse comment against any person, that person will be given the opportunity to respond and his or her defence will be fairly included in the report. The report will not disclose particulars likely to lead to the identification of the whistleblower. 11.2 Action to be taken If the protected disclosure coordinator is satisfied that the investigation has found that the disclosed conduct has occurred, he or she will (acting also in his or her capacity as chief executive officer) decide what action will be taken to prevent the conduct from continuing or occurring in the future. He or she may also decide if action will be taken to remedy any harm or loss arising from the conduct.
The protected disclosure coordinator will provide a written report to the Minister for Gaming, the Ombudsman and the whistleblower setting out the findings of the investigation and any remedial steps taken.
Where the investigation concludes that the disclosed conduct did not occur, the protected disclosure coordinator will report these findings to the Ombudsman and to the whistleblower.
12. Managing the welfare of the whistleblower
12.1 Commitment to protecting whistleblowers The Commission is committed to the protection of genuine whistleblowers against detrimental action taken in reprisal for the making of protected disclosures. The protected disclosure coordinator is responsible for ensuring that whistleblowers are protected from direct and indirect detrimental action, and that the culture of the workplace is supportive of protected disclosures being made.
The protected disclosure coordinator will appoint a welfare manager for all whistleblowers who have made a protected disclosure. The welfare manager will:
• examine the immediate welfare and protection needs of a whistleblower who has made a disclosure and, where the whistleblower is an employee or officer, seek to foster a supportive work environment; • advise the whistleblower of the legislative and administrative protections available to him or her; • listen and respond to any concerns of harassment, intimidation or victimisation in reprisal for making a disclosure; • keep a contemporaneous record of all aspects of the case management of the whistleblower including all contact and follow-up action; and • discuss with the whistleblower what would be a realistic expectation for the outcome of an investigation of the disclosure. All employees and officers will be advised that it is an offence for a person to take detrimental action in reprisal for a protected disclosure. The maximum penalty is a fine of 240 penalty units or two years’ imprisonment or both. The taking of detrimental action in breach of this provision can also be grounds for making a disclosure under the Act and can result in an investigation. Detrimental action includes: • causing injury, loss or damage; • intimidation or harassment; and • discrimination, disadvantage or adverse treatment in relation to a person’s employment, career, profession, trade or business (including the taking of disciplinary action).
172 12.2 Keeping the whistleblower informed The protected disclosure coordinator will ensure that the whistleblower is kept informed of action taken in relation to his or her disclosure, and the time frames that apply. The whistleblower will be informed of the objectives of an investigation, the findings of an investigation, and the steps taken by the Commission to address any improper conduct that has been found to have occurred. The whistleblower will be given reasons for decisions made by the Commission in relation to a protected disclosure. All communication with the whistleblower will be in plain English.
12.3 Occurrence of detrimental action
If a whistleblower reports an incident of harassment, discrimination or adverse treatment that would amount to detrimental action taken in reprisal for the making of the disclosure, the welfare manager will: • record details of the incident; • advise the whistleblower of his or her rights under the Act; and • advise the protected disclosure coordinator of the detrimental action. The taking of detrimental action in reprisal for the making of a disclosure can be an offence against the Act as well as grounds for making a further disclosure. Where such detrimental action is reported, the protected disclosure coordinator will assess the report as a new disclosure under the Act. Where the protected disclosure coordinator is satisfied that the disclosure is a public interest disclosure, he or she will refer it to the Ombudsman. If the Ombudsman subsequently determines the matter to be a public interest disclosure, the Ombudsman may investigate the matter or refer it to another body for investigation as outlined in the Act.
12.4 Whistleblowers implicated in improper conduct Where a person who makes a disclosure is implicated in misconduct, the Commission will handle the disclosure and protect the whistleblower from reprisals in accordance with the Act, the Ombudsman’s guidelines and these procedures. The Commission acknowledges that the act of whistleblowing should not shield whistleblowers from the reasonable consequences flowing from any involvement in improper conduct.
Section 17 of the Act specifically provides that a person’s liability for his or her own conduct is not affected by the person’s disclosure of that conduct under the Act. However, in some circumstances, an admission may be a mitigating factor when considering disciplinary or other action. Acting in his or her capacity as chief executive officer, the protected disclosure coordinator will decide whether disciplinary or other action will be taken against a whistleblower. Where disciplinary or other action relates to conduct that is the subject of the whistleblower’s disclosure, the disciplinary or other action will be taken only after the disclosed matter has been appropriately dealt with. In all cases where disciplinary or other action is being contemplated, the protected disclosure coordinator (acting in his or her capacity as chief executive officer) must be satisfied that it has been clearly demonstrated that: • the intention to proceed with disciplinary action is not causally connected to the making of the disclosure (as opposed to the content of the disclosure or other available information); • there are good and sufficient grounds that would fully justify action against any non-whistleblower in the same circumstances; and • there are good and sufficient grounds that justify exercising any discretion to institute disciplinary or other action. The protected disclosure coordinator will thoroughly document the process, including recording the reasons why the disciplinary or other action is being taken, and the reasons why the action is not in retribution for the making of the disclosure. The protected disclosure coordinator will clearly advise the whistleblower of the proposed action to be taken, and of any mitigating factors that have been taken into account.
13. Management of the person against whom a disclosure has been made
The Commission recognises that employees or officers against whom disclosures are made must also be supported during the handling and investigation of disclosures. The Commission will take all reasonable steps to ensure the confidentiality of the person who is the subject of the disclosure during the assessment and investigation process. Where investigations do not substantiate disclosures, the fact that the investigation has been carried out, the results of the investigation, and the identity of any person who is the subject of the disclosure will remain confidential.
173 Appendix 22 continued
13. Management of the person against whom a disclosure has been made (continued)
The protected disclosure coordinator will ensure that any person who is the subject of any disclosure investigated by or on behalf of a public body is:
• informed as to the substance of the allegations; • given the opportunity to answer the allegations before a final decision is made; • informed as to the substance of any adverse comment that may be included in any report arising from the investigation; and has • his or her defence set out fairly in any report. Where the allegations in a disclosure have been investigated, and any person who is the subject of the disclosure is aware of the allegations or the fact of the investigation, the protected disclosure coordinator will formally advise any such person of the outcome of the investigation.
The Commission will give its full support to a person who is the subject of a disclosure where the allegations contained in a disclosure are clearly wrong or unsubstantiated. If the matter has been publicly disclosed, the protected disclosure officer (acting in his or her capacity as chief executive officer) will consider any request by that person to issue a statement of support setting out that the allegations were clearly wrong or unsubstantiated.
14. Criminal Offences The Commission will ensure that officers appointed to handle protected disclosures and all other employees and officers are aware of the following offences created by the Act: (a) it is an offence for a person to take detrimental action against a person in reprisal for a protected disclosure being made. The Act provides a maximum penalty of a fine of 240 penalty units or two years imprisonment or both. (b) it is an offence for a person to divulge information obtained as a result of the handling or investigation of a protected disclosure without legislative authority. The Act provides a maximum penalty of 60 penalty units or six months imprisonment or both. (c) it is an offence for a person to obstruct the Ombudsman or any other person in the exercise of his or her powers under the Act. The Act provides a maximum penalty of 240 penalty units or two years imprisonment or both. (d) it is an offence for a person knowingly to provide false information under the Act with the intention that it be acted on as a disclosed matter. The Act provides a maximum penalty of 240 penalty units, two years imprisonment or both.
15. Collating and Publishing Statistics The protected disclosure coordinator will establish a secure register to record the information required to be published in the annual report, and generally to keep account of the status of whistleblower disclosures. The register will be confidential and will not record any information that may identify the whistleblower. The register will contain the following information: • the number and types of disclosures made to the public body during the year; • the number of disclosures referred to the Ombudsman for determination as to whether they are public interest disclosures; • the number and types of disclosed matters referred to the public body by the Ombudsman for investigation; • the number and types of disclosures referred by the public body to the Ombudsman for investigation; • the number and types of investigations taken over from the public body by the Ombudsman; • the number of requests made by a whistleblower to the Ombudsman to take over an investigation by the public body; • the number and types of disclosed matters that the public body has declined to investigate; • the number and types of disclosed matters that were substantiated upon investigation and the action taken on completion of the investigation; and • any recommendations made by the Ombudsman that relate to the public body.
16. Review These procedures will be reviewed annually to ensure that they meet the objectives of the Act and accord with the Ombudsman’s guidelines.
174 Appendix 23
Staff Profile by Position 2009–2010
In accordance with Financial Reporting Direction 29, these tables exclude all statutory appointees including the Accountable Officer (Executive Commissioner), part-time statutory appointments of the Chairman and Deputy Chair of the VCGR, one Commissioner and five additional Commissioners appointed to perform the VCGR functions relating to the licence-awarding and auctioneer phases of the Gambling Licences Review being conducted by the Department of Justice.
Full Time Equivalent (‘FTE’) by Employment Status
Fixed Term Ongoing & Casual Total Employees as at 30 June 2010 121.78 72.13 193.91 Employees as at 30 June 2009 134.52 31.23 165.75
Full Time Equivalent (‘FTE’) for Employment Status by Gender and Age
Employees as at 30 June 2010 Employees as at 30 June 2009 Fixed Term Fixed Term Ongoing & Casual Total Ongoing & Casual Total Gender Male 72.80 26.63 99.43 81.00 12.63 93.63 Female 48.98 45.50 94.48 53.52 18.60 72.12 Total 121.78 72.13 193.91 134.52 31.23 165.75 Age < 25 3.40 16.00 19.40 7.00 6.00 13.00 25–34 18.40 24.10 42.50 19.20 9.00 28.20 35–44 19.40 17.00 36.40 21.40 8.00 29.40 45–54 41.78 12.80 54.58 50.52 7.00 57.52 55–64 36.80 2.23 39.03 33.40 1.23 34.63 Over 64 2.00 - 2.00 3.00 0.00 3.00 Total 121.78 72.13 193.91 134.52 31.23 165.75
Full Time Equivalent (‘FTE’) for Employment Status by Classification
Employees as at 30 June 2010 Employees as at 30 June 2009 Fixed Term Fixed Term Classification Ongoing & Casual Total Ongoing & Casual Total VPS 1 1.00 3.80 4.80 1.00 1.00 2.00 VPS 2 19.60 16.60 36.20 20.60 8.00 28.60 VPS 3 41.18 30.60 71.78 48.52 15.60 64.12 VPS 4 12.20 9.50 21.70 15.60 4.00 19.60 VPS 5 27.00 5.00 32.00 26.00 0.00 26.00 VPS 6 16.80 6.63 23.43 18.80 2.63 21.43 STS * 0.00 0.00 0.00 0.00 0.00 0.00 EO ** 4.00 0.00 4.00 4.00 0.00 4.00 Total 121.78 72.13 193.91 134.52 31.23 165.75
* Senior Technical Specialist ** Executive Officer
175 Appendix 24
Other Information Available on Request to the Relevant Minister, Members of Parliament and the Public*
The following are prepared and available:
• a statement that declarations of pecuniary interests have been duly completed by all relevant officers; • details of shares held by a senior officer as nominee or held beneficially in a statutory authority or subsidiary; • details of publications produced by the entity about the entity and the places where the publications can be obtained; • details of changes to prices, fees, charges, rates and levies charged by the entity; • details of major external reviews carried out on the entity; • details of research and development activities; • details of major promotional, public relations and marketing activities undertaken by the entity to develop community awareness of the entity and the services it provides; • details of assessments and measures undertaken to improve the occupational health and safety of employees; • a general statement on industrial relations within the entity and details of time lost through industrial accidents and disputes; and • a list of major committees sponsored by the entity, the purposes of each committee and the extent to which the purposes have been achieved.
Note: * Subject to any applicable freedom of information requirements.
176 Appendix 25
Disclosure Index
The Annual Report of the Commission is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Commission’s compliance with statutory disclosure requirements.
Legislation Requirement Page
Ministerial Directions
Report of Operations – FRD Guidance
Charter & Purpose
FRD 22B Manner of establishment and the relevant Minister 14 FRD 22B Objectives, functions, powers and duties 15–16 FRD 22B Nature and range of services provided Part 2
Management & Structure
FRD 22B Organisational structure 18–20
Financial & Other Information
FRD 22B Operational and budgetary objectives and performance against objectives 12 FRD 22B Employment and conduct principles 62 FRD 22B Occupational health and safety 60 FRD 29 Workforce data disclosures 60,175 FRD 15B Executive officer disclosures 61,101 FRD 22B Summary of the financial results for the year 67–70 FRD 22B Significant changes in financial position during the year 67–70 FRD 22B Major changes or factors affecting performance 68 FRD 22B Subsequent events 68,102 FRD 22B Application and operation of the Freedom of Information Act 1982 59 FRD 22B Compliance with building and maintenance provisions of the Building Act 1993 62 FRD 22B Application and operation of the Whistleblowers Protection Act 2001 59 FRD 25 Victorian Industry Participation Policy disclosures 59 FRD 22B Details of consultancies over $100,000 62 FRD 22B Details of consultancies under $100,000 62 FRD 12A Disclosure of major contracts 59 FRD 24C Reporting of office-based environmental impacts 63 FRD 22B Statement of availability of other information 66 FRD 10 Disclosure index 177
Financial Statements
Financial statements required under Part 7 of the FMA
SD 4.2(b) Comprehensive Operating Statement 72 SD 4.2(b) Balance Sheet 73 SD 4.2(a) Statement of Changes in Equity 74 SD 4.2(b) Cash Flow Statement 75
177 Appendix 25 continued
Legislation Requirement Page
Financial Statements (continued)
Financial statements required under Part 7 of the FMA (continued)
SD 4.2(a) Compliance with Australian Accounting Standards and other authoritative pronouncements 77 SD 4.2(a) Compliance with Ministerial Directions 77 SD 4.2(d) Rounding of amounts 82 SD 4.2(c) Accountable Officer’s declaration 105
Other disclosures in notes to the financial statements
FRD 13 Disclosure of Parliamentary appropriations 84 FRD 11 Disclosure of ex-gratia payments 97 FRD 21A Responsible person and executive officer disclosures 100–101
Legislation
Building Act 1993 62 Freedom of Information Act 1982 59 Victorian Industry Participation Policy Act 2003 59 Whistleblowers Protection Act 2001 59
Key: FMA Financial Management Act 1994 FRD Financial Reporting Direction
178 Appendix 26
Glossary Bingo Bingo is a game played by several people in which random numbers are called out and players cover the numbers on their individual ticket(s). The first person to cover a nominated arrangement of numbers on one ticket and call ‘bingo’ is declared the winner and awarded the prize. A permit is required for the conduct of bingo unless no fee is charged, directly or indirectly, to participate in the games or the whole of the gross receipts from the session of bingo games is distributed as prizes during that session. Bingo Centre Premises in which more than seven sessions of bingo are conducted within a period of seven consecutive days by community and charitable organisations with the appropriate permits. Bingo Centre Operator A person, whether natural or corporate, holding a licence to operate a bingo centre under the Gambling Regulation Act 2003. Casino Means the gaming area within the Melbourne Casino Complex at Southbank, as defined by the casino boundary. Casino Agreement The Casino Agreement (as amended), dated 21 September 1993, is one of the documents governing the relationship between Crown and the Commission. Casino Management Agreement The Casino Management Agreement between Crown and the State of Victoria was entered into on 20 September 1993. The agreement has been varied by nine deeds of variation, each having been ratified by the Parliament of Victoria. The most recent variation is in the Ninth Deed of Variation dated 16 December 2009. Chief Commissioner’s Exclusion Order A decision of the Chief Commissioner of Police under section 74 of the Casino Control Act 1991 to prohibit a person from being in any part of the Casino Complex or on specified racing tracks under the Racing Act 1958. Commercial Raffle Organiser A person, other than an employee of the holder of a minor gaming permit, who is retained on a commercial basis to conduct a raffle, in whole or in part. Commission Victorian Commission for Gambling Regulation, referred to by the acronym VCGR throughout the Annual Report Community Benefit Statement A statement that must be completed each year by club and racing club venue operators indicating the amount of gaming revenue from each venue that has been used to benefit the community. Controlled Contract Certain contracts for the supply of goods and services to the Casino that are allowed by, or reported to, the Commission. Crown Means: a) in relation to the current holder of the casino licence in Victoria, Crown Melbourne Limited; b) in relation to the company which is the holding company of the current holder of the casino licence, Crown Limited – whichever the context requires.
179 Appendix 26 continued
Glossary (continued)
Entitlements Register The electronic register maintained by the VCGR which records the day on which each gaming machine entitlement was allocated, the name and address of the venue operator to which each entitlement was allocated, the geographic area condition and venue condition to which each entitlement is subject and the day on which each entitlement takes effect. Exclusion Order A notice issued to a person by the casino operator, the Chief Commissioner of Police or the Commission excluding that person from entering the gaming area of the Casino, either because the person has misbehaved in the gaming area of the Casino or because the person has asked to be excluded. There is a right of appeal against an exclusion order other than an exclusion order issued by the Chief Commissioner of Police.
Gaming Industry Employee The holder of a licence under the Gambling Regulation Act 2003 who is employed to carry out prescribed duties at an approved gaming venue, by a gaming operator, at a bingo centre or who performs any other duties as prescribed in the Gambling Regulation Regulations 2005. Gaming Licence Licence held by Tabcorp Holdings Limited authorising the ownership and operation of electronic gaming machines in licensed venues. Gaming Machine Entitlement An entitlement authorising a venue operator to acquire approved gaming machines and restricted components and to conduct gaming on one approved gaming machine in an approved venue operated by the venue operator from 2012.
Gaming Operator’s Licence Licence held by Tatts Group Limited authorising the ownership and operation of electronic gaming machines in licensed venues.
Gross Gaming Revenue The total amount received for gaming at the Casino, less the amount of prizes paid out as winnings.
Internal Control Manual A set of documents approved by the Commission and detailing the casino operator’s system of controls and procedures to be implemented in the Casino.
Intralot Intralot means Intralot Australia Pty Ltd, the holder of a Victorian public lottery licence authorising the operation of specified public lotteries with effect from 1 July 2008.
Large Raffle A raffle where the total prize pool: • will exceed $100,000; or • will exceed $60,000 and the ticket price will be $35 or more. Special conditions apply in addition to those for a standard Raffle.
Lucky Envelope A lottery ticket where the result is pre-determined. The ticket must be made so that the result cannot be seen until after it is sold.
Melbourne Casino Complex The entire entertainment and hotel complex at Southbank including the Casino.
180 Monitor A person who will provide an independent monitoring system from 2012 to which all gaming machines must be connected before a game can be played on the gaming machine. The Monitor will ensure the integrity of gaming machine transactions and provide data and information on gaming machines for regulatory, taxation and research purposes. Net Gaming Revenue A term for that proportion of the gaming dollar that is not returned to players. This term is interchangeable with the terms ‘player loss’ and ‘gaming expenditure’. Pooling Scheme An arrangement where community and charitable organisations conducting sessions of bingo pool the proceeds from their sessions and share in the distribution from the pool. Raffle A lottery in which a certain sum has been paid to enter or participate and where no money is offered as a prize except in the case of a prize for travel or accommodation where the value of the money does not exceed 10 per cent of the total value of the prize. Only organisations declared by the Commission to be community or charitable organisations may conduct a raffle. If the total prize value exceeds $5,000, a permit must first be obtained from the Commission. Roll of Manufacturers, Suppliers and Testers List of persons, whether natural or corporate, who manufacture or supply gaming machines or restricted components to gaming operators or who supply testing services for the evaluation of gaming machine types and games. Under the Gambling Regulation Act 2003 the Roll of Manufacturers, Suppliers and Testers is maintained by the Commission. Tabcorp Means, in relation to the current holder of the wagering licence and the gaming licence in Victoria under Part 3 of Chapter 4 of the Gambling Regulation Act 2003, Tabcorp Holdings Limited, whichever the context requires. Tatts means: a) in relation to the holder of the gaming operator’s licence in Victoria, Tatts Group Limited, or its predecessor, Tattersall’s Limited; or b) in relation to the holder of a lotteries licensee in Victoria, Tattersall’s Sweeps Pty Ltd – whichever the context requires. Trade Promotion Lottery A lottery, competition or game conducted by either a trade or business for the promotion of that trade or business. A permit is required for any such lottery with a total prize value greater than $5,000. Venue Operator A person who is the holder of a club venue operator’s licence or a hotel venue operator’s licence under the Gambling Regulation Act 2003. Both a club venue operator’s licence and a hotel venue operator’s licence allow the holder to possess, for operation at approved premises, electronic gaming machines obtained from a gaming operator. A club venue operator’s licence also allows the holder to hold club gaming machine entitlements, which will allow the venue operator to own and operate electronic gaming machines at approved club premises from 2012. A hotel venue operator’s licence also allows the holder to hold hotel gaming machine entitlements, which will allow the venue operator to own and operate electronic gaming machines at approved hotel premises from 2012. Withdrawal of Licence Means a decision of the casino operator under section 70 of the Casino Control Act 1991 to withdraw the future right of a person to enter the Melbourne Casino Complex (such a decision cannot be appealed).
181
Level 5, 35 Spring Street Melbourne Victoria 3000 Australia PO Box 1988, Melbourne Victoria 3001 Australia Telephone 61 3 9651 3333 Facsimile 61 3 9651 3777
www.vcgr.vic.gov.au