Gaming Machines Bill 2008

The Gaming Machines Bill 2008 was introduced into Parliament on 28 October 2008. The Bill represents the most significant reform to the legislative gaming regime in NSW since the introduction of the Act in 2001.  There are multiple opportunities for venues to acquire additional entitlements.

The most significant changes to the Act involve the method venues must use to increase their gaming machine thresholds and in turn acquire additional gaming machine entitlements.  All Local Government Areas (LGAs) will be banded into three different ‘colors’ based on gaming machine expenditure per adult, density (gaming machines to adults) and the Socio – Economic Indexes For Areas score.  These being:

• Green LGAs will be the most favorable in terms of increases,
• Amber LGAs will require a Local Impact Assessment (LIA) Class 1 for mid range increases
• Red LGAs will be the most difficult area to increase the entitlement threshold and will require a LIA Class 2.

The type of banding in which the LGA falls will be critical in determining the type of process a club needs to follow to gain additional machines.

For example:

A venue in a Band 1 (or Green LGA) will be able to be approved for what is labeled a ‘low range’ increase in their gaming machine threshold without even completing an LIA.  Should your venue be seeking a ‘mid range’ increase in threshold you will be required to prepare an LIA Class 1. 

Band 2 (or Amber LGA) venues seeking a low range increase will be required to prepare an LIA Class 1, or Class 2 where a mid or high range increase is sought.

Band 3 (or Red LGA) venues will always require a Class 2 LIA no matter the number of entitlements applied for.

Which Band does Your Venue Fall In?

What is a Low, Mid & High Range Threshold Increase?

What ‘low’, ‘mid’ and ‘high’ range threshold increases are in terms of numbers is not defined in the Bill and will be included in the Regulations when they are released.  Our reading of the Review Report provides that a ‘low range’ increase is likely to be up to 20 entitlements, although the Regulations will provide a definition.

What are the Types of LIAs?

What is required to be included in the different classes of LIA is difficult to glean from the Bill.  However, the Class 1 LIA is likely to require much more detailed analysis than the previous Social Impact Assessment Class 1, with the Class 2 LIA comparable to current SIA Class 2 but with more defined guidelines.  The Bill provides that for an LIA Class 1 to be approved a positive impact must be shown, where for a Class 2 an ‘overall’ benefit must be shown.  Again further details will be forthcoming when the Bill comes into effect.

The Need for a Strategic Approach

Irrespective of what band an LGA is, entitlements may be sourced from within the same LGA without an LIA needing to be prepared. Such transactions will however still be subject to the 1 in 3 forfeiture.

A new provision also allows the development of new clubs in green banded LGAs.  An application may be made accompanied by an LIA Class 1 to allow up to a 150 gaming machine threshold to be established where the Authority are satisfied of various criteria.

There are also concessions for amalgamated clubs that wish to transfer entitlements between venues with limited forfeiture and the venue cap of 450 for clubs has been removed.

As the amendments to the Act come into effect on 31 January 2009 we cannot stress how important it is that venues act quickly in reviewing their position and resolving the most appropriate long term strategy. If you wish to increase the number of entitlements at your venue as the bandings appear likely to be fluid and as such are likely to be updated on a regular basis. This obviously means that the banding of you LGA is likely to change over time if venues in your LGA increase their number of entitlements. Therefore venues that delay making an application may find it very difficult in the future if their LGA moves to a Red LGA.

There are also options for venues to acquire entitlements sourced from within your own LGA without having to go through the LIA process even in a red band LGA.  Therefore, clubs need to act immediately.

To discuss the likely implications for your club and what LGA your club may fall into call This e-mail address is being protected from spam bots, you need JavaScript enabled to view it   on 8346 6000, This e-mail address is being protected from spam bots, you need JavaScript enabled to view it   on 0425 266 120 or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it   on 0409 999 909.