Fact Sheet 5

What do the new 2012 licence arrangements mean for venue operators?

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In April 2008 the Victorian Government announced a new direction for Victoria’s post-2012 gaming industry. The legislative framework for this change was created by the passage of the Gambling Regulation Amendment (Licensing) Act 2009.

 

The Act set in place arrangements for the allocation, use and transfer of gaming machine “entitlements”. A gaming machine entitlement authorises the holder to possess and operate a gaming machine at an approved gaming venue for 10 years from 2012.

 

A venue operator must hold a separate gaming machine entitlement for each gaming machine owned and operated in a venue, that is, if a venue operates ten gaming machines, the venue operator must hold ten gaming machine entitlements.

Under the new arrangements:

• gaming machine venue operator entitlement holders are authorised to operate gaming machines in approved clubs and hotels
• a single 15-year independent licence for monitoring gaming machines in clubs and hotels was awarded to Intralot Gaming Services Pty Ltd
• a single 10-year Keno licence was awarded to Tabcorp Investments No.5 Pty Ltd
• a single 12-year wagering and betting licence was awarded to Tabcorp Wagering (Vic) Pty Ltd.


See the VCGLR website for more information about the 2012 licence arrangements.
 

Result of 2009 bidding process for EGM licences

 

In June 2009, existing club venue operators with gaming machines were offered the opportunity to purchase a limited number of gaming machine entitlements in a pre-auction offer. In May 2010, licensed venue operators bid for the remaining entitlements.

 

A transfer scheme for gaming machine entitlements is operated by the VCGLR. Gaming machine entitlements can only be transferred from one venue operator to another venue operator.

 

Further information on gaming entitlements can be found at the VCGLR website.

Venue operator licenses 

Changes made to legislation have resulted in major changes to venue operator licences, including:

  • All venue operator licences are for 10 years, and no venue operator licences are required to be renewed before 2014.
  • All venue operator licences are either a club venue operator’s licence or a hotel venue operator’s licence.
  • An application for a club venue operator’s licence may only be made by a club that is established for a community purpose and whose constitution has provisions that prohibit the distribution of profit or surplus to its members (either annually or through winding up).
  • A sole trader can no longer apply for a venue operator’s licence. Instead, the applicant is commonly an entity incorporated under the Companies Act or under the Associations Incorporation Act 1981.

The VCGLR has a Commercial Licensing and Monitoring Unit, which makes recommendations for and oversees the assessment of venue operator’s licences. You can read more about the unit and frequently asked questions about Venue Operator’s Licences at the VCGLR website.

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