As featured in the latest edition of Bowler Magazine
When community clubs in Queensland decide to surrender a gaming machine licence or decrease the number of gaming machines at one of their venues, they may overlook correctly disposing of gaming machines which is tightly regulated under the Gaming Machine Act 1991 (Qld) and Gaming Machine Regulation 2002 (Qld). This is a critical area of compliance with steep penalties for breaches.
Each gaming machine is linked to a gaming machine licence at that venue and its associated operating entitlement, which together authorises that club to operate gaming. Whilst not the focus of this article, if you are surrendering a gaming machine licence, special consideration should be given to how operating entitlements are to be dealt with as they have commercial value and must be permanently transferred to another community club within two (2) years of the surrender date, otherwise they will become entitlements of the State.
Disposal and Approved Methods
If a community club decides to surrender a gaming machine licence or decrease the number of gaming machines at one of their venues, they must dispose of their gaming machines through sale or destruction.
This process no longer requires approval from the Office of Liquor and Gaming Regulation (OLGR), however, it is still subject to several requirements.
If you choose to sell the gaming machines, they can only be sold from one licensee to another which holds a gaming machine licence and must not be sold/given away for display purposes in a home or museum or converted/repurposed for any other use. Any sale to unlicensed persons will result in confiscation of the gaming machine(s) and prosecution of both the seller and buyer (or person in possession of the gaming machine).
If you choose to destroy the gaming machines or are unable to sell them to another licensee, they must be taken to a company that has crushing facilities or to a refuse station where graders are available to crush items and completely crushed (with no parts including artwork, electronic components, or serial plates being removed).
The timeframe for this disposal (unless extended by the OLGR) for a community club is one (1) month after approval of the application to decrease the number of gaming machines or accepting the notification of a gaming machine licence surrender.
Alternatively, if it is expected that it will take longer than one (1) month to dispose of the gaming machines, you may wish to lodge an application to store gaming machines with the OLGR.
Recommendations
To protect your clubs’ interests, demonstrate good governance, and avoid compliance breaches, we recommend the following when making an application/notification which will result in the disposal of gaming machines:
- Only sell gaming machines to another licensee such as a commercial hotel or community club which holds the necessary gaming machine licence and has sufficient entitlements to take on the additional gaming machines;
- If not sold, only have gaming machines crushed by providers who have sufficient equipment, expertise, and ability to ensure you comply with your obligations;
- Keep extensive paperwork/records in respect of sold or crushed gaming machines in case an OLGR inspector seeks proof; and
- Seek legal advice early if planning any changes that may affect gaming operations.
If you are considering surrendering your gaming machine licence, decreasing the number of gaming machines at your venues, or wanting to dispose of gaming machines and you would like assistance or advice on the process, please feel free to contact me on 07 3224 0353.
