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2008-2009
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
POKER MACHINE (REDUCED LOSSES - INTERIM MEASURES) BILL 2009
EXPLANATORY MEMORANDUM
(Circulated by authority of Senator N Xenophon)
POKER MACHINE (REDUCED LOSSES - INTERIM MEASURES) BILL 2009
1. Background
The purpose of this Bill is to put in place interim measures to
regulate the rate of poker machine losses by limiting the maximum bet
on any spin and adjusting spin rates and volatility of poker machines.
It follows the Productivity Commission's draft report into Gambling,
released in October 2009, which concluded that, given the current spin
rate of machines, it was possible for poker machine players to lose
$1,200 an hour.
Among the Productivity Commission's key recommendations, was that bets
be limited to a maximum of $1 per spin with a maximum loss per hour of
$120, which this Bill sets in place.
These measures are interim measures to protect problem gamblers until
the Productivity Commission publishes its final report in early 2010,
which will likely result in a widespread overhaul of poker machine
regulation.
2. Short Title
This clause is a formal provision and specifies the short title of
Bill, once enacted, as the Poker Machine (Reduced Losses - Interim
Measures) Act 2009.
3. Commencement
This clause provides for the commencement of the Act at the end of 28
days after the day on which it receives the Royal Assent.
4. Object of the Act
This clause states that the object of the Act is to put in place
interim measures to regulate the rate of poker machine losses by
restricting the practical operation of poker machines.
5. Application of Act
Subclause 4(1) allows for the Act to extend to Norfolk Island, the
Territory of Cocos (Keeling) Islands and the Territory of Christmas
Island.
Subclause (2) enables the Act to apply to acts, omissions, matters and
things in the Australian jurisdiction.
6. Relationship with State and Territory Law
This clause specifies that this Act is not intended to exclude or
limit the concurrent operation of any law of a State or Territory,
unless the contrary intention appears.
7. Definitions
This clause sets out the definitions of terms within this Act. It
defines that 'corporation' means a corporation to which paragraph
51(xx) of the Constitution applies; and states that 'poker machine'
includes gaming machine or any machine licensed or required to be
licensed for use in a state or territory as a poker machine or gaming
machine and otherwise has its ordinary meaning.
8. Part 2 - Restrictions on the practical operation of poker machines
This section sets out dealings with and the practical operations of
poker machines to ensure compliance with the intent of the Bill to
reduce losses for problem gamblers.
Clause 8 sets out the details by which corporations must deal with
poker machines such that they comply with clause (9) of the Bill,
which requires that machines be modified to reduce losses.
Subclause 8(1), paragraph (1) provides that a corporation must not (a)
manufacture a poker machine; or (b) acquire, install, own, operate or
lease a poker machine; or (c) sell or offer a machine for sale for use
in Australia as a poker machine; or (d) otherwise exercise any
property right over or in connection with a poker machine or the
revenue from a poker machine, unless the machine complies with each
requirement as specified in clause (9).
Subclause 8(2) sets out that a person must not (a) aid, abet, counsel
or procure a contravention of subsection (1); or (b) induce, whether
by threats or promises or otherwise, a contravention of subsection
(1); or (c) be in any way, directly or indirectly, knowingly concerned
in, or party to, a contravention of subsection (1); or conspire with
others to effect a contravention of subsection (1).
Under subclause 8(3) of the Bill, breaches of subclauses (1) and (2)
are civil penalty provisions, which are subject to including pecuniary
penalties.
Clause (9) sets out how poker machines must be configured to reduce
maximum losses.
Subclause (1) sets out that the machine must not accept banknotes with
a denomination greater than $20. Subclause (2) provides that the
machine must not be capable of accepting additional credits from a
player if the machine stands in credit to the player to the value of
$20 or more.
Subclause (3) states that the machine must not be capable of allowing
a maximum bet in excess of $1 per spin and under subclause (4) of the
Bill, the machine must not be capable of allowing a maximum loss in
excess of $120 in any single hour of operation.
9. Part 3 - Civil Penalties
Clause (10) outlines pecuniary penalties for contravention of civil
penalty provisions.
Subclause (1) provides that if the Federal Court is satisfied that a
person has contravened a civil penalty provision, the Court may order
the person to pay to the Commonwealth such pecuniary penalty, in
respect of each contravention, as the Court determines to be
appropriate.
Subclause (2) sets out that, in determining the pecuniary penalty, the
Court must have regard to all relevant matters, including (a) the
nature, extent and circumstances of the contravention; (b) the nature
and extent of any loss or damage suffered as a result of the
contravention; and (c) whether the person has previously been found by
the Court in proceedings under this Act to have engaged in any similar
conduct.
Under subclause (3), the Court in assessing the extent of any loss or
damage may consider the harm that is caused to vulnerable people, to
their families and to Australian society by the use of expensive,
addictive poker machines.
Subclause (4) determines that the pecuniary penalty payable under
clause (1) is not to exceed 2000 penalty units for each contravention,
with penalty units to have the meaning as given by section 4AA of the
Crimes Act 1914.
Subclause (5) provides that it is open to the Court to find that a
failure to comply with more than one provision in clause (9)
constitutes more than one contravention of a civil penalty provision,
even if that contravention relates to the same conduct, and subclause
(6) states that it is open to the Court to find that a person who
contravenes a civil penalty provision commits a separate contravention
of that provision in respect of each day during which the
contravention continues.
10. Part 11 - Contravening a civil penalty provision is not an offence
This clause states that a contravention of a civil penalty provision
is not an offence.
11. Part 12 - Recovery of a pecuniary penalty
This clause provides that if the Federal Court orders a person to pay
a pecuniary penalty, that (a) the penalty is payable to the
Commonwealth; and (b) the Commonwealth may enforce the order as if it
were a judgment of the Court.
12. Part 4-Miscellaneous
Clause 13 determines regulation under the Act, whereby the Governor
General may make regulations prescribing matters which are (a)
required or permitted by this Act to be prescribed; or (b) necessary
or convenient to be prescribed for carrying out or giving effect to
this Act.