New South Wales Consolidated Acts

GAMING MACHINES ACT 2001 - SECT 22

22 Exchange of AADs for poker machine entitlements

(1) The Authority may, on application by a hotelier, allocate in respect of the hotel licence:

(a) in the case of a hotel situated in a metropolitan area-one poker machine entitlement in exchange for the hotelier (either alone or in combination with any other hotelier in such an area) surrendering to the Authority the authorisation under Part 5 to keep 3 approved amusement devices, and

(b) in the case of a country hotel-one poker machine entitlement in exchange for the hotelier (either alone or in combination with any other hotelier whose hotel is a country hotel or a registered club whose premises are not in a metropolitan area) surrendering to the Authority the authorisation under Part 5 to keep 2 approved amusement devices.

(1A) If a hotelier surrenders any such authorisation to keep approved amusement devices (referred to in this Act as the "surrendered AAD entitlements"):

(a) the surrendered AAD entitlements are taken to be forfeited to the Authority, and

(b) the gaming machine threshold for the hotel or club premises concerned is to be decreased by the number of surrendered AAD entitlements, and

(c) the hotelier cannot apply for authorisation under Part 5 to keep such number of approved amusement devices as would replace (wholly or partly) the number of surrendered AAD entitlements.

(1B) If, in relation to an application by a hotelier under this section, a hotelier surrenders, in combination with another hotelier, any such authorisation to keep approved amusement devices, the Authority may not allocate a poker machine entitlement under this section in respect of that application if:

(a) in the case of hotels situated in a metropolitan area-either one of the hoteliers is, at the time of the application, authorised to keep 3 or more approved amusement devices, or

(b) in the case of country hotels-either one of the hoteliers is, at the time of the application, authorised to keep 2 or more approved amusement devices.

(2) On the third anniversary of the commencement of this subsection (as inserted by the Gaming Machines Amendment Act 2008 ):

(a) any authorisation under Part 5 to keep an approved amusement device is automatically cancelled, and

(b) the gaming machine threshold for the hotel or club premises concerned is to be decreased by the relevant number of approved amusement devices.