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1
Interactive Gambling (Player Protection )
INTERACTIVE GAMBLING (PLAYER
PROTECTION) BILL 1998
EXPLANATORY NOTES
Short title
Interactive Gambling (Player Protection) Act 1998
Objectives of the Legislation
The Bill is designed to provide the legislative basis for regulating
interactive games in order to protect players who participate in interactive
forms of gambling. The legislative framework also provides for the
implementation in Queensland of an interjurisdictional scheme to regulate
gambling on the Internet and other forms of interactive gambling.
The Bill incorporates significant consumer protection strategies. A
crucial element is the focus on requirements aimed at ensuring the integrity
of industry participants and the fairness of products being provided. The
interjurisdictional legislative scheme provides a regulatory framework to
ensure the probity of licensed interactive gambling providers. Queensland
will be able to licence providers in Queensland and to recognise products
offered by providers licensed in participating jurisdictions as well as
entering into taxation sharing arrangements with participating jurisdictions.
Reasons for the Legislation
This legislation addresses a complex and rapidly evolving issue relating
to the availability of gambling activities in private residences via
telecommunications. The Bill addresses the fact that interactive gambling is
already occurring in an unregulated manner throughout the world and
provides a means to protect consumers participating in games offered
through the Internet and other such forms of interactive gambling.
Accordingly, the Bill has been designed to ensure that those who wish to
participate in interactive gambling can do so confidently and in a secure
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Interactive Gambling (Player Protection )
regulatory environment.
Estimated Cost for Government Implementation
The establishment of a regulatory regime for interactive activities
involves a new responsibility for the Queensland Office of Gaming
Regulation, which currently regulates all other forms of lawful gaming in
Queensland. It is anticipated that the additional cost involved in regulating
interactive gambling, in terms of the proposed legislation and the interactive
model, will be recovered from charges levied on licensed operators. This
would include all costs associated with ensuring the probity and integrity of
interactive gambling operations and supervising operators licensed under
the legislation.
Initially, an additional 5 staff, at a cost of $300,000 will be necessary for
the Queensland Office of Gaming Regulation to regulate interactive
gambling. As the Queensland Office of Gaming Regulation will assume
regulatory responsibilities in a previously unregulated area, resource
requirements will be subject to constant review.
Since Queensland will be among the first jurisdictions in the world to
implement a comprehensive regulatory regime for interactive gambling, it
has an opportunity to take advantage of the resultant business, employment
and taxation benefits. As Queensland will be a participant in an
interjurisdictional legislative model, it will protect its revenue base derived
through gaming taxes while at the same time being in a position to gain
additional revenue derived through the play of residents from jurisdictions
which do not participate in the model. Therefore, it is expected that the
introduction of this Bill will provide a net financial benefit to the State.
Assessment of Bill's consistency with Fundamental Legislative
Principles
The legislation has been prepared taking into consideration fundamental
legislative principles. A deviation from these principles is the provision that
decisions of the Governor in Council or the Minister, as set out in schedule
1 of the legislation, are final and conclusive and are not subject to judicial
review. These decisions relate to the interactive gambling licence and
persons with an interest or potential interest in the licence, authorisation of
games and approving exemption schemes. Moreover, the Minister may
refuse to grant an interactive gambling licence even if satisfied of the
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Interactive Gambling (Player Protection )
suitability of the applicant to hold a licence.
These provisions are absolutely necessary in the public interest to ensure
integrity in the conduct of interactive games. They are consistent with other
Queensland legislation regulating or controlling lawful forms of gambling.
The Bill provides for an exemption scheme which is designed to permit
flexibility in the efficient application of the Bill. Further, the scheme is seen
as a necessary feature to effectively regulate products and providers utilising
technologies which are in a constant state of development. It is impossible
to accurately predict all the forms of existing and future products which
could be offered through interactive means. It is therefore vital that the
legislation contain sufficient flexibility to permit the legislation to operate
efficiently, having regard to the rapidity of development of both interactive
technologies and products, whilst still safeguarding the interests of
participants.
Queensland is the first Australian jurisdiction to introduce
comprehensive legislation to regulate interactive gambling. Moreover,
Australia is leading the international community in developing regulatory
controls of this nature. Accordingly, Queensland has not been in a position
to benefit from a review of alternative legislative regimes or experiences
from other jurisdictions. It is intended that the exemption scheme
provisions will be re-examined following implementation of the Bill and in
conjunction with regulatory developments both in Australia and overseas.
The Bill also requires some flexibility in automatically recognising
products from a participating jurisdiction. As the future form of such
products cannot be foreseen, it is essential that the Minister is able to refuse
to recognise a product which is contrary to the public interest. In exercising
this ability the Minister will, however, offer the provider and participating
regulator the opportunity to make a representation.
The ability to be flexible in the application of the Bill is further reflected
in a provision designed to include, as an authorised game, a game which
would otherwise be authorised, or eligible to be authorised, as an art union
under the Art Unions Act 1992. In considering whether the game should be
brought within the ambit of this Act the Minister will have regard to the
nature, value, or frequency of prizes offered in the game and other matters
the Minister considers relevant. This is necessary in order to capture
products where the nature of the product dictates that player protection,
integrity and probity measures should apply.
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Interactive Gambling (Player Protection )
Accompanying emerging technologies are new products designed
specifically to complement technologies and pertinent to the introduction
and use of that technology. One such group of products relates to
alternative forms of cash, for example Ecash and Digicash. Accordingly,
another flexible element provides for a regulation to prescribe the types of
funds able to be used to cover the amount of a wager, other than funds from
player accounts. This will recognise the emergence of new products
thereby enabling transfer other than by means of credit, for the purpose of
wagering.
Persons involved in the conduct of interactive gambling must be
continually subject to close scrutiny in order to protect the integrity of
gaming in the public interest. Persons wishing to be involved in the
operation of interactive gambling, must be willing to be subject to such
scrutiny. Therefore, it is essential that certain provisions, such as the power
conferred on inspectors to enter premises of a licensee or its agent, without
a warrant, be included. Inspectors do not have the power to enter other
places without warrant. To gain consent to enter other places, the inspector
must tell the occupier the purpose of the entry and that the occupier is not
obliged to give consent.
The powers conferred on inspectors are not excessive in view of the
object of the Bill and the strong public interest reasons supporting its
introduction. In addition, these powers are similar to those contained in the
Keno Act, Lotteries Act, Casino Control Act and the Gaming Machine Act
and are based on proven methods of protecting the public interest.
Consultation
The Bill is based on a draft national model for the regulation of
interactive gambling products. The model was developed by the Gaming
Ministers from Australian States and Territories and was released for
discussion in May 1997. The Queensland Office of Gaming Regulation
has consulted with all gaming regulators from other Australian jurisdictions
during development of the legislation and will maintain ongoing
consultation.
Inter-departmental consultation was carried out with the Department of
Families, Youth and Community Care, Queensland Emergency Services,
Queensland Police Service, Office of Rural Communities, Business
Environment Unit and Treasury's National Competition Policy
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Interactive Gambling (Player Protection )
Implementation Unit.
Consultation has been undertaken with the Totalisator Administration
Board of Queensland, the Golden Casket Lottery Corporation Limited, Reef
Corporate Services Limited, Jupiters Limited (Jupiters Casino, Treasury
Casino and Jupiters Keno) and Breakwater Island Limited.
NOTES ON PROVISIONS
PART 1--PRELIMINARY
Clause 1 sets out the short title of the Act.
Clause 2 provides for the Act to commence on proclamation.
Clause 3 defines the major objects of the Act which are to: regulate and
control interactive gambling; protect players of interactive games; and to
implement a scheme to recognise inter-jurisdictional regulation of
interactive gambling.
Clause 4 defines a "game" to include schemes and arrangements. This
is similar in substance to the definitions of a gaming scheme in other
Gaming Acts.
Clause 5 defines a "player" as a person who participates in an interactive
game.
Clause 6 sets out the basic elements of an "interactive game".
However, the following games will be excluded from the ambit of this
definition: existing authorised wagering activities; games which would
otherwise be approved under the Art Unions Act 1992 (unless a game or
product is specifically prescribed in a regulation); and games which are
approved under another Gaming Act and which utilise telecommunication
devices from designated commercial sites.
Clause 7 refers to the Dictionary for the Act in schedule 3.
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Interactive Gambling (Player Protection )
Clause 8 deals with the extraterritorial application of the Act.
PART 2--INTERACTIVE GAMBLING
Clause 9 deals with the major features of the co-operative regulatory
scheme. The scheme will be comprised of the Queensland legislation and
the corresponding legislation of participating jurisdictions.
Clause 10 provides that the Governor in Council, on the Minister's
recommendation, may declare a jurisdiction to be a participating
jurisdiction. In order for such a declaration to be made, the Minister must
have entered into an arrangement with that jurisdiction which provides: a
uniform approach to the taxation of authorised games; for the collaboration
between relevant officials of the jurisdictions; for the mutual recognition of
licences; and for the sharing of tax revenue on an equitable basis. A
declaration may be revoked if the law of the participating jurisdiction ceases
to be compatible with this Act, or the arrangements between the
jurisdictions cease to operate satisfactorily.
Clause 11 defines a "licensed provider" (Queensland licensee), an
"external provider" (licensee of a participating jurisdiction) and an
"authorised provider" (all licensees whether licensed in Queensland or
elsewhere).
Clause 12 defines an authorised game as a game that is authorised to be
conducted under Queensland legislation or corresponding legislation.
Following representations from the relevant participating regulator and
external provider, the Minister may prohibit an external provider's game
from being conducted within Queensland if the Minister believes the game
is contrary to the public interest.
Clause 13 enables the Minister to authorise a licensed provider to
conduct a particular interactive game on conditions stated in the instrument
of approval.
Clause 14 enables the Minister to change the conditions of a game
authorisation.
Clause 15 enables the Minister to revoke an authorisation for a game.
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Interactive Gambling (Player Protection )
Clause 16 makes it an offence for a person to conduct an interactive
game (wholly or partly in Queensland) unless the game is an authorised
game and the person is authorised to conduct the interactive game. This
clause also provides an offence for a person in Queensland to participate as
a player in an interactive game knowing that the game is not an authorised
game.
Clause 17 makes it an offence for a licensed provider to permit a person
to participate in an authorised game unless the person is registered with the
provider as a player. This clause also prohibits a person from participating
as a player in an authorised game unless the person is registered with the
authorised provider as a player.
Clause 18 deals with the procedures for registration of players.
Clause 19 prohibits a licensed provider from allowing a registered player
to participate in an authorised game until the player's identity has been
authenticated.
Clause 20 deals with the establishment of a player's account.
Clause 21 provides that a licensed provider must not accept a wager
from a player in an authorised game unless a player has adequate funds to
cover the amount of the wager.
Clause 22 requires a player who participates in an authorised game to
comply with the rules of the game as notified to the player.
Clause 23 makes it an offence for a person to advertise premises for
playing interactive games or to attempt to obtain commercial advantage
from using premises as venues for interactive gambling.
Clause 24 defines the term "exemption scheme".
Clause 25 authorises the Minister to approve an exemption scheme if
satisfied that the exemption scheme complies with the criteria for approval
regarding probity and integrity matters and the exemption scheme is
warranted in the particular case.
Clause 26 empowers the Minister to cancel an exemption scheme in
certain circumstances.
Clause 27 provides for the termination of an approved exemption
scheme.
Clause 28 provides that any approval of an exemption scheme or the
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Interactive Gambling (Player Protection )
cancellation of an exemption scheme must be published in the Gazette.
Clause 29 provides that despite any other law, certain specified activities
are to be regarded as lawful under this Act.
PART 3--INTERACTIVE GAMBLING LICENCES
Clause 30 provides that an application for an interactive gambling licence
must be made in the approved form and must be accompanied by a
prescribed application fee. The Minister may require the applicant to
provide further information about the application.
Clause 31 provides that the Minister must consider an application for an
interactive gambling licence and either grant, or refuse to grant, the
application.
Clause 32 provides that the Minister must be satisfied of the integrity of
the applicant and the integrity of the applicant's business and executive
associates. However, the Minister may refuse to grant a licence even if
satisfied of such matters.
Clause 33 sets out the matters to which the Minister may have regard in
deciding whether an applicant is a suitable person to hold an interactive
gambling licence.
Clause 34 outlines the criteria which may be considered by the Minister
when deciding whether a business or executive associate of an applicant for
an interactive gambling licence is a suitable person.
Clause 35 provides that the chief executive may investigate an applicant,
or a business or executive associate of an applicant, to assist the Minister in
the Minister's assessment of person's suitability.
Clause 36 provides that if the Minister decides to grant an interactive
gambling licence, the Minister must promptly issue it to the applicant. If the
Minister decides to refuse an application, the Minister must promptly give
the applicant written notice of the decision.
Clause 37 provides that the Minister may issue an interactive gambling
licence in accordance with conditions considered necessary for the proper
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Interactive Gambling (Player Protection )
conduct of interactive gambling in the public interest.
Clause 38 provides that an interactive gambling licence must be in an
approved form and sets out the matters to be included in the licence.
Clause 39 gives the Minister the power to add to, or change, the
conditions of an interactive gambling licence.
Clause 40 provides that the licensed provider must return the licence for
endorsement of changed conditions.
Clause 41 provides that an interactive gambling licence can only be
transferred if the Minister has approved the mortgage or encumbrance of
the licence.
Clause 42 provides that the Minister's written approval is required before
a licensed provider can mortgage or encumber the licence. Similarly, the
Minister must approve, in writing, of the transferee. To give this approval
the Minister must be satisfied that certain specified criteria have been
satisfied. A transferee may be required to submit an application to hold a
licence. The Minister must approve, in writing, of the appointment of a
receiver or manager.
Clause 43 provides that a licensed provider may surrender a licence by
notice in writing to the Minister, and such a notice takes effect either three
months after the notice is given or a specified later date indicated in the
notice or an earlier date approved by the Minister.
Clause 44 sets out the grounds for suspending or cancelling an
interactive gambling licence.
Clause 45 provides that a licensed provider must be given a written
notice (a "show cause notice") of proposed action if the Minister believes a
ground exists to suspend or cancel the interactive gambling licence and the
act or omission is of a serious and fundamental nature and the act or
omission has occurred which compromises the integrity of interactive
gambling or affects the public interest in an adverse or material way. The
licensed provider is given a period in which a response must be given as to
why action should not be taken.
Clause 46 provides that copies of the show cause notice must be given to
participating regulators and other persons who the Minister believes have an
interest in the interactive gambling licence. Such persons are able to make
representations about the notice to the Minister.
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Interactive Gambling (Player Protection )
Clause 47 provides that the Minister must consider all written
representations made during the show cause period.
Clause 48 provides for immediate suspension of an interactive gambling
licence in a case where a ground exists to suspend or cancel the licence and
the seriousness of the situation justifies immediate action in order to
safeguard the public interest or the integrity of the conduct of interactive
games.
Clause 49 provides that the Minister may censure, by notice in writing, a
licensed provider for a matter relating to a ground for suspension or
cancellation of the licence in circumstances where the Minister does not
believe cancellation or suspension is warranted.
Clause 50 provides that the Minister may, by notice in writing, direct a
licensed provider to rectify a matter within a specified reasonable time
period. Such a direction can only be issued if the Minister believes a
ground exists to suspend or cancel the licence and the matter is capable of
being rectified.
Clause 51 requires the Minister to forward to the Governor in Council
written notice of the Minister's belief that a ground to suspend or cancel an
interactive gambling licence exists. A notice must also be forwarded stating
the licensed provider's failure to comply with a direction to rectify a matter.
Clause 52 outlines action that may be taken by the Governor in Council
after receiving a notice under clause 51. Such action includes suspension of
a licensed provider, cancellation of the licence or appointment of an
administrator to conduct the operation of the licensed provider. The Minister
must promptly notify the licensed provider of any action to be taken.
Clause 53 provides for the term and functions of an administrator
appointed by the Governor in Council to conduct operations under an
interactive gambling licence.
Clause 54 provides that, at any time, the Governor in Council may cancel
the remaining period of suspension of an interactive gambling licence or
reduce the remaining period of suspension of a licence. The Minister must
promptly notify the licensed provider of any such change.
Clause 55 allows the Minister to approve an audit program for
investigating a licensed provider, or business or executive associates of a
licensed provider. Such an audit is under the responsibility of the chief
executive. A person may be investigated only if a similar investigation has
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Interactive Gambling (Player Protection )
not occurred within the preceding two years.
Clause 56 provides circumstances where an investigation may be
undertaken by the chief executive to determine whether the person is
suitable to hold, or to continue to hold, an interactive gambling licence. This
provision also provides for circumstances where the chief executive may
investigate a business or executive associate of a licensed provider.
Clause 57 provides that a person may be required, by written notice from
the chief executive, to give the chief executive information or documentation
that the chief executive considers relevant to an investigation. This
provision includes penalties for failure to comply, without reasonable
excuse, with a requirement of the chief executive.
Clause 58 provides that the chief executive can ask for and obtain
criminal history reports from the commissioner of the police service during
investigations under this part.
Clause 59 provides that decisions by the Governor in Council or the
Minister about an interactive gambling licence or a person with an interest in
an interactive gambling licence, authorisation of games and approval of
exemption schemes are not justiciable.
PART 4--KEY PERSONS
Clause 60 defines a "key person" and a "key relationship".
Clause 61 provides that a person of is not to accept employment with, or
be employed by a licensed provider to carry out the functions of a key
person unless they are licensed as a key person.
Clause 62 enables the chief executive to require a person who is believed
to be in a key relationship with a licensed provider either to apply for a key
person licence or to terminate the relevant relationship.
Clause 63 provides that if the chief executive refuses to approve an
application for a key person licence the chief executive may require the
unsuccessful applicant to terminate the relevant key relationship within a
stated period.
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Interactive Gambling (Player Protection )
Clause 64 provides that the chief executive may require the licensed
provider to take the necessary action to terminate their relationship with a
key person if that person does not comply with a requirement to terminate
the relationship, or the person's application for a key person licence is
refused.
Clause 65 sets out the requirements for an application for a key person
licence. This provision also allows the chief executive to require the
applicant for a key person licence to provide further information.
Clause 66 provides that the chief executive must consider an application
for a key person licence only if the applicant agrees to have their photograph
and fingerprints taken.
Clause 67 provides that the chief executive may grant an application for a
key person licence only if certain requirements have been fulfilled.
Clause 68 authorises the chief executive to investigate the suitability of an
applicant for a key person licence.
Clause 69 requires the chief executive to promptly issue the licence if the
application is granted, or promptly advise the applicant if the application is
refused.
Clause 70 provides that the key person licence must be in the approved
form.
Clause 71 provides that a key person licence remains in force until it
lapses or is cancelled or surrendered.
Clause 72 provides that a key person licence lapses if there has been no
key relationship between the key person licensee and a licensed provider for
a continuous period of 1 year.
Clause 73 allows the chief executive to impose conditions on a key
person licence.
Clause 74 provides for changing the conditions of a key person licence.
This provision also allows for the amendment or replacement of a key
person licence to include changes of conditions imposed by the chief
executive.
Clause 75 provides that a lost, stolen, destroyed or damaged key person
licence may be replaced upon application to the chief executive.
Clause 76 provides that a key person licence may be surrendered and that
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Interactive Gambling (Player Protection )
the chief executive is to give notice to the licensed provider of the surrender,
if there was a key relationship with the licensed provider at that time.
Clause 77 sets out the grounds for suspending or cancelling a key person
licence.
Clause 78 sets out the requirements for a show cause notice given by the
chief executive to a licensed key person.
Clause 79 allows the chief executive to immediately suspend a key
person licence in certain circumstances.
Clause 80 allows the chief executive to censure a key person licensee in
circumstances which do not warrant suspension or cancellation.
Clause 81 allows the chief executive to direct a key person licensee to
rectify a matter which was a ground for suspension or cancellation and is
capable of being rectified.
Clause 82 provides for the suspension or cancellation of a key person
licence.
Clause 83 allows the chief executive to cancel the remaining period of
suspension or reduce the remaining period of suspension of a key person
licence at any time that the suspension is in force.
Clause 84 allows the chief executive to approve an audit program for
investigating key person licensees. A person may only be investigated
under this provision if there has not been an investigation of the same
person within the previous 2 years.
Clause 85 allows the chief executive to investigate a key person licensee
either if the chief executive reasonably suspects that the licensee is not or is
no longer a suitable person, or under the approved audit program.
Clause 86 provides that the chief executive may require a key person
licensee to provide information relevant to an investigation and provides an
offence for a key person licensee to fail to provide the information required.
Clause 87 provides that the chief executive can ask for and obtain
criminal history reports from the commissioner of the police service during
investigations under this part.
Clause 88 requires a licensed provider to notify the chief executive of the
commencement of employment of a key person licensee within 7 days.
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Interactive Gambling (Player Protection )
Clause 89 provides that the chief executive may require a licensed
provider to provide a list of licensed and unlicensed employees.
Clause 90 requires a licensed provider to notify the chief executive of the
end of a key relationship within 7 days.
Clause 91 provides that the chief executive may require a licensed
provider to end a key relationship where a person ceases to hold a key
person licence. A licensed provider does not incur a liability for complying
with a requirement of the chief executive under this provision.
Clause 92 makes it an offence for an applicant for a key person licence to
make false or misleading statements in any application made under Part 4.
Clause 93 requires the chief executive to have the fingerprints of a key
person licensee destroyed if the licence lapses or is cancelled.
PART 5--AGENTS
Clause 94 defines an agent and sets out the functions that are to be
regarded as agency functions for the purposes of the Act.
Clause 95 defines an "agency agreement" and sets out conditions for
entering into agency agreements, including conditions under which an agent
acts as and remains an agent of the licensed provider.
Clause 96 deals with the conditions on which a licensed provider may
appoint an agent.
Clause 97 requires the licensed provider to give the chief executive a
copy of an agency agreement within 7 days after entering into the
agreement.
Clause 98 provides that agency agreements can only be amended with
the approval of the chief executive. The chief executive may withhold
approval of a proposed amendment only if it is necessary to do so in the
public interest.
Clause 99 requires the licensed provider to give the chief executive
periodic returns about the provider's agents.
Clause 100 sets out the grounds for directing the termination of an
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Interactive Gambling (Player Protection )
agency agreement.
Clause 101 requires the chief executive to give the agent a show cause
notice where the chief executive believes that grounds for directing
termination of the agency agreement exist and the grounds are of a serious
and fundamental nature.
Clause 102 provides for the immediate suspension of an agent's
operations where the suspension is necessary in the public interest or there
is an immediate threat to the integrity of the conduct of interactive games.
Clause 103 provides for the chief executive to censure an agent.
Clause 104 provides for the chief executive to direct rectification of
certain matters by an agent that the chief executive considers capable of
rectification.
Clause 105 provides for the chief executive to direct the termination of an
agency agreement.
Clause 106 requires the licensed provider to comply with a direction to
terminate an agency agreement and confers immunity from liability in
relation to action taken under the direction.
Clause 107 deals with the termination of an agency agreement otherwise
than because of a direction to terminate. In this case, the licensed provider
must give the chief executive written notice of the termination within 7 days
after the agreement is terminated.
Clause 108 provides that the chief executive may approve an audit
program for investigating agents and their business or executive associates.
The chief executive is to be responsible for carrying out investigations under
the program. A person cannot be investigated more than once every 2 years
under the program.
Clause 109 enables the chief executive to investigate an agent or a
business or executive associate of an agent.
Clause 110 enables the chief executive to require the giving of
information or the production of documents relevant to an investigation.
Failure to comply constitutes an offence unless certain elements exist.
Clause 111 provides that the chief executive can ask for and obtain
criminal history reports from the commissioner of the police service during
investigations under this part.
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Interactive Gambling (Player Protection )
PART 6--LICENCE FEES AND TAX
Clause 112 requires a licensed provider to pay licence fees in accordance
with the conditions of the interactive gambling licence.
Clause 113 requires a licensed provider to pay tax to the chief executive
for each authorised game conducted by the provider. The tax is to be
calculated and paid on a basis fixed under a regulation.
Clause 114 requires a licensed provider, within 7 days after the end of
each month, to give the chief executive returns in the approved form
containing the information necessary for the calculation of tax and any other
information required under the regulations.
Clause 115 requires the Minister to remit to the participating regulator a
proportion of the tax collected from a licensed provider reflecting the
contribution of players in the relevant jurisdiction to the aggregate gambling
turnover of licensed providers and the proportion of interactive gambling
tax revenue properly attributable to that contribution.
Clause 116 provides for how the Minister deals with the payment of the
interactive gambling tax revenue collected under the Act. A proportion
specified under regulation is paid into a fund established for community
benefit under a Gaming Act and designated under regulation, with the
balance paid into the consolidated fund.
Clause 117 imposes penalties for late payment of interactive gambling
tax or licence fee.
Clause 118 provides for the recovery of licence fees, interactive
gambling tax and penalties as debts due to the State.
Clause 119 makes it an offence to attempt to evade the payment of
interactive gambling tax or licence fee or to knowingly provide a false,
misleading or incomplete return.
PART 7--COMPLIANCE REQUIREMENTS
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Interactive Gambling (Player Protection )
Clause 120 provides for the making of rules by the Minister, with the
rules desingated as subordinate legislation. Licensed providers may make
submissions to the Minister about a rule or proposed rule.
Clause 121 empowers the chief executive to give a licensed provider
directions about the conduct of an authorised game.
Clause 122 requires a licensed provider to comply with the rules and any
relevant direction.
Clause 123 requires a licensed provider to take reasonable steps to ensure
compliance with the rules and directions by its agents.
Clause 124 requires agents to comply with the rules and any relevant
direction.
Clause 125 provides that a licensed provider must operate from a place
of operation approved by the chief executive. All regulated interactive
gambling equipment used for the conduct of authorised games must be
situated at that place or some other place approved by the chief executive.
Clause 126 provides that an agent's place of operation in Queensland
must be of a kind prescribed under a regulation as appropriate for an agent.
If the agent is an agent for a licensed provider, the place of operation must
be as specified in the agency agreement.
Clause 127 requires a licensed provider to have an approved control
system and to ensure that authorised games are conducted under the
system. An approved control system may only be changed if the chief
executive directs or approves the change.
Clause 128 provides for the making of a control system submission and
deals with the kind of information to be included in the submission for
approval of the chief executive.
Clause 129 provides for a submission seeking approval of changes to an
approved control system.
Clause 130 deals with the approval of a control system, or of a proposed
change to an approved control system.
Clause 131 provides for the chief executive to direct a licensed provider
to make changes to the provider's approved control system. Failure to
comply with the direction would result in cancellation of the approval of the
licensed provider's control system.
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Interactive Gambling (Player Protection )
Clause 132 provides that a licensed provider must, at the request of a
player, remit the balance in the player's account to the player in a manner
directed by the player no later than the next working day after the request is
received.
Clause 133 prohibits a licensed provider and its agents from providing
credit to a player or a player's account. A licensed provider or agent must
not act as agent for a credit provider to facilitate the provision of credit to a
player or a player's account.
Clause 134 prevents a licensed provider from having recourse to funds
in a player's account except for the purpose of debiting wagers to the
account, or depositing or returning the balance standing to its credit to the
player.
Clause 135 provides that the licensed provider must return the balance of
the player's account to the player if no transaction has been recorded on an
account for a period as prescribed in regulation. Where the player cannot be
found, the balance of the account is to be paid to an account at the Treasury
designated under a regulation.
Clause 136 empowers a player to set, in advance, limits on the amount
that the player may wager on interactive games. The player may set a limit
on the amount of an individual wager; the player may set a limit to the
amount to be wagered over a stated period; or the player might set the limit
at zero - thus creating a self-imposed ban. A limit may be changed or
revoked by written notice to the licensed provider. If the notice seeks to
remove or relax the limit, the notice does not have effect unless 7 days have
passed and the licensed provider has not been notified of an intention to
withdraw the notice.
Clause 137 empowers the chief executive to make an order prohibiting a
resident of Queensland from gambling on interactive games. An
application for an order to ban may be made by the person or by a third
party who satisfies the chief executive of the need for a ban. The provision
outlines actions that must be taken to install or revoke such a prohibition
and the right of appeal.
Clause 138 provides for approval by the chief executive of a place for the
keeping of a licensed provider's gambling records. Certain records may be
exempted from the requirement to keep them at a particular place.
Clause 139 requires a licensed provider to keep records at the licensed
19
Interactive Gambling (Player Protection )
provider's public office or an approved place for records, unless the record
is an exempt gambling record.
Clause 140 provides for the keeping of accounting records by a licensed
provider.
Clause 141 requires a licensed provider to keep proper accounting
records of the provider's operations under the interactive gambling licence.
Clause 142 provides for the preparation of financial statements and
accounts by a licensed provider.
Clause 143 requires the submission of reports to the chief executive
about a licensed provider's operations.
Clause 144 requires a licensed provider to keep financial institutions
accounts approved by the chief executive for banking transactions for the
licensed provider's operations.
Clause 145 prohibits the use of an approved financial institution account
for a purpose other than the purpose for which it was approved.
Clause 146 requires an annual audit of financial records by a registered
company auditor.
Clause 147 requires the auditor to complete the audit within 3 months
after the end of the relevant financial year and to give the chief executive a
copy of the audit report.
Clause 148 empowers the chief executive to require further information
from the licensed provider about matters mentioned in the audit report.
Clause 149 defines an "ancillary gambling agreement". Essentially such
an agreement is an agreement that give another person an interest in, or
share of, gross or net gambling revenue or profits. An ancillary gambling
agreement requires the chief executive's approval unless the chief executive
considers the agreement of minor importance, or it is classified under a
regulation as an agreement for which the approval is not required.
Clause 150 provides for an application for approval of an ancillary
gambling agreement and empowers the chief executive to grant such an
approval if the chief executive considers the agreement desirable or
appropriate in the circumstances of the particular case.
Clause 151 provides that the chief executive may, by written notice,
require a licensed provider to give information about related agreements to
20
Interactive Gambling (Player Protection )
the chief executive.
Clause 152 provides that, if the chief executive believes the continuance
of a related agreement may jeopardise the integrity of the conduct of
interactive games by the licensed provider or may otherwise adversely
affect the public interest, the chief executive must issue a show cause notice.
A copy of the notice is to be given to other interested parties.
Clause 153 empowers the chief executive to direct the termination of a
related agreement if, after considering representations made in response to
the show cause notice, the chief executive is still of the opinion that the
agreement may jeopardise the integrity of the conduct of interactive games
by the licensed provider or may otherwise adversely affect the public
interest. This clause also confers immunity from liabilities that would
otherwise arise from termination of the related agreement.
Clause 154 requires a licensed provider, at the request of the chief
executive, to do anything reasonably necessary to allow an inspector to
monitor the licensed provider's operations.
Clause 155 empowers the chief executive to require that specified
operations to be carried out by the provider under the interactive gambling
licence be carried out under the supervision of an inspector.
Clause 156 requires the immediate crediting of monetary prizes to the
player. If a player wins a non-monetary prize, or a player without a player's
account wins a monetary prize, the licensed provider must have the prize
delivered personally or by post to the player or give the player written notice
of a place in Queensland where the prize may be collected.
Clause 157 provides for the disposal of unclaimed non-monetary prizes
by a licensed provider.
Clause 158 sets out the procedures to be followed where a player makes
a claim for entitlement to a prize within 5 years of the end of the game. If a
claim is not resolved, the chief executive may review a licensed provider's
decision on a claim.
Clause 159 provides that if a prize is not claimed within 5 years after the
game in which the prize was won was completed, the entitlement to the
prize is extinguished and the prize is forfeited to the State.
Clause 160 provides for the repayment of wagers where a game is
aborted, or is not completed, because of a human, operating or technical
21
Interactive Gambling (Player Protection )
failure. Where a failure occurs the licensed provider must notify the chief
executive and the licensed provider must comply with directions of the chief
executive in relation to the occurrence.
Clause 161 provides for a licensed provider to withhold payment of a
prize where the provider believes there has been some illegality or a genuine
malfunction. The chief executive is to be notified immediately. If the chief
executive agrees that a prize may be withheld then wagers in the games are
to be refunded to the participants.
Clause 162 provides for an application to the chief executive for approval
of regulated interactive gambling equipment or a proposed modification to
regulated interactive gambling equipment.
Clause 163 prohibits a licensed provider or an agent of a licensed
provider from using or modifying regulated interactive gambling equipment
unless the equipment or modification has been approved by the chief
executive.
Clause 164 prohibits advertising of interactive games in Queensland
unless it is an authorised game and the authorised provider has agreed to the
advertising.
Clause 165 provides that a person who advertises the game must take
reasonable steps to ensure that the advertisement is not indecent or
offensive, is based on fact, and is not false, deceptive or misleading in a
material particular.
Clause 166 enables the chief executive to give directions to the advertiser
to stop the advertisement or to change it.
Clause 167 provides for a system of complaint resolution in relation to
the conduct of interactive gambling operations.
Clause 168 requires an authorised provider or an agent to report, to the
chief executive, dishonest or unlawful acts related to the conduct of
interactive gambling operations.
Clause 169 prohibits cheating in relation to an authorised game.
Clause 170 prohibits the forging or uttering of official gambling
documents.
Clause 171 prohibits impersonation of a licensed provider, an agent, key
person licensee or a gaming official.
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Interactive Gambling (Player Protection )
Clause 172 prohibits bribery of gaming officials.
Clause 173 prohibits participation by an employee (whether licensed or
not) of a licensed provider in an authorised game if the employee is directly
involved in functions related to the conduct of the game. Any prize won
contrary to this provision is forfeited to the State.
Clause 174 provides that a gaming official is not to take part in an
authorised game unless permitted by the chief executive in stated
circumstances or for stated purposes.
Clause 175 provides that the chief executive, by notice in writing, may
declare a gaming official to be a key official for the purposes of the Act.
Clause 176 a key official must not, without the chief executive's
approval, accept or seek employment with an authorised provider or an
agent or knowingly have any business or financial relationship with an
authorised provider or agent. This prohibition is to apply for a period of 1
year after a person ceases to be a key official.
Clause 177 deals with relationships between key officials and
prospective licensed providers. The key official must notify the chief
executive of the relationship and the chief executive may direct termination
of the relationship.
Clause 178 prohibits an authorised provider or agent, unless approved by
the chief executive, from knowingly employing or having a business or
financial relationship with a key official (or a person who has been a key
official within the preceding 12 months).
Clause 179 provides that a licensed provider or an agent must not allow a
minor to participate in operations related to the conduct of authorised
games. However, it is a defence to prove that the defendant had no reason
to believe and did not believe that the person was a minor. A minor is also
prohibited from participating in such operations.
Clause 180 provides that a person involved in the conduct of an
authorised game must not allow a minor to participate as a player in the
game. However, it is a defence to prove that the defendant had no reason to
believe and did not believe that the player was a minor. A minor is
prohibited from participating as a player in an authorised game. A prize
won by a minor by unlawfully participating in an authorised game is
forfeited to the State.
23
Interactive Gambling (Player Protection )
Clause 181 prevents participation in an authorised game, or registration
as a player, under a name that is obscene, indecent or offensive in the
opinion of the provider or the agent.
Clause 182 prohibits interference, without the chief executive's
authorisation, in the proper conduct of an authorised game.
Clause 183 prohibits certain promotional activities by unauthorised
persons.
Clause 184 requires the licensed provider, employee and any associate to
maintain confidentiality of information about the identity of players unless
there are proper reasons for breaching that confidentiality.
PART 8--INVESTIGATION AND ENFORCEMENT
Clause 185 provides that the chief executive, a person appointed as an
inspector under this division and a person who holds an appointment as an
inspector under a corresponding law, and is authorised by the chief
executive, are inspectors under this Act.
Clause 186 provides that the chief executive may appoint inspectors who
are officers or employees of the public service or are otherwise prescribed
under regulation.
Clause 187 outlines the qualifications which a person must posses prior
to being appointed as an inspector.
Clause 188 provides that the Minister may approve an audit program for
investigating inspectors. The audit program may be used by the chief
executive in deciding whether a person is suitable to be appointed as an
inspector.
Clause 189 provides that the chief executive can ask for and obtain
criminal history reports from the commissioner of the police service during
investigations under this part.
Clause 190 provides that an inspector may act for the purposes of this
Act or a corresponding law. An inspector is subject to directions given by
the chief executive in relation to the exercise of statutory powers of
24
Interactive Gambling (Player Protection )
investigation. An inspector's powers may be limited under a condition of
employment, by written notice given by the chief executive to the inspector,
or, in the case of an external inspector, under terms attached to the
authorisation of that person as an inspector.
Clause 191 provides that an inspector is appointed on conditions which
are outlined in the instrument of appointment. The clause also outlines
circumstances where an inspector ceases to hold office.
Clause 192 provides that the chief executive must issue an inspector with
an identity card and outlines the information that must be included on the
identity card.
Clause 193 requires a person who ceases to be an inspector to return the
person's identity card to the chief executive.
Clause 194 sets out requirements for the production and display of an
inspector's identity card when exercising powers under the Act.
Clause 195 sets out the general scope of an inspector's powers.
Clause 196 allows an inspector to enter certain places without consent or
warrant.
Clause 197 provides that an inspector may only enter places not listed in
clause 196 with the consent of the occupier or a warrant.
Clause 198 provides a procedure for obtaining the consent of the
occupier for an inspector to enter a place.
Clause 199 provides evidentiary presumptions in relation to whether the
occupier's consent for an inspector to enter a place has been obtained.
Clause 200 provides for an application to a magistrate for a warrant. The
application must be sworn and must state the grounds on which the warrant
is sought.
Clause 201 sets out requirements to be satisfied for a magistrate to issue
a warrant and for the contents of any such warrant.
Clause 202 provides for the application for and issue of a special warrant
in urgent and other special circumstances.
Clause 203 provides evidentiary presumptions in relation to proving that
a special warrant was issued.
Clause 204 sets out general powers of inspectors where entry to a place
25
Interactive Gambling (Player Protection )
is authorised.
Clause 205 provides a penalty for the failure by a person to assist an
inspector when required to do so under clause 204.
Clause 206 provides a penalty for the failure by a person to give
information required by an inspector under clause 204.
Clause 207 allows an inspector to seize a thing that the inspector
reasonably believes is evidence of an offence under this Act, where entry
may be made without consent or warrant.
Clause 208 provides requirements for an inspector to seize a thing at a
place where entry was with the consent of the occupier or with a warrant.
Clause 209 provides for the securing of things seized by an inspector.
Clause 210 provides a penalty for tampering with a thing seized by an
inspector.
Clause 211 allows an inspector to require a person in control of a thing to
take action in order to enable a thing to be seized, and provides an offence
for failure to comply with the requirement.
Clause 212 provides for the issue of a receipt for anything seized by an
inspector.
Clause 213 provides for the forfeiture to the State, in certain cases, of
objects that have been seized by an inspector. An appeal against forfeiture
lies to the Queensland Gaming Commission.
Clause 214 requires an inspector to return seized things which have not
been forfeited within 6 months of seizure, at the end of any proceeding for
an offence or appeal from the proceeding, or when the thing is no longer
required as evidence.
Clause 215 provides for an owner to obtain access to a seized thing
which has not been forfeited or returned.
Clause 216 empowers an inspector to give a direction stopping the use of
a particular device or thing if the inspector reasonably believes that the
continued use of the thing may jeopardise integrity in the conduct of
authorised games or adversely affect the public interest in some other way.
Clause 217 deals with how a stop direction is to be given. The notice in
which the direction is given must state the grounds for the direction.
26
Interactive Gambling (Player Protection )
Clause 218 provides an offence for failure to comply with the stop
direction of an inspector.
Clause 219 provides that an inspector may require a person to state their
name and address in certain circumstances, and provides limitations on
such a requirement.
Clause 220 provides an offence for the failure by a person to provide an
inspector with the person's name and address.
Clause 221 allows an inspector to require production of documents
issued, or required to be kept under, the Act or a corresponding law (a
"document production requirement"). An inspector may also require a
person to certify a copy of a document as a true copy (a "document
certification requirement").
Clause 222 provides an offence for failure to produce a document to an
inspector when required.
Clause 223 provides an offence for failure to certify a document required
by an inspector.
Clause 224 allows an inspector to require a person to attend before the
inspector at a reasonable time and place to answer questions about a
document to which a document production requirement applies. The clause
also empowers an inspector to require certain persons to attend to answer
questions or give information about the operations of an authorised provider
or an agent.
Clause 225 provides an offence for failure to attend before an inspector,
failure to answer a question or provide information, or making false and
misleading statements.
Clause 226 provides that an inspector may require information from the
manager of a place of business of a financial institution with respect to
accounts of an authorised provider or agent.
Clause 227 provides that the manager of a place of business of a
financial institution is not liable for breach of trust by complying with the
requirements of an inspector.
Clause 228 provides an offence for failure to comply with a financial
records requirement of an inspector.
Clause 229 empowers the Minister to direct a licensed provider or an
27
Interactive Gambling (Player Protection )
agent to stop or change an unsatisfactory management practice if the
Minister is satisfied that it may compromise proper standards of integrity in
the conduct of authorised games or affect the public interest adversely in
some other way.
Clause 230 allows a court to order forfeiture of things which have been
used to commit an offence or are the subject of an offence where a person
has been convicted of an offence under the Act.
Clause 231 provides that a thing which has been forfeited to the State
becomes the property of the State and may be destroyed by the chief
executive.
Clause 232 requires an inspector to notify an owner whose property has
been damaged by the inspector in the exercise of the inspector's powers.
Clause 233 provides for an action against the State or external inspector
or other person for compensation for damage caused in the exercise or
purported exercise of an inspector's powers.
Clause 234 protects certain officials from liability in relation to acts, or
omissions, made honestly and without negligence under the Act.
Clause 235 makes it an offence to make a false or misleading statement
to an inspector.
Clause 236 makes it an offence to provide a document containing a false
or misleading statement or incomplete information to an inspector.
Clause 237 makes it an offence to obstruct an inspector or someone
helping an inspector without reasonable excuse.
PART 9--LEGAL PROCEEDINGS
Clause 238 specifies the application of Division 1 of this part.
Clause 239 contains evidentiary provisions in relation to appointments
and authorities.
Clause 240 is an evidentiary provision in relation to signatures of the
chief executive and inspectors.
28
Interactive Gambling (Player Protection )
Clause 241 contains evidentiary provisions in relation to matters certified
by the chief executive.
Clause 242 sets out the offences in the Act which are indictable offences
and which are summary offences.
Clause 243 provides for the hearing of indictable offences by summary
proceedings or on indictment.
Clause 244 specifies indictable offence proceedings which must be heard
before a magistrate.
Clause 245 limits the time for starting summary proceedings for an
offence under the Act.
Clause 246 defines the responsibility of a person for acts or omissions
by the person or the person's representative.
Clause 247 requires executive officers of corporations to ensure that the
corporation complies with the Act and extends liability for offences
committed by corporations to executive officers of the corporation in certain
circumstances.
Clause 248 provides that it is an offence to attempt to commit an offence
against the Act.
PART 10--APPEALS
Clause 249 provides that a licensed provider may appeal to the
Queensland Gaming Commission against certain decisions of the chief
executive.
Clause 250 allows an applicant for a key person licence to appeal to the
Queensland Gaming Commission against a decision to refuse the
application.
Clause 251 provides that a key person licensee may appeal to the
Gaming Commission against certain decisions of the chief executive.
Clause 252 provides that an interactive agent may appeal to the Gaming
Commission against certain decisions of the chief executive.
29
Interactive Gambling (Player Protection )
Clause 253 allows a person, who is not the applicant, prohibited from
gambling by order of the chief executive to appeal against the decision, an
unsuccessful applicant for an order to ban to appeal against the chief
executive's decision and allows the owner of a thing seized by an inspector
with a right of appeal to the Queensland Gaming Commission against the
decision of the inspector.
Clause 254 sets out the procedure for starting an appeal.
Clause 255 provides that the Queensland Gaming Commission may
grant a stay of the decision appealed against to secure the effectiveness of
the appeal. Such an appeal may be given on conditions the Commission
considers appropriate, operate for a time period fixed by the Commission
and may be revoked by the Commission.
Clause 256 provides that, in deciding an appeal, the Queensland Gaming
Commission has certain powers. An appeal is by way of rehearing.
Clause 257 gives the Queensland Gaming Commission certain powers
that it will require to obtain the evidence necessary to decide the appeal
mentioned in the notice.
Clause 258 allows the Queensland Gaming Commission, in deciding an
appeal, to confirm a decision, set aside a decision and substitute another
decision and set aside a decision and return it to the decision maker with
directions.
Clause 259 allows an appeal to a District Court from a decision of the
Queensland Gaming Commission on a question of law.
PART 11--MISCELLANEOUS
Clause 260 imposes a duty of confidentiality on persons who are, or
have been, engaged in functions related to the administration or enforcement
of the Act, but allows disclosure with the approval of the chief executive to
certain persons and entities.
Clause 261 provides for delegation of powers under the Act by the
Minister and the chief executive.
30
Interactive Gambling (Player Protection )
Clause 262 authorises the chief executive to approve forms for use under
the Act.
Clause 263 authorises the making of regulations by the Governor in
Council for the purposes of the Act.
PART 12--CONSEQUENTIAL AMENDMENTS
Clause 264 amends section 5(3) of the Art Unions Act 1992 to provide
that a game authorised under the Interactive Gambling (Player Protection)
Act 1998 is not an art union.
Clause 265 amends the definition of "Gaming Act" in section 4(1) of the
Casino Control Act 1982. The list of Acts in the definition is broadened to
include the Interactive Gambling (Player Protection) Act 1998 and the
Wagering Act 1998.
Clause 266 amends the Gaming Machine Act 1991. The amendments
change the name of the commission to the Queensland Gaming
Commission and slightly amends the statement of the Commission's
functions so that they are broad enough to cover the proposed new appellate
functions under the Act. The constitution of the Commission is altered
slightly to provide for collective knowledge and expertise of the
Commission rather than individual qualifications. The definition of
"Gaming Act" is amended to include the Interactive Gambling (Player
Protection) Act 1998 and the Wagering Act 1998.
Clause 267 amends the Keno Act 1996. The definition of "Gaming Act"
is amended to include the Interactive Gambling (Player Protection) Act
1998 and the Wagering Act 1998.
Clause 268 amends the Lotteries Act 1997. The definition of "Gaming
Act" is amended to include the Interactive Gambling (Player Protection)
Act 1998 and the Wagering Act 1998. Sections 7(1) and 7(2) have been
amended to permit interactive products under this Act.
SCHEDULES
31
Interactive Gambling (Player Protection )
Schedule 1 sets out the decisions of the Governor in Council and the
Minister which are not subject to appeal.
Schedule 2 sets out the decisions of the chief executive that are subject to
appeal. Part 1 deals with decisions affecting licensed providers. Part 2
deals with decisions affecting key person licensees. Part 3 deals with
decisions affecting agents.
Schedule 3 contains the Dictionary which defines the terms used in the
Act.
© The State of Queensland 1998