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Gambling and Racing Legislation
Amendment (Sports Betting) Bill 2007
Introduction Print
EXPLANATORY MEMORANDUM
Clause Notes
PART 1--PRELIMINARY
Clause 1 sets out the purpose of the Bill.
Clause 2 provides for the commencement of the Bill. The Bill comes into
operation on a day to be proclaimed or on 1 July 2008, whichever
is sooner.
PART 2--GAMBLING REGULATION ACT 2003
Clause 3 provides for the substitution of a new Part 5 of Chapter 4 of the
Gambling Regulation Act 2003. ("Part 5--Approved Betting
Competitions and Sports Betting.") This new part contains some
minor amendments related to the regulation of betting on horse,
harness and greyhound racing, and some more substantive
amendments related to the regulation of betting on sporting and
other non-racing events. In particular, responsibility for
approving the latter is transferred from the Minister to the
Victorian Commission for Gambling Regulation
("the Commission").
Division 1--Preliminary
New section 4.5.1 provides definitions for approved betting
event, sports betting event, sports betting provider and sports
controlling body.
New section 4.5.2 specifies events and betting competitions that
cannot be approved under this Part, namely an event or betting
competition that is played on a gaming machine, is a club keno
game or is an interactive game.
561134 1 BILL LA INTRODUCTION 14/3/2007
Division 2--Approved betting competitions on horse,
harness and greyhound racing
New section 4.5.3 contains provisions related to the approval of
betting competitions on horse, harness and greyhound races.
These provisions are similar to existing section 4.5.1 of the
Gambling Regulation Act 2003 as it applies to horse, harness
and greyhound races.
New section 4.5.3(1) provides that the Minister may approve a
betting competition on an event or contingency, or a class of
event or contingency, that is related to a horse, harness or
greyhound race.
New section 4.5.3(2) provides that an approval under this new
section is to be given by instrument.
New section 4.5.3(3) provides that the Minister must not approve
a betting competition that is conducted on a totalisator or that is
offensive or contrary to the public interest.
New section 4.5.3(4) provides that the Minister may impose any
conditions on an approval.
New section 4.5.3(5) provides that an approval takes effect on the
day notice of it is published in the Government Gazette or on the
later day specified in the notice. An approval remains in force
until revoked by the Minister.
New section 4.5.3(6) provides that a condition imposed on an
approval takes effect on the day notice of it is published in the
Government Gazette or on the later day specified in the notice.
New section 4.5.4 outlines the notice requirements for an
approval, a condition on an approval, a variation on an approval
and a revocation of an approval. Notice of each of these
decisions must be published in the Government Gazette.
New section 4.5.5(1) provides that at any time the Minister may
vary an approval (including a variation or revocation of a
condition to which the approval is subject). In addition, at any
time the Minister may revoke an approval for any reasonable
cause stated by the Minister in the instrument of revocation.
New section 4.5.5(2) provides that a variation or revocation takes
effect on the day notice of it is published in the Government
Gazette or on the later day specified in the notice.
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Division 3--Approval of other events for betting
purposes
New section 4.5.6 contains provisions relating to the approval of
sporting and other non-racing events, and betting competitions on
those events.
New section 4.5.6(1) provides that the Commission may, by
instrument, approve a particular event or class of event for
betting purposes, and approve a betting competition on that event
or class.
New section 4.5.6(2) provides that the approval must specify
whether it is a competition with fixed odds or a competition
conducted on a totalisator.
New section 4.5.6(3) provides that the Commission may impose
any conditions on an approval at the time of giving the approval
or at any later time.
New section 4.5.6(4) provides that an approval takes effect on the
day notice of it is published in the Government Gazette or on the
later day specified in the notice. An approval remains in force
until revoked by the Commission.
New section 4.5.6(5) provides that a condition imposed on an
approval takes effect on the day notice of it is published in the
Government Gazette or on the later day specified in the notice.
New section 4.5.7 prescribes the kinds of events that can be
approved under new section 4.5.6.
New section 4.5.7(1) provides that the Commission may approve
events, or classes of events, of any kind for betting purposes,
whether those events are held wholly or partly within or outside
Victoria.
New section 4.5.7(2) provides that the Commission cannot
approve an event under subsection (1) that is, or is related to, a
horse, harness or greyhound race. The Commission also cannot
approve the kinds of events specified in new section 4.5.2
(namely a gaming machine, club keno or an interactive game).
New section 4.5.8(1) specifies matters that the Commission must
have regard to in determining whether to approve an event.
In particular, the Commission must have regard to whether the
event is exposed to unmanageable integrity risks, administered
by an organisation capable of managing integrity risks, and
offensive or contrary to the public interest. In addition, for non-
sporting events, the Commission must have regard to whether
betting on the event would represent an unreasonable extension
of the scope of gambling in Victoria.
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New section 4.5.8(2) provides that the Commission may also
have regard to any other matter in determining whether to
approve an event.
New section 4.5.9 requires that, in approving an event, the
Commission must specify whether the event is a sports betting
event (as opposed to a non-sporting event), and designate each
sports betting event as such in the instrument of approval.
New section 4.5.10(1) sets out the notice requirements for an
approval, a condition on an approval, a variation of an approval
and a revocation of an approval. Notice of each of these
decisions must be published in the Government Gazette.
New section 4.5.10(2) provides that the notice under subsection
(1) must state whether the approved event is a sports betting
event.
New section 4.5.10(3) requires the Commission to make
available on its website a list of all approved events and betting
competitions approved under this Division and indicate which of
the approved betting events are sports betting events.
New section 4.5.11(1) provides that at any time the Commission
may, by instrument, vary an approval (including a variation or
revocation of a condition to which the approval is subject).
In addition, at any time the Commission may revoke an approval
for any reasonable cause stated by the Commission in the
instrument of revocation.
New section 4.5.11(2) provides that a variation or revocation
takes effect on the day notice of it is published in the
Government Gazette or on the later day specified in the notice.
Division 4--Approval of sports controlling bodies for
sports betting purposes
Division 4 contains provisions related to the approval, by the
Commission, of an organisation as the sports controlling body for
a sports betting event. There are no similar provisions in the
current Part 5 of Chapter 4 of the Gambling Regulation Act
2003.
New section 4.5.12 contains provisions related to an application
for approval as a sports controlling body for a sports betting
event.
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New section 4.5.12(1) provides that an organisation may apply to
the Commission for approval as the sports controlling body for a
sports betting event. Approval may be sought for an event or
class of event, or part of a class of event (see the definition of
sports betting event in new section 4.5.1).
New section 4.5.12(2) requires that an application for approval
must be in the form approved by the Commission, specify the
sports betting event for which the applicant seeks approval, be
accompanied by the prescribed fee (if any), and contain or be
accompanied by any additional information the Commission
requires.
New section 4.5.12(3) sets out the notice requirements on the
applicant in relation to its application. Within 14 days after
making an application, the applicant must cause notice to be
published in a newspaper circulating generally throughout
Australia, or newspapers circulating generally in each State and
Territory. The notice must contain a statement that any person
may object to the application by giving notice in writing to the
Commission within 28 days after the date of publication stating
the grounds for objection, and must contain any other
information required by the Commission.
New section 4.5.12(4) provides that the Commission may refuse
to consider an application if a requirement made by this section is
not complied with.
New section 4.5.13 provides that a person may object to an
application for approval by giving notice in writing to the
Commission within the time specified in section 4.5.12(3) stating
the grounds for objection.
New section 4.5.14 specifies the matters the Commission must
have regard to in determining whether to approve an applicant as
a sports controlling body for a sports betting event.
New section 4.5.14(1) requires the Commission to have regard to
whether the applicant--
· has control of the event or organises or administers the
event;
· has adequate policies and other mechanisms designed to
ensure the integrity of the event;
· supports compliance with applicable international codes
and conventions that relate to integrity in sport;
· has the expertise, resources and authority to administer,
monitor and enforce the integrity systems;
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· has clear policies on the provision of information that
may be relevant to the betting market;
· has clear processes for reporting the event's results and
for hearing any appeals or protests;
· has clear policies on the sharing of information with
sports betting providers;
· is the most appropriate body to be approved as the
sports controlling body for the event.
In addition, the Commission must have regard to whether
approval of the applicant is in the public interest.
New section 4.5.14(2) requires the Commission to have regard to
every objection made in accordance with clause 4.5.13.
New section 4.5.14(3) provides that the Commission may have
regard to any other matter.
New section 4.5.15 contains provisions related to a determination
by the Commission of an application for approval as a sports
controlling body.
New section 4.5.15(1) requires the Commission to either grant or
refuse approval and to notify the applicant in writing of its
decision.
New section 4.5.15(2) requires the Commission to provide
reasons for any refusal in the written notification.
New section 4.5.15(3) provides that the Commission may impose
any conditions on an approval at the time of granting the
approval or at any later time.
New section 4.5.15(4) provides that an approval takes effect on
the day specified by the Commission in the written notification
and remains in force until revoked by the Commission or
surrendered by the sports controlling body.
New section 4.5.16(1) outlines the notice requirements for an
approval, a condition on an approval, a variation of an approval
and a revocation of an approval. Notice of each of these
decisions must be published in the Government Gazette as soon
as practicable.
New section 4.5.16(2) provides that failure to publish in the
Government Gazette does not affect the validity of the decision.
New section 4.5.16(3) requires the Commission to make
available on its website a list of all sports controlling bodies.
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New section 4.5.17(1) provides that the Commission may at any
time, by written notice to a sports controlling body, vary the
approval of the body (including a variation or revocation of a
condition to which the approval is subject). The Commission
may at any time, by written notice to a sports controlling body,
revoke an approval for any reasonable cause.
New section 4.5.17(2) provides that a variation or revocation
takes effect on the day specified by the Commission in the notice.
New section 4.5.18(1) provides that a sports controlling body
may surrender its approval by giving written notice to the
Commission.
New section 4.5.18(2) provides that a surrender takes effect on
the day that the Commission receives the notice or on another
day determined by the Commission (which may be a day that
occurred before the notice was received).
New section 4.5.19(1) requires a sports controlling body to notify
the Commission in writing of a change in that body's situation
within 14 days after it takes place. The kind of change to which
the requirement applies is that specified by the Commission in
writing. A maximum penalty of 60 penalty units applies for a
failure to comply with this requirement.
New section 4.5.19(2) enables a function of the Commission
under this section to be performed by any commissioner.
New section 4.5.20 contains provisions related to the review of
the Commission's decision by the Victorian Civil and
Administrative Tribunal (VCAT).
New section 4.5.20(1) provides that a person whose interests are
affected by the relevant decision may apply to VCAT for review
of a decision to grant or refuse an application for approval as a
sports controlling body for a sports betting event, to impose a
condition on an approval or to vary or revoke an approval.
New section 4.5.20(2) requires an application for review to be
made within 28 days after the latest of--
· the day on which the decision was made;
· if, under the Victorian Civil and Administrative
Tribunal Act 1998, the person requests a statement of
reasons for the decision, the day on which the statement
of reasons is given to the person or the person is
informed under section 46(5) of that Act that a
statement of reasons will not be given;
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· if, under section 10.1.24, the person requests a statement
of reasons for the decision, the day on which the
statement of reasons is given to the person or the person
is informed under section 10.1.23(6) that a statement of
reasons will not be given.
Division 5--Requirements on sports betting providers
Division 5 contains provisions related to the requirements on a
sports betting provider when offering a betting service on a sports
betting event held in Victoria. There are no similar provisions in
the current Part 5 of Chapter 4 of the Gambling Regulation Act
2003.
New section 4.5.21 provides a definition of what it means to offer
a betting service, for the purposes of Division 5. Offering a
betting service is defined as a sports betting provider accepting,
offering to accept or inviting a person to place a bet, or
facilitating the placing of a bet, on any contingency relating to a
sports betting event.
New section 4.5.22(1) creates a new offence that a sports betting
provider must not, in Victoria or elsewhere, offer a betting
service on a sports betting event unless either an agreement is in
effect between the sports controlling body for that event and the
sports betting provider, or a determination of the Commission is
in effect for the sports betting provider to offer a betting service
on the event. A maximum penalty of 60 penalty units applies for
this offence.
New section 4.5.22(2) provides that new subsection (1) does not
apply--
· to a sports betting event held wholly outside Victoria; or
· at any time while an application by the sports betting
provider for a determination under 4.5.26 in respect of
the event is before the Commission; or
· if there is no sports controlling body for the event; or
· during the period ending 6 months after the day on
which the approval of a sports controlling body for the
event took effect.
New section 4.5.23 contains provisions related to an agreement
between a sports betting provider and a sports controlling body.
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New section 4.5.23(1) provides that a sports controlling body for
a sports betting event may make an agreement with a sports
betting provider for the sporting betting provider to offer a
betting service on the event.
New section 4.5.23(2) prescribes that an agreement must provide
for the sharing of information between the parties for the
purposes of protecting and supporting integrity in sports and
sports betting. An agreement must also state whether a fee is
payable by the sports betting provider to the sports controlling
body, and if so, what the fee is or how it is calculated.
New section 4.5.23(3) provides that an agreement may contain
any other matters the parties consider appropriate.
New section 4.5.23(4) provides that an agreement takes effect,
and may be terminated, in accordance with the terms of the
agreement.
New section 4.5.24 contains provisions related to an application
for dispute resolution where the parties are unable to reach an
agreement.
New section 4.5.24(1) provides that a sports betting provider may
apply to the Commission for a determination if the provider
cannot reach agreement with the relevant sports controlling body.
New section 4.5.24(2) requires an application to be in the form
approved by the Commission, be accompanied by the prescribed
fee (if any) and contain or be accompanied by any additional
information the Commission requires.
New section 4.5.24(3) provides that the Commission must not
proceed to determine an application unless it is satisfied that the
sports controlling body has unreasonably refused or failed to
enter into an agreement with the sports betting provider, having
regard to either whether the parties have engaged in genuine
negotiations and there are no reasonable prospects of agreement
being reached, or whether the sports controlling body has refused
to enter into negotiations for an agreement with the sports betting
provider.
New section 4.5.25(1) provides that Commission is to determine
the procedure on an application.
New section 4.5.25(2) provides that the Commission may cause
to be carried out any investigations or inquiries that it considers
necessary to consider the application properly.
New section 4.5.25(3) provides that any inquiry for the purposes
of determining an application must be held in private.
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New section 4.5.26 contains provisions related to a determination
of the Commission.
New section 4.5.26(1) provides that, on an application, the
Commission may determine that the sports betting provider may
offer a betting service on a sports betting event.
New section 4.5.26(2) requires that a determination must provide
for the sharing of information between the sports betting provider
and the sports controlling body for the purposes of protecting and
supporting integrity in sports and sports betting. A determination
must also state whether a fee is payable by the sports betting
provider to the sports controlling body in respect of betting on the
sports betting event, and if so, what the fee is or how it is
calculated.
New section 4.5.26(3) sets out the matters the Commission must
have regard to in making a determination. Specifically, the
Commission must have regard to--
· any integrity-related costs that the sports controlling
body has incurred or may incur as a result of betting
taking place on the sports betting event;
· the integrity of the sports betting event;
· any actual or potential financial returns to the sports
betting provider;
· the existing legislative rights and liabilities of the parties
to the use and provision of information;
· any other matters the Commission considers relevant.
New section 4.5.26(4) requires the Commission to give written
notice of a determination to the parties. Notice must include the
reasons for the determination.
New section 4.5.26(5) provides that a determination takes effect
at the time notice is given or at a later time specified in the
notice.
New section 4.5.26(6) provides that the terms of a determination
are binding on the parties and may be enforced by either of them
as if the determination were an agreement between the parties on
those terms.
New section 4.5.27 contains provisions related to the variation
and revocation of a determination of the Commission.
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New section 4.5.27(1) provides that either or both parties may
apply to the Commission at any time for the variation or
revocation of a determination under 4.5.26.
New section 4.5.27(2) requires an application to be in the form
approved by the Commission, accompanied by the prescribed fee
(if any) and contain or be accompanied by an additional
information the Commission requires.
New section 4.5.27(3) provides that the Commission may cause
to be carried out any investigations or inquiries that it considers
necessary to consider the application properly.
New section 4.5.27(4) provides that any inquiry for the purpose
of determining an application must be held in private.
New section 4.5.27(5) provides that, on an application, the
Commission must decide whether or not to vary or revoke the
determination and give written notice of its decision to the
parties. Notice must include the reasons for the decision.
New section 4.5.27(6) provides that a variation or revocation of a
determination takes effect at the time notice is given under
subsection (5) or at a later time specified in the notice.
New section 4.5.27(7) provides that, for the avoidance of doubt,
the revocation of a determination does not affect any right or
liability of either party under the determination that accrued
before the revocation took effect.
New section 4.5.28 contains provisions related to the costs of
investigating an application for a determination, or a variation or
revocation of a determination.
New section 4.5.28(1) provides that the Commission, by written
notice, may require an applicant for a determination, or variation
or revocation of a determination, to pay to the Commission the
amount determined by the Commission, being an amount not
exceeding the reasonable costs of investigating the application.
New section 4.5.28(2) provides that the Commission may require
the amount to be paid by instalments or at any time before,
during or after the investigation, whether or not the Commission
makes the determination, variation or revocation sought.
New section 4.5.28(3) provides that an amount payable under this
section may be recovered in a court of competent jurisdiction as a
debt to the Crown.
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Division 6--Prohibition of betting contingencies
Division 6 contains provisions related to the prohibition of
betting on particular contingencies that have been prohibited by
the Commission. There are no similar provisions in the current
Part 5 of Chapter 4 of the Gambling Regulation Act 2003.
New section 4.5.29(1) provides that the Commission, by
instrument, may prohibit betting on a contingency if the
Commission considers that betting on the contingency--
· may expose the relevant event to unmanageable
integrity risks; or
· is offensive or contrary to the public interest; or
· is unfair to investors; or
· should be prohibited for any other reason.
New section 4.5.29(2) provides that the Commission, by
instrument, may vary or revoke a prohibition at any time.
New section 4.5.29(3) provides that a prohibition, or variation or
revocation of a prohibition, takes effect on the day notice of it is
published in the Government Gazette or on the later day specified
in the notice.
New section 4.5.29(4) provides that contingency means a
contingency relating to an event or class of event that is approved
under Division 3 for betting purposes and is held wholly or partly
in Victoria.
New section 4.5.30 outlines the notice and publication
requirements related to the prohibition of betting on a
contingency.
New section 4.5.30(1) provides that the Commission must cause
notice of a prohibition, and the variation or revocation of a
prohibition, to be published in the Government Gazette and, as
soon as practicable thereafter, in a newspaper circulating
generally throughout Australia or newspapers circulating
generally in each State and Territory of Australia.
New section 4.5.30(2) provides that the Commission must cause
written notice of a prohibition, and the variation or revocation of
a prohibition, to be given to each sports betting provider known
to the Commission. Notice is to be given as soon as practicable
after publication in the Government Gazette.
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New section 4.5.30(3) provides that failure to publish notice
under subsection (1)(b) or to notify a sports betting provider
under subsection (2) does not affect the validity of the
prohibition, variation or revocation. However, if a sports betting
provider is charged with an offence under this new section, it is a
defence if notice was not published under subsection (1)(b) and
the sports betting provider was not notified under subsection (2).
New section 4.5.30(4) provides that the Commission must cause
to be made available on its website a list of all prohibitions and
must update the list as soon as practicable after each publication
in the Government Gazette.
New section 4.5.31 creates a new offence of offering bets on
prohibited betting contingencies.
New section 4.5.31(1) provides that a sports betting provider
must not, in Victoria or elsewhere, accept, offer to accept, or
invite a person to place a bet, or facilitate the placing of a bet, on
a contingency that is the subject of a prohibition. There is a
maximum penalty of 60 penalty units for this offence.
New section 4.5.31(2) provides that, despite anything in the
Magistrates' Court Act 1989, a person does not aid, abet,
counsel or procure the commission of an offence against
subsection (1) only because the person places a bet on a
prohibited contingency with a sports betting provider.
Clause 4 contains some consequential amendments to other parts of the
Gambling Regulation Act 2003 to reflect the provisions
contained in clause 3.
Subclause (a) inserts definitions for approved betting event,
sports betting event, sports betting provider and sports
controlling body into current section 1.3 by way of a cross-
reference to the definitions in new subsection 4.5.1.
Subclause (b) replaces the current definition of approved betting
competition in current section 1.3 with a new definition.
Subclauses (c) through to (e) contain some minor amendments to
current Part 5 of Chapter 2 ("Part 5--Betting") to reflect the
terminology used in new Part 5 of Chapter 4 relating to the
approval of events and betting competitions.
Subclause (f) inserts into the Commission's objectives, in current
section 10.1.3, a new objective related to sports betting.
Subclauses (g) and (h) insert into the Commission's functions, in
current section 10.1.4, two new functions related to sports
betting.
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Subclauses (i) through to (n) contain some amendments to
current Part 4 of Chapter 10 ("Part 4--Investigations and
Information Gathering by the Commission") to enable the
Commission to carry out investigations and gather information
related to its sports betting functions.
Clause 5 contains some transitional provisions that facilitate a smooth
transition from the existing regulatory arrangements to the new
regulatory arrangements resulting from the substitution of a new
Part 5 of Chapter 4 of the Gambling Regulation Act 2003 under
clause 3. In particular, approved betting competitions under the
current Part 5 will be taken to be approved under the new Part
and will not require new approval.
PART 3--RACING ACT 1958
Clause 6 contains some consequential amendments to the Racing Act
1958 that have the effect of making the provisions contained in
clause 3 (namely the substitution of a new Part 5 of Chapter 4 of
the Gambling Regulation Act 2003) apply to bookmakers
registered under Part IV of the Racing Act 1958. In addition,
clause 6 inserts a new subsection into section 91E that enables a
controlling body (for horse, harness or greyhound racing) to
disclose information relating to betting transactions that it obtains
from a bookmaker or bookmaker's clerk to a person or body that,
in the opinion of the controlling body, controls, organises or
administers an approved betting event within the meaning of the
Gambling Regulation Act 2003.
PART 4--REPEAL OF AMENDING ACT
Clause 7 provides for the automatic repeal of this amending Act on the
first anniversary of its forced commencement. As suggested by
the Scrutiny of Acts and Regulations Committee, all amending
Acts now contain an automatic repeal provision, which will save
the time and expense of having to repeal amending Acts in statute
law revision Bills. The repeal of this Act does not affect in any
way the operation of the amendments made by this Act (see
section 15(1) of the Interpretation of Legislation Act 1984).
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