Annual Report

Transcription

1 Annual Report

2 Victorian Commission for Gambling Regulation Office Level 5 35 Spring Street Melbourne Victoria 3000 Postal Address PO Box 1988 Melbourne Victoria 3001 Website: Office Hours 9.00 am to 5.00 pm Monday to Friday Switchboard Telephone: Facsimile: contact address: [email protected] Complaints hotline: Inspectors at Melbourne Casino Southbank: Telephone: (24 hours a day 7 days a week)

3 Chairman s Letter 15 September 2011 Minister for Gaming Parliament House Spring Street MELBOURNE VIC 3002 Dear Minister I am pleased to present the Annual Report of the Victorian Commission for Gambling Regulation for This Annual Report is prepared in accordance with the provisions of the Financial Management Act 1994, the Gambling Regulation Act 2003 and the Casino Control Act 1991 and covers the period between 1 July 2010 and 30 June Yours sincerely BRUCE THOMPSON Chairman 1

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5 Contents Chairman s Letter to Minister 1 Chairman s Report 5 Highlights in Output Performance 10 Part 1 The Victorian Commission for Gambling Regulation 11 Overview 12 Objectives 13 Functions 14 Commission Members 16 Organisational Structure 17 Organisational Chart as at 30 June Corporate Governance 20 Part 2 Report of Operations by Intended Outcomes 21 1 Gambling Activities: The conduct of gambling properly protects players and other stakeholders 22 2 Gambling Participants: Gambling is conducted honestly, is free from criminal influence and commercial licensees deliver on their obligations 31 3 Gambling Benefits: The Victorian community receives the benefits arising from gambling 42 4 Gambling Harm Minimisation: The harm caused by problem gambling is minimised 47 5 VCGR Resources: VCGR fulfils its Government and legislative responsibilities and achieves its service delivery objectives by innovative, effective and efficient use of resources 52 Summary of Financial Results 62 Part 3 Financial Statements Part 4 Appendices 107 1A Principal Legislation Administered by the Minister for Gaming 109 1B Commencement Dates of Legislation 110 1C Subordinate Legislation Ministerial Direction Ministerial Determinations Community Benefit Statements Victorian Commission for Gambling Regulation Rules Commission Decisions on Applications for New Premises and Venue Operator Licence Amendments Commission Meetings, Inquiries and Hearings Gaming Machine Entitlements as at 30 June Gaming Venues as at 30 June Registered Bookmakers as at 30 June Bingo Centres and Commercial Raffle Organisers as at 30 June Licensing Activities Number of Active Licences at 30 June 2010 and 30 June Roll of Manufacturers, Suppliers and Testers as at 30 June Responsible Gaming Training Course Providers as at 30 June Community Benefit Statements Summary of the Total Claims Made by Club Gaming Venues Gambling Player Loss and Taxes and Levies Paid Distribution of Taxes from Gambling Player Loss from Gaming Machines Statistical Data Fact Sheet Distribution of Player Loss from Gaming Machines Regional Caps Municipal Limits Representation on Working Parties Commission Whistleblower Procedures Staff Profile by Position Other Information Available on Request 178 Disclosure Index 179 Glossary 181 3

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7 Chairman s Report As I pointed out in my Chairman s report last year, and I believe, it is worth reiterating, the fundamental role of the Commission is very clearly defined by law. In a very broad sense our regulatory responsibilities focus on keeping the industry free of any criminal influence and exploitation and fostering responsible gambling in order to minimise harm. Over the past several years, by all accounts, the Commission has done a very commendable job in achieving those high level objectives prescribed by the legislation. The Commission has operated in a relatively stable environment and has built up a vast reservoir of capability, knowledge and expertise as it undertakes its regulatory role. Stable environments, however, don t last forever and the Commission s flexibility and adaptability will be seriously tested over the next twelve months as we embark on a very significant structural and environmental change process. Taken individually, each of these changes is significant. But taken collectively they represent an event of potentially seismic proportions. Let s look at each of these in turn. From a gaming machine standpoint, the industry is in the midst of the transition from the Tattersall s and Tabcorp duopoly. The auction has been held and gaming machine entitlements purchased. Clubs and pubs in Victoria paid out a total of $980 million for 27,300 entitlements. The market is now more open and competitive and the economics of the industry have already changed dramatically. Clubs and pubs that had sound auction strategies in place and are well organised to take on the challenges of the new environment should fare particularly well. The Commission is mindful of the potential regulatory risks associated with the shift in industry balance, but our regulatory role has not changed and we will insist that the high standards of probity and performance against statutory requirements continue to be maintained. A second major change in our industry structure is, as outlined last year, the merger of the Gambling and Liquor regulatory functions into one body, the Victorian Commission for Gambling and Liquor Regulation, the VCGLR. The legislation required to give effect to this change is being prepared and is expected to be in force in the new year. I have been involved in a number of mergers and acquisitions and, in fact, one significant demerger, and I know that at an individual level such events can be stressful. Quite naturally, the individual employee will always ask What does this mean for me?. During periods of uncertainty this is natural and expected. Successful mergers are usually characterised by strong leadership, which includes well thought out and well communicated strategies, and a demonstrated understanding of key issues at both the individual and stakeholder level. This change, in my view, will open up a vast array of opportunities for people at all levels and provide an extraordinary base for organisational reinvention. There is no doubt in my mind that as a result, together we can become a modern, best in class regulator. A third, but in my view less significant change, is the move of both organisations to a new building in Richmond. Whilst less significant this is symbolic and it does in a way represent a fresh start. Such symbolism, if captured correctly, can be powerful. 5

8 Chairman s Report continued Over the last few months the Commission has been working with the Department of Justice to recruit a new CEO to replace Peter Cohen. This person will become CEO of the newly formed VCGLR entity and clearly, therefore, will be critical in creating the new outstanding performance culture. The former CEO, Peter Cohen, left the organisation after fourteen years of service, the last eight as Executive Commissioner. We thank him for his considerable contribution over the journey. I also thank my fellow Commissioners, Judith King, Gail Owen OAM and Ches Baragwanath AO, for their invaluable counsel and contribution over the year, and the Commission staff in fulfilling their respective roles so very capably over the course of the year. As a result of these efforts the public can be confident that the industry operates fairly and that the outcomes contemplated by the legislation are achieved. Bruce Thompson Chairman 6

9 Highlights in Fair Gambling supporting an effective system of gambling regulation and implementation of Government policy by: introducing processes to reduce the regulatory burden of gambling regulation by implementing on-line application services utilising smart forms; and enhancing the efficiency of the employee licence application process with the introduction of new technology to allow licence applicants to have finger and palm prints recorded electronically; promoting player confidence in the integrity of gambling products by: providing a range of gambling product approval programs including product rules, systems and equipment; and approving trade promotion lotteries; minimising the risk and impact of gambling regulatory breaches by: monitoring the casino and supervising lottery draws; conducting compliance audits and investigations of licensed gambling venues and minor gaming, lotteries and race track activities; investigating gaming venue and casino patron complaints; publishing on the VCGR website updated regulatory information to assist industry participants to comply with licensing requirements; being a party in Court proceedings to determine the legality of the use of computer terminals in Victoria known as Betbox, currently being appealed by Sportsbet Pty Ltd. 7

10 Highlights in continued Crime Free Gambling Industry enhancing confidence that gambling industry participants are suitable by: conducting probity and financial checks for licences and approvals for gaming machine manufacturers, suppliers and testers; casino suppliers; venue operators; bingo centre operators; commercial raffle organisers; casino special employees; gaming industry employees; and registration of bookmakers and their key employees; monitoring licence and registration holders for any changes in structure, addition of associates or issues of a probity, commercial or financial nature that may have an adverse impact on suitability; supporting a high standard of probity within the gambling industry by taking disciplinary action against the casino operator on three occasions, venue operators and licensed industry employees; monitoring the fulfilment of obligations to the State by commercial participants in the gambling industry. Gambling Benefits facilitating community benefit arising from the new gambling industry structure post by establishing the Gaming Machine Entitlements Register of the 27,300 gaming machine entitlements allocated to venue operators in August 2010 and the associated transfer market website; ensuring that only bona fide community and charitable organisations benefit from minor gaming by conducting renewal reviews of community and charitable organisation declarations; ensuring that gambling returns are properly distributed by: monitoring all gambling products to ensure players receive their appropriate entitlements and verifying, collecting and transferring all gambling taxes; monitoring and reviewing Community Benefit Statements submitted by club venue operators; and monitoring and reviewing returns submitted by organisations conducting bingo and large raffles. 8

11 Gambling Harm Minimisation supporting the gambling industry in the responsible delivery of its products by: assisting industry to implement Responsible Gambling Codes of Conduct ( Codes ) and Self-Exclusion Programs ( SEPs ) including consulting with stakeholders, conducting venue educational visits, operating a responsible gambling telephone hotline and auditing the effectiveness and operation of Codes and SEPs; implementing a formal responsible gambling compliance audit program at gaming venues, bingo centres, TAB wagering outlets, Club Keno, bookmakers and the Melbourne Casino; participating in Responsible Gambling Awareness Week 2011 and providing speakers for information sessions throughout Victoria and responsible gambling information and educational material; providing expert and technical advice with respect to the establishment of the Government s pre-commitment scheme for gaming machines; minimising potential harm from gambling to communities and individuals by: conducting public inquiries, including from applications lodged in the previous year, to assess the net socio-economic impact on the local community of applications for approval of new premises as suitable for gaming and for additional gaming machines at approved gaming venues; and monitoring municipal limits and regional caps for gaming machines to ensure that maximum permissible numbers are not exceeded. 9

12 Output Performance VCGR targets formed part of the Gaming and Racing Management and Regulation output in The following table outlines the major output deliverables for which the VCGR is responsible. The table shows actual performance against targets as specified in State Budget Paper No.3 for Output measured below involves the monitoring and regulation of gambling in Victoria. Performance Measures Annual Year End Target Actual Quantity (number) Regulatory Services including Licensing and Compliance Activities 30,000 28,304 Quality (%) Accuracy of Regulatory Compliance Activities Timeliness (%) Regulatory Compliance and Licensing Activities progressed within set timeframes Commentary on results Quantity Performance was lower than the target by 5.7 per cent due to decreased demand for some licensing services. Quality Performance was on target. Timeliness Performance was higher than the target by 5.8 per cent due to process enhancements. 10

13 Part 1 Victorian Commission for Gambling Regulation 11

14 Overview History The Victorian Commission for Gambling Regulation ( VCGR ) came into operation on 1 July 2004 following the proclamation of the Gambling Regulation Act As at 30 June 2011, the responsible Minister was the Minister for Gaming, the Honourable Michael O Brien MP. Principal legislation administered by the Minister for Gaming is listed at Appendix 1A of this report. The VCGR assumed responsibility for the regulation of gambling from the Victorian Casino and Gaming Authority, the Director of Gaming and Betting and the Director of Casino Surveillance. These statutory entities ceased to exist as at 30 June As at 30 June 2011, the VCGR is comprised of the Commissioners indicated at page 16 of this report. Purpose The VCGR seeks to provide a fair, responsible and crime free gambling industry which optimises the benefits for all Victorians. To achieve this outcome, the VCGR strives to be at the forefront of effective regulation of the gambling industry, guided by its legislated objectives and functions as set out at sections and of the Gambling Regulation Act These objectives and functions are set out in detail at pages 13 to 15 of the report. The regulation of gambling by the VCGR is consistent with the Government s key principles that underpin its approach to promoting a responsible, sustainable and transparent gambling industry. 12

15 Objectives The objectives of the VCGR are as stated in section of the Gambling Regulation Act 2003, namely to ensure that gaming on gaming machines is conducted honestly; to ensure that the management of gaming machines and gaming equipment is free from criminal influence and exploitation; to ensure that other forms of gambling permitted under this or any other Act are conducted honestly and that their management is free from criminal influence and exploitation; to foster the development of sport by promoting equitable and fair information and revenue sharing between sports betting providers and sports controlling bodies and to foster the integrity of betting on sports betting events; to act as a source of advice to the Minister for Gaming on gambling issues and ensure that the Government s policy on gambling is implemented; to foster responsible gambling in order to minimise harm caused by problem gambling and accommodate those who gamble without harming themselves or others; and any objectives set out in the Casino Control Act 1991 or any other Act. 13

16 Functions The functions of the VCGR are as conferred on it by or under the gambling legislation or any other Act and include regulating the operation and use of gaming machines in the casino and approved gaming venues; monitoring compliance with provisions of the Act relating to ownership of gaming machine entitlements and operation of the monitoring licence; regulating the activities of key operatives in the gaming machine industry, including those who manufacture, supply, repair or own, or provide venues for and operate, gaming machines; ensuring that the conduct of gaming at approved gaming venues and the casino is supervised; detecting offences committed in, or in relation to, approved gaming venues and the casino; receiving and investigating complaints from gaming patrons concerning the conduct of gaming in approved gaming venues and the casino; regulating the activities of key operatives in the wagering, Club Keno, interactive gaming, community and charitable gaming, bingo, onboard gaming and public lottery industries and other functions relating to sports betting; registering and regulating bookmakers and bookmakers key employees; ensuring that Responsible Gambling Codes of Conduct and self-exclusion programs are, and remain, of a satisfactory standard and are compliant with Ministerial directions; ensuring that all taxes, charges and levies are paid; advising the Minister for Gaming on community concerns about the economic and social impact of gambling on the well-being of the community; 14

17 advising the Minister for Gaming concerning policy in relation to the supervision and inspection of casinos, and reporting on the casino operator s suitability and licence; informing itself in the manner it sees fit of current and emerging issues and practices in Victoria and elsewhere with respect to gambling, including responsible gambling, probity, game security and integrity, sports betting and facility development; informing and educating the public as to the regulatory practices and requirements of the VCGR; and carrying out all investigations and inquiries that it considers necessary to enable the Secretary to report to the Minister and the Minister to properly consider registrations of interest in, and applications for, the Keno, Wagering and Betting and Monitoring Licences and reporting to the Secretary on the results of those investigations. 15

18 Commission Members Commissioners Mr Bruce Thompson, Chairman Ms Judith King, Deputy Chair Ms Gail Owen OAM, Commissioner Mr Ches Baragwanath AO, Commissioner Mr Max Priestley, Acting Executive Commissioner and Acting CEO (from 26 December 2010) Sessional Commissioners His Honour Gordon Lewis AM, Deputy Chair Mr Ken Loughnan AO, Sessional Commissioner Ms Suzanne Jones, Sessional Commissioner Note: Commissioners The membership of the Commission expanded from four to five at the commencement of the year with the appointment of Mr Ches Baragwanath AO, effective from 1 July The Chairman, Deputy Chair and Commissioners Baragwanath and Owen are part-time appointees. The Executive Commissioner and CEO, Mr Peter Cohen, resigned with effect from 25 December 2010 and Mr Max Priestley was appointed as Acting Executive Commissioner and Acting CEO from 26 December During the year under review there were no sessional commissioners appointed in support of the activities of the VCGR. Sessional Commissioners The Commissioners appointed on a part-time basis to perform the VCGR functions in relation to the licence-awarding phase of the Gambling Licences Review being conducted by the Department of Justice are: His Honour Gordon Lewis AM, Deputy Chair and Commissioner; Mr Ken Loughnan AO, Sessional Commissioner; and Ms Suzanne Jones, Sessional Commissioner. These Commissioners are currently appointed until 31 August 2011 and do not have a role in any day-to-day matters, which continue to be the responsibility of the other Commissioners. Mr Warren Hodgson, Deputy Chair, and Ms Andrea Hassett, Sessional Commissioner, the persons appointed until 30 July 2010 to perform the function of auctioneer at the gaming machine entitlements auction conducted in May 2010, did not hold any meetings in the reporting period, nor did they have a role in any day-to-day matters of the Commission. The number of VCGR meetings and inquiries held during are set out at Appendix 6 of this report. 16

19 Organisational Structure Management Mr Max Priestley, Acting Executive Commissioner and Acting Chief Executive Officer Mr Max Priestley is the Acting Executive Commissioner of the VCGR. The Executive Commissioner is appointed by the Governor in Council and has specific statutory duties under gambling legislation. As the Acting Executive Commissioner, Max is also the Acting Chief Executive Officer and leads the management team comprised of Directors and a Deputy Director. Mr Laurie Bailey, Acting Director Compliance and Investigation As Acting Director of the Compliance and Investigation Branch, Laurie has responsibility for investigations, as well as enforcement of, and compliance with, gambling legislation. Laurie also has responsibility for Inspectors who monitor the operation of the Casino, 24 hours per day, seven days a week. The role also involves the provision of stakeholder and community education. Ms Lynne Bertolini, Director Gambling Licences Project As Director of the Gambling Licences Project, Lynne has responsibility for investigations and inquiries, and for supporting Commissioners appointed to perform the functions of the VCGR in relation to the licence-awarding phase of the Gambling Licences Review being conducted by the Department of Justice. Lynne is also responsible for post-2012 transition planning and the provision of relevant advice and policy development to ensure the VCGR effectively implements all new roles and responsibilities arising from the post-2012 arrangements. Ms Meredith Brown, Director Corporate Services As Director of the Corporate Services Branch, Meredith has responsibility for providing strategic and operational advice and delivering business-specific support services including corporate governance, planning and risk management, budget and financial management, human resources and office management. Meredith also has responsibility for control, development, and maintenance of the VCGR information technology infrastructure, database and applications. The Branch facilitates and assists the VCGR in meeting its legislative responsibilities and service delivery objectives. Mr Phillip Shelton, Director Gambling Operations and Audit As Director of the Gambling Operations and Audit Branch, Phillip has responsibility for advising whether the conduct of gambling, and the associated computer gambling systems and related operational procedures for the casino, electronic gaming machines, wagering, interactive gambling, Club Keno, approved betting competitions, lotteries and bingo, is consistent with enabling legislation and is delivered responsibly. Mr Steve Thurston, Deputy Director Licensing Operations and Policy As Deputy Director of the Licensing Operations and Policy Branch, Steve has responsibility for the licensing, registration and ongoing monitoring of participants in the gambling industry. This includes initial checks and ongoing suitability monitoring and disciplinary action for commercial participants in the casino and gaming industry, individuals employed in those industries, bookmakers and their key employees, trade promotion lotteries, and community and charitable gaming participants and activities. Ms Sylvia Grobtuch, Director Legal and Legislation As Director of the Legal and Legislation Branch, Sylvia has responsibility for advising on how the regulation of gambling in the State should be carried out so that it is consistent with the requirements of gambling legislation. The Branch also advises on VCGR contractual obligations under commercial agreements to which it is a party and provides counsel assisting functions at hearings (public and private) and prosecutes criminal matters in the Magistrates Court. 17

20 Organisational Chart as at 30 June 2011 Mr Bruce Thompson, Chairman Ms Judith King, Deputy Chair Secretary Department of Justice Ms Penny Armytage Executive Director Gaming and Racing Mr Ross Kennedy Ms Gail Owen OAM, Commissioner Mr Ches Baragwanath AO, Commissioner Deputy Director Licensing Operations and Policy Mr Steve Thurston Corporate and individual gaming licences and approvals Trade promotion, raffle, bingo and lucky envelope permits approved industry participants and permit activities monitoring stakeholder and community education Director Gambling Operations and Audit Mr Phillip Shelton Gambling Product approvals and monitoring Operational, Revenue and Systems Audits Premises Approvals Gaming Machine area modifications Social and Economic Impact Assessments Responsible Gaming Training Courses Technical Compliance Lottery Supervision 18

21 Minister The Hon Michael O Brien MP Minister for Gaming Victorian Commission for Gambling Regulation Commissioners Mr Bruce Thompson, Chairman Ms Judith King, Deputy Chair Ms Gail Owen OAM, Commissioner Mr Ches Baragwanath AO, Commissioner Mr Max Priestley, Acting Executive Commissioner and Acting Chief Executive Officer Other Commissioners His Honour Gordon Lewis AM, Deputy Chair Mr Ken Loughnan AO, Sessional Commissioner Ms Suzanne Jones, Sessional Commissioner Office of the Executive Commissioner Ms Tracey Forrester, Manager Acting Director Compliance and Investigation Director Legal and Legislation Director Corporate Services Director Gambling Licences Project Mr Laurie Bailey Ms Sylvia Grobtuch Ms Meredith Brown Ms Lynne Bertolini Investigation and Prosecution Casino Regulation Venue Audit Stakeholder and community education Legal Advice Legislation Freedom of Information Privacy Commission Hearings Casino Commercial Arrangements Corporate Governance, Planning and Risk Management Human Resources Finance Office Management Information Technology Information Management Post-2012 gambling licences Post-2012 Transition Planning and Policy 19

22 Corporate Governance Audit Committee Membership and Role The Audit Committee is comprised of Mr David Boymal AM, Chairman, Ms Judith King, Deputy Chair of the VCGR, and Mr David Beatty. The Audit Committee undertakes the oversight of: financial performance and the financial reporting process, including the annual financial statements; the scope of work, performance and independence of internal and external audit; the operation and implementation of the risk management framework; matters of accountability and internal control affecting the operations of the VCGR; the effectiveness of management information systems and other systems of internal control; the acceptability of, and correct accounting treatment for and disclosure of, significant transactions which are not part of the normal course of VCGR business and sign-off of accounting policies; and the VCGR process for monitoring compliance with laws and regulations and its own Code of Conduct and Code of Financial Practice. During the Audit Committee met formally on four occasions. Attendance details are contained in Appendix 6 of this report. Annual Report The VCGR Annual Report for was tabled in the Parliament by the due date. 20

23 Part 2 Report of Operations by Intended Outcomes 21

24 Intended Outcome 1 Gambling Activities The conduct of gambling properly protects players and other stakeholders Goal 1.1: The system of gambling regulation is effective and implements the Government s policy Gambling Regulation Legislation Information relevant to legislation and changes during the year is contained in Appendix 1A and Appendix 1B of this report. The following legislative provisions came into operation during the year: Gambling Regulation Amendment (Licensing) Act 2010 (56/2010) The Gambling Regulation Amendment (Licensing) Act 2010 was assented to on 14 September The main purpose of this Act is: to amend the Gambling Regulation Act 2003, and the Gambling Regulation Further Amendment Act 2009 to make further provisions in relation to regulatory arrangements for gaming machine entitlements and the monitoring, wagering and betting and keno licences; and the regulation of associates of gambling industry participants; to amend the Casino Control Act 1991 to make further provision in relation to disciplinary action against the casino operator for offences involving minors; and to amend the Confiscation Act 1997 to remove a redundant reference to minor gaming permits. Justice Legislation Further Amendment Act 2010 (64/2010) The Justice Legislation Further Amendment Act 2010 was assented to on 28 September As it relates to the Gambling Regulation Act 2003, the main purpose of this Act was to amend the Gambling Regulation Act 2003 and the Gambling Regulation Further Amendment Act 2009 to make further provisions in relation to: the regulatory arrangements for monitoring and linked jackpots; and the payment of taxes in respect of wagering. Subordinate Legislation Information relevant to subordinate legislation is contained in Appendix 1C of this report. The following subordinate legislation came into operation this year: Gambling Regulation (Pre-commitment) Interim Regulations 2010 (SR 129/2010) These Regulations came into operation on 1 December The Regulations prescribe, for the purposes of section A of the Gambling Regulation Act 2003, the gaming machines that are required to have a pre-commitment mechanism on and after 1 December 2010, the pre-commitment mechanism that is to apply to those gaming machines, and other matters in relation to pre-commitment. 22

25 Gambling Regulation (Premium Customer) Regulations 2011 (SR 3/2011) These Regulations came into operation on 2 February The Regulations prescribe the monetary amounts for the purposes of identifying premium totalisator wagering customers and the wagering tax payable in respect of the relevant commissions deducted from the money invested by those customers. Appeals Relating to Commission Decisions During the Victorian Civil and Administrative Tribunal ( VCAT ) affirmed two Commission decisions, Bright Newbay Pty Ltd v Bayside City Council in relation to the New Bay Hotel and Drayton Manor Pty Ltd v Greater Bendigo City Council in relation to the Foundry Hotel. Both matters related to approval of premises for gaming and they came before the Tribunal for merits review. Application has been made for review of one further Commission decision involving Club Italia-Sporting Club Inc which is to come before the Tribunal in November In April 2011, following an appeal hearing, VCAT decided to set aside the Commission s decision concerning an application by George Adams Pty Ltd for approval of premises at Laurimar Hotel, in the City of Whittlesea, with 40 gaming machines and refuse the application. George Adams Pty Ltd subsequently made application to the Supreme Court for leave to appeal the Tribunal s decision. The leave application, which was listed for hearing on 17 June 2011, was refused on 30 June Gambling Policy and Legislation Advice The formulation of Government policy in relation to gambling regulation in Victoria is the responsibility of the Office of Gaming and Racing within the Department of Justice portfolio. The VCGR is responsible for the implementation and ongoing monitoring of industry compliance with the Government s policy directives. The objectives of the VCGR under the Gambling Regulation Act 2003 require, amongst other things, that the VCGR act as a source of advice to the Minister for Gaming on gambling issues. The VCGR has amassed a wide range of statistical data in respect of authorised gambling activities conducted in Victoria. This information provides a valuable resource for the State Government when considering policy initiatives in relation to gambling. During , the VCGR responded to a number of requests for advice and statistical data from the Minister and his office, the Department of Justice and the Office of Gaming and Racing. Reduced Regulatory Burden Art Union, Raffles and Trade Promotion Lottery Working Party The VCGR participates in the Art Union, Raffles and Trade Promotion Lottery Working Party, which was established by the Australasian Casino and Gaming Regulators CEOs in The Working Party s mission is to review regulatory issues arising from art unions, raffles and trade promotion lotteries conducted nationally or across multiple jurisdictions. Primary objectives of the group include achieving harmonisation in regulatory requirements between the States and Territories and identifying and addressing contemporary regulatory concerns. In late 2008, Victoria assumed the role of the Chair of the Working Party, which has participating representatives from each Australian State and Territory except Tasmania (which, along with New Zealand, is an observer, monitoring minutes and other outcomes). During the year under review the Working Party met once, in February 2011, with representatives sharing information about arrangements for activities within their jurisdictions. The Working Party has continued to identify similarities and differences between jurisdictions and enhanced knowledge and cooperation between regulatory agencies. A number of priority projects are being progressed by the Working Party, including the development of a national on-line application form and national guidelines for trade promotion lotteries. Further information regarding VCGR representation on national working parties is contained in Appendix 22 of this report. On-line Lodgement of Trade Promotion Lottery Permit Applications Since November 2009, businesses have been able to apply for a trade promotion lottery permit and pay the associated fee online. This option is designed to simplify the process of submitting permit applications and is particularly useful for the significant number of businesses that regularly conduct trade promotion lotteries within Victoria. As of 30 June 2011, 244 businesses have registered to use the VCGR on-line permit application facility. Together, these organisations have submitted 1,390 on-line applications. Approximately 47 per cent of all trade promotion lottery permit applications received by the VCGR in were lodged via the on-line facility. Roll-out of smart forms Gaming industry employee licence application forms became available as on-line smart forms in December 2009, as an alternative to filling out a paper application form. Since that time, a further 10 VCGR application forms have been made available as smart forms. The remaining application forms will progressively be made available on-line in

26 Intended Outcome 1 continued Roll-out of smart forms (continued) The smart forms technology enables information, errors or inconsistencies to be highlighted and requests amendments before the application form can be printed prior to signing and lodgement. The introduction of smart forms has helped to reduce the number of incomplete application forms submitted to the VCGR, in turn reducing delays in processing. Streamlined Regulation Introduction of Electronic finger and palm printing In 2010 new technology was introduced allowing licence applicants to have finger and palm prints recorded electronically. Taking prints in this manner is more efficient, ensures a more accurate result, and is faster and less intrusive than the ink method. Additional provider of personal credit reports Many VCGR applicants are required to lodge a personal credit report with their application form. It was determined in January 2011 that the VCGR would accept such reports from an additional provider on the basis that this provider was able to issue an equivalent report. Accordingly, VCGR licence applicants are now able to choose a service provider who best meets their personal requirements. Commercial Agreements The Casino Agreement and Casino Licence can be viewed on the VCGR website at Goal 1.2: Players have confidence in the integrity of gambling products Product Approvals and Monitoring Equipment Approvals were granted for: 12 types of electronic gaming machines and 181 gaming machine games for the Tabcorp, Tatts and Crown gaming networks; 172 changes and modifications to existing electronic gaming machine types, games and systems in the Tabcorp, Tatts and Crown gaming networks; 89 modifications to the Tabcorp Wagering, Trackside and Sportsbet systems; and 26 modifications to Tatts lottery products and systems including the Internet lottery system. There were no applications received for Club Keno and Intralot. National Standard for Electronic Gaming Machines and the Commission s Standards The Gambling Regulation Act 2003 gives the VCGR the discretion to take into consideration whether a gaming machine type or game complies with any Commission standards in force. This legislation also empowers the VCGR, with the approval of the Minister for Gaming, to make and amend the Commission s standards for gaming machine types and games. The Australian/New Zealand National Standard for Gaming Machines Version 10 has been developed together with the Victorian Appendix Version 10 and became effective as Version 10 of the Commission s standards from 27 September The National Standard has been developed by the National Standard Working Party consisting of participants from gaming regulators in Australia and New Zealand and in consultation with gaming manufacturers and gaming operators. The purpose of the National Standard is to create a common standard for gaming machines throughout Australia and New Zealand. Victoria continues to participate actively in the development of the National Standard. In addition to various technical requirements that have been developed to ensure that gaming machine types and games are secure, auditable and fair to players, the Victorian Appendix includes a chapter on responsible gambling requirements that are a pre-requisite for the approval of any gaming machine type or game. 24

27 Installation of Gambling Equipment and Ongoing Compliance Inspectors undertook gaming industry professional development to keep abreast of technical changes in the industry. Four hundred and thirty-nine technical compliance inspections were undertaken throughout the year to ensure gaming equipment was operating in the manner in which it was approved to function. Commission s Rules Under the provisions of section of the Gambling Regulation Act 2003, the VCGR may make rules for, or with respect to, gaming machines in gaming venues and at the Casino. These rules are known as the Commission s Rules, with separate rules applying to gaming venues and the Casino. There were no changes to the Commission s Rules during the year. The Commission s Rules in their current form are at Appendix 4 of this report. Rules Considered by the Commission Lottery Rules The VCGR received two submissions from Tattersall s Sweeps Pty Ltd pertaining to Lottery Rules. The approved changes consolidated previously separate Rules for various lottery products into one document and provided for the introduction of a new lottery operating system. These changes also introduced an additional prize division for Tattslotto, bringing the total prize divisions to six. Two submissions were received from Intralot Australia Pty Ltd for Rules for Lucky 3, involving a reference to a limit on ticket sales already approved by the VCGR as part of the game specifications. Club Keno Rules There were no submissions for amendments to the rules relating to Club Keno. Betting Rules (Pari-mutuel) There were two submissions for amendments to the Rules relating to Betting Transactions in Victoria (Pari-mutuel betting) involving the inclusion of net pool guarantees for Trifecta, First 4, Quaddie and Big6 and the introduction of FootyTAB Quad and Quarter Quad options. Rules for Casino games Under section 60 of the Casino Control Act 1991, the VCGR approved 45 amendments to the rules of the games that may be played in the Casino. Significant amendments include the introduction of continuous spins for Big Wheel, Sic Bo, Roulette and dummy coups for Baccarat. Additionally, substantive changes were made to include generic tournament terms and conditions to allow the operator to conduct minor tournaments without seeking further approval and thus reducing the regulatory burden. Bingo Rules On 9 November 2010 the Commission made amendments to the Rules for Bingo. The amendments introduce new types of bingo and allow for more versions of the game to be played to provide bingo centre operators and community and charitable organisations with greater flexibility. In March 2010, the Commission approved amendments to the Rules for Bingo. These amendments provided for the provision of paperless/electronic tickets, allowing numbers to be called by electronic means, the removal of the requirement to call back winning numbers, and permitting additional versions of Bingo to be played. The Commission conducted a review of the Rules for Bingo and found that: there had been no adverse reactions or misunderstanding among staff or players to the new Rules; the amendments had positively affected patronage; the introduction of paperless/electronic tickets was seen as a way to attract new players to the game and ensure Bingo was successful in the future, and the new rules provide for greater choice and flexibility for clubs in conducting Bingo. Possession of Gaming Machines The VCGR issued 50 authorisations under sections and of the Gambling Regulation Act 2003 to permit possession of electronic gaming machines or restricted components. The authorisations included inoperative electronic gaming machines on cruise ships whilst in port in Victorian waters and electronic gaming machines in the possession of accredited testing facilities, held in bulk storage facilities by collectors of antique gaming machines, and used for research into problem gambling and display at gaming industry trade exhibitions. Betting Rules (Fixed Odds) There was one submission for amendment to the Rules Relating to Betting Transactions in Victoria (Fixed-Odds) involving the inclusion of the Greyhound Box and Driver Challenge bet types. 25

28 Intended Outcome 1 continued General Approvals for the Sale or Disposal of Gaming Equipment/Gaming Machines Pursuant to the Gambling Regulation Act 2003 and the Casino Control Act 1991, the VCGR has issued general approvals to Tabcorp, Tatts and Crown for the sale or disposal of gaming equipment including electronic gaming machines. The general approvals were updated during the year and now allow the gaming operators to sell gaming machines to a person issued with an authority under the applicable legislation where the gaming machine is for use outside Victoria. In a total of 1,668 electronic gaming machines were disposed of or sold. Sports Betting Approvals Sports Controlling Bodies and New Betting Events Provisions within the Gambling Regulation Act 2003 allow for the VCGR to approve sports controlling bodies and approved betting events either at fixed odds or pari-mutuel. These provisions have been designed to strengthen public confidence in the integrity of sporting events and the betting that takes place on those events. In addition, the legislation enables sporting bodies to receive their fair share of revenue from the betting that takes place on their sport. During the VCGR approved the following fixed odds betting events: Professional Darts; UK General Elections; and Professional Snooker. Trade Promotion Lotteries Trade Promotion Lottery Permits A number of significant legislative changes were introduced during the year that impacted upon the conduct of trade promotion lotteries and other gambling-related promotional activities. These legislative changes have required a regulatory response by the VCGR in the year under review. The legislative changes included prohibitions on: gaming operators conducting trade promotion lotteries in relation to their gaming business, and trade promotion lotteries, with entry preconditions, requiring entrants to participate in gaming machine play or agree to receive advertising for gaming machines. Additionally, an advertisement for a trade promotion lottery must include a statement of gaming machine play restrictions in circumstances where the lottery is conducted by a venue operator or casino operator and an entry expense is incurred to enter the promotion. On 17 August 2010, the VCGR issued a new Direction for the display of gaming machine play restrictions in an advertisement for a trade promotion lottery, which specifies how relevant licensees should meet their new obligations in relation to trade promotion advertising. To assist licensees in complying with the Direction, the VCGR issued the Direction to venue operators and the casino operator, and published Frequently Asked Questions on the VCGR website. Review of Sports Controlling Bodies Integrity Procedures Section of the Gambling Regulation Act 2003 empowers the Commission to approve an organisation as a sports controlling body and section enables the Commission to vary or revoke the approval for any reasonable cause. The Commission continued to monitor sports betting and contacted all approved sports controlling bodies to remind them of their responsibilities for maintaining integrity in their respective sports. 26

29 Goal 1.3: The risk and impact of gambling regulatory breaches is minimised Premises Approval and Monitoring Modification of Gaming Machine Areas Under section of the Gambling Regulation Act 2003 the VCGR approved 128 modifications to the gaming machine area in gaming venues during Casino Layout Thirty-eight applications were approved by the VCGR under section 59 of the Casino Control Act 1991 for re-configuration of gaming tables and electronic gaming machines at the Casino. Specified Areas Casino Restrictions on large denomination note acceptors, autoplay facilities, spin rates, the payment of winnings by cash and bet limits apply to all electronic gaming machines located in the Casino. The restrictions do not apply to a game played on a gaming machine located in an area specified by notice of the VCGR published in the Government Gazette if the casino operator complies with certain responsible gambling provisions specified in the notice. The total number of gaming machines available to a casino operator complying with responsible gambling provisions specified in such a notice is 1,000. As a notice of this type has been issued in relation to specified areas within the Casino, the VCGR monitored operations at the Casino to ensure that, at all times, the maximum number of gaming machines in operation remained within the permitted limit. A further requirement for the removal of the $10 bet limit restriction in a specified area of the Casino is that the gaming machines can only be played by means of a card, Personal Identification Number ( PIN ) or similar technology that requires the player to nominate limits on time and net loss before play can commence. During the VCGR approved four submissions for changes to the specified area at the Casino. Gaming venues Similar specified area provisions applied in gaming venues. However these provisions were repealed by the Gambling Regulation Amendment (Licensing) Act 2009 with effect from 1 January Casino Boundary During , Crown applied four times to redefine the boundary of the Casino gaming area pursuant to section 17 of the Casino Control Act On 3 August 2010, the Commission approved a redefinition of the Casino boundary for the purpose of upgrading premium player facilities. The redefinition involved modifying the Teak Room Casino boundary to reflect architectural changes: adding a new gaming salon on Level 29; closing the premium gaming salons on Level 36; and introducing a new purposebuilt premium gaming facility on Level 39. The net effect of the changes was an increase to the Casino boundary of approximately 990 square metres. On 26 October 2010, the Commission approved a redefinition of the Casino boundary as a result of the Mahogany Room expansion project, and the 2009 Casino Licence amendment to increase the number of gaming and poker tables from 350 to 500 (400 gaming tables and 100 poker tables). The redefinition included modifying the Mahogany Room Casino boundary to reflect architectural changes, adding a new gaming area on Level Three of the Casino, relocating the entry point to the Sports Casino, extending the main floor Casino boundary to include the Riverside Café and two former retail tenancies and reconfiguring the eastern entry point to the Casino. The requested changes increased the Casino boundary area by approximately 1,034 square metres. On 22 February 2011, the Commission approved a temporary redefinition of the Casino boundary on Level 29 of the Crown Towers Hotel. Crown closed the Silks restaurant temporarily as a result of the Mahogany Room refurbishment project and relocated it to the lounge and dining area on Level 29. The temporary redefinition removed an area of approximately 79 square metres from within the Casino boundary which enabled the restaurant to operate in a smoke-free zone. This temporary redefinition lapsed on 1 June On 19 April 2011, the Commission approved a redefinition of the Casino boundary for the purpose of changing the structural architecture of the Food Court entry area to the Casino. The redefinition involved installing new escalators to the first floor and a lift to replace the existing first floor escalators. Also, the patron control zone in the Las Vegas Room was revised to extend the Casino boundary. The net effect of the redefinition resulted in an increase to the Casino boundary area of approximately 57 square metres. Each application from Crown complied with all statutory requirements, including payment of the fee prescribed by the Casino Control (Boundary Redefinition Fee) Regulations The areas approved were within the location for which the Casino Licence was granted, that is, the Casino Site, as defined in the Casino Control Act

30 Intended Outcome 1 continued Venue Audits Compliance Inspections and Operational Reviews Compliance inspections and operational reviews include unannounced surveillance, formal inspections and financial audits of gaming venues, racetracks, bingo centres and other minor gaming activities. They are performed to assess whether the activities being conducted comply with the requirements of the relevant legislation, regulations, directions and Commission Rules. Auditing and verification of player return and financial data occurred for each electronic gaming machine and gaming venue connected to the gaming operator s on-line real-time monitoring and control system. The type and number of compliance inspections and audits conducted in are shown in the following table. Activity Number Gaming venue inspections 1,685 Gaming venue financial audits 77 Gaming venue responsible gambling codes of conduct audits 433 Gaming venue self-exclusion program audits 429 Bingo inspections 135 Bingo Centre responsible gambling code of conduct audits 14 Bookmakers responsible gambling code of conduct audits 20 Intralot lottery outlet audits 189 Intralot lottery outlets responsible gambling code of conduct audits 143 Tatts lottery outlet audits 210 Tatts lottery outlets responsible gambling code of conduct audits 158 Lucky envelope outlet inspections 739 Racetrack inspections 89 Raffle draw inspections 80 Trade promotion lottery draw inspections 104 Total 4,505 Patron Complaints Patron complaints at gaming venues Fifty-eight patron complaints were received and investigated in respect of the conduct of gaming and Club Keno at gaming venues. These complaints included allegations of machine malfunctions, misleading pay tables, varying returns to players, breaches of Responsible Gambling Codes of Conduct and Self-Exclusion Programs, barring of players, syndicate play, unlicensed staff and minors in gaming areas. Following investigation of those complaints, several breaches of legislation, regulations, directions or Commission Rules were detected. Nineteen complaints remained under investigation as at 30 June Patron complaints at the Casino Patrons lodged 47 complaints relating to the conduct of gaming in the Casino. Investigations by Inspectors found that, in respect of 43 complaints, gaming was conducted in accordance with the rules and procedures of the game as approved by the VCGR. Two complaints were resolved in favour of the patron and two further complaints are under investigation as at 30 June Casino Supervision Casino Surveillance Inspectors maintained a 24 hour per day, seven days per week monitoring presence at the Casino. In the Casino at all times operated within the limits applying for the maximum number of gaming tables and electronic gaming machines permitted. The casino operator has 81 different types of table games, including variations, approved for play and 812 different games approved for play on electronic gaming machines. Internal Control Manual Twenty-six submissions from Crown to amend the Crown Internal Control Manual and Internal Control Statements and Standard Operating Procedures were approved by the VCGR under section 121 of the Casino Control Act These submissions included further proposals to convert sections of the Internal Control Manual to the new Internal Control Statement and Standard Operating Procedures format as part of the ongoing Crown project to streamline the Internal Control Manual, as well as to strengthen integrity and reflect changed operational practices. 28

31 Lotteries Supervision Section of the Gambling Regulation Act 2003 requires that a public lottery must not be determined by draw unless a person nominated by the VCGR supervises the draw. Government Supervisors nominated by the VCGR supervised all lottery draws as follows: Draw Type Number of Draws Supervised Lucky Keno Lucky Lines 365 Lucky Bingo Star 52 Lucky Lucky 5 Red or Black 365 Super Tattslotto 52 Oz Lotto 52 Powerball 53 Monday/Wednesday Lotto *730 * Draws not conducted in Victoria but supervised by persons nominated by the VCGR Education Improved Provision of Licensing and Registration Information Better guidance for licence applicants The VCGR updated information available to licence applicants in application forms and frequently asked questions ( FAQs ) published on the VCGR website, in addition to responding to enquiries from individual applicants. New FAQs were published on advertising requirements and restrictions for trade promotion lotteries and customer loyalty schemes. Existing FAQs reviewed and updated included those relating to bookmakers, bookmakers key employees, employee licensing and venue operators. The VCGR responded to numerous licensing and other gamingrelated queries received in the form of , phone calls and general correspondence. Topics included poker, Community Benefit Statements, interactive gaming, footy tipping and general licensing enquiries. Update of the guide for nominees of venue operators The booklet Being the Nominee of a Venue Operator: What you need to know was developed to assist nominees in understanding their legal obligations regarding the operations of a gaming venue. This booklet was updated in January 2011 to reflect legislative changes and other related information. A copy of the updated guide is available on the VCGR website. Update of Bingo Booklet The Bingo Booklet was developed to assist community and charitable organisations and their nominees to understand their legal obligations with regard to the running of bingo sessions. This Booklet was updated in January 2011 to reflect legislative changes and other related information to nominees with respect to the conduct of bingo. A copy of the updated Booklet is published on the VCGR website. Illegal Gambling Betbox Internet Betting Terminal Under the provisions of the Gambling Regulation Act 2003, VCGR inspectors seized wagering terminals known as the Betbox, which were installed in the North Suburban Club in Moonee Ponds and the Eureka Stockade Hotel in Ballarat. Betbox terminals are owned by Sportsbet Pty Ltd ( Sportsbet ), an entity licensed in the Northern Territory to provide bookmaking services. These terminals, which only allow access to the Sportsbet website, enable patrons who have an account with Sportsbet to place bets on racing and sporting events. It is the view of the VCGR that these terminals allowed unauthorised betting to take place. Sportsbet and Eureka Hotel Holdings Pty Ltd subsequently filed an application in the Federal Court against the VCGR and the State of Victoria seeking orders to the effect that sections and of the Gambling Regulation Act 2003 are invalid to the extent that they would apply to the installation and use of the Betbox in Victoria by Sportsbet and the Eureka Stockade Hotel. Also sought are a declaration that the seizure was unlawful and an order that the machines be returned. On 3 March 2011 Tabcorp Holdings Limited was added as the third respondent in this matter. The application was heard in the week commencing 11 April 2011 and, as at 30 June 2011, the decision was reserved. VenueNet Kiosk In August 2009 an alleged betting kiosk was seized by gaming inspectors from the Rising Sun Hotel, South Melbourne, pursuant to a court-issued warrant. The VCGR alleged that the kiosk allowed patrons with accounts to place bets on racing and sports events offered by Sportsbet, a bookmaker licensed in the Northern Territory. In June 2010 the VCGR laid a number of charges under the Gambling Regulation Act 2003 against VenueNet Pty Ltd, the owner of the kiosk, and Rising Sun Hotel South Melbourne Pty Ltd in relation to this kiosk. 29

32 Intended Outcome 1 continued VenueNet Kiosk (continued) VenueNet is charged with possessing an unauthorised instrument of betting at the hotel on 16 June and 31 July It is also charged with helping the Rising Sun Hotel run a betting house with an unauthorized kiosk on these dates. Further charges cover allegations of helping the hotel commit an offence on these dates by allowing unlawful betting. Rising Sun Hotel South Melbourne Pty Ltd, the operator of the Rising Sun Hotel, faces charges of allowing betting on an unauthorised kiosk on 16 June and 31 July 2010 and possessing the kiosk on those dates. The matters were set down for hearing at the Melbourne Magistrates Court commencing 6 December However these proceedings have been adjourned pending determination of the Federal Court proceedings initiated by Sportsbet Pty Ltd and Eureka Hotel Holdings Pty Ltd who are seeking orders that the sections of the Gambling Regulation Act 2003 under which VenueNet and the Rising Sun Hotel have been charged are invalid to the extent that they would apply to the installation and use in Victoria of these computer terminals. Publishing of Race Fields and Unauthorised Betting To ensure compliance with the relevant legislation, the VCGR continues to work with Racing Victoria Limited, Harness Racing Victoria and Greyhound Racing Victoria to maintain current information about who is authorised to conduct betting and publish race fields. 30

33 Intended Outcome 2 Gambling Participants Gambling is conducted honestly, is free from criminal influence and commercial licensees deliver on their obligations Goal 2.1: Commercial participants and their employees are suitable gambling industry participants Commercial Licensing Shareholder Monitoring Crown Melbourne Limited Approval from the VCGR is necessary for any person to be entitled to more than five per cent of the total number of shares on issue in Crown Melbourne Limited. During there was no change in shareholding in Crown Melbourne Limited requiring VCGR approval. Tabcorp Holdings Limited Under section of the Gambling Regulation Act 2003, a person has a prohibited shareholding interest in Tabcorp Holdings Limited if that person is entitled to voting shares of more than 10 per cent of the total on issue. If a prohibited shareholding is detected, the Minister for Gaming may require that person to dispose of the relevant number of shares. No person held a prohibited shareholding during the reporting period. Tatts Group Limited Under section C of the Gambling Regulation Act 2003, a person has a prohibited shareholding interest in Tatts Group Limited if that person is entitled to voting shares of more than 10 per cent of the total on issue. If a prohibited shareholding is detected, the Minister for Gaming may require that person to dispose of the relevant number of shares. No person held a prohibited shareholding during the reporting period. Change to applicable legislation It should be noted that, in relation to the ongoing shareholder monitoring of Tabcorp Holdings Limited and Tatts Group Limited, sections and C of the Gambling Regulation Act 2003 were removed by the Gambling Regulation Amendment (Licensing) Act 2010 with effect from 1 December For the purposes of the ongoing shareholder monitoring of Tabcorp Holdings Limited and Tatts Group Limited, the consolidated provisions for the investigation and regulation of associates, provided for in Part 4A of Chapter 10 of the Gambling Regulation Act 2003, also apply to these licensees. 31

34 Intended Outcome 2 continued Licence Holder Monitoring New Directions for Licence Holders Following amendments to the Gambling Regulation Act 2003 ( the Act ) introduced by the Gambling Regulation Amendment (Licensing) Act 2010, the VCGR has approved new directions to several categories of licence, and to the nominees and associates of such licence holders. The new directions, which are now all issued under section 10.4A.4 of the Act, came into effect on 1 January 2011 and replace those previously issued under various sections of the Act. The directions require licence holders and their nominees and associates to notify the Commission of certain changes in their circumstances. Further changes to the Act now require licensees to notify the VCGR in writing of new associates within seven days. Public Lottery Licences Ongoing Monitoring The VCGR continues to monitor the corporate structures of the two public lottery licensees, Tattersall s Sweeps Pty Ltd and Intralot Australia Pty Ltd. Following changes to the Gambling Regulation Act 2003 ( the Act ), made by the Gambling Regulation Amendment (Licensing) Act 2010 on 1 December 2010, the relevant monitoring requirements are now provided for in Part 4A of Chapter 10 of the Act. During , four new associates were approved by the VCGR. Probity Monitoring Business associates of key gaming operatives The VCGR continues to monitor the business associations of key gaming operatives. Business associations may be formed when a key gaming operative enters a joint venture with another entity. The joint venture partner may or may not be regulated by the VCGR in its own right, but the Gambling Regulation Act 2003 allows the VCGR to investigate the suitability of the relationship from a probity perspective. During the VCGR did not object to any of the business associations with associates of the gaming operators, casino operator, public lottery and wagering licensees or of any entity listed on the Roll of Manufacturers, Suppliers and Testers. Gaming Industry Employee Licensing The VCGR continues to maintain high standards of probity for gaming industry employees, including scrutiny of criminal and financial history. Employees seeking to work for the casino operator, gaming operators, venue operators, bingo centre operators or companies listed on the Roll of Manufacturers, Suppliers and Testers in capacities relating to gaming machines and bingo must apply for, and be approved to hold, a gaming industry employee or casino special employee licence. Applicants must provide information so that an assessment can be made of their integrity, responsibility, personal background, financial stability and reputation. All applicants for a gaming industry employee or casino special employee licence are required to undergo a fingerprint check. Employers of gaming industry employees continue to be able to check that members of staff, and potential employees, are validly licensed by checking the Licence Search portal available on the VCGR website. Up to 10 employees can be checked per search. This on-line facility was accessed 274 times during Bookmaker Registrations During the year under review, the VCGR continued to receive applications for registration from corporate bookmakers, sole trader bookmakers and bookmakers key employees, as well as applications for approval of bookmaking partnerships. The assessment processes implemented for bookmakers and bookmakers key employees are consistent with those used by the VCGR for other commercial licensing applicants and gaming industry employees. This involves probity checking, financial background checks and fingerprinting. Bookmakers are also required to have an approved Responsible Gambling Code of Conduct. In addition, bookmakers are required to demonstrate that they have a bond arrangement in place in compliance with the Racing Act All bookmakers and bookmakers key employees registered prior to the VCGR assuming responsibility for registration on 1 January 2009 were granted VCGR registration until 30 September 2010, the end of their previous registration period. These registration holders were able to re-apply up to nine months before this expiry date to retain and extend their registration. In a total of 135 renewal applications were approved for sole trader bookmakers with two renewal applications refused. Thirteen bookmaking partnerships and two corporate bookmakers were also renewed. Furthermore, 114 renewal applications were approved for bookmakers key employees. To assist with the renewal process, the VCGR provided information and appropriate application forms to affected bookmakers and their key employees through a mailout, the VCGR News and via the VCGR website. Five new sole trader bookmakers, three new bookmaking partnerships and 26 new key employees of bookmakers were also approved by the VCGR in See Appendix 9 for further information regarding registered bookmakers. 32

35 Breaches of Gambling Legislation Disciplinary Matters Involving Commercial Licensees In the VCGR took disciplinary action against the casino operator on three occasions. The VCGR also took disciplinary action against 10 venue operators. The summary of offences and action taken is outlined in the tables at pages 33 and 34 of this report. Four clubs, the Foster Golf Club, the Mooroopna Golf Club, the Abruzzo Club and the Club Italia Sporting Club, failed to lodge a Community Benefit Statement ( CBS ) for the financial year by the due date of 30 September Following consideration of the circumstances and submissions made by each of the Clubs, the VCGR proceeded with formal disciplinary action against three Clubs, in the form of fines and a letter of censure. Foster Golf Club was reminded of its obligation to submit future CBS by the due date each year with no formal disciplinary action taken on this occasion. In addition to being subject to the disciplinary action process, each of the four Clubs was also required by the relevant provisions of the Gambling Regulation Act 2003 to pay into the Community Support Fund an additional 8.33 per cent of gaming revenue from the due date until the Club lodged its CBS with the VCGR. The aggregate amount of additional tax paid was $24, Casino Operator Crown Grounds Decision Date Result Contravened a provision of the Act when, on 15 April 2009, the casino operator failed to implement its approved system of internal controls and administrative procedures when play commenced on a table that had no Table Licence Number displayed Contravened a provision of the Act when, on 11 March 2009, the game of WSOP Bonus Texas Hold em Poker was played in the casino other than in accordance with the rules of the game, in that an employee dealt the cards from his hand rather than from the card shoe Contravened a provision of the Act when, on 3 November 2009, the casino operator failed to implement its approved system of internal controls and administrative procedures when gaming commenced on the Big Wheel Table when the table had not been opened and verified on ATOM system 17 Aug 2010 Fined $5, Aug 2010 Fined $5,000 8 Mar 2011 Fined $5,000 Venue Operators Venue Operator Venue Grounds Decision Date Result Alma Sports Club Alma Sports Club Failed to provide required information and contravened the GRA 2003 by failing to lodge its Community Benefit Statement by the due date 3 Aug 2010 Letter of censure Serene Hotels Pty Ltd Epping Hotel The venue operator and its nominee were found guilty of a relevant offence, namely, using the services of a person to perform the duties of a gaming industry employee when that person was not licensed 17 Aug 2010 Letter of censure BJ & DK Smith Pty Ltd Royal Hotel (Horsham) The nominee was found guilty of a 'relevant offence', namely, employing an unlicensed private security person, making false document to prejudice other, failing to ensure register kept for 5 years (3 charges), failing to make records available and supplying liquor not in accordance with licence 11 Jan 2011 Letter of censure Abruzzo Club Abruzzo Club Failed to provide required information by failing to lodge an audited Community Benefit Statement by 30 September 2010 for Abruzzo Club 25 Jan 2011 Fined $2,000 33

36 Intended Outcome 2 continued Disciplinary Matters Involving Commercial Licensees (continued) Venue Operators (continued) Venue Operator Venue Grounds Decision Date Result Club Italia- Sporting Club Inc Club Italia Sporting Club Failed to provide required information by failing to lodge an audited Community Benefit Statement by 30 September 2010 for Club Italia Sporting Club 25 Jan 2011 Fined $1,000 Hampton Bowls Club Inc Hampton Bowls Club Found guilty of a 'relevant offence', namely, allowing a minor to gamble on electronic gaming machines and allowing a minor to enter the gaming machine area of the venue 22 Feb 2011 Letter of censure Mooroopna Golf Club Inc Mooroopna Golf Club Failed to provide required information by failing to lodge an audited Community Benefit Statement by 30 September 2010 for Mooroopna Golf Club 22 Feb 2011 Letter of censure Heidelberg RSL Sub-Branch Inc Heidelberg RSL Failed to provide required information and contravened the GRA 2003 by failing to advise of the appointment and resignation of Committee members within 14 days and failing to nominate a natural person to be a nominee within 60 days of the resignation of the previous nominee 17 May 2011 Letter of censure Rumotel Pty Ltd Tower Hotel Contravened the GRA 2003 and was found guilty of a relevant offence, namely, allowing a person to obtain cash from an EFTPOS machine (in any one transaction) in excess of $200 which is the allowable withdrawal limit, allowing a patron to obtain a cash advance from the patron s credit account and cashing a patron s cheque which had been drawn from the venue operator s account to enable the person to play gaming machines 17 May 2011 Fined $1,500 Kangaroo Flat Sports Club Inc Kangaroo Flat Sports Club Found guilty of breaching section (1) of the GRA 2003 by failing on two occasions to issue a cheque for the amount of accumulated credits on a gaming machine when the value of those credits exceeded $1, Jun 2011 Letter of censure Note: Where referenced in the above table, the Gambling Regulation Act 2003 appears as GRA

37 Goal 2.2: Those involved in the gambling industry maintain high standards of probity Probity Matters Gaming Venues and Community and Charitable Gaming Inspectors examined the operation of all approved gaming venues in Victoria. In addition, unannounced inspections were made of minor gaming activities, including bingo and raffles and the drawing of trade promotion lotteries, to ensure compliance with regulatory requirements. During the year 589 investigations were conducted. These were carried out as a result of complaints, unannounced surveillance and in relation to licence applications, permits and other approvals. Following the completion of an investigation, a warning notice may be issued for technical or minor breaches of gaming legislation. During the year, 68 warning letters were issued to individuals and organisations who were advised that any future contravention of gaming legislation may result in prosecution proceedings. Three people were prosecuted in the Magistrates Court for four offences. In addition, five organisations were prosecuted in the Magistrates Court for 10 offences. Offences and Court results are shown in the following table. Prosecutions under the Gambling Regulation Act 2003 ( GRA 2003 ) Name Address Offence Court Date Court Result Najibullah Najibullah Keysborough Two charges of providing false and misleading information to the Commission, section , GRA Jul 2010 Without conviction, 12 months good behaviour bond, payment of $650 into the court fund and costs of $ Rumotel Pty Ltd Hawthorn Three charges in breach of section (1), GRA 2003, in that the accused: on 6 and 7 July 2009 allowed a person to obtain cash from an EFTPOS machine (in any one transaction) in excess of $200 which is the allowable limit; on 7 July 2009 breached section (2), GRA 2003, allowing a patron to obtain a cash advance from their credit account; on or about 27 July 2009, breached section (3), GRA 2003, in that the venue cashed a patron s cheque which had been drawn from the accused s account to enable play by that patron on gaming machines 14 Sep 2010 Convicted and fined an aggregate $3,000 for breaching sections (1) and (2) GRA 2003 and convicted and fined $500 plus costs of $ for breaching section (3) GRA Luxbet Pty Ltd Melbourne Breach of section of the GRA 2003 by offering an inducement to open a betting account between 15 and 18 January Dec 2010 Without conviction, placed on a 12 months good behaviour bond, ordered to donate $1,200 to Mission Australia (for problem gambling) plus costs of $280 Eskander s Betstar Pty Ltd Darwin Breach of section of the GRA 2003 by offering an inducement to open a betting account on 27 January, 19 February and 11 March Feb 2011 Without conviction, placed on a 12 months good behaviour bond, ordered to donate $1,500 to the Red Cross Flood Appeal plus costs of $

38 Intended Outcome 2 continued Probity Matters (continued) Prosecutions under the Gambling Regulation Act 2003 ( GRA 2003 ) (continued) Name Address Offence Court Date Court Result Brian Johnston Mill Park Breach of section (2) of the GRA 2003, knowingly allowing a minor to gamble on 17 November Feb 2011 Without conviction, placed on a four months good behaviour bond and ordered to donate $500 to the Salvation Army Kangaroo Flat Sports Club Inc Kangaroo Flat Breach of section (1) of the GRA 2003 by failing to issue a cheque for the amount of accumulated credits on a gaming machine when the value of those credits exceeded $1, Mar 2011 Convicted, fined $1,000 plus costs of $280 Cheng Pheng Srey* Noble Park Breach section A of the GRA 2003 by threatening, abusing and insulting an inspector whilst attempting to perform his duties 30 May 2011 Convicted, fined $6,000 as part of an aggregate order plus costs of $320 Dandenong Cranbourne RSL Sub Branch Inc Cranbourne Breach section (1) of the GRA 2003, by conducting a trade promotion lottery other than in accordance with the Act in that an entrant was allowed to play a gaming machine as a precondition for participation in a trade promotion lottery 17 Jun 2011 Without conviction, fined $500 plus costs of $260 * See also simultaneous prosecution under CCA 1991 at page 37. Note: Offences under the Crimes Act 1958 and the Summary Offences Act 1966 are the responsibility of the Victoria Police, with the assistance of VCGR Inspectors when required. Official Warnings and Prosecutions Casino During the year official warnings were issued to 189 excluded persons who had breached their exclusion orders. Eighteen excluded persons were prosecuted for 66 offences relating to breaching of exclusion orders under section 77 of the Casino Control Act These exclusions were non-voluntary in nature, that is, the persons involved were not self-excluded persons. Prosecutions under the Casino Control Act 1991 ( CCA 1991 Name Address Offence Court Date Court Result Minh T Dang Fitzroy Breach exclusion order, section 77 CCA 1991 Hoa Trong Vu Braybrook Breach exclusion order, section 77 CCA 1991 Thi M L Nguyen Richmond Breach exclusion order (two occasions), section 77 CCA 1991 Mohan Adhikary Laverton Breach exclusion order, section 77 CCA Jul 2010 Placed on a 12 months good behaviour bond and ordered to pay costs of $ Oct 2010 Without conviction, fined $584 and ordered to pay costs of $ Oct 2010 Convicted, fined $2,500 and ordered to pay costs of $ Oct 2010 Convicted, fined $580 and ordered to pay costs of $200 36

39 Prosecutions under the Casino Control Act 1991 ( CCA 1991 ) (continued) Name Address Offence Court Date Court Result Thi M L Nguyen Richmond Breach Casino Exclusion Order (three occasions) section 77, CCA 1991 Si X Hang Keysborough Breach Casino Exclusion Order (two occasions) section 77, CCA 1991 Wu Xiang Nunawading Breach Casino Exclusion Order section 77, CCA 1991 Thi M L Nguyen Richmond Breach Casino Exclusion Order (two occasions) section 77, CCA 1991 Amjad Khan Fawkner Breach Casino Exclusion Order (three occasions) section 77, CCA 1991 Yong Fang Zhoa Coburg Breach Casino Exclusion Order section 77, CCA 1991 Nakor Y Noble Park Breach Casino Exclusion Order (three occasions) section 77, CCA 1991 Meng Yang Kew Breach Casino Exclusion Order section 77, CCA 1991 Mohan Adhikary South Yarra Breach Casino Exclusion Order (two occasions) section 77, CCA 1991 Thi Nhu Hoang Point Cook Breach Casino Exclusion Order (two occasions) section 77, CCA 1991 Sina Cheng Springvale Breach Casino Exclusion Order section 77, CCA 1991 Thi Nhu Hoang Seabrook Breach Casino Exclusion Order (two occasions) section 77, CCA 1991 Hoa Trong Vu Braybrook Breach Casino Exclusion Order (five occasions) section 77, CCA 1991 Huong T Vo St Albans Breach Casino Exclusion Order (three occasions) section 77, CCA Dec 2010 Convicted, fined $5,000 plus costs of $278 1 Dec 2010 Without conviction, fined $750 plus costs of $220 1 Dec 2010 Without conviction, fined $220 plus costs of $ Jan 2011 Convicted, fined $1,500 plus costs of $ Jan 2011 Without conviction, fined $750 plus costs of $250 3 Feb 2011 Without conviction, placed on a 12 months good behaviour bond 23 Feb 2011 Without conviction, fined $1,500 plus costs of $ Mar 2011 Without conviction, fined $ Mar 2011 Convicted, fined $600 plus costs of $ Mar 2011 Convicted, fined $750 plus costs of $ Mar 2011 Without conviction, fined $350 plus costs of $ Apr 2011 Convicted, fined $800 plus costs of $ Apr 2011 Convicted, fined $1,500 plus costs of $ Apr 2011 Without conviction, placed on a 12 months good behaviour bond Xiuming Cai North Melbourne Breach Casino Exclusion Order section 77, CCA Apr 2011 Without conviction, fined $150 Angelo Cuccuza Doncaster Breach Casino Exclusion Order section 77, CCA 1991 Hong Lakey St Albans Breach Casino Exclusion Order (4 occasions) section 77, CCA May 2011 Without conviction, fined $ May 2011 Convicted, fined $2,000 plus costs of $280 Cheng Pheng Srey* Noble Park Breach Casino Exclusion Order, (17 occasions) section 77, CCA May 2011 Convicted, fined $6,000 as part of an aggregate order plus costs of $320 Si Hang Keysborough Breach Casino Exclusion Order section 77, CCA Jun 2011 Without conviction, fined $500 plus costs of $ * See also simultaneous prosecution under GRA 2003 at page

40 Intended Outcome 2 continued Probity Matters (continued) Prosecutions under the Casino Control Act 1991 ( CCA 1991 ) (continued) Name Address Offence Court Date Court Result Mohan Adhikary Newtown Breach Casino Exclusion Order, section 77, CCA 1991 Thi Nhu Hoang Seabrook Breach Casino Exclusion Order (three occasions) section 77, CCA 1991 Tu Lam Sunshine Breach section 79(2), CCA 1991, being a casino special employee, did gamble in the casino 8 Jun 2011 Without conviction, fined $500 plus costs of $ Jun 2011 Without conviction fined an aggregate $1,000 plus costs of $ Jun 2011 Convicted, fined $400 plus costs of $ Meng Yang Kew Breach Casino Exclusion Order section 77, CCA Jun 2011 Without conviction fined $500 plus costs of $100 Note: Offences under the Crimes Act 1958 and the Summary Offences Act 1966 are the responsibility of the Victoria Police, with the assistance of VCGR Inspectors when required. Controlled Contracts Section 29(2) of the Casino Control Act 1991 requires the VCGR to publish in its annual report all classes of matter and all classes of contract specified by the Commission under paragraph (c), (ca) or (d) of the definition of controlled contract in sub-section (1) during the previous year. Paragraphs (c), (ca) and (d) relate to contracts that the VCGR, by notice in writing, specifies as not being a controlled contract. In the year under review, no new classes of controlled contract were exempted under these provisions. Under section 30 of the Casino Control Act 1991 and the provisions of the Internal Control Statement, Crown Melbourne Limited must not enter into a contract with a provider of goods and services, other than those exempted, prior to the VCGR determining that it does not object to the contract. During , Crown did not seek to enter into any new controlled contracts. Anti Money Laundering Monitoring The VCGR continued its rigorous program of monitoring every gaming machine to identify all irregular transaction activity. Each irregular transaction identified, being a potential indicator of possible money laundering, was closely examined and where necessary an explanation sought for the irregularity. On every occasion, an explanation entirely consistent with reasons other than money laundering was provided. Exclusions by Chief Commissioner of Police The Chief Commissioner of Police has the power to issue a written order to a person, prohibiting the person from entering or remaining in the Melbourne Casino Complex as well as specified racetracks. A copy of an order issued by the Chief Commissioner of Police is provided to the VCGR and the casino operator. The role of the VCGR is to supervise and monitor the Casino and racetracks to ensure that breaches of exclusion orders, if any, are brought to the attention of the Chief Commissioner of Police. Appeals against Exclusion Orders (Casino) In , six persons lodged appeals against exclusion orders which prohibit them from entering or remaining in the Casino. Of the six appeals, two were rejected, one appeal was upheld, two were withdrawn and one appeal was pending as at 30 June In addition, one of the seven appeals lodged in the previous year was determined in This appeal was upheld. 38

41 Employee Disciplinary Matters: Casino Control Act 1991 and Gambling Regulation Act 2003 During the VCGR took disciplinary action against 11 casino special employees and 22 gaming industry employees. No disciplinary action was required to be taken during in relation to bookmakers key employees. The summary of offences and form of disciplinary action taken is outlined in the tables that follow at pages 39 to 41 of this report. When a casino special employee or gaming industry employee licence holder has failed to advise of a change of name and/or address within 14 days of the change taking place, but has not previously breached a gaming Act or gaming regulations, then a warning is issued to that licensee in the form of an educative letter, rather than the matter being dealt with through the formal disciplinary action process. During the year, 188 educative letters were issued to gaming industry employee licensees and 69 were issued to casino special employee licensees. Casino Special Employees Surname Given Name(s) Licence Number Grounds Decision Date Result Kemish Trent Aaron C Considered to be no longer a suitable person to hold the licence 3 Aug 2010 Licence cancelled Booth Michael David C Failed to provide required information 28 Sep 2010 Letter of censure Braun Steven Haskell C Considered to be no longer a suitable person to hold the licence Najibullah Najibullah C The licence was improperly obtained, in that, when it was granted there were grounds for refusing it, found guilty of a 'relevant offence' and considered to be no longer a suitable person to hold the licence 28 Sep 2010 Licence cancelled 23 Nov 2010 Licence cancelled Plank Bradley C Failed to provide required information 23 Nov 2010 Letter of censure Crowther Hayden Boyd C Contravened a condition of the licence and failed to provide required information Nugent Barry James C Contravened a condition of the licence and failed to provide required information 14 Dec 2010 Licence cancelled 11 Jan 2011 Licence cancelled Goddard Simone Yvette C Failed to provide required information 25 Jan 2011 Letter of censure Yuan Yachun C Considered to be no longer a suitable person to hold the licence Ruzicka Samuel Ernst C Considered to be no longer a suitable person to hold the licence 25 Jan 2011 Licence cancelled 17 May 2011 Licence cancelled Lee Young C Failed to provide required information. 28 Jun 2011 Letter of censure 39

42 Intended Outcome 2 continued Employee Disciplinary Matters: Casino Control Act 1991 and Gambling Regulation Act 2003 (continued) Gaming Industry Employees Surname Given Name(s) Licence Number Grounds Decision Date Result Basar Anne-Maree S Failed to provide required information 5 Jul 2010 Letter of censure McCaskill Drew Marcus G Failed to provide required information 3 Aug 2010 Letter of censure Nautili Sarah G Found guilty of a 'relevant offence', failed to provide required information and is considered to be no longer a suitable person to hold the licence 28 Sep 2010 Licence cancelled Sadafi Hossein G Failed to provide required information 23 Nov 2010 Letter of censure McFarlane Beth Courtney G Found guilty of a 'relevant offence', failed to provide required information and is considered to be no longer a suitable person to hold the licence Noonan Jessica Anne G Found guilty of a 'relevant offence', failed to provide required information and is considered to be no longer a suitable person to hold the licence 14 Dec 2010 Licence cancelled 11 Jan 2011 Licence cancelled Smith Brendan John S Failed to provide required information 11 Jan 2011 Letter of censure Dusting Malcolm John G Failed to provide required information 25 Jan 2011 Letter of censure Edwards Roger Gilmour G Failed to provide required information 25 Jan 2011 Letter of censure Funaro Carl Anthony Mark S Failed to provide required information and is considered to be no longer a suitable person to hold the licence 25 Jan 2011 Licence cancelled Marshall Paul Stuart G Failed to provide required information and is considered to be no longer a suitable person to hold the licence Murdoch Brett Leigh G Failed to provide required information and is considered to be no longer a suitable person to hold the licence Byrne Sean Patrick S Failed to provide required information and is considered to be no longer a suitable person to hold the licence Schmidt Alexandria Jane S Found guilty of a 'relevant offence', failed to provide required information and is considered to be no longer a suitable person to hold the licence Blades Mia Pauline S Failed to provide required information and is considered to be no longer a suitable person to hold the licence 25 Jan 2011 Licence cancelled 25 Jan 2011 Licence cancelled 8 Mar 2011 Licence cancelled 8 Mar 2011 Licence cancelled 17 May 2011 Licence cancelled 40

43 Surname Given Name(s) Licence Number Grounds Decision Date Result Kalia Charnjit G Found guilty of a 'relevant offence', failed to provide required information and is considered to be no longer a suitable person to hold the licence 14 Jun 2011 Licence cancelled Papadimitropoulos Konstandinos G Failed to provide required information 14 Jun 2011 Letter of censure Winters Jarna G Failed to provide required information and is considered to be no longer a suitable person to hold the licence Healey Linda G Found guilty of a 'relevant offence', failed to provide required information and is considered to be no longer a suitable person to hold the licence Kelly Benjamin G Failed to provide required information and is considered to be no longer a suitable person to hold the licence 14 Jun 2011 Licence cancelled 28 Jun 2011 Licence cancelled 28 Jun 2011 Licence cancelled Mill Samuel G Failed to provide required information 28 Jun 2011 Letter of censure Singh Kamaljit G Failed to provide required information and is considered to be no longer a suitable person to hold the licence 28 Jun 2011 Licence cancelled Note: In relation to the above tables, relevant offence in relation to a licensee means an offence against a gaming Act or gaming regulations; or an offence arising out of or in connection with the employment of the licensee under a gaming Act; or an offence (wherever occurring) involving fraud or dishonesty punishable on conviction by imprisonment for three months or more (whether or not in addition to a fine). Goal 2.3: Commercial participants in the gambling industry fulfil their obligations to the State Commercial Obligations Review Casino Operator Obligations to the State The VCGR continues to monitor the performance of Crown Melbourne Limited to ensure that the casino operator fulfils its obligations to the State as required by the Casino Licence, the Casino Agreement and the Casino Management Agreement. Intralot Obligations to the State The Commission continues to monitor the performance of Intralot Australia Pty Ltd under the Category 2 Public Lottery Licence and related agreements. Tatts Obligations to the State The Commission continues to monitor the performance of Tattersall s Sweeps Pty Ltd under the Category 1 Public Lottery Licence and related agreements. 41

44 Intended Outcome 3 Gambling Benefits The Victorian community receives the benefits arising from gambling Goal 3.1: The structure of the gambling industry optimises community benefits Post-2012 Licence Awarding Background From 2012, the gaming machine industry will move from the current gaming operator duopoly to new arrangements where venue operators can own and operate gaming machines. In order to operate gaming machines, clubs and hotels have purchased 10-year gaming machine entitlements. The new arrangements will be supported by the creation of an independent Monitor with an exclusive licence being awarded. In addition, a single, exclusive Keno Licence and a single, exclusive pari-mutuel and fixed odds Wagering and Betting Licence will commence in Licence Awarding Support Keno Licence On 11 March 2011, the Minister for Gaming announced that the 10-year Keno Licence had been awarded to Tabcorp Investments No.5 Pty Ltd. This Licence will commence on 15 April On 1 February 2010, the Invitation to Apply stage of the award licensing process commenced and three registrants were invited to apply for the Keno Licence. During , the VCGR provided a number of reports to the Secretary, Department of Justice, outlining the extensive inquiries and investigations it conducted with respect to the applicants for the Keno Licence. Wagering and Betting Licence The Wagering and Betting licence is due to commence on 16 August On 29 July 2010, the Invitation to Apply stage of the award licensing process commenced and three registrants were invited to apply for the Wagering and Betting Licence. Prior to 30 June 2011, the VCGR provided a number of reports to the Secretary, Department of Justice, outlining the extensive inquiries and investigations it conducted with respect to the applicants for the Wagering and Betting Licence. 42

45 Monitoring Licence The Monitoring licence is due to commence on 16 August On 29 October 2010, the Invitation to Apply stage of the award licensing process commenced and four registrants were invited to apply for the Monitoring Licence. Prior to 30 June 2011, the VCGR provided a number of reports to the Secretary, Department of Justice, outlining the extensive inquiries and investigations it conducted with respect to the applicants for the Monitoring Licence. Post-2012 Transition Planning Keno Licence On 25 March 2011, the Minister for Gaming issued Victoria s first Keno Licence to Tabcorp Investments No.5 Pty Ltd ( Tabcorp Inverstments ), a subsidiary of Tabcorp Holdings Ltd. The 10- year licence will commence on 15 April The new licence allows Tabcorp Investments to conduct approved keno games and simulated racing games at accredited hotels, licensed clubs and wagering outlets throughout Victoria. Under the new arrangements, clubs and hotels do not require a licence from the VCGR to sell keno games. Instead, they must be accredited by the licensee as a selling agent. The Keno Licence and Agreement between the State and Tabcorp Investments was published on the VCGR website. It sets out the terms of both the Licence and the related Agreement. The VCGR also published the Keno Responsible Gambling Code of Conduct on its website. Industry Forum An Industry Forum has been established to address issues arising in the transition period following the awarding of the new gambling licences that will operate from Membership of the Forum comprises, in addition to the VCGR and the Office of Gaming and Racing, the following gaming industry peak bodies: Australian Hotels Association; Clubs Victoria Inc; Community Clubs Association of Victoria; Club Managers Association Australia; and RSL Victoria. The Forum enables the VCGR to: work with industry to assist with the facilitation of a smooth transition to the new industry arrangements; identify transition issues to be addressed; provide a mechanism for communication, consultation and information sharing; and assist in the formulation and dissemination of information to industry. The Forum had its inaugural meeting in February 2011 and met on three further occasions in To update interested parties on its work, high-level outcomes of each meeting are published on the VCGR website. Preparatory Action Fact Sheet From 1 January 2011, gaming machine entitlement holders were permitted to undertake Preparatory Action for the post-2012 gaming machine arrangements. Under the Gambling Regulation Act 2003, Preparatory Action means the acquisition and installation of gaming machines and associated activities. Preparatory action meant that venue operators holding gaming machine entitlements could commence acquiring gaming machines, either by purchase or lease, from a manufacturer or supplier listed on the Roll of Manufacturers, Suppliers and Testers or from a current gaming operator. In December 2010, the VCGR published a Preparatory Action Fact Sheet to assist venue operators understand preparatory action and to ensure their actions complied with all regulatory requirements. Advice provided at Clubs and Hotels Expo 2011 The VCGR conducted two information sessions entitled Towards 2012 and provided an Information Stand at the Clubs and Hotels Expo 2011, which was held at the Melbourne Conference and Exhibition Centre on 31 May and 1 June More than 400 people attended these sessions, where information was provided on the new licences and venue operators were reminded of important matters they must consider in preparing to operate gaming machines under the new arrangements. Venue operators, managers, gaming machine suppliers and third-party service providers took advantage of the chance to meet VCGR staff to hear first-hand about progress towards the new licensing arrangements. VCGR staff shared an Information Stand with Gambler s Help venue support workers and provided information on licence requirements, venue obligations and how to implement bestpractice compliance with the Responsible Gambling Codes of Conduct. 43

46 Intended Outcome 3 continued Goal 3.2: The Victorian racing industry benefits appropriately from approved wagering activities Racing Industry Support Enforcing Obligations The wagering licence issued to Tabcorp Holdings Limited ( Tabcorp ) under section of the Gambling Regulation Act 2003 authorises Tabcorp to provide wagering in Victoria on events staged by the three racing codes (thoroughbred racing, harness racing and greyhounds) via the totalisator at race meetings, at authorised outlets (agencies, hotels, and gaming venues with wagering facilities) and via telephone and on-line. The licence also authorises Tabcorp to offer approved betting competitions in relation to approved betting events. The Victorian racing industry has in place an agreement with Tabcorp through which it receives funding based on a percentage of profits, including profits from Tabcorp s wagering operations, which are distributed to the participant racing codes. The Victorian racing industry also derives revenue from fees for racing products, programs and marketing. Under the Gambling Regulation Act 2003, the VCGR is responsible for enforcing and monitoring compliance with the regulatory requirements and regime established and authorised by that Act. In addition to its regulatory duty to scrutinise licensees and the operation and conduct of lawful gambling activities in Victoria, the VCGR acts to protect the integrity of these activities by investigating allegations of illegal conduct or products and by prosecuting breaches of the law. Diligent pursuit and investigation of reported illegal activities by the VCGR ensures regulatory compliance and instils player confidence in the integrity of authorised wagering in Victoria. As well as product integrity assurance, the VCGR s investigation of the illegal use of Victorian racing industry product by wagering providers also supports the Victorian racing industry through the protection provided to its revenue streams. Specific VCGR actions in relation to illegal gambling activities are detailed elsewhere in this report at pages 29 and 30. Racing Integrity Commissioner Mr Sal Perna, Racing Integrity Commissioner, has responsibility for strengthening integrity assurance in the Victorian racing industry and is supported in his task by the Victorian Commission for Gambling Regulation. The VCGR has established a close and cooperative working relationship with Mr Perna, in support of the Government s objectives for Victoria s racing industry. Goal 3.3: Appropriate gambling returns are provided to players, operators and government Financial Entitlements Verification of Gambling Revenue and Government Duty The VCGR is responsible for ensuring that all gambling revenue was correctly calculated and that all taxes and levies under the Casino Control Act 1991 and the Gambling Regulation Act 2003 are paid as required by licensees. During , activities undertaken to verify the calculation of the gaming tax payable under these Acts were: reconciliation of all taxes and levies payable under the Casino Control Act 1991 and the Gambling Regulation Act 2003 to independent calculations performed on behalf of the VCGR; audits of each day s electronically monitored gaming machine financial transactions and jackpot pools for the casino operator and each gaming operator; audits of the daily financial reports and electronically monitored gaming transactions from the Club Keno system; audits of the daily financial reports from the pari-mutuel wagering system; audits of the weekly financial reports from fixed odds approved betting competitions comprising Sportsbet and Trackside; verification of the daily sales figures and dividends payable for each public lottery; and audits of the gross gaming revenue of casino gaming tables and audits of each day s electronic gaming data received from the casino operator. Duty Paid to Participating Jurisdictions Under agreement with other States, Territories and international jurisdictions for their share of taxes from lottery product sales, the amounts payable to these jurisdictions were verified prior to payment. Returns to Players Operational audits are undertaken to ensure that gaming operators comply with the statutory obligation of returning to players not less than 87 per cent of the total amounts wagered in a year at each gaming venue. The audits undertaken for the year confirmed that all gaming venues complied with the statutory requirements under section of the Gambling Regulation Act

47 Further information, relating to player loss from the total amounts wagered on gaming machines at approved gaming venues, is contained in Appendix 16, Appendix 17, Appendix 18 and Appendix 19 of this report. Data for gaming machine expenditure, or player loss, by individual gaming venues is now regularly published on the VCGR website, with fresh information provided at six-monthly intervals for the calendar periods ended June and December each year. Gambling Systems Risk Assessment and Audit Sixteen audits were undertaken of: the gaming central monitoring and control systems provided by Tabcorp, Tatts and Crown; the wagering, Sportsbet and Trackside systems operated by Tabcorp; the lottery system, including the Internet lotteries system, operated by Tatts; the operation of Intralot lottery games including Instant Lottery tickets; the Club Keno computer system operated by Tatts on behalf of the joint operators, Tatts and Tabcorp; and the electronic table games operated by Crown. As required, corrective action was undertaken by the gambling system operators to minimise the risk on the approved systems and maintain data and system integrity. The audits of the approved systems were conducted to verify whether contributions, prizes, pool balances and player entitlements were in accordance with VCGR approvals. In addition, the audits confirmed the system and data integrity of all approved gambling systems and that all systems were operating as approved. Further, ongoing reviews of all proposed products and systems were undertaken. These reviews focused on security, accountability, auditability, manageability and control together with all other related risks and compliance issues to ensure system and data integrity on the proposed systems that are being considered for approval by the VCGR. Community Benefit Statements Operators of club gaming venues were required to submit Community Benefit Statements ( CBS ) in respect of the financial year by 30 September Under the provisions of the Ministerial Order of 8 February 2008 regarding CBS, the kind of community activities or purposes claimable within the CBS are now divided into classes as follows: Class A items are 100 per cent claimable and include gifts, donations and sponsorships; Class B items are expenses such as capital expenditure, financing, retained earnings and employment costs and these are only partially claimable; Class C items are 100 per cent claimable and are miscellaneous activities including the reimbursement of expenses incurred by volunteers. To ensure that all club venue operators are aware of their obligation to submit a CBS, the VCGR has in place a communications program utilising mailouts, articles in the VCGR newsletter and comprehensive information on the VCGR website. The VCGR provides a secure on-line system to enable club venue operators to submit their CBS on time. The CBS information provided by club venue operators in relation to the financial year was published on the VCGR website. As reported at page 33 of this report, the Foster Golf Club, the Mooroopna Golf Club, the Abruzzo Club and the Club Italia Sporting Club all failed to lodge a Community Benefit Statement ( CBS ) by the due date of 30 September 2010 and each was required to pay into the Community Support Fund an additional 8.33 per cent of the Club s revenue from the due date until the Club lodged its CBS with the VCGR. Further information about CBS is contained in Appendix 3 and Appendix 15 of this report. 45

48 Intended Outcome 3 continued Goal 3.4: Minor gaming is conducted for the benefit of the community and charitable organisations Community or Charitable Organisation Declarations Community or charitable organisations must be declared by the VCGR in order to lawfully conduct bingo, raffles, fundraising events (casino/poker nights) and sell lucky envelopes for fundraising purposes. Following legislative changes that came into effect on 1 January 2010, declaration as a community or charitable organisation remains valid for 10 years, rather than being ongoing. Organisations whose declared status was approved prior to 1 January 2000 were required to apply to the VCGR for renewal of their declared status prior to 1 January To facilitate a smooth transition to the new arrangements, the VCGR undertook an educative program comprising mailouts, newsletter articles and the provision of relevant information on the VCGR website. Community or charitable organisations were also permitted to apply for a renewal of their declared status up to nine months before the declaration expired. A total of 2,489 declarations were due to expire in the year under review, and a total of 1,373 declaration renewal applications around three times the number of new applications received during the year were received by the VCGR. Other community or charitable organisations will be progressively required to apply for renewal in subsequent years according to the year in which they were first declared. Minor Gaming Activities Bingo/Raffle Returns Community and charitable organisations that conduct either bingo or large raffles are required to submit to the VCGR a statement of account in accordance with the Gambling Regulation Regulations 2005 (for bingo) or their permit conditions (for large raffles). Failure by organisations to submit returns by the due date may result in disciplinary action being taken against them. The VCGR continued to ensure that returns were submitted by community and charitable organisations conducting bingo and large raffles, and to monitor returns to the community and charitable sector. Community and charitable organisations that have notified the VCGR they are conducting bingo sessions are required to submit an annual return at the conclusion of the financial year. In , a total of 401 annual returns were received by the VCGR with respect to the conduct of bingo during the period. For large raffles, community and charitable organisations must provide an audit report to the VCGR within 42 days of the raffle being drawn. During the year, 32 large raffle reports were submitted by community and charitable organisations. 46

49 Intended Outcome 4 Gambling Harm Minimisation The harm caused by problem gambling is minimised Goal 4.1: The gambling industry delivers its products responsibly Responsible Gambling Codes of Conduct and Self-Exclusion Programs From 1 June 2009 it became mandatory for certain organisations that hold gaming industry licences to implement an approved Responsible Gambling Code of Conduct ( Code ). Gaming venue operators must also conduct an approved Self-Exclusion Program ( SEP ). The requirement to have a Code applies to all gaming venue operators, bingo centre operators, commercial raffle organisers, the casino operator, the holder of the wagering licence or the wagering operator, public lotteries licence holders, the Club Keno participants, interactive gaming licensees and registered bookmakers. Building on the previous year s educative approach, in the period under review the VCGR commenced a formal audit strategy toward Code and SEP compliance. To assist industry with implementation of its responsibilities for Codes and SEPs, the VCGR undertook a number of actions in addition to its regular program of auditing and inspecting premises. The VCGR has: continued to consult with industry representatives, peak bodies, individual licence holders, and a range of other stakeholders such as Gambler s Help and the Responsible Gambling Advocacy Centre; visited gaming venues and commercial bingo centres in regional and metropolitan areas as part of an educational program to address issues related to the effective implementation of Codes and SEPs; consulted with each of the Gambler s Help agencies in Victoria to gauge their views about the effectiveness of Codes and SEPs; issued a survey to all bingo centre operators to identify their views about the implementation and effectiveness of Codes within the bingo industry; issued an on-line survey to gaming venue operators to identify their views about the implementation and effectiveness of Codes and SEPs in gaming venues; undertaken a desktop review to assess whether the administrators of approved SEPs are adhering to the commitments made in their approved programs; and maintained a responsible gambling telephone hotline and a dedicated inbox for industry enquiries on responsible gambling with enquiries received from hotels, clubs, bingo centres, racecourses, commercial raffle organisations and nightclubs as well as responsible service of gaming approved trainers, Gambler s Help agencies, community services and members of the public. 47

50 Intended Outcome 4 continued The Responsible Gambling Project Team During , the Responsible Gambling Project Team, plus additional inspectors appointed to resource compliance inspections, continued within the VCGR for the purposes of working with commercial gambling providers and venue operators to: guide development and provide information on Codes and SEPs; and develop and enable a compliance program. Funding for this Project was provided through the Community Support Fund and covered the period to 30 June Responsible Gambling Report to the Minister As required by section of the Gambling Regulation Act 2003, the VCGR submitted reports to the Minister for Gaming on the effectiveness and operation of Codes and SEPs. The reports provided an overview of all approved Codes and SEPs, and offered commentary about how effectively these initiatives have been implemented. The VCGR will continue to provide the Minister for Gaming with subsequent reports by 30 September each year in accordance with the Act. Responsible Gambling Reference Group In April 2008 the VCGR established a Reference Group of stakeholders to provide input toward its role in implementing responsible gambling initiatives introduced by the Gambling Legislation Amendment (Problem Gambling and Other Measures) Act The Reference Group has provided an effective avenue for industry consultation on the implementation of Codes and SEPs into Victoria s gambling industry. The Reference Group held two meetings during the period to facilitate responsible gambling discussion between the VCGR and industry, and to obtain industry views about various responsible gambling developments. In particular, the Reference Group has discussed and provided advice on issues such as gaming industry employee training needs, best practice examples, appropriate methods for measuring the effectiveness of Codes and SEPs, and how to make Codes more auditable. The Reference Group is comprised of several key industry and community sector groups and due to its diversity, ensures that a cross-section of relevant views is considered by the VCGR. Industry representatives participating during included the Australian Hotels Association (Victoria), Clubs Victoria Inc, the Community Clubs Association of Victoria, the ALH Group Pty Ltd, the Bingo Industry Association, Intralot Australia Pty Ltd, Tatts Group Limited, Tabcorp Holdings Limited, Crown Melbourne Limited, the Victorian Bookmakers Association and the Returned and Services League (Victorian Branch) Inc. Community representatives included the Responsible Gambling Advocacy Centre, the Victorian Local Governance Association and The Salvation Army. 48 Compliance with Responsible Gambling Requirements During the year inspections were conducted of gaming venues, bingo centres, TAB wagering outlets, Club Keno, bookmakers and the casino to ensure compliance with the responsible gambling requirements of the legislation. Inspections were made to check that: gaming machines displayed the correct time; lighting in gaming machine areas and external views complied with requirements; printed information (posters, talkers and brochures) and electronic information including jackpot information were available to patrons; gaming machine advertising was not published outside a gaming machine area; gaming machine signage was compliant with the legislation; in gaming venues, winnings from a gaming machine in excess of $1,000 were paid by cheque; gaming industry employees have completed an approved responsible provision of gaming training course; each gaming venue had a Code and a SEP in place; and the casino, TAB wagering outlets, Club Keno, bookmakers, bingo centres and lottery outlets had codes of practice in place. Further information regarding the disciplinary action taken by the VCGR can be found in the tables commencing at page 33 of this report. Responsible Gaming Training Gaming Industry Employees The Gambling Regulation Act 2003 requires all gaming industry employees to complete an approved training course. Employees are also required to complete an approved refresher course at least once every three years following completion of the approved training course. The Act requires the Commission to approve training courses and refresher courses that relate to the responsible provision of gaming. The VCGR has approved THHADG03B Provide Responsible Gaming Services as a course that relates to the responsible provision of gaming, with approval taking effect from 19 September This course has since been superseded by SITHGAM006A. In addition to the learning outcomes of SITHGAM006A, providers are also required to demonstrate to the VCGR that the course they are offering meets the learning outcome criteria developed by the Responsible Gambling Ministerial Advisory Council.

51 Any newly-licensed gaming industry employee must complete a responsible service of gaming training course approved by the VCGR within six months of commencing work within the gaming machine area of an approved venue. As at 30 June 2011, the training course has been approved to be offered by 39 training providers, with a refresher course approved to be offered by 21 training providers. A list of all providers is available at Appendix 14 of this report as well as on the VCGR website at Participation in Responsible Gambling Awareness Week Responsible Gambling Awareness Week ( RGAW ) is a partnership between industry, local government, the community sector and the Victorian Government that aims to increase community awareness of responsible gambling practices and strategies. The three themes of the 2011 RGAW, held between 23 and 29 May 2011, were Knowledge, Balance and Control. The VCGR played an active role on the RGAW Steering Committee, which is convened by the Department of Justice (Office of Gaming and Racing) and aims to build community resilience to problem gambling and educate community members at risk of developing a gambling problem. In support of RGAW in 2011 the VCGR produced a special edition of its newsletter, VCGR News, dedicated exclusively to responsible gambling issues. The newsletter was aimed at raising awareness of the importance of responsible gambling at a personal, venue and community level. The newsletter included a message from the Minister for Gaming and a range of articles on self-regulation, interviews with bingo industry employees and venue support workers, news from the community sector, and updates on other responsible gambling measures. In addition, the VCGR was invited to present at a series of industry information sessions hosted by venue support workers. These sessions facilitated contact between gaming venues and their local problem gambling support service. Representatives from the VCGR Compliance and Investigation Branch delivered a presentation at each industry information session, held in Melbourne, Geelong, and Dandenong. These presentations provided information on responsible gambling related compliance issues. Responsible Gambling Information The VCGR has continued to produce responsible gambling information and educational materials. In , the VCGR published an educative resource called the Responsible Gambling Register. The information contained in this resource assists gaming venue operators to understand and comply with the recording requirements contained in their Code and SEP. This resource forms part of the VCGR s Responsible Gambling Information Kit which currently consists of the following documents: Fact Sheet: Responsible Gambling Legislative Provisions; Fact Sheet: Responsible Gambling Code of Conduct; Fact Sheet: Responsible Gambling Self-Exclusion Programs; Best Practice Guidelines for Responsible Gambling; Gaming Signage and Problem Gambling Resources; Self-Assessment Checklist for gaming venues; and Responsible Gambling Register Resource. The Responsible Gambling Information Kit is intended to educate commercial licence holders, local government authorities, Gambler s Help and other stakeholders on the requirements of Codes and SEPs and promote best practice examples for responsible gambling. All responsible gambling information material produced by the VCGR is available on its website. Pre-Commitment New Regulations Introduced To facilitate the Government s direction to implement precommitment in Victoria s gaming industry, the Commission has provided manufacturers and testers a guidance document for use when submitting applications for the approval of new electronic gaming machine ( EGM ) types and or variations to EGM types. These guidelines serve to identify whether an EGM type is a prescribed gaming machine for the purpose of the Gambling Regulation (Pre-commitment) Interim Regulations Participation in Responsible Gambling Ministerial Advisory Council Working Parties Established in late 2004, the Responsible Gambling Ministerial Advisory Council ( RGMAC ) is the pre-eminent source of stakeholder advice on responsible gambling to the Minister for Gaming. The Victorian Government, through the Minister for Gaming, seeks advice from the RGMAC about how to ensure that the Victorian gambling industry operates in a balanced way that minimises problem gambling whilst creating an environment where those who chooose to gamble can do so safely. The RGMAC, consisting of representatives drawn mainly from industry, academic, local government and community groups, has established a number of working groups to progress work on specific initiatives and projects. 49

52 Intended Outcome 4 continued Participation in Responsible Gambling Ministerial Advisory Council Working Parties (continued) During , senior managers of the VCGR participated in the following working groups: Research; Product Safety; Public Interest and Community Consultation; Minors in Gaming Venues; Signage for Gaming Venues; ATM Evaluation Reference; Responsible Gambling Codes of Conduct; Responsible Service of Gambling Training; and Industry Best Practice. In addition to the above working parties, the Commission was also represented on the following committees: Venue Support Worker Program Steering Committee; Venue Support Worker State-wide Resources Project Board; and Responsible Gambling Awareness Week Steering Committee. Approval of Gaming Machine Types and Games When approving any electronic gaming machine type or game the VCGR considers responsible gaming matters by ensuring compliance with all responsible gaming requirements of the Commission s standards, in particular Chapter 9 of the Victorian Appendix. Goal 4.2: Potential harm from gambling to communities and individuals is minimised Public Inquiries and Social and Economic Impact Assessments In accordance with the Gambling Regulation Act 2003, all applications for approval of new premises as suitable for gaming, and licence variations to authorise increased gaming machine numbers, are subject to economic and social impact assessments. Under the legislation, the responsible planning authorities have the right to make a submission as to the social and economic impact of such applications. A social and economic impact assessment is also required when a venue operator seeks to amend the venue operator s licence to enable gaming premises within the Melbourne Statistical Division to offer gaming for 24 hours on any day. The following table shows the number of applications received by the VCGR in : Applications Number For increases in gaming machine numbers 11 For new premises 6 For 24-hour trading 0 Total received 17 All applications for new premises approvals and 24-hour gaming on any day, and most applications for increases in gaming machine numbers, are determined at public inquiries. Nine of the public inquiries conducted during concerned applications received in the previous year. The following table summarises the results of VCGR public inquiries for : Public Inquiry Number Conducted 18 Decided 20 Decisions pending 2 Decisions appealed to VCAT 3 In addition to those matters that proceeded to public inquiry, two applications were withdrawn before the dates scheduled for these public inquiries. Each public inquiry decision, together with written reasons for the decision, is published on the VCGR website at A table showing, for , the net effect on gaming machine numbers of all determinations made by the VCGR, both at meetings and public inquiries, is at Appendix 5. 50

53 Regional Caps A new Ministerial Order was issued for regional caps on 20 October 2009, specifying new criteria for the VCGR to use and requiring a new determination on regional caps. This new Order required the VCGR to determine the maximum permissible number of gaming machines available for gaming in each of the capped regions based on a gaming machine density per thousand adults specified in the Order. The Order also created a twentieth region, being the area covered as at the date of the Order by that part of the Shire of Yarra Ranges included in the Melbourne Statistical Division. The Minister s Order, together with a table listing capped regions and showing, for each region, the maximum permissible number of gaming machines available and the number of gaming machines approved as at 30 June 2011 is at Appendix 20 of this report. Municipal Limits On 19 June 2009, the Minister for Gaming published an order in the Government Gazette requiring the VCGR to determine the maximum permissible number of gaming machines available for gaming for each municipal district within the State. The order does not apply to any municipal district, or any part of a municipal district, already subject to a regional cap. Excluded from the order is the area within the City of Melbourne made up of the precincts of the Melbourne central business district, Docklands and Southbank, as defined by the map included in the order. The criterion specified in the order, which the VCGR used to determine the maximum permissible number of gaming machines available for gaming in a municipal district in Victoria, is a maximum of 10 gaming machines per 1,000 adults. The order further specified the criteria the VCGR must apply when determining how gaming machines were to be removed from a municipal district if the number of gaming machines available for gaming in the municipal district exceeded the maximum permissible number. The Minister s Order, together with a table listing the defined municipal districts and showing, for each municipality, both the maximum permissible number of gaming machines available and the number of gaming machines approved as at 30 June 2011 is at Appendix 21 of this report. Fixed-term Ban Order Moneyless Gaming Machines The main feature of a moneyless gaming machine is that it is a machine that was originally manufactured for use as a gaming machine, as defined by the Gambling Regulation Act 2003, but has since been modified so that it cannot accept or pay out money. Further, these machines still retain other features of a gaming machine that enable them to be otherwise played as a gaming machine. On 10 March 2011, the Minister for Gaming made an interim ban order, banning a moneyless gaming machine. The Minister then directed the VCGR to investigate these moneyless gaming machines and to provide a written report making recommendations as to whether these machines should be made the subject of a fixed-term ban order. The VCGR is currently investigating these moneyless gaming machines and is expected to complete its report in December Whilst an interim ban order is in force a person must not offer or provide a gambling product or adopt a gambling practice that is the subject of an interim ban order. The maximum penalty for breaching the order is 1,000 penalty units, currently $119,

54 Intended Outcome 5 VCGR Resources VCGR fulfils its Government and legislative responsibilities and achieves its service delivery objectives by innovative, effective and efficient use of resources Goal 5.1: Appropriate services support its people to deliver the VCGR strategic directions in a changing operational environment Organisational Review Leading up to the post-2012 regulatory environment, KPMG was engaged to conduct an organisational review and it found that the VCGR: is perceived to be a respected and competent organisation; regulates within a complex framework; has the necessary integrity and detailed knowledge; and has positive relationships with stakeholders. In July 2010 the Commission noted the recommendations around the themes of workforce integration, people, structure, information and processes, and risk. VCGR adopted and implemented a number of these. The Liquor and Gambling Regulatory Integration Project, into which the remaining KPMG recommendations were subsumed, was established by the Department of Justice in February 2011 to progress the formation of the Victorian Commission for Gambling and Liquor Regulation. Victorian Commission for Gambling and Liquor Regulation Liquor and gambling regulation will be integrated with the formation of the Victorian Commission for Gambling and Liquor Regulation ( VCGLR ). The VCGLR will combine most of the current functions of the VCGR, the Director of Liquor Licensing and Responsible Alcohol Victoria. The VCGLR will: be modelled on the operation of the VCGR with a commission-style decision-making structure; have a dedicated staff focused on education and enforcement of liquor licensing and gambling laws; offer synergies in training, enforcement and administration that will enable many venues to benefit from a one-stop shop approach to liquor and gambling regulatory matters; and achieve efficiences from streamlining liquor and gambling operations that can be re-directed by the VCGLR to increase education and enforcement activities. 52

55 Freedom of Information Report Requests received 11 Initial decision Granted in full 0 Partially granted 2 Denied 1 Previously released 0 In process 1 Non-existent document requested 5 Not proceeded with 2 Withdrawn 0 Total 11 Transferred from or to another Agency 0 Average processing time (days) 39 Internal review conducted 3 Applications to the Victorian Civil and Administrative Tribunal 0 Complaints to the Ombudsman 0 Statement under Section 104 Whistleblowers Protection Act 2001 The VCGR has procedures that comply with the requirements of the Whistleblowers Protection Act These procedures require disclosures of improper conduct or detrimental action by the VCGR, its members or staff to be reported to the Ombudsman. Disclosures may be made by members and staff of the VCGR or the public. There were no disclosures made this year to the Protected Disclosure Coordinator and there were no recommendations made by the Ombudsman that relate directly to the VCGR. The procedures for disclosures are included in this report at Appendix 23. Privacy The VCGR is an organisation within the meaning of the Information Privacy Act 2000 and the Health Records Act 2001 and is required to comply with the Information Privacy Principles and the Health Privacy Principles in those pieces of legislation. The VCGR has established a privacy policy to reflect the principles in the legislation, and a Privacy Policy Statement is published on the VCGR website, outlining what personal information the VCGR collects for the purposes of its functions, how the information is used and how an individual can access and/or amend his or her personal information held by the VCGR. During the VCGR did not receive any privacy complaints. Victorian Industry Participation Policy There are no issues relating to compliance with the Victorian Industry Participation Policy. National Competition Policy There are no issues relating to compliance with the National Competition Policy. Human Resource Management Human Resource Strategy The VCGR has adopted a strategy of providing an encouraging and supportive environment for staff and actively promotes the understanding that the success of the VCGR is a product of the contribution of all staff and that people are recognised for their contribution. A range of development opportunities are provided for staff. The VCGR also actively promotes occupational health and safety, and a non-discriminatory working environment. Staff Development and Training During the year the VCGR continued to offer a wide range of training and other development opportunities in order to ensure staff members are equipped with the knowledge and skills required for their present and future roles. Staff members are encouraged to extend their professional skills through individually-agreed performance management plans. Assistance includes funding support, study and related leave to assist staff members undertaking certificate, undergraduate and postgraduate studies. The primary driver of individual training for each staff member is the performance management plan. This plan, which is developed as part of performance management planning commencing July each year, identifies agreed training needs across the financial year and is reviewed after six months. In addition to the specific training arising out of individual performance management plans, some of the broader training programs undertaken by staff included: Health and Wellbeing workshops, training in Mental Health Awareness, Hepatitis C, Superannuation, Novated Lease; in-house Best Practice Recruitment and Selection Overview training provided by the State Services Authority; technical training including CPA, information technology, legal and auditing seminars; gambling awareness training for Inspectors; and Leadership Development Forums for Senior Managers. Inspectors from the Compliance and Investigation Branch continue to undertake professional development training with the Certificate IV in Fraud Control Investigations which is conducted in-house by internally qualified staff. 53

56 Intended Outcome 5 continued Human Resource Management (continued) Occupational Health and Safety (OHS) Commitment to the health and safety of its staff and a pro-active approach in ensuring a safe working environment has been maintained. The Occupational Health and Safety Committee met quarterly to discuss relevant issues. Quarterly meetings of VCGR fire wardens and first aid officers were also held. Assessments and measures undertaken to improve occupational health and safety of employees during the year were: undertaking of individual ergonomic assessments as required, with staff being supplied with necessary equipment; providing staff with appropriate warnings of activities that may impact on work safety whenever necessary; appointment of, and training for, additional members of the Emergency Evacuation Team; provision of CPR training for staff; initial and regular refresher training for fire wardens; formal office safety inspections; participation by the VCGR in an Employee Assistance Program that operates within the Department of Justice and provides assistance through financial and personal counselling; offering individual health checks; and offering staff the opportunity to receive subsidised influenza vaccinations. An on-line OHS Induction Program has been developed for all staff in relation to OHS obligations and liabilities. OHS Incidents Work cover Claim Numbers Claim Numbers There were three new claims during the reporting period. Estimated cost of the claims was $1, Workforce Data Staffing trends Full Time Equivalents (FTE)* Aggregate Workforce Data Full Time Equivalents ( FTE )* As at 30 June 2011 As at 30 June 2010 Employee Status Male Female Total Male Female Total Ongoing Executive Officers Fixed Term VPS Staff Casual Sub-total Statutory Appointments* Total * These tables include the Accountable Officer (Acting Executive Commissioner) but exclude part time statutory appointments of the Chairman, Deputy Chairs of the Commission, two Commissioners and two Sessional Commissioners. 54

57 Staff Profile by Position Staff profile by position information is included in the report at Appendix 24. Executive Officer Definition An executive officer is a person employed as an executive under Part 3, Division 5 of the Public Administration Act Additionally, the total group of executives must be classified into two distinct categories based on the following definitions: Ongoing executives are executives who are responsible for functions or outputs that are expected to be ongoing at the reporting date; and Special projects executives are executives who are employed for a specific project, generally for a fixed period of time and relating to a specific government priority. The actual number of executive officers, and the remuneration paid to them over the course of the reporting period, is contained in Note 22 to the Financial Statements at page 99 of this report under the heading Remuneration of Executives. The definition of an executive officer does not include Governor in Council appointments as statutory office holders. Executive Officer Details Class Male Female Total Male Female Total EO EO EO Notes: All executive officers were employed in ongoing positions. The Accountable Officer (the Acting Executive Commissioner) is a statutory appointee and is not classified as an executive officer. Industrial Relations The VCGR has continued to develop a sound working relationship with the relevant employee representative organisation, with quarterly meetings of the Consultative Committee having been maintained since its inception in No time was lost during the year through industrial disputes. Staff were provided with the opportunity to participate in the 2011 State Services Authority People Matter Survey, providing important information on areas of key concern to staff for inclusion in business planning and policy setting processes. Cultural Diversity Culturally and Linguistically Diverse Communities The VCGR has continued to respond to the cultural and linguistic diversity of the Victorian community, and in particular the community in which it operates, by maintaining a number of staff with language aid accreditation. The VCGR plans to continue to support language aid accreditation amongst its staff with LOTE (language other than English) skills and pay the appropriate allowances to such staff as recognition of those skills. Youth The VCGR has continued to participate successfully as an employer in the Youth Employment Scheme ( YES ), with one staff member having successfully completed the Scheme and then obtained further employment. The VCGR plans to continue its involvement in the Scheme across the coming year. Indigenous Communities Given its administrative links to the Department of Justice, the VCGR continues to have available the resources of the Department s response to indigenous issues. The VCGR will continue to monitor broader programs in this area to identify opportunities for participation. Merit and Equity Principles Commitment to the principles of employment set out in the Public Administration Act 2004 has been maintained and actively implemented through adherence to the directions of the Public Sector Standards Commissioner, policy development, training and employment practices. Directions from the Public Sector Standards Commissioner Selecting on Merit There were a total of 43 ongoing and fixed term recruitment processes conducted in 2010 and An exemption from advertising was approved in one case. Grievances There were no formal grievances lodged in relation to employment matters or recruitment and selection matters in the year. 55

58 Intended Outcome 5 continued Managing and Valuing Diversity Managing and valuing diversity continues to be a focus of the VCGR. Our Equal Employment Opportunity policies were reviewed and Harassment Contact Officers were provided with refresher training. A significant proportion of new employees continued to come from non-english speaking backgrounds. Upholding the Victorian Public Sector Code of Conduct The VCGR continued to place emphasis on appropriate conduct in the Victorian Public Sector ( VPS ) through supporting the VPS Code of Conduct with a VCGR Code of Conduct as guidance for all staff. This is particularly emphasised when inducting new staff. Consultancies There was no expenditure on consultancies during Disclosure of Major Contracts There were no contracts greater than $10 million entered into by the VCGR in In accordance with the requirements of State Government policy and associated guidelines, the VCGR has disclosed summary details of all contracts with a commitment value greater than $100,000 on the Victorian Government Purchasing Board website at Building Works The VCGR does not have any buildings under its direct control and did not enter into works that required compliance under the Building Act 1993 in the reporting period. Report on Overseas Travel Officer Destination Purpose Outcome Executive Commissioner USA To Chair a Steering Committee meeting of the International Association of Gaming Regulators ('IAGR') and to co-chair the annual joint conference of the International Association of Gaming Advisers ('IAGA') and the IAGR In his capacity as Chairman of IAGR, the Executive Commissioner was able to influence the conference program to ensure topics of specific interest to Victoria were considered such as internet gambling, Government efforts to maintain gaming monopolies in a global economy, coping with the undefined, sports betting and race wagering, and combining liquor and gambling regulation VCGR Inspectors North America, Europe and Africa To undertake extensive probity investigations To assess suitability of organisations and their associates to hold necessary approvals to operate in the gambling industry within Victoria 56

59 Office-based Environmental Impacts The VCGR Environment Management System ( EMS ) was set up to meet Government requirements and to reduce the agency s impact on the environment. The initial focus has been on officebased activities in the areas of energy and paper consumption, transportation, waste generation and green procurement. The EMS objectives include: reducing the amount of waste, and maximising the amount reused and recycled; purchasing Green Power; separating office waste into recyclable, compost and true waste parts; reducing passenger vehicle fleet emissions; ensuring new capital works incorporate environmental sustainability principles; making environmentally-sound purchasing decisions for capital items and consumables; and communicating environmental performance through regular reporting. Actions taken during the year to reduce general environmental impacts include: recycling of mobile phones, mobile phone chargers and accessories; recycling of computers and furniture to community-based organisations such as the University of the 3rd Age; participation in Earth Hour; progressive replacement of fluorescent starters with green starters which are radioactive-free and lead-free; and increased the proportion of Hybrid vehicles in the VCGR operational fleet from 10 to 40 per cent. Transportation For the VCGR maintained a fleet of 10 operational vehicles. Operational vehicles are hired from the Department of Treasury and Finance, State Government Vehicle Pool, and all operating costs are covered under the hire arrangements for each vehicle. Individual consumption figures are therefore not available. Operational Vehicles Kilometres travelled 206, ,717 Annual fuel usage for Executive vehicles for , compared with usage for the previous year, is as follows: Executive Vehicles* Litres of petrol used 9,619 10,430 Waste Production The property manager of 35 Spring Street Melbourne had previously engaged a recycling company to improve the environmental performance of the building to gain Waste Wise certification with Ecorecycle Victoria. This whole of building project commenced in late May In July 2010 the building was sold and the current owner no longer maintains recycling data. The VCGR has maintained its adherence to recycling and has increased the total number of recycling bins from 12 to 15 during The most recent building wide data available is for the period July 2009 to June 2010 during which some 47.3 tonnes of building waste was diverted from landfill through recycling. The volume of waste recycled building-wide was 42 per cent, up from nine per cent before the program started. The VCGR has been involved for the last six years in a toner recycle project operating through Close the Loop. This service guarantees that no office printing product waste ends up in landfill. No figures are available on quantities of waste recycled. Water Consumption The water consumption in the 35 Spring Street Melbourne building is not individually metered and therefore there are no figures available. Environmental purchasing The VCGR continued to carry out the following activities, which support the Government s Environmental Purchasing Policy: purchased only Australian-manufactured copy paper, which has a recycled paper content; and operated photocopiers and laser printers which are environmentally endorsed. While value for money is the core principle governing procurement activities, purchasing also requires environmental considerations to be included in the procurement planning stage, tender specifications and in the tender evaluation criteria where applicable.stage, tender specifications and in the tender evaluation criteria where applicable. Paper Use The VCGR used the following amounts of paper in compared with : Category Paper used per Full Time Equivalent ( FTE ) (reams) Paper used in total (reams) 4,151 4,385 Litres per vehicle 2,405 2,607 * The number of Executive vehicles reduced by one during

60 Intended Outcome 5 continued Office-based Environmental Impacts (continued) Sustainable Energy Authority Victoria ResourceSmart As part of the Government s Business and Environmental Strategy (Sustainable Energy Authority Victoria), the VCGR is committed to responsible energy management. This is practised throughout all rented premises and energy efficient equipment is purchased wherever it is cost-effective to do so. Work projects that facilitate a reduction in energy usage will continue to be evaluated as they come to hand. Annual energy consumption and expenditure for , compared with corresponding results for the previous year, is as follows: Energy Consumption* Year Peak kwh Off-peak kwh Total kwh kwh per FTE Green Energy Units Green $ Total** $ , , ,034 ***4, ,546 5,408 82, , , ,137 2, ,552 2,633 60,226 * Information supplied by Brookfield Multiplex on behalf of the Department of Treasury and Finance. ** Includes Green $ but excludes GST. *** Reflects an increased work load. Greenhouse Gas Emissions Energy Consumption Greenhouse Gas Emissions* Total greenhouse gas emissions associated with energy use (tco 2 tonnes) No data Total greenhouse gas emissions saved (tco 2 tonnes) No data * Information supplied by Brookfield Multiplex on behalf of the Department of Treasury and Finance. 58

61 Attestation on Compliance with the Australian/ New Zealand Risk Management Standard To ensure that risks are being managed in a consistent manner, public sector entities are required to attest in annual reports that entities have in place risk management processes consistent with the Australian/New Zealand Risk Management Standard. These processes are effective in controlling the risks to a satisfactory level and a responsible body or audit committee verifies that view. The Commission has applied the requirements of the Victorian Government Risk Management Framework published by the Department of Treasury and Finance in confirming its compliance status. Attestation I, Bruce Thompson, Chairman of the Victorian Commission for Gambling Regulation ( VCGR ), certify that the VCGR has risk management processes in place consistent with the Australian/New Zealand Risk Management Standard and an internal control system is in place that enables the Executive to understand, manage and satisfactorily control risk exposures. The VCGR verifies this assurance and that the risk profile of the VCGR has been critically reviewed within the financial year. Bruce Thompson Chairman Victorian Commission for Gambling Regulation On this Date: 18 August 2011 Goal 5.2: Information which underpins business activities, and the technology which supports it, is both relevant and accessible Information Systems The VCGR maintains and securely controls its system of integrated, customised applications and databases which reside on its highly-secure, latest-technology, high-capacity network infrastructure and form a solid basis for its operations. There is an ever-increasing amount of data and information utilised by the VCGR in its operations, and the capacity and functionality of information storage, retrieval and transmission has continued to be enhanced and updated during the financial year. VCGR always maintains a major focus on information security and integrity and with the continuing challenges caused by external threats, such as malicious electronic viruses, it is an area where VCGR undertakes continuous monitoring and implements enhancements to minimize the risk to its data, records and operations. A range of systems enhancements and upgrades has been implemented, including latest-technology gateway/firewall upgrades, and a program of disaster recovery testing is ongoing, ensuring the VCGR s already significant disaster recovery capability remains appropriate and tested. New and upgraded business applications were successfully implemented or progressed in all Branches during Case management and field audit systems operated by the Compliance and Investigation Branch were further enhanced. The applications and databases of the Licensing Operations and Policy and the Gambling Operations and Audit Branches were further improved to ensure appropriate functionality as required by legislative and industry environment changes. The VCGR internal portal was upgraded and additional on-line programs and facilities for staff were implemented. Other key business projects undertaken included: Gaming Machine Entitlements Register A gaming machine entitlements database and register was developed and implemented to enable VCGR to regulate gaming machine entitlements. Transfer Market Website VCGR developed and implemented a Transfer Market web module as part of its website to allow for the trading of gaming machine entitlements. 59

62 Intended Outcome 5 continued Information Systems (continued) On-line VCGR Survey systems The on-line VCGR Survey system was further enhanced and continued to be utilized on the VCGR website for various on-line surveys including a Responsible Gambling survey. Website smart application forms Smart form versions of VCGR application forms were successfully completed and the majority of applications forms are now available for use on the VCGR website as smart forms. Website The VCGR undertook a major upgrade to its website during the year, implementing a dynamic new version with a new look and feel. Enhancements included: homepage-listed menus updated dynamically according to page popularity; more on-line services access; multiple user access points; faster usability; and enhanced navigation. A large range of information and services was provided through the website to the industry, public and other stakeholders during the year. Decisions from Commission hearings and from the public and private sessions of Commission meetings are published on the website regularly, consistent with legislated requirements. A key feature of the website is that it provides a considerable amount of high-value, frequently-updated data in relation to the gaming industry. An automated updating and publishing module updates a significant section of information twice a day. Gaming industry participants can use the website to obtain relevant legislative and regulatory requirements and access a store of other information. There are comprehensive FAQs and application forms in a smart form format are available to streamline the application process. Prospective or current employers, including venue operators, bingo centre operators, manufacturers, suppliers, testers and gaming operators, can check on-line whether an employee or prospective employee holds a current gaming industry employee licence. The Community Benefit Statement on-line service provides venue operators with a convenient place for lodgement and again saw a high percentage of returns lodged electronically via the website. Goal 5.3: VCGR practices are known to stakeholders Corporate Communications VCGR Newsletter The VCGR News, as the newsletter is known, is a quarterly publication focussed on providing relevant information to the gaming industry and other stakeholders about the role and responsibilities of the VCGR. During the year, four issues of the newsletter were published as scheduled, in July and October 2010, January and April Matters reported included VCGR initiatives, such as technological improvements to make the VCGR website more user-friendly, changes to gambling laws that impact on the regulatory regime, deadlines for submitting various returns, responsible gambling developments and VCGR prosecutions and disciplinary actions taken. Additionally, the VCGR produced a special issue of the newsletter dedicated to responsible gambling issues which was released to coincide with Responsible Gambling Awareness Week which was held between Monday 23 and Sunday 29 May VCGR: A Guide to How We Work After a successful introduction in 2010 the booklet VCGR: A Guide to How We Work was updated in April The Guide assists interested parties in understanding the role of the VCGR in monitoring and regulating the Victorian gambling industry. It explains the positioning of the VCGR within the wider public sector and presents the VCGR s vision and mission statements, strategic directions and accountability processes as a Government Statutory Authority in a clear, introductory format. It also includes the VCGR organisational chart, details of the VCGR Three Year Plan and the VCGR office contact details. Copies of the booklet are available by request or via the VCGR website at Us/Approach. 60

63 Commissioner Stakeholder Consultations The VCGR regularly invites key industry stakeholders to meet with VCGR Commissioners. The meetings, conducted with stakeholders from across Government, peak bodies and community groups, provide a valuable opportunity to exchange information and share views on gambling in Victoria, which benefits both the VCGR and stakeholders alike. Meeting invitations from the VCGR to stakeholders have been extremely well received with VCGR Commissioners meeting with key representatives of all stakeholders to whom a meeting invitation was issued. Other Information Available on Request In compliance with the requirements of the Ministerial Directions of the Minister for Finance, the VCGR has retained details in respect of those information items required by public entities to be available on request for relevant Ministers, Members of Parliament and the public. The applicable information items are set out at Appendix 25 of this report. 61

64 Summary of Financial Results Background The VCGR receives Grant funding for the provision of outputs from the Department of Justice for its operations. Capital expenditure is funded by the generation of depreciation expense which forms part of annual grant revenue recognised. Where necessary, appropriation funding is also provided in the form of Additions to the Net Asset Base. The VCGR also collects revenue on behalf of Government in relation to Gaming Taxation, Casino Taxation, Public Lotteries and Licence Fees and other gaming and related activities which are paid into the Consolidated Fund and disclosed in the Notes to the Financial Statements. The VCGR also makes payments from the Consolidated Fund to other jurisdictions (Payments made on behalf of the State) in relation to their share of public lottery taxes which are collected in Victoria. 62

65 Operating Result Key highlights for are as follows: the operating result for the year was a deficit of $1.482 million as compared to a surplus of $15,268 in ; the funding position of the VCGR as at 30 June 2011 is a net equity of $0.904 million. The overall net asset position of the VCGR has decreased by $1.095 million from $1.998 million in , reflecting the operating deficit result for the financial year of $1.482 million and an injection of equity by the State Government for the additions to net asset base of $0.388 million; and there were no abnormal or extraordinary items to report. The VCGR is not aware of any events that adversely affected the achievement of operational objectives of the VCGR for the year Capital Expenditure Depreciation expense, which funds VCGR capital expenditure, was $0.734 million for as compared to $0.706 million for Total capital expenditure for the year was $1.112 million as compared to $1.161 million in

66 Summary of Financial Results continued Comparative Financial Results The table below summarises information on the financial results and financial position prepared on an accrual basis, of the VCGR for the financial year and comparisons with the preceding four financial years. Notes $ $ $ $ $ Income Grant revenue (a) 29,053,214 28,792,514 22,462,200 18,572,300 19,634,100 Other revenue Total income 29,053,214 28,792,514 22,462,200 18,572,300 19,634,100 Expenses (b) 28,974,936 28,721,734 22,348,354 18,359,868 19,530,384 Other economic flows (c) 1,560,312 55, , ,162 - Net result (1,482,034) 15, , ,716 Total assets (d) 7,065,719 8,267,980 7,557,480 6,437,753 6,957,058 Total liabilities (e) 6,161,597 6,269,460 6,029,104 5,298,877 5,911,452 Net increase/(decrease) in cash held (f) (88,112) 99,338 32,522 (47,054) 52,692 Capital expenditure (g) 1,112,177 1,161,441 1,008, , ,114 Notes: Movements between and (a) Income received increased by $0.261 million (0.90 per cent), reflecting ERC and supplementation funding for the activities of the Gambling Licences Review Project. (b) Expenses incurred increased by $0.253 million (0.90 per cent). This largely reflects the continuation of the activities of the Gambling Licences Review Project. (c) Total other economic flows increased by $1.505 million (2,710.8 per cent). This mainly reflects losses arising from revaluation of long service liability due to movements in bond rates, and the write off of fixed assets due to impairment. (d) Total assets decreased by $1.202 million (14.5 per cent). This mainly reflects a downward movement in fixed assets specifically leasehold improvements associated with impairment write off due to the anticipated relocation to new premises in the 2012 financial year. (e) Total liabilities decreased by $0.108 million (1.7 per cent) largely reflecting decreased employee benefit provisions associated with some fixed term employee contracts ending in June 2011 associated with the activities of Gambling Licences Review Project. (f) The net movement in the cash position was a decrease of $0.187 million (188.7 per cent). This reflects the timing of cash reimbursements from the Consolidated Fund relating to operating and capital expenses at and around balance date. (g) Capital expenditure decreased by $0.049 million (4.2 per cent). 64

67 Transactions on behalf of Government Comparative Financial Results The table below summarises information on the amounts collected/receivable and amounts paid/payable by the VCGR in relation to gambling activities on behalf of Government, prepared on an accrual basis, for the financial year and comparisons with the preceding four financial years. Notes $ 000 $ 000 $ 000 $ 000 $ 000 Income Total amount collected/receivable (a) 1,703,492 1,684,641 1,700,592 1,648,703 1,561,535 Expenses Total amount paid/payable (b) 41,346 43,370 43,118 46,214 44,953 Notes: Movements between and (a) Income collected/receivable on behalf of Government increased by $ million (1.1 per cent), reflecting increased income from Gaming Taxation. (b) Expenses paid/payable on behalf of Government to other jurisdictions (for their share of Lottery Taxes) have decreased by $2.024 million (4.7 per cent). 65

68 66

69 Part 3 Financial Statements

70 Comprehensive Operating Statement For the financial year ended 30 June 2011 Notes $ $ Income from transactions Grants 2, 3 29,053,214 28,792,514 Total income from transactions 29,053,214 28,792,514 Expenses from transactions Employee expenses 4 (a) (17,948,897) (17,145,039) Depreciation and amortisation expense 4 (b) (734,731) (706,567) Supplies and services 4 (c) (10,291,308) (10,870,128) Total expenses from transactions (28,974,936) (28,721,734) Net result from transactions (net operating balance) 78,278 70,780 Other economic flows included in net result Net gain/(loss) on non-financial assets 5 (a) (1,556,957) (57,148) Other gains/(losses) from other economic flows 5 (b) (3,355) 1,636 Net result from continuing operations (1,482,034) 15,268 Comprehensive result (1,482,034) 15,268 The comprehensive operating statement should be read in conjunction with the accompanying notes. 68

71 Balance Sheet As at 30 June 2011 Notes $ $ Assets Financial assets Cash and deposits 16, , ,095 Receivables 6, 16 4,008,231 3,412,085 Total financial assets 4,457,214 3,949,180 Non-financial assets Plant and equipment 7 760,514 2,322,742 Intangible assets 8 1,451,818 1,069,100 Other non-financial assets 9 396, ,958 Total non-financial assets 2,608,505 4,318,800 Total assets 7,065,719 8,267,980 Liabilities Payables 10, 16 1,032,248 1,310,334 Provisions 11 5,129,349 4,959,126 Total liabilities 6,161,597 6,269,460 Net assets 904,122 1,998,520 Equity Accumulated surplus/(deficit) (4,944,853) (3,462,819) Contributed capital 5,848,975 5,461,339 Net worth 904,122 1,998,520 Commitments for expenditure 14 Contingent assets and contingent liabilities 15 The balance sheet should be read in conjunction with the accompanying notes. 69

72 Statement of Changes in Equity For the financial year ended 30 June 2011 Accumulated Surplus Contributions by Owner Total $ $ $ Balance at 1 July 2009 (3,478,087) 5,006,463 1,528,376 Net result for the year 15,268-15,268 Capital contributions - 454, ,876 Balance at 30 June 2010 (3,462,819) 5,461,339 1,998,520 Net result for the year (1,482,034) - (1,482,034) Capital contributions - 387, ,636 Balance at 30 June 2011 (4,944,853) 5,848, ,122 The statement of changes in equity should be read in conjunction with the accompanying notes. 70

73 Cash Flow Statement For the financial year ended 30 June 2011 Notes 2011 $ 2010 $ Cash flows from operating activities Receipts Receipts from Government 28,457,068 29,304,460 Goods and Services Tax recovered from the ATO 934,638 1,056,118 Total receipts 29,391,706 30,360,578 Payments Payments to suppliers and employees (28,755,277) (29,554,675) Total payments (28,755,277) (29,554,675) Net cash flows from/(used in) operating activities 17(b) 636, ,903 Cash flows from investing activities Payment for non-financial assets (1,112,177) (1,161,441) Net cash flows from/(used in) investing activities (1,112,177) (1,161,441) Cash flows from financing activities Owner contributions by State Government 387, ,876 Net cash flows from/(used in) financing activities 387, ,876 Net increase / (decrease) in cash and cash equivalents (88,112) 99,338 Cash and cash equivalents at the beginning of the financial year 537, ,757 Cash and cash equivalents at the end of the financial year 17(a) 448, ,095 The cash flow statement should be read in conjunction with the accompanying notes. 71

74 Notes to the Financial Statements For the Financial Year ended 30 June 2011 Contents Note 1 Summary of significant accounting policies 2 VCGR outputs 3 Income from transactions 4 Expenses from transactions 5 Other economic flows included in net result 6 Receivables 7 Plant and equipment 8 Intangible assets 9 Other non-financial assets 10 Payables 11 Provisions 12 Superannuation 13 Leases 14 Commitments for expenditure 15 Contingent assets and contingent liabilities 16 Financial instruments 17 Cash flow information 18 Summary of compliance with grant funding 19 Ex-gratia payments 20 Transactions on behalf of Government 21 Responsible persons 22 Remuneration of executives 23 Remuneration of auditors 24 Related party transactions 25 Subsequent events 26 Glossary of terms 72

75 Note 1 Summary of Significant Accounting Policies The annual financial statements represent the audited general purpose financial statements for the Victorian Commission for Gambling Regulation ( VCGR ). To gain a better understanding of the terminology used in this report, a glossary of terms can be found in Note 26. (a) Statement of compliance These financial statements have been prepared in accordance with the Financial Management Act 1994, and applicable Australian Accounting Standards ( AAS ) which include Interpretations issued by the Australian Accounting Standards Board ( AASB ). In particular, they are presented in a manner consistent with the requirements of AASB 1049 Whole of Government and General Government Sector Financial Reporting. The annual financial statements were authorised for issue by the VCGR on 3 August Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. (b) Basis of preparation The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid. These financial statements are presented in Australian dollars, the functional and presentation currency of the VCGR. In the application of AASs, judgements, estimates and assumptions are required to be made about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstance. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements made by management in the application of AASs that have significant effects on the financial statements and estimates, with a risk of material adjustments in the next year, are disclosed throughout the notes to the financial statements. This report has been prepared in accordance with the historical cost convention with the exception of non-current physical assets which, subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value. Historical cost is based on the fair values of the consideration given in exchange for assets. The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2011 and the comparative information presented in these financial statements for the year ended 30 June (c) Reporting entity The financial statements include all the controlled activities of the VCGR which was established on 1 July 2004 pursuant to section of the Gambling Regulation Act Amounts collected/received on behalf of Government The VCGR collects revenue amounts on behalf of the Government which are paid directly into the Consolidated Fund. The VCGR does not gain control over these resources and accordingly they are not recognised as income in the comprehensive operating statement. The VCGR is accountable for the transactions involving these resources, but does not have the discretion to deploy the resources for achievement of its own objectives. Transactions and balances relating to these resources (except as otherwise disclosed), are accounted for on the same basis and using the same accounting policies as for VCGR items. Specific financial disclosures related to these transactions can be found in Note 20. Objectives and funding The VCGR s objectives are prescribed in section of the Gambling Regulation Act It regulates gambling in Victoria to ensure the integrity and probity of the gambling industry. The VCGR receives grant funding from the Department of Justice to be applied for the purposes of delivering outputs associated with the regulation of gambling. 73

76 Notes to the Financial Statements For the financial year ended 30 June 2011 (continued) Note 1 Summary of Significant Accounting Policies (continued) (d) Scope and presentation of financial statements Comprehensive operating statement Income and expenses in the comprehensive operating statement are classified according to whether or not they arise from transactions or other economic flows. This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation of financial statements. Transactions and other economic flows are defined by the Australian system of government finance statistics: concepts, sources and methods 2005 Cat.No published by the Australian Bureau of Statistics (see Note 26 the Glossary). Transactions are those economic flows that are considered to arise as a result of policy decisions, usually interactions between two entities by mutual agreement. Transactions also include flows within an entity, such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutually agreed interactions between the Government and taxpayers. Transactions can be in kind (eg assets provided/ given free of charge or for nominal consideration) or where the final consideration is cash. Other economic flows are changes arising from market re-measurements. They include gains and losses from disposals, revaluations and impairments of non-current physical and intangible assets, actuarial gains and losses arising from defined benefit superannuation plans and fair value changes to financial instruments. The net result is equivalent to profit or loss derived in accordance with AASs. Balance sheet Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and non-financial assets. Current and non-current assets and liabilities (those expected to be recovered or settled beyond 12 months) are disclosed in the notes, where relevant. Statement of changes in equity The statement of changes in equity presents reconciliations of each non-owner and owner equity opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately movements due to amounts recognised in the comprehensive result and amounts recognised in other comprehensive income related to other non-owner changes in equity. Cash flow statement Cash flows are classified according to whether or not they arise from operating activities, investing activities or financing activities. This classification is consistent with requirements under AASB 107 Statement of cash flows. (e) Income from transactions Income is recognised to the extent that it is probable that the economic benefits will flow to the entity and the income can be reliably measured. Grants The VCGR s income is by way of grant funding from the Department of Justice s appropriations for the production of VCGR outputs, which are deemed to have been delivered by the Department of Justice. Grant income is recognised as received from the Department of Justice when the VCGR delivers the required outputs in accordance with specified performance targets. (f) Expenses from transactions Expenses are recognised as they are incurred and reported in the financial year to which they relate. Employee expenses Employee expenses include all costs related to employment including wages and salaries, leave entitlements, redundancy payments and superannuation contributions. These are recognised when incurred, except for contributions in respect of defined benefit plans. 74

77 Superannuation defined benefit plans The amount recognised in the comprehensive operating statement in relation to employer contributions for members of defined superannuation plans is simply the employer contributions that are paid or payable to these plans during the reporting period. The level of these contributions will vary depending upon the relevant rules of each plan, and is based upon actuarial advice. The Department of Treasury and Finance ( DTF ) discloses in its Annual Financial Statements on behalf of the State as the sponsoring employer, the net defined benefit cost related to the members of these plans as an administered liability. Refer to the DTF Annual Financial Statements for more detailed disclosures in relation to these plans. Depreciation and amortisation Depreciation is provided on plant and equipment. Depreciation is calculated on a straight-line basis so as to write off the net cost of each asset over its expected useful life to its estimated residual value. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period. The following are typical estimated useful lives for the different asset classes for the 2011 and 2010 financial years. Asset Class Useful life (in Years) Office fit-out Plant and equipment Office furniture & equipment Gaming equipment Motor vehicles 3 3 EDP hardware 4 4 Due to the write down of leasehold improvements at the current premises occupied by the VCGR during the financial year, the estimated useful life of office fit-out has been reduced to the length of the lease term. The VCGR has capitalised as an intangible asset internal use software expenditure related to development of information technology systems. Costs associated with the acquisition or development of computer software which is greater than $10,000 are capitalised and amounts below this threshold are expensed in the period in which they are incurred. Intangible assets with finite useful lives are amortised on a straight-line basis over the asset s useful life. The useful life for intangibles is eight years. Amortisation begins when the asset is available for use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The estimated useful lives, residual values and amortisation method are reviewed at the end of each annual reporting period. In addition, an assessment is made at each reporting date to determine whether there are indicators that the intangible asset concerned is impaired. If so, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Supplies and services Supplies and services generally represent the day-to-day running costs incurred in the normal operations of the entity. These items are recognised as an expense in the reporting period in which they are incurred. (g) Other economic flows included in net result Other economic flows measure the change in volume or value of assets or liabilities that do not result from transactions. Net gain/(loss) on non-financial assets Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses from revaluations, impairments, and disposals of all physical assets and intangible assets. Disposal of non-financial assets Any gain or loss on the sale of non-financial assets is recognised at the date that control of the asset is passed to the buyer and is determined after deducting from the proceeds the carrying value of the asset at that time. 75

78 Notes to the Financial Statements For the financial year ended 30 June 2011 (continued) Note 1 Summary of Significant Accounting Policies (continued) (g) Other economic flows included in net result (continued) Impairment of non-financial assets All assets are assessed annually for indications of impairment. If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable amount. Where an asset s carrying value exceeds its recoverable amount, the difference is written-off as an other economic flow. It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated or amortised replacement cost and fair value less costs to sell. Net gain/(loss) on financial instruments Net gain/(loss) on financial instruments includes: realised and unrealised gains and losses from revaluations of financial instruments at fair value; impairment and reversal if impairment for financial instruments at amortised cost; and disposal of financial assets. Other gains/(losses) from other economic flows Other gains/(losses) from other economic flows include the gains or losses from reclassifications of amounts from reserves and/or accumulated surplus to net result, and from the revaluation of the present value of the long service leave liability due to changes in the bond interest rates. (h) Financial instruments Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Due to the nature of the VCGR s activities, certain financial assets and financial liabilities arise under statute rather than contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial Instruments: Presentation. For example, statutory receivables arising from taxes, fines and penalties do not meet the definition of financial instruments as they do not arise under contract. Where relevant for note disclosure purposes, a distinction is made between those financial assets and financial liabilities that meet the definition of financial instruments in accordance with AASB 132 and those that do not. (i) Financial assets Cash and cash deposits Cash and cash deposits comprise cash on hand and cash at bank. Receivables Receivables consist predominantly of amounts owing from the Victorian Government, debtors in relation to goods and services and GST input tax credits recoverable. Receivables that are contractual are classified as financial instruments. Amounts owing from the Victorian Government, taxes and other statutory receivables are not classified as financial instruments. (j) Non-financial assets Plant and equipment Non-current physical assets held by the VCGR are those used in the day to day operations and are primarily plant and equipment. These assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and accumulated impairment. Intangible assets Intangible assets represent identifiable non-monetary assets without physical substance. Intangible assets are recognised at cost less accumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to the VCGR. 76

79 An internally generated intangible asset arising from development is recognised if the following can be demonstrated: (a) the technical feasibility of completing the intangible asset so that it will be available for use; (b) an intention to complete the intangible asset and use it; (c) the ability to use the intangible asset; (d) the intangible asset will generate probable future economic benefits; (e) the availability of adequate technical, financial and other resources to complete the development and to use the intangible asset; and (f) the ability to measure reliably the expenditure attributable to the intangible asset during its development. Expenditure incurred on internally generated intangibles that are capitalised includes: direct materials and consultancy service cost; direct labour and overhead; directly attributable cost such as registration fees for legal rights or patents; and fees to register or legal right. Where no internally generated intangible asset can be recognised, development expenditure is recognised as an expense in the period as incurred. (k) Other non-financial assets Prepayments Other non-financial assets include prepayments which represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period. (l) Liabilities Payables Payables consist predominantly of accounts payable and other sundry liabilities and are recognised at fair value. Payables represent liabilities for goods and services provided to the VCGR prior to the end of a financial year that are unpaid, and arise when the VCGR becomes obliged to make future payments in respect of the purchase of these goods and services. Fair value is as described in Note 16. Provisions Provisions are recognised when the VCGR has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cashflows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. Employee benefits Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to the reporting date. (i) Wages and salaries and annual leave Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of the reporting date, are recognised in the provision for employee benefits in respect of employee services up to the reporting date, classified as current liabilities and measured at their nominal values. Those liabilities that are not expected to be settled within 12 months are recognised in the provision for employee benefits as current liabilities measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement. 77

80 Notes to the Financial Statements For the financial year ended 30 June 2011 (continued) Note 1 Summary of Significant Accounting Policies (continued) (ii) Long service leave Liability for long service leave ( LSL ) is recognised in the provision for employee benefits. Current liability unconditional LSL is disclosed as a current liability even where the VCGR does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months. The components of this current LSL liability are measured at: Nominal value component that the VCGR expects to settle within 12 months. Present value component that the VCGR does not expect to settle within 12 months; and Non-current liability conditional LSL is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non-current LSL liability is measured at present value. Any gain or loss following revaluation of the present value of noncurrent LSL liability is recognised as a transaction, except to the extent that a gain or loss arises due to changes in bond rates for which it is then recognised as an other economic flow (refer to Note 1(g) Other economic flows included in net result). (iii) Employee benefits on-costs Employee benefits on-costs such as payroll tax, workers compensation and superannuation are recognised separately from the provision for employee benefits. (m) Equity Contributions by owners Additions to net assets which have been designated as contributions by owners are recognised as contributed capital. Other transfers that are in the nature of contributions or distributions have also been designated as contributions by owners. (n) Commitments Commitments include those operating and capital commitments arising from non-cancellable contractual or statutory sources and are disclosed at the nominal value inclusive of the GST payable. (o) Contingent assets and liabilities Contingent assets and contingent liabilities are not recognised in the balance sheet but are disclosed by way of note and, if quantifiable, measured at their nominal value inclusive of GST receivable or payable respectively. (p) Goods and services tax ( GST ) Income, expenses and assets are recognised net of the amount of associated goods and services tax ( GST ), except: where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or for receivables and payables which are recognised inclusive of GST. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables. Cash flows are presented on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows. (q) Events after the reporting period Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between the VCGR and other parties, the transactions are only recognised when the agreement is irrevocable at or before the end of the reporting period. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting period and before the date the financial statements are authorised for issue, where those events provide information about conditions which existed at the reporting period. Note disclosure is made about events between the end of the reporting period and the date the financial statements are authorised for issue where the events relate to conditions which arose after the end of the reporting period and which may have a material impact on the results of subsequent reporting periods. 78

81 (r) Rounding of amounts Amounts in the financial statements have been rounded to the nearest dollar, or in the case of amounts collected/receivable on behalf of Government and amounts paid/payable to other jurisdictions (see Note 20), to the nearest thousand dollars. Figures in the financial statements may not equate due to rounding. (s) AASs issued that are not yet effective Certain new AASs have been published that are not mandatory for the 30 June 2011 reporting period. The Department of Treasury and Finance assesses the impact of these new standards and advises departments and other entities of their applicability and early adoption where applicable. As at 30 June 2011, the following standards and interpretations had been issued but were not mandatory for the financial year ending 30 June The VCGR has not early adopted these standards. AASB 9 Financial instruments AASB 124 Related Party Disclosures (Dec 2009) AASB 1053 Application of Tiers of Australian Accounting Standards AASB Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 and 1038 and Interpretations 10 and 12] AASB Amendments to Australian Interpretation Prepayments of a Minimum Funding Requirement [AASB Interpretation 14] This standard simplifies requirements for the classification and measurement of financial assets resulting from Phase 1 of the IASB's project to replace IAS 39 Financial Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Recognition and Measurement). Government related entities have been granted partial exemption with certain disclosure requirements. This Standard establishes a differential financial reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements. This Standard gives effect to consequential changes arising from the issuance of AASB 9. Amendments to Interpretation 14 arise from the issuance of prepayments of a minimum funding requirement. Beginning 1 Jan 2013 Beginning 1 Jan 2011 Beginning 1 July 2013 Beginning 1 Jan 2013 Beginning 1 Jan 2011 Detail of impact is still being assessed. Preliminary assessment suggests the impact is insignificant. However, the VCGR is still assessing the detailed impact and whether to early adopt. The Victorian Government is currently considering the impacts of Reduced Disclosure Requirements ( RDRs ) for certain public sector entities and has not decided if RDRs will be implemented by the Victorian Public Sector. Detail of impact is still being assessed. Expected to have no significant impact. AASB Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements This Standard makes amendments to many Australian Accounting Standards, including Interpretations, to introduce reduced disclosure requirements to the pronouncements for application by certain types of entities. Beginning 1 July 2013 Does not affect financial measurement or recognition, so is not expected to have any impact on financial result or position. May reduce some note disclosures in financial statements. 79

82 Notes to the Financial Statements For the financial year ended 30 June 2011 (continued) Note 1 Summary of Significant Accounting Policies (continued) AASB Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 1, AASB 7, AASB 101 & AASB 134 and Interpretation 13] AASB Amendments to Australian Accounting Standards [AASB 1, 3, 4, 5, 101, 107, 112, 118, 119, 121, 132, 133, 134, 137, 139, 140, 1023 & 1038 and Interpretations 112, 115, 127, 132 & 1042] AASB Amendments to Australian Accounting Standards Disclosures on Transfers of Financial Assets [AASB 1 & AASB 7] This Standard makes numerous improvements designed to enhance the clarity of standards. Beginning 1 Jan 2011 No significant impact on the financial statements. This amendment contains editorial corrections to a range of Australian Accounting Standards and Interpretations, which includes amendments to reflect changes made to the text of IFRSs by the IASB. This amendment adds and changes disclosure requirements about the transfer of financial assets. This includes the nature and risk of the financial assets. Beginning 1 Jan 2011 No significant impact on the financial statements. Beginning 1 July 2011 This may impact on departments and public sector entities as it creates additional disclosure for transfers of financial assets. Detail of impact is still being assessed. This amendment may have an impact on departments and public sector bodies as AASB 9 is a new standard and it changes the requirements of numerous standards. Detail of impact is still being assessed. This amendment will have no significant impact on public sector bodies. AASB Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] These amendments are in relation to the introduction of AASB 9. Beginning 1 Jan 2013 AASB Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project [AASB 1, AASB 5, AASB 101, AASB 107, AASB 108, AASB 121, AASB 128, AASB 132 & AASB 134 and Interpretations 2, 112 & 113] This amendment affects multiple Australian Accounting Standards and AASB Interpretations for the objective of increased alignment with IFRSs and achieving harmonisation between both Australian and New Zealand Standards. It achieves this by removing guidance and definitions from some Australian Accounting Standards, without changing their requirements. The objective of this amendment is to include some additional disclosure from the Trans-Tasman Convergence Project and to reduce disclosure requirements for entities preparing general purpose financial statements under Australian Accounting Standards Reduced Disclosure Requirements. This amends AASB 1049 to clarify the definition of the ABS GFS Manual, and to facilitate the adoption of changes to the ABS GFS Manual and related disclosures. Beginning 1 July 2011 AASB Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project Reduced Disclosure Requirements [AASB 101 & AASB 1054] Beginning 1 July 2013 The Victorian Government is currently considering the impacts of Reduced Disclosure Requirements ( RDRs ) and has not decided if RDRs will be implemented by the Victorian Public Sector. AASB Amendments to Australian Accounting Standards Orderly Adoption of Changes to the ABS GFS Manual and Related Amendments [AASB 1049] Beginning 1 July 2012 This amendment provides clarification to users on the version of the GFS Manual to be used and what to disclose if the latest GFS Manual is not used. No impact on performance measurements will occur. 80

83 Note 2 VCGR Outputs The VCGR activities form part of the Department of Justice Gaming and Racing Management and Regulation output. The focus of this output is policy development, regulation, research and community education and the delivery of problem gambling services to achieve responsible, safe and sustainable gambling and racing environments. The outputs delivered by the VCGR are comprised of Regulatory Services consisting of licensing and compliance activities. The activities undertaken to deliver this output are geared towards achieving the best community outcomes from gambling activities for all Victorians. Performance targets include quantity, quality and timeliness measures. The Licensing sub-group incorporates all activities undertaken to ensure that all licences, permits and authorisations are issued within the necessary legislative framework. This includes assessments for probity, social and economic impact assessments, game fairness and responsible gambling. The Compliance Services sub-group covers the on-going monitoring of participants, products, equipment and systems, investigation of complaints and possible breaches of legislation and revenue verification. Note 3 Income from Transactions $ $ Income from transactions Grants from the Department of Justice 29,053,214 28,792,514 Total income from transactions 29,053,214 28,792,514 81

84 Notes to the Financial Statements For the financial year ended 30 June 2011 (continued) Note 4 Expenses from Transactions 2011 $ 2010 $ (a) Employee expenses Salaries and wages 14,063,998 13,298,630 Annual leave 1,295,546 1,237,245 Long service leave 384, ,943 Superannuation 1,360,269 1,288,295 Other on-costs (payroll tax, workcover levy and fringe benefits tax) 844, ,926 Total employee expenses 17,948,897 17,145,039 (b) Depreciation and amortisation expense Depreciation of plant and equipment (EDP) hardware 234, ,277 Office fit-out 94,744 98,895 Plant, equipment & motor vehicles 48,918 64,212 Amortisation expense Internal-use software 356, ,183 Total depreciation and amortisation expense 734, ,567 (c) Supplies and services Probity and credit check payments 209, ,810 IT Licence and maintenance 629, ,811 Professional services 5,085,461 5,560,058 Telephone and other communication expenses 226, ,013 Occupancy costs 2,164,167 2,241,067 Postage and advertising 185, ,613 Printing, stationery and office requisites 568, ,227 Travel and related expenses 311, ,775 Training and development 266, ,598 Motor vehicle running costs 351, ,868 Other 292, ,288 Total supplies and services 10,291,308 10,870,128 82

85 Note 5 Other Economic Flows Included in Net Result 2011 $ 2010 $ (a) Net gain/(loss) on non-financial assets Impairment of plant and equipment (i) (1,477,725) - Net gain/(loss) on disposal of plant and equipment (79,232) (57,148) Total net gain/(loss) on non-financial assets (1,556,957) (57,148) (b) Other gains/(losses) from other economic flows Net gain/(loss) arising from revaluation of long service leave liability (ii) (3,355) 1,636 Total other gains/(losses) from other economic flows (3,355) 1,636 Notes: (i) Impairment is due to the write down of leasehold improvements at the current premises occupied by the VCGR. The VCGR will be relocating to new premises during (ii) Revaluation gain/(loss) due to changes in bond rates. Note 6 Receivables 2011 $ 2010 $ Current receivables Contractual Other receivables 172, , , ,394 Statutory Amounts owing from the Department of Justice (i) 1,419,268 1,310,588 GST Input tax credits recoverable 81,154 41,438 1,500,422 1,352,056 Total current receivables 1,673,016 1,477,420 Non-current receivables Statutory Amounts owing from the Department of Justice (i) 2,335,215 1,934,665 Total non-current receivables 2,335,215 1,934,665 Total receivables 4,008,231 3,412,085 Notes: (i) The amounts recognised from the Department of Justice represent funding for all commitments incurred for the appropriation and are drawn down from the Consolidated Fund as the commitments fall due. (a) Ageing analysis of contractual receivables. Please refer to table 16.3 in Note 16 for the ageing analysis of contractual receivables. (b) Nature and extent of risk arising from contractual receivables. Please refer to table 16.5 in Note 16 for the nature and extent of risks arising from contractual receivables. 83

86 Notes to the Financial Statements For the financial year ended 30 June 2011 (continued) Note 7 Plant and Equipment All assets of the VCGR are measured at fair value. Reconciliations of the carrying amounts of each class of plant and equipment at the beginning and end of the current financial year are set out in the following table: Table 7.1: Classification by Purpose Group Carrying amounts (i) Public safety and environment $ $ Plant and equipment EDP Hardware At fair value 2,492,328 2,400,151 Less: Accumulated depreciation (1,933,234) (1,866,856) 559, ,295 Office Fit-out At fair value - 2,114,002 Less: Accumulated depreciation - (732,188) - 1,381,814 Plant, equipment & motor vehicles At fair value 217, ,804 Less: Accumulated depreciation (15,861) (273,171) 201, ,633 Total Plant and Equipment At fair value 2,709,609 5,194,957 Less: Accumulated depreciation (1,949,095) (2,872,215) 760,514 2,322,742 Notes: (i) Plant and equipment are classified primarily by the purpose for which the assets are used according to one of six Purpose Groups based upon Government Purpose Classifications ( GPC ). Assets within a purpose group are further sub categorised according to the asset s nature (ie plant and equipment, etc), with each sub category being classified as a separate class of asset for financial reporting purposes. Table 7.2: Classification by Purpose Group Public safety and environment Movements in carrying amount: EDP Hardware Office Fit-out Plant, equipment Total & motor vehicles $ $ $ $ $ $ $ $ Opening balance 533, ,873 1,381,814 1,230, , ,579 2,322,742 2,300,483 Additions 260, , , ,360 22, , ,791 Disposals (232) (79,000) (57,148) (79,232) (57,148) Impairment of assets - - (1,287,070) - (190,655) - (1,477,725) - Depreciation expense (234,788) (243,277) (94,744) (98,895) (48,918) (64,212) (378,450) (406,384) Closing balance 559, ,295-1,381, , , ,514 2,322,742 84

87 Note 8 Intangible Assets 2011 $ 2010 $ Gross carrying amount Opening balance 5,113,322 4,437,672 Additions from internal development 738, ,650 Closing balance 5,852,321 5,113,322 Accumulated amortisation Opening balance (4,044,222) (3,744,039) Amortisation expense (356,281) (300,183) Closing balance (4,400,503) (4,044,222) Net book value at end of the financial year 1,451,818 1,069,100 Note 9 Other non-financial assets 2011 $ 2010 $ Current other assets Prepayments 396, ,958 Total current other assets 396, ,958 Total other non-financial assets 396, ,958 Note 10 Payables 2011 $ 2010 $ Current payables Contractual Creditors 425,220 11,461 Accrued wages and salaries - 557,338 Accrued expenses 607, ,535 Total current payables 1,032,248 1,310,334 Total payables 1,032,248 1,310,334 Notes: (a) Maturity analysis of payables. Please refer to section (c) in Note 16 for the ageing analysis of payables. (b) Nature and extent of risk arising from payables. Please refer to Note 16 for the nature and extent of risk arising from payables. 85

88 Notes to the Financial Statements For the financial year ended 30 June 2011 (continued) Note 11 Provisions 2011 $ 2010 $ Current provisions (i) Employee benefits (Note 11(a)) annual leave: (ii) Unconditional and expected to settle within 12 months 358, ,887 (iii) Unconditional and expected to settle after 12 months 914, ,212 (i) Employee benefits (Note 11(a)) long service leave: (ii) Unconditional and expected to settle within 12 months 248, ,149 (iii) Unconditional and expected to settle after 12 months 2,737,437 2,780,054 4,258,702 4,070,802 Provisions relating to employee benefit on-costs {Note 11(a) and Note 11(b)} (ii) Unconditional and expected to be settle within 12 months 97,376 92,777 (iii) Unconditional and expected to be settle after 12 months 573, , , ,105 Total current provisions 4,929,216 4,771,907 Non-current provisions (i) Employee benefits {Note 11(a)} 173, ,122 Employee benefit on-costs {Note 11 (a) and Note 11(b)} 26,755 20,097 Total non-current provisions 200, ,219 Total provisions 5,129,349 4,959,126 (a) Employee benefits and related on-costs (i) 2011 $ 2010 $ Current employee benefits Annual leave entitlements 1,273,092 1,101,599 Long service leave entitlements 2,985,611 2,969,203 Non-current employee benefits Long service leave entitlements 173, ,122 Total employee benefits 4,432,081 4,237,924 Current on-costs 670, ,105 Non-current on-costs 26,755 20,097 Total on-costs 697, ,202 Total employee benefits and related on-costs 5,129,349 4,959,126 Notes: (i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs. (ii) The amounts disclosed are nominal amounts. (iii) The amounts disclosed are discounted to present values. 86

89 Note 11 Provisions (continued) (b) Movement in provisions On-costs 2011 $ Opening balance 721,202 Additional provisions recognised 196,555 Reductions arising from payments/other sacrifices of future economic benefits (220,489) Closing balance 697,268 Current 670,513 Non-current 26,755 Note 12 Superannuation Employees of the VCGR are entitled to receive superannuation benefits and the VCGR contributes to both defined benefit and defined contribution plans. The defined benefit plan(s) provides benefits based on years of service and final average salary. 697,268 The VCGR does not recognise any defined benefit liability in respect of the plan(s) because the entity has no legal or constructive obligation to pay future benefits relating to its employees: its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance recognises and discloses the State s total defined benefit liabilities in its disclosure for administered items. However, superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the comprehensive operating statement of the VCGR. The name and details of the major employee superannuation funds and contributions made by the VCGR are as follows: Paid contribution for the year Contribution outstanding at year end $ $ $ $ (i) Defined benefit plans: Government Superannuation Scheme revised and new 396, , Defined contribution plans: Victorian Superannuation Scheme 665, , Various other 298, , Total 1,360,269 1,288, Notes: (i) The bases for determining the level of contributions is determined by the various actuaries of the superannuation plans. 87

90 Notes to the Financial Statements For the financial year ended 30 June 2011 (continued) Note 13 Leases Disclosure for lessees operating leases Operating lease commitments relate to the VCGR s accommodation rental. Present value of minimum future lease payments 2011 $ 2010 $ Non-cancellable operating lease payable Not longer than one year 1,957,844 1,882,540 Longer than one year and not longer than five years - 1,957,844 Longer than five years - - Total payments due and payable 1,957,844 3,840,384 All amounts shown above are nominal amounts inclusive of GST. Note 14 Commitments for expenditure The following commitments have not been recognised as liabilities in the financial statements $ 2010 $ Operating expenditure commitments Plant and equipment operation and maintenance commitments Payable: Not longer than one year 26,945 29,627 Longer than one year and not longer than five years 32,215 10,692 Longer than five years - - Total operating expenditure commitments 62,160 40,319 All amounts shown in the commitments note are nominal amounts inclusive of GST. Note 15 Contingent assets and contingent liabilities At 30 June 2011 the VCGR had no contingent assets (nil at 30 June 2010) and no contingent liabilities (nil at 30 June 2010). 88

91 Note 16 Financial Instruments (a) Financial risk management objectives and policies The VCGR s principal financial instruments comprise: cash and deposits; receivables (excluding statutory receivables); and payables (excluding statutory payables). Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset and financial liability are disclosed in Note 1 to the financial statements. The carrying amounts of the VCGR s contractual financial assets and financial liabilities by category are in table 16.1 below: Table 16.1: Categorisation of financial instruments Contractual financial assets-loans and receivables $ Contractual financial liabilities at amortised cost $ 2011 Contractual financial assets Cash and deposits 448, ,983 (i) Receivables 172, ,594 Total contractual financial assets 621, ,577 Contractual financial liabilities (i) Payables - 1,032,248 1,032,248 Total contractual financial liabilities - 1,032,248 1,032, Contractual financial assets Cash and deposits 537, ,095 (i) Receivables 125, ,394 Total contractual financial assets 662, ,489 Contractual financial liabilities (i) Payables - 1,310,334 1,310,334 Total contractual financial liabilities - 1,310,334 1,310,334 Total $ Notes: (i) The total amount disclosed here excludes statutory amounts (eg amounts owing from Victorian Government and GST input tax credit recoverable and taxes payable). 89

92 Notes to the Financial Statements For the financial year ended 30 June 2011 (continued) Note 16 Financial Instruments (continued) (b) Credit risk Credit risk arises from the financial assets of the VCGR, which comprise cash and cash equivalents and receivables. The VCGR s exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in financial loss to the VCGR. Credit risk is measured at fair value and is monitored on a regular basis. Credit risk associated with the VCGR s financial assets is minimal because the main debtor is the Victorian Government. The carrying amount of financial assets recorded in the financial report represents the VCGR s maximum exposure to credit risk as indicated in Table Table 16.2: Credit quality of contractual financial assets that are neither past due nor impaired Financial institutions (AA credit rating) $ Government agencies (Triple A credit rating) $ 2011 Contractual financial assets Cash and deposits 448, ,983 (i) Receivables - 172, ,594 Total contractual financial assets 448, , , Contractual financial assets Cash and deposits 537, ,095 (i) Receivables - 125, ,394 Total contractual financial assets 537, , ,489 Total $ Notes: (i) The total amount disclosed here excludes statutory amounts (eg amounts owing from Victorian Government and GST input tax credit recoverable). Currently the VCGR does not hold any collateral as security nor credit enhancements relating to any of its financial assets. There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The following table indicates the ageing analysis of contractual financial assets. 90

93 Table 16.3: Ageing analysis of financial assets 2011 Carrying amount $ Not past due and not impaired $ Less than 1 month $ Past due but not impaired 1 3 months $ 3 months 1 year $ 1 5 years $ Impaired financial assets $ (i) Receivables 172, , , , (i) Receivables 125, , , , (c) Liquidity risk Liquidity risk is the risk that the VCGR would be unable to meet its financial obligations as they fall due. The VCGR operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, makes payments within 30 days from the date of resolution. The VCGR s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed on the face of the balance sheet. The VCGR s exposure to liquidity risk is deemed insignificant based on prior periods data and current assessment of risk. The following table discloses the contractual maturity analysis for VCGR financial liabilities: Table 16.4: Maturity analysis of financial liabilities 2011 Carrying amount $ Nominal amount $ Less than 1 month $ 1 3 months $ Maturity dates 3 months 1 year $ 1 5 years $ (i) Payables 1,032,248 1,032,248 1,032, ,032,248 1,032,248 1,032, (i) Payables 1,310,334 1,310,334 1,310, ,310,334 1,310,334 1,310, Notes: (i) The carrying amounts disclosed exclude statutory amounts (eg GST payables). 91

94 Notes to the Financial Statements For the financial year ended 30 June 2011 (continued) Note 16 Financial Instruments (continued) (d) Market risk The VCGR s exposure to market risk is considered to be insignificant. The VCGR does not engage in financial trading and does not have exposure to foreign currency and other price risks. None of the classes of financial assets and liabilities are readily traded on organised markets in standardised form. Table 16.5: Interest rate exposure of financial instruments Weighted average effective interest rate % Carrying amount $ Fixed interest rate $ Interest rate risk exposure Variable interest rate $ Non-interest bearing $ 2011 Financial assets Cash and deposits N/A 448, ,983 (i) Receivables N/A 172, ,594 Total financial assets 621, ,577 Financial liabilities (i) Payables N/A 1,032, ,032,248 Total financial liabilities 1,032, ,032, Financial assets Cash and deposits N/A 537, ,095 (i) Receivables N/A 125, ,394 Total financial assets 662, ,489 Financial liabilities (i) Payables N/A 1,310, ,310,334 Total financial liabilities 1,310, ,310,334 Notes: (i) The total amount disclosed here excludes statutory amounts (eg amounts owing from Victorian Government and GST input tax credit recoverable and taxes payable) 92

95 (e) Fair value The VCGR considers that the carrying amount of financial assets and financial liabilities recorded in the financial statements approximates their fair values because of the short-term nature of the financial instruments and the expectation that they will be paid in full. The following table shows that the fair values of most of the contractual financial assets and liabilities are the same as their carrying amounts. Table 16.6: Comparison between carrying amount and fair value Carrying Amount 2011 $ Fair Value 2011 $ Carrying Amount 2010 $ Contractual financial assets Cash and deposits 448, , , ,095 (i) Receivables 172, , , ,394 Total contractual financial assets 621, , , ,489 Contractual financial liabilities (i) Payables 1,032,248 1,032,248 1,310,334 1,310,334 Total contractual financial liabilities 1,032,248 1,032,248 1,310,334 1,310,334 Fair Value 2010 $ Notes: (i) The total amount disclosed here excludes statutory amounts (eg amounts owing from Victorian Government and GST input tax credit recoverable and taxes payable). 93

96 Notes to the Financial Statements For the financial year ended 30 June 2011 (continued) Note 17 Cash flow information (a) Reconciliation of cash and deposits For the purposes of the cash flow statement, cash includes cash on hand and in banks. Cash at the end of the financial year as shown in the cash flow statement is reconciled to the related items in the balance sheet as follows: 2011 $ 2010 $ Total cash and deposits disclosed in the balance sheet (i) 448, ,095 Balance as per cash flow statement 448, ,095 Notes: (i) Due to the State of Victoria s investment policy and government funding arrangements, government departments and agencies generally do not hold a large cash reserve in their bank accounts. Cash received by a department or agency from the generation of revenue is generally paid into the State s bank account, known as the public account. Similarly, any departmental or agency expenditure, including those in the form of cheques drawn by a department or agency for the payment of goods and services to its suppliers and creditors are made via the public account. The process is such that the public account would remit to the department or agency the cash required for the amount drawn on the cheques. This remittance by the public account occurs upon the presentation of the cheques by the department or agency s suppliers or creditors. (b) Reconciliation of net result for the period 2011 $ 2010 $ Net result for the period (1,482,034) 15,268 Non cash movements: (Gain)/loss on disposal of non-current assets 1,556,957 57,148 Depreciation and amortisation of non-current assets 734, ,567 Impairment of non-current assets - - Movements in assets and liabilities (Increase)/decrease in receivables (596,146) 511,947 (Increase)/decrease in other non-financial assets 530,785 (725,383) Increase/(decrease) in payables (278,086) (832) Increase/(decrease) in provisions 170, ,188 Net cash flows from/(used in) operating activities 636, ,903 94

97 Note 18 Summary of compliance with grant funding The following table discloses the details of the funding received by the VCGR for the year through the Department of Justice appropriations. Grant Funding Advice $ Funding Available $ Funding Applied $ Variance $ 2011 Grant revenue Provision for outputs 29,053,200 29,053,200 29,053,200 - Capital contribution Addition to net assets - 387, ,636 - Total funding 29,053,200 29,440,836 29,440, Grant revenue Provision for outputs 28,792,500 28,792,500 28,792,500 - Capital contribution Addition to net assets - 454, ,876 - Total funding 28,792,500 29,247,376 29,247,376 - The variance between Grant funding available and Grant funding applied reflects the return of revenue to the Department of Justice in respect of depreciation expense generated in excess of capital expenditure, variations between budgeted and generated depreciation, and deemed revenue associated with output delivery. Note 19 Ex-gratia payments As at 30 June 2011, the VCGR had not made any ex-gratia payments (nil at 30 June 2010). Note 20 Transactions on behalf of Government In addition to the specific VCGR operations that are included in the comprehensive operating statement, balance sheet, statement of changes in equity and cash flow statement, the VCGR collects revenue amounts on behalf of Government which are paid directly into the Consolidated Fund. Revenue collected includes taxes, fees and fines and the proceeds from the sale of non-current assets. Sections 3.6.5, and of the Gambling Regulation Act 2003 provide for determination by the Treasurer, after consultation with the Minister for Gaming, of the supervision charges payable by Tabcorp, Tattersall s and Intralot. This charge is determined annually and reflects the recoupment of expenses incurred in the regulation of gambling by these operators, including the processing of licences, conducting investigations and compliance audits, reviewing operator systems and procedures, testing and evaluating gambling equipment and monitoring gambling activities. This charge is also paid into the Consolidated Fund. The VCGR also makes payments from the Consolidated Fund revenue to other jurisdictions (Payments made on behalf of Government) for their share of public lottery taxes which are collected in Victoria. During the period ended 30 June 2010, the VCGR also collected amounts on behalf of Government related to the electronic gaming machine entitlements (licences) which become operational during the year The amount representing the total value of the first instalment payable during the reporting period is $76.3 million. This amount is initially recognised as a receivable until settled with a corresponding amount recognised as unearned revenue. Amounts paid during the period were $71.3 million. The balance, representing outstanding first instalments of $5 million, is reflected against receivables. 95

98 Notes to the Financial Statements For the financial year ended 30 June 2011 (continued) Note 20 Transactions on behalf of Government (continued) Consolidated Fund 2011 $ $ 000 Income Amounts collected/receivable on behalf of Government Gaming Taxation 999, ,106 Licence Fees Minor Gaming 1,086 1,184 Club Keno 1,403 1,416 Casino Taxation and Licence Fees 165, ,219 Racing Taxation and Licence Fees 136, ,987 Tattersall s Lotteries 367, ,769 Intralot Lotteries 17,269 16,309 Tabcorp Supervision Fee 4,408 3,967 Tattersall s Supervision Fee 4,085 4,109 Intralot Supervision Fee Lottery Premium Payment 3,243 3,243 Miscellaneous 1, Total amount collected/receivable 1,703,492 1,684,641 Expenses Amounts paid/payable on behalf of Government Payments made to other jurisdictions 41,346 43,370 Payments to Consolidated Fund 1,731,064 1,722,522 Total amount paid/payable 1,772,410 1,765,892 Net result (68,918) (81,251) Assets Receivables 64,255 71,056 Total assets 64,255 71,056 Liabilities Current liabilities Prepaid income 10,001 11,429 Payables 3,545 4,086 Trust Fund - 2,830 Total current liabilities 13,546 18,345 Non-current liabilities Unearned income 136,289 76,289 Total non-current liabilities 136,289 76,289 Total liabilities 149,835 94,634 Net assets (85,580) (23,578) 96

99 Note 21 Responsible persons In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period. Names The persons who held the positions of Responsible Minister, Members of the Commission and Accountable Officer in the VCGR are as follows: Responsible Minister Minister for Gaming: The Hon Tony Robinson MP 1 July 2010 to 1 December 2010 The Hon Michael O Brien MP 2 December 2010 to 30 June 2011 Following the change of Government in 2010 the incoming Minister was not sworn in until the date of commencement as reflected above. Commission Members: Mr Bruce Thompson (Chairman) 1 July 2010 to 30 June 2011 Mrs Judith King (Deputy Chair) 1 July 2010 to 30 June 2011 Ms Gail Owen, OAM (Commissioner) 1 July 2010 to 30 June 2011 Mr Ches Baragwanath AO (Commissioner) 1 July 2010 to 30 June 2011 Mr Peter Cohen (Executive Commissioner) 1 July 2010 to 31 January 2011 Mr Max Priestley (Acting Executive Commissioner) 25 December 2010 to 30 June 2011 Additional Commission Members: His Honour Gordon Lewis AM (Deputy Chair) 1 July 2010 to 30 June 2011 Mr Ken Loughnan AO (Commissioner) 1 July 2010 to 30 June 2011 Ms Suzanne Jones (Commissioner) 1 July 2010 to 30 June 2011 Mr Warren Hodgson (Deputy Chair) 1 July 2010 to 30 July 2010 Ms Andrea Hassett (Commissioner) 1 July 2010 to 30 July 2010 The additional Commissioners were engaged for activities associated with the Gambling Licences Project. Accountable Officer Executive Commissioner Mr Peter Cohen 1 July 2010 to 31 January 2011 Mr Max Priestley (Acting) 25 December 2010 to 30 June

100 Notes to the Financial Statements For the financial year ended 30 June 2011 (continued) Note 21 Responsible Persons (continued) Remuneration Remuneration received or receivable by members of the Commission including the Accountable Officer in connection with the management of the VCGR during the reporting period was in the range: Income Band $20,000 to $29, No No. - 4 $50,000 to $59, $70,000 to $79, $80,000 to $89,999-1 $110,000 to $119, $120,000 to $129, $170,000 to $179, $200,000 to $209,999 $220,000 to $229,999 $230,000 to $239, $270,000 to $279, $350,000 to $359, $410,000 to $419,999-1 Total numbers 9 10 Total Amount 1,408,374 1,329,396 Two of the additional Commissioners continued to hold positions with the VCGR during 2011, however, no remuneration was receivable. Amounts relating to the Minister for Gaming are reported in the financial statements of the Department of Premier and Cabinet. 98

101 Note 22 Remuneration of Executives The number of executive officers, other than Responsible Persons, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits No. Total remuneration Base remuneration Income Band Under $100, $140,000 $149, $150,000 $159, $160,000 $169, $170,000 $179, $190,000 $199, $200,000 $209, Total numbers Total amount $634,720 $680,121 $595,972 $632, No No No. Note 23 Remuneration of Auditors 2011 $ 2010 $ Victorian Auditor-General s Office Audit of the financial statements 101,500 87,500 Note 24 Related party transactions Related party transactions requiring disclosure have been considered and there are no matters to report. Note 25 Subsequent events The State Government has announced its intention that the Victorian Commission for Gambling Regulation will integrate with the Director of Liquor Licensing and Responsible Alcohol Victoria to form the Victorian Commission for Gambling and Liquor Regulation ( VCGLR ) and is to be relocated and accommodated in common premises. Work is currently underway to establish the VCGLR through legislation, as well as develop the new organisational structure. The intent of the new legislation is to create the VCGLR, and so change the institutions that carry out the regulatory functions prescribed by the various gambling Acts and the Liquor Control Reform Act The new legislation will implement the Government s policy for a commission-style decision-making structure to determine gambling and liquor licensing applications and will set out how the VCGLR will make regulatory decisions. The new legislation is not intended to change the objectives of existing gambling and liquor regulation. Details of the exact commencement date of the new entity and the relocation are still unknown as at the date of this report. 99

102 Notes to the Financial Statements For the financial year ended 30 June 2011 (continued) Note 26 Glossary of Terms Actuarial gains or losses on superannuation defined benefit plans Actuarial gains or losses reflect movements in the superannuation liability resulting from differences between the assumptions used to calculate the superannuation expense from transactions and actual experience. Comprehensive result Total comprehensive result is the change in equity for the period other than changes arising from transactions with owners. It is the aggregate of net result and other non-owner changes in equity. Commitments Commitments include those operating, capital and other outsourcing commitments arising from non-cancellable contractual or statutory sources. Employee benefits expenses Employee benefits expenses include all costs related to employment including wages and salaries, leave entitlements, redundancy payments and superannuation contributions. Financial asset A financial asset is any asset that is: (a) cash; (b) an equity instrument of another entity; (c) a contractual right to receive cash or another financial asset from another entity; or to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity; or (d) a contract that will or may be settled in the entity s own equity instruments and is a non-derivative for which the entity is or may be obliged to receive a variable number of the entity s own equity instruments; or a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity s own equity instruments. Financial liability A financial liability is any liability that is: (a) a contractual or statutory obligation to deliver cash or another financial asset to another entity; or to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or (b) a contract that will or may be settled in the entity s own equity instrument and is a non-derivative for which the entity is or may be obliged to deliver a variable number of the entity s own equity instruments; or a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity s own equity instruments. For this purpose the entity s own equity instruments do not include instruments that are themselves contracts for the future receipt or delivery of the entity s own equity instruments. Financial statements Depending on the context of the sentence where the term financial statements is used, it may include only the main financial statements (ie comprehensive operating statement, balance sheet, cash flow statements, and statement of changes in equity); or it may also be used to replace the old term financial report under the revised AASB 101 (Sept 2007), which means it may include the main financial statements and the notes. 100

103 Grants and other transfers Transactions in which one unit provides goods, services, assets (or extinguishes a liability) or labour to another unit without receiving approximately equal value in return. Grants can either be operating or capital in nature. While grants to governments may result in the provision of some goods or services to the transferor, they do not give the transferor a claim to receive directly benefits of approximately equal value. Receipt and sacrifice of approximately equal value may occur, but only by coincidence. For example, governments are not obliged to provide commensurate benefits, in the form of goods or services, to particular taxpayers in return for their taxes. For this reason, grants are referred to by the AASB as involuntary transfers and are termed non-reciprocal transfers. Grants can be paid as general purpose grants which refer to grants that are not subject to conditions regarding their use. Alternatively, they may be paid as specific purpose grants which are paid for a particular purpose and/or have conditions attached regarding their use. Grants for on-passing All grants paid to one institutional sector (eg, a State general government) to be passed on to another institutional sector (eg, local government or a private non-profit institution). Intangible assets Intangible assets represent identifiable non-monetary assets without physical substance. Interest expense Costs incurred in connection with the borrowing of funds. Interest expenses include interest on bank overdrafts and short-term and long-term borrowings, amortisation of discounts or premiums relating to borrowings, interest component of finance leases repayments, and the increase in financial liabilities and non-employee provisions due to the unwinding of discounts to reflect the passage of time. Interest income Interest income includes unwinding over time of discounts on financial assets and interest received on bank term deposits and other investments. Net acquisition of non-financial assets (from transactions) Purchases (and other acquisitions) of non-financial assets less sales (or disposals) of non-financial assets less depreciation plus changes in inventories and other movements in non-financial assets. This calculation includes only those increases or decreases in non-financial assets resulting from transactions and therefore excludes write-offs, impairment write-downs and revaluations. Net result Net result is a measure of financial performance of the operations for the period. It is the net result of items of revenue, gains and expenses (including losses) recognised for the period, excluding those that are classified as other non-owner changes in equity. Net result from transactions/net operating balance Net result from transactions or net operating balance is a key fiscal aggregate and is revenue from transactions minus expenses from transactions. It is a summary measure of the ongoing sustainability of operations. It excludes gains and losses resulting from changes in price levels and other changes in the volume of assets. It is the component of the change in net worth that is due to transactions and can be attributed directly to government policies. Non financial assets Non-financial assets are all assets that are not financial assets. 101

104 Notes to the Financial Statements For the financial year ended 30 June 2011 (continued) Note 26 Glossary of Terms (continued) Other economic flows Other economic flows are changes in the volume or value of an asset or liability that do not result from transactions. It includes gains and losses from disposals, revaluations and impairments of non-current physical and intangible assets: actuarial gains and losses arising from defined benefit superannuation plans; fair value changes of financial instruments and agricultural assets; and depletion of natural assets (non-produced) from their use or removal. In simple terms, other economic flows are changes arising from market re-measurements. Payables Includes short and long-term trade debt and accounts payable, grants and interest payable. Receivables Includes short and long-term trade credit and accounts receivable, grants, taxes and interest receivable. Sales of goods and services Refers to revenue from the direct provision of goods and services and includes fees and charges for services rendered, sales of goods and services, fees from regulatory services, work done as an agent for private enterprises. It also includes rental income under operating leases and on produced assets such as buildings and entertainment, but excludes rent income from the use of nonproduced assets such as land. User charges includes sale of goods and services revenue. Supplies and services Supplies and services generally represent cost of goods sold and the day-to-day running costs, including maintenance costs, incurred in the normal operations of the VCGR. Transactions Transactions are those economic flows that are considered to arise as a result of policy decisions, usually an interaction between two entities by mutual agreement. They also include flows within an entity such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutuallyagreed interactions between the government and taxpayers. Transactions can be in kind (eg, assets provided/given free of charge or for nominal consideration) or where the final consideration is cash. In simple terms, transactions arise from the policy decisions of the government. Style conventions Figures in the tables and in the text have been rounded. Discrepancies in tables between totals and sums of components reflect rounding. Percentage variations in all tables are based on the underlying unrounded amounts. The notation used in the tables is as follows: - or 0 zero, or rounded to zero; (xxx) negative numbers; 200x year period; 200x-0x year period 102

105 Declaration by the Accountable Officer and the Chief Finance and Accounting Officer The attached financial statements for the Victorian Commission for Gambling Regulation have been prepared in accordance with Standing Directions 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian accounting standards including Interpretations and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and accompanying notes, presents fairly the financial transactions during the year ended 30 June 2011 and financial position of the Victorian Commission for Gambling Regulation at 30 June At the time of signing, we are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate. We authorise the attached financial statements for issue on 3 August Bruce Thompson Chairman Victorian Commission for Gambling Regulation Max Priestley Acting Executive Commissioner Victorian Commission for Gambling Regulation Elizabeth Tasevska Chief Finance and Accounting Officer Victorian Commission for Gambling Regulation Dated: 3 August 2011 Melbourne 103

106 Auditor General s Report 104

107 105

108 106

109 Part 4 Appendices 107

110 Appendices Contents 1A 1B 1C Principal Legislation Administered by the Minister for Gaming Commencement Dates of Legislation Subordinate Legislation 2 Ministerial Direction 3 Ministerial Determinations Community Benefit Statements 4 Victorian Commission for Gambling Regulation Rules 5 Commission Decisions on Applications for New Premises and Venue Operator Licence Amendments 6 Commission Meetings, Inquiries and Hearings Gaming Machine Entitlements as at 30 June Gaming Venues as at 30 June Registered Bookmakers as at 30 June Bingo Centres and Commercial Raffle Organisers as at 30 June Licensing Activities 12 Number of Active Licences at 30 June 2010 and 30 June Roll of Manufacturers, Suppliers and Testers as at 30 June Responsible Gaming Training Course Providers as at 30 June Community Benefit Statements Summary of the Total Claims Made by Club Gaming Venues 16 Gambling Player Loss and Taxes and Levies Paid Distribution of Taxes from Gambling 18 Player Loss from Gaming Machines Statistical Data Fact Sheet 19 Distribution of Player Loss from Gaming Machines 20 Regional Caps 21 Municipal Limits 22 Representation on Working Parties 23 Commission Whistleblower Procedures 24 Staff Profile by Position Other Information Available on Request 108

111 Appendix 1A Principal Legislation Administered by the Minister for Gaming (Current as at 30 June 2011) Casino Control Act 1991 Except sections 128H to 128L {except for section 128K(2)} which are administered by the Minister for Planning and section 128K(2) which is administered by the Assistant Treasurer. Casino (Management Agreement) Act 1993 Gambling Regulation Act 2003 Except for the following divisions, parts or sections which are administered jointly or wholly by the Ministers noted: The Treasurer administers: Section ; Section ; and Division 1 of Part 3 of Chapter 10. The Minister for Racing jointly administers Division 5A of Part 5 of Chapter 2; Division 2 of Part 2 of Chapter 4; and Part 5 of Chapter

112 Appendix 1B Commencement Dates of new Legislation Gambling Regulation Amendment (Licensing) Act 2010 (56/2010) The Gambling Regulation Amendment (Licensing) Act 2010 was assented to on 14 September Sections 1 5, 8, 9, 13 19, 21, 23 28, 32, 34 41, 43 45, 49 55, Part 3 (ss 62 71), Part 4 (s 72), Part 5 (s 73) and Part 6 (s 74) commenced operation on 15 September Sections commenced operation on 1 December Sections 6, 7, 10 12, 20, 42 and commence operation on 1 November Sections 22, and 33 are not yet in operation. If a provision of this Act does not come into operation before 1 September 2012, it comes into operation on that day. Justice Legislation Further Amendment Act 2010 (64/2010) The Justice Legislation Further Amendment Act 2010 was assented to on 28 September Part 8 of this Act, sections 34 53, makes amendments to the Gambling Regulation Act Sections 34, 35, 37, 38(1), 38(2), and commenced operation on 12 October Sections 36, 38(3), 38(4) and are not yet in operation. If a provision of Part 8 of this Act does not come into operation before 1 September 2012, it comes into operation on that day. 110

113 Appendix 1C Subordinate Legislation The following subordinate legislation came into operation during the year: Gambling Regulation (Pre-commitment) Interim Regulations 2010 (SR 129/2010) These Regulations came into operation on 1 December Gambling Regulation (Premium Customer) Regulations 2011 (SR 3/2011) These Regulations came into operation on 2 February

114 Appendix 2 Ministerial Direction Gambling Regulation Act 2003 (Current as at 30 June 2011) I, Tony Robinson, MP, Minister for Gaming, under section 3.2.3(1) of the Gambling Regulation Act 2003 (the Act), revoke all previous directions to the Victorian Commission for Gambling Regulation (the Commission) and, in substitution, direct the Commission (a) that, under section 3.2.3(1)(a), the maximum number of gaming machines permitted to be available for gaming in all approved venues under the Act, other than the Melbourne Casino, is 27,500; and (b) that, under section 3.2.3(1)(b), in respect of the 27,500 gaming machines permitted to be available for gaming in all approved venues under the Act, other than the Melbourne Casino, the maximum permissible number of gaming machines to be placed in any approved venue in the State is 105; and (c) that, under section 3.2.3(1)(c), in respect of the 27,500 gaming machines permitted to be available for gaming in all approved venues under the Act, other than the Melbourne Casino, the proportion of gaming machines to be located outside the Melbourne Statistical Division is not less than 20 per cent; and (d) that, under section 3.2.3(1)(d), in respect of the 27,500 gaming machines permitted to be available for gaming in all approved venues under the Act, other than the Melbourne Casino (i) prior to 1 July 2008, a bet limit of $10 will apply to gaming machine games (unless the games are being played on a gaming machine operating in a mode where spin rate, bet limit, autoplay and note acceptors are unrestricted and which is located in an area specified by notice under section (3) or (2) of the Act); and (ii) on or after 1 July 2008, a bet limit of $10 will apply to all gaming machine games approved prior to 1 July 2008 (unless the games are being played on a gaming machine operating in a mode where spin rate, bet limit, autoplay and note acceptors are unrestricted and which is located in an area specified by notice under section (3) or (2) of the Act); and (iii) prior to 1 January 2010, a bet limit of $5 will apply to gaming machine games approved on or after 1 July 2008 (unless the games are being played on a gaming machine operating in a mode where spin rate, bet limit, autoplay and note acceptors are unrestricted and which is located in an area specified by notice under section (3) or (2) of the Act); and (iv) on or after 1 January 2010, a bet limit of $5 will apply to all gaming machine games (unless the games are being played on a gaming machine operating in a mode where spin rate, bet limit, autoplay and note acceptors are unrestricted and which is located in an area specified by notice under section (3) or (2) of the Act); (e) that, under section 3.2.3(1)(e), in respect of the 27,500 gaming machines permitted to be available for gaming in all approved venues under the Act, other than the Melbourne Casino, the proportion to be placed in premises is (i) in the case of premises in respect of which a general licence under section 8 of the Liquor Control Reform Act 1998 is in force, 50 per cent; and (ii) in the case of premises in which (A) a full club licence under section 10 of the Liquor Control Reform Act 1998 is in force; or (B) a restricted club licence under section 10 of the Liquor Control Reform Act 1998 is in force; or (C) a licence under Part 1 of the Racing Act 1958 is in force, 50 per cent; and (f) that, under section 3.2.3(1)(f), in respect of the 27,500 gaming machines permitted to be available for gaming in all approved venues under the Act, other than the Melbourne Casino, the proportion of gaming machines which each gaming operator is permitted to operate is 50 per cent; and 112

115 (g) that, under section 3.2.3(1)(g), the Commission must apply the following criteria in determining whether to specify an area by notice under section (3) or (2) of the Act (area or areas): (i) the specified area must be within an approved venue under the Act; (ii) the proportion of gaming machines in all specified areas of the approved venue must not exceed 20 per cent of the total number of gaming machines in the approved venue; (iii) the total number of gaming machines which are operating at any time in a mode where spin rate, bet limit, autoplay and note acceptors are unrestricted operated by each gaming operator located in all specified areas must not exceed 1,000; (iv) the proportion of gaming machines located in all specified areas in all approved venues under the Act, other than the Melbourne Casino, must not exceed: (A) in the case of premises in respect of which a general licence under section 8 of the Liquor Control Reform Act 1998 is in force, 50 per cent; (B) in the case of premises in respect of which a full club licence under section 10 of the Liquor Control Reform Act 1998 is in force; or a restricted club licence under section 10 of the Liquor Control Reform Act 1998 is in force; or a licence under Part 1 of the Racing Act 1958 is in force, 50 per cent; and (v) the area must not be within an approved venue located (A) outside the Melbourne Statistical Division; or (B) in a region determined pursuant to section of the Act; and (h) that, under section 3.2.3(1)(h), the conditions that the Commission must specify in a notice under section 62AB(4), 62(AC)(2) and 81AAB(2) of the Casino Control Act 1991, referred to in section 3.2.3(1)(g) of the Act are: (i) the total of (A) the total number of gaming machines which are operating at any time in a mode where spin rate, bet limit, autoplay and note acceptors are unrestricted in all areas specified by notice under section 62AB(4) or 62AC(2) of the Casino Control Act 1991; plus (B) the total number of gaming machines from which winnings or accumulated credits in excess of $2,000 may be paid out in cash in all areas specified by notice under section 81AAB(2) of the Casino Control Act 1991; minus (C) the total number of gaming machines which are both operating in the mode referred to in sub paragraph (A) and from which winnings or accumulated credits in excess of $2,000 may be paid out in cash as referred to in sub paragraph (B), must not exceed 1,000. (ii) a gaming machine located in an area specified by a notice under sections 62AB(4), 62(AC)(2) and 81AAB(2) of the Casino Control Act 1991, referred to in section 3.2.3(1)(g) of the Act may only operate in a mode where spin rate, bet limit, autoplay and note acceptors are unrestricted if that gaming machine may only be played in that mode by means of a card, Personal Identification Number (PIN) or similar technology which requires the player to nominate limits on time and net loss before play can commence; and (iii) the payment of winnings or accumulated credits in excess of $2,000 may only be paid by cash if the winnings or credits are from one of the up to 1,000 machines specified in condition (i)(b). This provision regarding the payment of winnings by cash applies to the up to 1,000 machines specified in condition (i)(b) regardless of whether or not the machine: (A) was also a machine capable of operating in a mode described in condition (i)(a); and (B) was actually being played in exempt mode by means of card, PIN or similar technology at the time of the accumulation or payment of winnings as described in condition (ii). Dated 16 April 2008 TONY ROBINSON MP Minister for Gaming 113

116 Appendix 2 continued Table Showing Compliance with Ministerial Direction as at 30 June 2011 Electronic Gaming Number of Electronic Machine Limits imposed Gaming Machines by Ministerial Direction Authorised Number % Number % Total Number 27, , Gaming Operator Split Tabcorp Holdings Ltd Total 13, , Tatts Group Limited Total 13, , Proportion of Electronic Gaming Machines Located Outside the Melbourne Statistical Division ( MSD ) Outside MSD Minimum 5, , Tabcorp 2, , Tatts 2, , Within MSD Maximum 22, , Tabcorp 11, , Tatts 11, , Proportion of Electronic Gaming Machines Located in premises that are: Hotels Total 13, , Tabcorp 6, , Tatts 6, , Clubs Total 13, , Tabcorp 6, , Tatts 6, ,

117 Appendix 3 Ministerial Determination Community Benefit Statements Gambling Regulation Act 2003 I, Tony Robinson MP, Minister for Gaming, pursuant to section 3.6.9(3) of the Gambling Regulation Act 2003, make the following determination of the kind of activities or purposes that constitute community purposes. A venue operator may claim up to: 100 per cent of revenue applied to a Class A purpose or activity; for revenue applied to Class B purposes or activities, an amount equal to the proportion of non-gaming revenue to the club s total revenue 1 ; 100 per cent of revenue applied to a Class C purpose or activity. Class A purposes and activities: Direct community benefits (a) Donations, gifts and sponsorships, including cash, goods and services, to another person resident in Victoria for the purposes or activities set out below but excluding purposes or activities conducted for profit and excluding a gift or donation of alcohol 2 : (i) (ii) any educational purpose, but excluding education provided for the benefit of the members of a professional or business association; the provision of health services or care; (iii) services for the prevention and treatment of problem gambling and drug and alcohol addictions; (iv) housing assistance for disadvantaged persons, including the provision of housing support and assistance to those experiencing homelessness or at risk of becoming homeless; (v) the relief of poverty; (vi) the provision of services and assistance for the aged; (vii) the provision of services and assistance for young people 3 ; (viii) the protection and preservation of the environment but excluding conservation or rehabilitation activities conducted on private land; (ix) the provision of assistance to relieve distress caused by natural or other disasters; (x) the provision of advice, support and services to ex-service personnel, their carers and families, including payments to the Victorian Veterans Fund or a patriotic fund under the Veterans Act 2005 or to any fund for that purpose established by the Returned and Services League Australia (Victorian Branch); (xi) any other philanthropic or benevolent purpose including the promotion of art, culture, cultural diversity and community harmony, or charity including the benefiting of organisations designated by the Australian Taxation Office as Income Exempt Charities ; (xii) any sporting or recreational purpose, including the benefiting of any sporting or recreational club or association, but excluding any club that holds a venue operator s licence. (b) The cost of providing and maintaining sporting facilities for use by club members 4. (c) The cost of any subsidy provided for the provision of goods or services but excluding the provision of alcohol 5. (d) Voluntary services provided by members and staff of the club to the community in fulfilment of those purposes or activities (i) to (xii) in paragraph (a) but excluding those voluntary services provided by club members to the club itself or to another club that holds a venue operator s licence. The maximum amount that can be claimed is $20 per hour per volunteer 6. (e) Where the club that holds the venue operator s licence is a sub-branch of the Returned and Services League Australia (Victorian Branch), the provision of advice, support and services provided by that club to ex- service personnel, their carers and families, including payments to the Victorian Veterans Fund or a patriotic fund under the Veterans Act 2005 or to any fund for that purpose established by the Returned and Services League Australia (Victorian Branch). 115

118 Appendix 3 continued Class B purposes and activities: Indirect community benefits (a) Capital expenditure 7. (b) Financing costs (including principal and interest) 8. (c) Retained earnings accumulated during the year for which the community benefit is claimed 9. (d) The provision of buildings, plant or equipment but excluding any building, plant and equipment with a value of less than $10,000 per item and excluding the provision of gaming equipment or the gaming machine area of an approved venue 10. (e) Operating costs 11. Class C purposes and activities: miscellaneous (a) The provision of responsible gambling measures and activities but excluding those required by law 12. (b) Reimbursement of expenses reasonably incurred by volunteers. (c) The preparation and audit of a community benefit statement required under section (1) of the Gambling Regulation Act 2003 to a maximum of $3,000. Dated Tuesday 8 February 2008 HON TONY ROBINSON MP Minister for Gaming Notes: 1. For example, where a club derives 60 per cent of its revenue from gaming, it can claim 40 per cent of the amounts it has spent under Class B. 2. Paragraph (a) only applies to donations, gifts and sponsorships by a club to another person (including an incorporated entity) as a club cannot make a donation or give a gift to, or sponsor, itself. It is intended to include as community purposes all donations, gifts and sponsorships for the purposes set out in paragraphs (i) to (xii) but to exclude all activities conducted on a commercial basis or for profit. The free use of club facilities such as meeting and function rooms by community groups is claimable under paragraph (a). 3. for the purposes of this order, a young person is a person aged 25 years or less. 4. This would include the cost of a racing club maintaining a racetrack and a football club its football stadium. Where the cost of providing sporting facilities is claimed, a claim cannot also be made for a subsidy under paragraph (c). 5. This would also include goods or services provided to club members and non-members at no cost or at less than commercial rates. The use of club facilities such as meeting and function rooms by community groups at a discounted rate is claimable under paragraph (c). 6. Volunteer services only include services to another person (including an incorporated entity) for the purposes set out in (i) to (xii) paragraph (a). Volunteer services by club members to the club cannot be claimed. 7. Buildings, plant and equipment that have a value of less than $10,000 and gaming equipment or capital expenditure relating to the gaming machine area of an approved venue cannot be claimed under paragraph (a). A motor vehicle can only be claimed where the motor vehicle is used for club purposes. 8. If financing costs are claimed, a claim cannot also be made in relation to the items financed. 9. Retained earnings can only be claimed for the year during which they were earned. If retained earnings are claimed, a claim cannot also be made when those funds are expended. 10. Where multiples of the same item forms one purchase, the total cost of all those items may be claimed. 11. Operating costs include employment costs, but do not include the cost of staff whose principal place of employment is outside Victoria. Employment costs also include wages and salaries plus all on-costs such as superannuation and other entitlements, and benefits to the employee that attract fringe benefits tax. Operating costs also include management fees, electricity, rent, etc. Payments made to players and officials of sporting clubs are claimable as operating costs. 12. Responsible gambling measures and activities required by law including any measures or activities required by statute, licence, contract, agreement, deed, memorandum of understanding, etc. 116

119 Appendix 4 Victorian Commission for Gambling Regulation Rules Gaming Venues other than the Casino Gambling Regulation Act 2003 section (1) (as in force on 21 February 2007) Part 1 Preliminary Title 1. These Rules may be cited as the Victorian Commission for Gambling Regulation Rules Application 2. (1) These Rules are in addition to the requirements of the Act and of a venue operator s licence, including licence conditions. (2) These Rules revoke all previous Rules made by the Victorian Commission for Gambling Regulation, or its predecessors, under section (1) of the Gambling Regulation Act 2003 or section 78 of the Gaming Machine Control Act Part 2 Conduct of Gaming Gaming periods 3. (1) A venue operator may offer gaming to a person only (a) during the period or periods when a licence granted under the Liquor Control Reform Act 1998 in respect of the premises authorises the consumption on those premises of liquor supplied on those premises; or (b) in the case of premises licensed under Part I of the Racing Act 1958, during a race meeting; but not during any break from gaming that the venue operator takes in order to comply with a condition of a premises approval or a venue operator s licence.* (2) A venue operator must, during any period in which the venue operator offers gaming to a person, afford members of the public aged 18 and over unfettered access to the gaming areas of the venue, provided that (a) the venue operator may impose and enforce a code of dress that is reasonable in the circumstances; (b) the venue operator may exclude from the venue a person whose behaviour would be unacceptable in a public place; (c) the venue operator may exclude from the venue a person who has sought to be excluded from gaming venues under a voluntary self-exclusion scheme; (d) the venue operator may exclude a person engaged in syndicate play.** Supervision of gaming machine areas generally 4. A venue operator must ensure that the operation of the gaming machine area and each gaming machine is subject to continual supervision. Supervision may be electronic or physical or a combination of both. Part 3 Gaming Machine Areas Provision of cash for the purposes of gaming 5. (1) Automatic teller machines (ATM) and electronic funds transfer (EFTPOS) devices must not be accessible by any person within the gaming machine area of an approved venue for the purposes of withdrawing cash. (2) Cash must not be provided to a patron through a credit card or charge card transaction for the purposes of gaming. Explanatory Notes: * Compliance with the Act requires a continuous 4 hour break from gaming after every 20 hours of gaming and that there must not be more than 20 hours of continuous gaming each day unless expressly approved by the VCGR and indicated in the Notice of Approved Venue. ** Syndicate play occurs when two or more persons act in concert to affect the chance of any person or persons winning a linked jackpot arrangement. 117

120 Appendix 4 continued Victorian Commission for Gambling Regulation Rules Casino Gambling Regulation Act 2003 section (3) (as in force on 21 February 2007) Part 1 Preliminary 1. These Rules may be cited as the Victorian Commission for Gambling Regulation Rules Casino ( the Rules ). 2. (a) These Rules are in addition to the requirements of the Gambling Regulation Act 2003, the Casino Control Act 1991 ( the Act ), all relevant Regulations and a casino operator s system of internal controls and administrative and accounting procedures for the casino approved under section 121 of the Act. (b) These Rules revoke all previous Rules made by the Victorian Commission for Gambling Regulation, or its predecessors, under section (3) of the Gambling Regulation Act 2003 or section 78 of the Gaming Machine Control Act Part 2 Breach of The Rules 3. If a casino operator decides that a person has breached one of these Rules or the Act in relation to, or when playing, a gaming machine, a casino operator may prohibit the person from entering or remaining in the casino under section 72 of the Act. Part 3 Conduct of Gaming 4. A player is entitled to receive a cash or cheque payment from a casino operator, in place of an equivalent value of gaming machine winnings or credits, only when the player has verified the amount of payment and then acknowledges receipt of the correct payment by signing the appropriate form. 5. If a player does not want to play out any remaining credits on a gaming machine that amount to less than $1.00, the casino operator must not refuse to make a manual or hand payment of the credits to the player. 6. Subject to rule 7, a casino operator must pay, immediately upon request, monetary prizes, coin issues, token issues, and coin or token redemption in the form requested by the player, except where the Act requires payment in a specific form. 7. (a) If a casino operator has a concern about a person s entitlement to receive a prize, coin issue or token issue, including for reasons that the person may have acted fraudulently or used a prohibited device, or a gaming machine or gaming equipment may have malfunctioned, the casino operator may (i) request appropriate forms of personal identification from the player; (ii) withhold the payment of any prize, coin issue or token issue or demand the return of any prize, coin issue or token issue from the player until the casino operator has completed an investigation and made a determination; (iii) confiscate a prohibited device in the possession of a person in accordance with section 80(3) of the Act; and (iv) cause the person who was in possession of a prohibited device to be detained in accordance with section 81 of the Act. (b) In these Rules, prohibited device means any equipment, device or thing that permits or facilitates cheating or stealing. 8. All coins or tokens in gaming machines remain the property of the casino operator until won by or refunded to a player in accordance with the Act, the correct operation of the machine and the approved rules of the game and these Rules. 9. A malfunction of a gaming machine or gaming equipment, including jackpot display meter or jackpot controller, voids all gaming machine game plays, winning of jackpots, prizes and payments. All prizes won or monies paid from a gaming machine or gaming machine equipment that has malfunctioned remain the property of the casino operator. The casino operator may adjust the value of the jackpot prize in accordance with approved procedures. 10. Unless otherwise permitted or instructed by a Gaming Machine Operations Manager or Gaming Machine Area Manager, a player may play up to three gaming machines provided that (i) The gaming machines are adjacent to each other and all on the same side of a bank of gaming machines; and (ii) The player has not been requested by a Gaming Machine Operations Manager or Gaming Machine Area Manager to surrender the additional gaming machine(s) to allow other players to play one of the gaming machines. 118

121 Victorian Commission for Gambling Regulation Rules Casino (continued) 11. The multi gaming machine player can choose which of the gaming machines he or she wishes to continue playing, unless otherwise instructed by a Gaming Machine Operations Manager or Gaming Machine Area Manager. 12. The player of a gaming machine must clear credits from the gaming machine when a close of play warning or notification is broadcast by the casino operator. 13. A person must not tilt, rock or in any way damage or interfere with a gaming machine or attempt to operate a gaming machine with any object or device other than legal tender, valid gaming tokens or authorized Crown issued card. 14. A person must not occupy a gaming machine without actively playing it or occupy an area adjacent to it so that he or she restricts another player from gaining access to play that gaming machine. 15. Where a gaming machine does not provide a reserve button to reserve a gaming machine, an employee of the casino operator may, at the request of the gaming machine player, reserve or hold a particular gaming machine for a reasonable period so as to allow that player to obtain more coin or to attend to any personal matter. Unless this request occurs, a player does not have any reservation rights over any particular gaming machine. 16. A person must not interfere with any part of a gaming machine being played by a player to the annoyance of the player. 17. A person must not hinder, harass, intimidate or interfere in any way with another person s playing of a gaming machine or with any employee of the casino operator performing duties related to a gaming machine. 18. Syndicate Play occurs when two or more persons act in concert to affect the chance of any person or persons winning a linked jackpot arrangement. A person must not engage or participate in Syndicate Play. Where a casino operator suspects on reasonable grounds that two or more persons are engaged in Syndicate Play, the casino may restrict the play of those persons. 19. A person must not induce a gaming machine player to vacate a gaming machine or to engage in Syndicate Play, whether by threats, unpleasant behaviour, financial offer or any other method. 20. A person must not solicit or accept an inducement to engage in Syndicate Play. Part 4 Player Complaints 21. A player may complain to a casino operator about their experience of playing a gaming machine or the operation of a gaming machine. 22. Where a player complaint remains unresolved or the player is dissatisfied with the outcome of a complaint, the player must be advised of the presence of, and their right to refer the complaint to, an inspector appointed by the Executive Commissioner of the Victorian Commission for Gambling Regulation. 119

122 Appendix 5 Commission Decisions on Applications for New Premises and Venue Operator Licence Amendments Note: The following table summarises approvals of new premises, including the approved number of licensed gaming machines, as well as amendments to increase licensed gaming machine numbers at already-approved venues. These decisions have been made at VCGR public meetings, VCGR public inquiries, or, upon appeal, at VCAT. These numbers do not necessarily indicate that the physical movement of gaming machines has taken place. Some decisions are subject to specified conditions which are included in the reasons for the decisions published on the VCGR website. In cases of gaming machine decreases, these decisions have been made at VCGR meetings after the physical removal of gaming machines. Hearing/ Decision/ Meeting Date Venue Increase Decrease Capped Region Sought Granted Not Granted 1 Jul 2010 Hilton on the Park* 44 City of Melbourne 1 Jul 2010 Hotel Sorrento* 16 Shire of Mornington Peninsula 6 Jul 2010 Bairnsdale Sporting and Convention Centre** LGA Shire of East Gippsland 9 Jul 2010 Foundry Hotel*** City of Greater Bendigo 23 Jul 2010 The Pink Hill Hotel*** Shire of Cardinia N/A Gaming Operator N/A N/A Tabcorp N/A 23 Jul 2010 Marine Hotel City of Bayside Tatts 30 Aug 2010 Grand Terminus Hotel Shire of East Gippsland 24 Sep 2010 Lakes Entrance Bowls Club** Shire of East Gippsland 4 Oct 2010 The Beach Hotel City of Port Phillip 7 Oct 2010 Tarneit Tavern*** City of Wyndham N/A Tatts Tabcorp Tatts 8 Oct 2010 Echuca Hotel Shire of Campaspe Tabcorp 2 Dec 2010 Werribee Plaza Tavern City of Wyndham Tabcorp 15 Dec 2010 Club Italia Sporting Club City of Brimbank Tatts 17 Mar 2011 George Hotel Region 1 City of Ballarat City of Ballarat 7 Apr 2011 Laurimar Tavern +++ (40) 40 City of Whittlesea N/A Tatts 14 Apr 2011 Hoppers Crossing Club^ City of Wyndham Tabcorp 19 Apr 2011 Ballarat Football League Social Club^^ 4 4 Region 1 City of Ballarat 21 Apr 2011 Kooringal Golf Club^^^ Region 10 City of Hobsons Bay City of Ballarat City of Hobsons Bay Tatts Tabcorp 120

123 Hearing/ Decision/ Meeting Date Venue Increase Decrease Capped Region Sought Granted Not Granted 3 May 2011 Swan Hill RSL^ 5 5 Rural City of Swan Hill LGA Gaming Operator Tatts 24 May 2011 Ballarat RSL # 33 Region 1 City of Ballarat 25 May 2011 Isle of Wight Hotel ## 10 Region 3 Shire of Bass Coast City of Ballarat Shire of Bass Coast Tatts N/A 2 Jun 2011 Kangaroo Flat Sports Club City of Greater Bendigo Tabcorp 14 Jun 2011 Eltham RSL ### 20 Shire of Nillumbik Tatts 15 Jun 2011 Noble Park Football Social Club^^ 4 4 Region 6 City of Greater Dandenong City of Greater Dandenong Tatts 22 Jun 2011 Numurkah Golf Club Shire of Moira Tabcorp Total Notes: * Venue closed, all gaming machines removed, venue operator s licence and premises approval surrendered. ** Subject to compliance with the municipal limit applying. *** Subject to obtaining a permit under the Planning and Environment Act 1987 and inspection of premises. + Subject to compliance with the municipal limit and Ministerial Directions applying. ++ Subject to compliance with Ministerial Directions. +++ in accordance with VCAT Order, Commission decision of 15 March 2011 amended. ^ Subject to inspection of premises and compliance with Ministerial Directions. ^^ Subject to compliance with regional caps and Ministerial Directions. ^^^ Subject to inspection and notification by the Commission that Stage 1 of improvements to the Club have been completed and compliance with Ministerial Directions and regional limits applying. # Venue closed, all gaming machines removed and premises approval surrendered. ## Venue closed, premises approval revoked due to liquor licence being relocated. ### Venue operator s licence and premises approval surrendered 121

124 Appendix 6 Commission Meetings, Inquiries and Hearings Number of Commission Meetings* Public Session 26 Private Session 31 Note: The private session meetings figure includes five extraordinary meetings. Number of Meeting Sessions Attended by Members Public Private Bruce Thompson, Chairman Ms Judith King, Deputy Chair Ms Gail Owen OAM Mr Ches Baragwanath AO Mr Peter Cohen, Executive Commissioner (until 25 December 2010) Mr Max Priestley, Acting Executive Commissioner (from 26 December 2010) Note: On one further occasion an Acting Executive Commissioner attended both the public and private session of a meeting. Number of Commission Inquiries and Hearings Public Inquiries** 18 Private Hearing Matters*** 10 Public Inquiry Sitting Days 46 Private Hearing Sitting Days 4 Number of Matters Heard/Sitting Days by Members Public Private Matters Sitting Days Matters Sitting Days Mr Bruce Thompson, Chairman Ms Judith King, Deputy Chair Ms Gail Owen OAM Mr Ches Baragwanath AO * Meetings held fortnightly. ** To consider applications for new premises for gaming and increases in gaming machine numbers. *** To consider disciplinary action against licensees (5), appeals against certain licensing decisions (2), appeals against casino exclusion orders (1) and suitability inquiries (2). 122

125 Number of Audit Committee Meetings 4 Number of Audit Committee Meetings Attended by Members Mr David Boymal AM, Chairman (from October 2010) 3 Mr David Beatty 4 Ms Judith King 3 Mr Trevor Brown AM, Chairman (until September 2010) 1 Number of Commission Meetings* * By a Deputy Chair and two sessional commissioners performing VCGR functions in relation to the licence-awarding phase of the Gambling Licences Review being conducted by the Department of Justice. Private Session 57 Number of Meeting Sessions Attended by Members His Honour Gordon Lewis AM, Deputy Chair and Commissioner 57 Mr Ken Loughnan AO, Sessional Commissioner 50 Ms Suzanne Jones, Sessional Commissioner

126 Appendix 7 Gaming Machine Entitlements as at 30 June 2011 Venue Operator Licensee Number of Entitlements Venue Operator Licensee Number of Entitlements 10th Bristling Woods Pty Ltd Bourke Street Pty Ltd th Bristling Woods Pty Ltd 40 A & S Westernport Pty Ltd 40 Aberdeen Holdings (Aust) Pty Ltd 36 Abruzzo Club 40 Aces Sporting Club Inc 70 Alma Sports Club 26 Altona Bowling Club Inc 37 Altona RSL Sub-Branch Inc 58 Altona Sports Club Inc 83 Amstel Golf Club Inc 80 Anglesea Golf Club Inc 30 Ararat RSL Sub-Branch Inc 55 Areas of Hospitality Pty Ltd 271 Aspendale-Edithvale RSL Sub-Branch Inc 43 Astonmill Pty Ltd 80 Astor One Pty Ltd 20 Aust Croatian Association Cardinal Alojz Stepinac' Geelong Inc 30 Australian Leisure and Hospitality Group Pty Ltd 3,457 Avzur Hotels Pty Ltd 100 A.P.D. Group Pty Ltd 29 B & M Francis Hotel Pty Ltd 52 Bacceney Pty Ltd 54 Bacchus Marsh Golf Club Ltd 30 Baibrenick Holdings Pty Ltd 43 Bairnsdale Bowls Club Inc 26 Bairnsdale Club Inc 15 Bairnsdale RSL Sub-Branch Inc 61 Bakers Arms Hotel Pty Ltd 63 Ballarat Basketball Association Inc 35 Ballarat Football League Social Club Inc 54 Ballarat Golf Club Inc 28 Ballarat RSL Sub-Branch Inc 10 Ballarat Turf Club Inc 20 Ballarat & District Trotting Club Inc 40 BAQ Hospitality Pty Ltd 32 Barryco Pty Ltd 37 Beaumaris RSL Sub-Branch Inc 30 Belgravia Hotel Pty Ltd 44 Bells South Melbourne Pty Ltd (Receivers & Managers Appointed) 50 Belrec Inc 28 Benalla Bowls Club Inc 50 Benalla Golf Club Inc 25 Bendigo Club Inc 40 Bendigo District RSL Sub-Branch Inc 81 Bendigo Stadium Ltd 165 Benmara Pty Ltd 75 Bentleigh RSL Sub-Branch Inc 90 Beretta's Langwarrin Pty Ltd 52 Beretta's Richmond Pty Ltd 31 Bethrica Pty Ltd 29 Box Hill Golf Club 39 Box Hill RSL Sub-Branch Inc 95 Branbeau Pty Ltd 20 Brickley Pty Ltd 55 Bright Newbay Pty Ltd 50 Broadmeadows Sporting Club Inc 55 B.R.K. Pty Ltd 70 C K & Sons Pty Ltd 132 Cafe De Biere - Biere Haus Pty Ltd 30 Capricornia Pty Ltd 22 Cardinia Hospitality Pty Ltd 82 Carlton Football Club Ltd 260 Casa D'Abruzzo Club 75 Caszur Nominees Pty Ltd 43 Caulfield RSL Sub-Branch Inc 40 Cellar Door Hospitality Group Pty Ltd 40 Chalambar Golf Club Ararat Inc 33 Chelsea RSL Sub-Branch Inc 70 Cheltenham Moorabbin RSL Sub-Branch Inc 40 Chirnside Park Country Club Ltd 37 City Bowls Club Colac Inc 20 City Memorial Bowls Club Warrnambool Inc 38 Clayton Bowls Club Inc 29 Clayton RSL Sub-Branch Inc 71 Clifton Springs Golf Club Inc 40 Club Fogolar Furlan Melbourne 40 Club Hawthorn Inc 43 Club Italia-Sporting Club Inc

127 Venue Operator Licensee Number of Entitlements Venue Operator Licensee Number of Entitlements Club Tivoli Deutscher Verein Melbourne Inc 18 Cobden Golf Club Inc 28 Colac Bowling Club Inc 20 Colac RSL Inc 25 Colivon Pty Ltd 90 Collingwood Albion Pty Ltd 20 Collingwood Football Club Ltd 191 Coolaan Nominees Pty Ltd 42 Corryong Sporting Complex Inc 10 Court House Hotel Bacchus Marsh Pty Ltd 40 Cranbourne Sports & Entertainment Centre Pty Ltd 75 Cross Keys Pty Ltd (Receivers & Managers Appointed) 40 CSJV Nominees Pty Ltd 80 Dablon Pty Ltd 34 Dalerivers Pty Ltd 40 Dandenong Cranbourne RSL Sub-Branch Inc 63 Dandenong Club 94 Dandenong Cranbourne RSL Sub-Branch Inc 50 Dandenong Workers Social Club Ltd 77 Darebin RSL Sub-Branch Inc 80 Daylesford Bowling Club Inc 32 Dazeline Pty Ltd 48 Deckbrew Holdings Pty Ltd 70 Deer Park Club Inc 68 Degroup Entertainment Pty Ltd 70 DG Hotel Pty Ltd 97 Dodd Hotels Pty Ltd 50 Dominion Hotel Group (Vic) Pty Ltd 25 Doxa Social Club Inc 420 Doyle's Bridge Hotel Pty Ltd 50 Dromana Red Hill RSL Sub-Branch Inc 20 Drums Hotel Pty Ltd 75 Dun-Ra Investments Pty Ltd 57 East Malvern RSL Sub-Branch Inc 33 Eastwood Golf Club 19 Echuca Workers & Services Club Ltd 84 Elwood RSL Sub-Branch Inc 34 Epping RSL Sub-Branch Inc 45 Essendon Football Club 190 Estal Nominees Pty Ltd 85 E. Koroneos & Sons Pty Ltd 136 E.H. Lascelles Pty Ltd 22 Fairfield and Alphington RSL Sub-Branch Inc 30 Fawkner RSL Sub-Branch Inc 35 Ferntree Gully Bowling Club Inc 34 Flying Horse Bar & Brewery Pty Ltd 38 Footscray Football Club Ltd 95 Foster Golf Club Inc 25 Fountain Jade Pty Ltd 95 Frankston Football Club Inc 27 Frankston RSL Sub-Branch Inc 90 Freccia Azzurra Club 35 Frothy Beer Pty Ltd 30 Ganstone Pty Ltd 23 Geelong Combined Leagues Club Ltd 105 Geelong Football Club Ltd 182 Geelong RSL Sub-Branch Inc 44 George 2000 Pty Ltd 28 Gida Construction Pty Ltd 35 Glenroy RSL Sub-Branch Inc 40 Glenthorn Nominees Pty Ltd 45 Golden Point Management Pty Ltd 105 GPO Nominees Pty Ltd 86 Greater Bendigo Hotels Pty Ltd 20 Green Gully Soccer Club Ltd 70 Greensborough RSL Sub-Branch Inc 78 Greyhound Promotions Pty Ltd 95 Guiding Star (Brooklyn) Pty Ltd 40 G.M.B. Hotels Pty Ltd 45 Haggerston Nominees Pty Ltd 30 Hamday Pty Ltd 64 Hamilton Football-Netball Club Inc 35 Hampton Bowls Club Inc 30 Hampton Park Tavern Pty Ltd 73 Hampton RSL Sub-Branch Inc 20 Hastings Cricket and Football Social Club Inc 50 Hawthorn Football Club Ltd 75 Healesville RSL Sub-Branch Inc 50 Hedz Pty Ltd 100 Heidelberg RSL Sub-Branch Inc 25 Highett RSL Sub-Branch Inc 40 Highlands Hotel Craigieburn Pty Ltd

128 Appendix 7 continued Gaming Machine Entitlements as at 30 June 2011 (continued) Venue Operator Licensee Number of Entitlements Venue Operator Licensee Number of Entitlements Hill Top Golf and Country Club Ltd 20 Hilldove Pty Ltd 110 Hogan's Hotel Pty Ltd 75 Hopin Pty Ltd 135 Hoppers Crossing Club Ltd 91 Hoppers Crossing Sports Club Inc 55 Horsham Racing Centre Pty Ltd 34 Horsham RSL Sub-Branch Inc 36 Horsham Sports & Community Club 78 HRV Management Ltd 90 Isle of Wight Hotel Pty Ltd 27 Italian Australian Sporting and Social Club of Gippsland Inc 42 Italian Sports Club of Werribee Inc 70 Jayeesar Pty Ltd 20 Joday Pty Ltd 65 Junction Hotel (Fmg) Pty Ltd 47 J.L. & J. Madden Pty Ltd 29 Kangaroo Flat Sports Club Inc 60 Kapacaba (Hotels) Pty Ltd 60 Karingal Bowling Club Inc 29 Katdean Hotels Pty Ltd 55 Keilor East RSL Sub-Branch Inc 25 Kerang Bowling Club Inc 40 Kevak Hotels Pty Ltd 80 Kilmore Racing Club Inc 56 Kilsyth & Mountain District Basketball Association Inc 179 Kingfish Victoria Pty Ltd 143 Knox Club 100 Kooringal Golf Club 61 Koornang Pty Ltd 103 Kyabram Club Inc 53 Kyneton Bowling Club Inc 25 Kyneton RSL Sub-Branch Inc 28 K.L.B. Hotel (Caulfield) Pty Ltd 50 K.N.D.A. Pty Ltd 16 L'unico Pty Ltd 28 Lakes Entrance Bowls Club Inc 63 Lakes Entrance RSL Sub-Branch Inc 35 Lakes Sports and Community Club Inc 41 Lalor Bowling Club Inc 36 Langmik Pty Ltd 26 Lara Hotel Pty Ltd 40 Lara Sporting Club Inc 50 Laurimar Tavern Pty Ltd 80 Leongatha RSL Sub-Branch Inc 44 Leopold Sportsmans Club Inc 35 Licensed Premises Pty Ltd 16 Liquor Choice Pty Ltd 18 Loch Sport RSL Sub-Branch Inc 10 Lordhaven Pty Ltd 24 Lucky Eights Pty Ltd 100 Lynbrook Tavern Pty Ltd 55 Maffra Community Sports Club Inc 35 Magday Pty Ltd 60 Mansfield Golf Club Inc 40 Markessa Pty Ltd 86 Maroondah Sports Club Ltd 56 Maryborough Golf Club Inc 40 Maryborough Highland Society Inc 124 McGauran (Altona) Pty Ltd 70 McKinnon Hotels Pty Ltd 19 Melbourne Football Club Ltd 92 Mentone RSL Sub-Branch Inc 25 Micden Pty Ltd 14 Midlands Golf Club Inc 32 Mildura Golf Club Inc 20 Mildura Grand Pty Ltd (Receivers & Managers Appointed) 19 Mildura RSL Sub-Branch Inc 45 Mildura Working Man's Club Inc 67 Mirbeau Pty Ltd 75 Mitcham RSL Sub-Branch Inc 25 Moe Racing Club Inc 112 Moe RSL Sub-Branch Inc 45 Molwin Pty Ltd 41 Monash Hospitality Pty Ltd 46 Monbulk Bowling Club Inc 30 Montmorency RSL Sub-Branch Inc 35 Moonee Valley Hospitality Pty Ltd 120 Moonee Valley Racing Club Inc 106 Mooroopna Golf Club Inc 40 Mordialloc Sporting Club Inc

129 Venue Operator Licensee Number of Entitlements Venue Operator Licensee Number of Entitlements Mornington Racing Club Inc 125 Morwell Bowling Club Recreation Centre Inc 69 Morwell RSL Sub-Branch Inc 46 Mount Beauty Country Club Inc 19 Mount Dandenong Tourist Hotel Pty Ltd 20 Mulgrave Country Club 105 Myndit Pty Ltd 30 Myrtleford Savoy Sporting Club Inc 26 M. & S. Whelan Investments Pty Ltd 18 Nagambie Rowing Club Inc 32 New Bon Pty Ltd 71 Newmarket Tavern Pty Ltd 68 Noble Park Football Social Club Ltd 50 Noble Park RSL Sub-Branch Inc 30 North Ballarat Sports Club Inc 70 North Melbourne Giants Basketball Club Ltd 30 North Suburban Sports Club Inc 50 Northcote Park Football Club Inc 90 Numurkah Golf & Bowls Club Inc 60 Obisax Pty Ltd 65 Ocean Grove Bowling Club Inc 60 Old England Hotel Pty Ltd 93 Orrong Holdings Pty Ltd 20 Paddy 'N' Ed Pty Ltd 30 Pakenham Racing Club Inc 105 Pakenham Sports Club Inc 38 Panier Pty Ltd 23 Parkdale Quest Pty Ltd 31 Pascoe Vale RSL Sub-Branch Inc 50 Phillip Island Golf Club Inc 8 Phillip Island RSL Sub-Branch Inc 50 Pieday Pty Ltd 48 Polish Community Association In Geelong Inc 35 Port Melbourne Football Club Ltd 57 Portarlington Golf Club Inc 55 Portland Football Netball Cricket Club Inc 25 Portland RSL Memorial Bowling Club Inc 40 Prahran Football Social Club Inc 85 P.J. Cook Investments Pty Ltd 40 Queensberry Pty Ltd 30 Queenscliff Bowling Tennis and Croquet Association Inc 30 Rania Corporation Pty Ltd 49 Rankindi Pty Ltd 30 Reggio Calabria Club Inc 34 Reservoir RSL Sub-Branch Inc 48 Rhetro Pty Ltd 30 Richmond Football Club Ltd 70 Ringwood RSL Sub-Branch Inc 70 Rising Sun (Bgo) Pty Ltd 35 River View Pty Ltd 38 Robinvale Golf Club Inc 50 Rosebud Country Club 48 Rosebud Pub Pty Ltd 70 Rosebud RSL Sub-Branch Inc 70 Rowell's Hotel's Pty Ltd 30 Royal Automobile Club of Victoria (RACV) Ltd 40 Royal Hotel Benalla Pty Ltd 30 RPH Pty Ltd 71 Rye RSL Sub-Branch Inc 80 Sale Community Bowls Club Inc 33 Sale & District Greyhound Racing Club Inc 70 Sanguine Hotels Pty Ltd 54 Sayers Property Holdings Pty Ltd 65 Seaford RSL Sub-Branch Inc 30 Sebastopol Bowling Club Inc 50 Serene Hotels Pty Ltd 40 Shelckad Pty Ltd 23 Shell Club (Sporting & Social) Inc 70 Shepparton Club Inc 46 Shepparton RSL Sub-Branch Inc 80 South Oakleigh Club Inc 40 Sovereign Hotel Group Pty Ltd 74 Spar Holdings Pty Ltd 50 Spazor Pty Ltd 18 Sporting Legends Club Inc 70 Springvale Football Club Ltd 40 Springvale RSL Sub-Branch Inc 55 St Arnaud Sporting Club Inc 35 St Georges Workers Club Inc 35 St Kilda RSL Sub-Branch Inc 60 St Kilda Saints Football Club Ltd 83 Stawell Harness Racing Club Inc

130 Appendix 7 continued Gaming Machine Entitlements as at 30 June 2011 (continued) Venue Operator Licensee Number of Entitlements Summerhill Hotel Pty Ltd 88 Sunbury Bowling Club Inc 78 Sunbury United Sporting Club Limited 50 Sunshine RSL Sub-Branch Inc 60 Swan Hill Club Inc 35 Swan Hill RSL Sub-Branch Inc 35 S.J. Beaumont Investments Pty Ltd 19 Tamari Holdings Pty Ltd 30 Taverner Hotel Group Pty Ltd 1,054 Taverns of Victoria Pty Ltd 32 Taylor McKay Pty Ltd (Receivers & Managers Appointed) 34 Taylors Lakes Family Hotel Pty Ltd 105 The Albury Sailors, Soldiers & Airmen's Club Ltd 40 The Bentleigh Club 88 The Brunswick Club 43 The Celtic Club Inc 41 The Craigieburn Sporting Club Inc 70 The Cranbourne Hotel Pty Ltd 97 The Elsternwick Club Inc 33 The Merbein Citizens Club Inc 20 The Middle Pty Ltd 16 The Morwell Club Inc 35 The Orbost Club Inc 24 The Ouyen Club Inc 5 The Pink Hill Hotel Pty Ltd 60 The Red Cliffs Club Inc 34 The Richmond Henty Hotel Pty Ltd 32 The Sale RSL & Community Sub-Branch Inc 36 The Seymour Club Ltd 50 The St. Albans Sports Club Inc 35 The Sunbury Football Social Club Ltd 38 The Sunshine City Club 30 The Warragul Club Inc 80 The Wonthaggi Club 68 The Yarram Country Club Inc 37 Third Bekkah Pty Ltd 38 Tiplane Pty Ltd 50 Tooradin & District Sports Club Ltd 46 Traralgon Bowls Club Inc 59 Traralgon RSL Sub-Branch Inc 37 Trio Taverns Pty Ltd 29 Venue Operator Licensee Number of Entitlements Twinpath Pty Ltd 20 Two Frothy Beers Pty Ltd 14 Upday Pty Ltd 45 Upper Yarra RSL Sub-Branch Inc 30 Uppy Pty Ltd 18 Vamsun Pty Ltd 50 Veneto Club 105 Vermont Football Club Inc 60 Vickers-Willis Pty Ltd 15 Victoria Amateur Turf Club (Inc The Melbourne Racing Club) 195 Victoria Racing Club Limited 80 Victorian Cellars (Vic) Pty Ltd 33 Victorian Harness Racing Sports Club Inc 70 Victorian Taverns Pty Ltd 90 Wangaratta Club Inc 25 Wangaratta RSL Sub-Branch Inc 32 Warragul Country Club Inc 60 Warrenwood Pty Ltd 80 Warrnambool Bowls Club Inc 40 Warrnambool Football Netball Club Inc 51 Warrnambool RSL Sub-Branch Inc 24 Watsonia RSL Sub-Branch Inc 103 Waurn Ponds Management Pty Ltd 70 Waverley RSL Sub-Branch Inc 94 Weatheralls Wodonga Hotel Pty Ltd 80 Wentworth Pines Pty Ltd 26 Werribee Football Club Limited 75 Werribee RSL Sub-Branch Inc 79 West Heidelberg RSL Sub-Branch Inc 31 Westend Market Hotel Pty Ltd 78 Wet Redgum Pty Ltd 24 WGH Pty Ltd 76 Whittlesea Bowls Club Inc 50 Whitvan Pty Ltd 77 Willetts D.I. Pty Ltd 90 Williamstown Football Club 66 Williamstown RSL Sub-Branch Inc 35 Wodonga Holdings Pty Ltd 20 Wonthaggi Golf Club Inc 15 Wonthaggi Workmens Club Inc 48 Wool Exchange Hotel Pty Ltd

131 Venue Operator Licensee Number of Entitlements Xeriff Pty Ltd 47 Yadnum Pty Ltd 45 Yallourn Bowling Club Inc 23 Yarra Valley Country Club Inc 70 Yarraville Footscray Bowling Club Inc 29 Yarraville Club Cricket Club Inc 100 Yarraville Club Inc 78 Yedda Pty Ltd 10 Zagame Boronia Pty Ltd 80 Zagame Caulfield Pty Ltd 200 Total 27,

132 Appendix 8 Gaming Venues as at 30 June 2011 Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Abruzzo Club EAST BRUNSWICK Tatts C M 59 Aces Sporting Club KEYSBOROUGH Tabcorp C M 77 Albion Charles Hotel NORTHCOTE Tabcorp H M 65 Albion Hotel DANDENONG Tatts H M 24 Albion Inn Hotel COLLINGWOOD Tatts H M 20 Alexandra House Tabaret HAMILTON Tabcorp C C 35 Alma Sports Club NORTH CAULFIELD Tatts C M 26 Altona Bowling Club ALTONA Tabcorp C M 37 Altona RSL ALTONA Tatts C M 58 Altona Sports Club SEAHOLME Tatts C M 83 Amstel Golf Club CRANBOURNE Tabcorp C M 95 Angel Tavern MALVERN Tabcorp H M 45 Anglesea Golf Club ANGLESEA Tabcorp C C 34 Ararat RSL ARARAT Tatts C C 55 Ashley Hotel BRAYBROOK Tabcorp H M 50 Aspendale Edithvale RSL EDITHVALE Tabcorp C M 49 Austral Hotel COLAC Tatts H C 23 Australian Croatian Association FOOTSCRAY NIL C M 0 Australian Croatian National Hall BELL PARK Tabcorp C C 30 Bacchus Marsh Golf Club BACCHUS MARSH Tabcorp C C 30 Bairnsdale Bowls Club BAIRNSDALE Tabcorp C C 25 Bairnsdale Club BAIRNSDALE Tatts C C 15 Bairnsdale RSL BAIRNSDALE Tatts C C 69 Bairnsdale Sporting and Convention Centre BAIRNSDALE Tabcorp C C 35 Bakers Arms Hotel ABBOTSFORD Tabcorp H M 32 Balaclava Hotel BALACLAVA Tatts H M 56 Ballarat & District Trotting Club BALLARAT Tabcorp C C 50 Ballarat Golf Club BALLARAT Tabcorp C C 28 Ballarat Leagues Club BALLARAT Tatts C C 50 Ballcourt Hotel SUNBURY Tabcorp H M 5 Barwon Heads Hotel BARWON HEADS Tatts H C 29 Batman s Hill on Collins MELBOURNE Tabcorp H M 22 Baxter Tavern Hotel Motel BAXTER Tabcorp H M 30 Bayswater Hotel BAYSWATER Tatts H M 105 Beaumaris Ex-Services Club BEAUMARIS Tatts C M 30 Bell Park Sport & Recreation Club NORTH GEELONG Tatts C C 28 Bell s Hotel SOUTH MELBOURNE Tatts H M 40 Benalla Bowls Club BENALLA Tatts C C 50 Benalla Golf Club BENALLA Tabcorp C C 25 Bendigo Club BENDIGO Tabcorp C C 44 Bendigo District RSL Club BENDIGO Tatts C C 81 Bentleigh RSL BENTLEIGH Tatts C M

133 Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Berwick Inn Taverner BERWICK Tatts H M 63 Birallee Tavern WODONGA Tabcorp H C 24 Blackburn Hotel BLACKBURN Tatts H M 102 Blazing Stump Hotel WODONGA Tatts H C 20 Blue Bell Hotel WENDOUREE Tabcorp H C 48 Boundary Taverner BENTLEIGH EAST Tabcorp H M 90 Bourke Hill s Welcome Stranger MELBOURNE Tatts H M 100 Box Hill Golf Club BOX HILL Tatts C M 34 Box Hill RSL BOX HILL Tatts C M 100 Braybrook Taverner BRAYBROOK Tatts H M 31 Broadmeadows Sporting Club JACANA Tabcorp C M 64 Browns Corner COBURG Tabcorp H M 28 Bundoora Bowling Club BUNDOORA Tabcorp C M 20 Bundoora Taverner BUNDOORA Tatts H M 100 Burvale Hotel NUNAWADING Tatts H M 103 Cardinia Club PAKENHAM Tabcorp C M 105 Casa D Abruzzo Club EPPING Tatts C M 60 Castello s Berwick Hotel BERWICK Tabcorp H M 85 Castello s Pakenham Hotel PAKENHAM Tabcorp H M 32 Caulfield Racecourse Tabaret CAULFIELD Tabcorp C M 105 Caulfield RSL ELSTERNWICK Tatts C M 52 Celtic Club MELBOURNE Tatts C M 46 Century City Entertainment GLEN WAVERLEY Tabcorp H M 75 Chalambar Golf Club ARARAT Tabcorp C C 33 Chelsea Heights Hotel CHELSEA HEIGHTS Tatts H M 40 Chelsea RSL CHELSEA Tatts C M 65 Cheltenham Moorabbin RSL CHELTENHAM Tatts C M 41 Cherry Hill Tavern DONCASTER EAST Tabcorp H M 50 Chirnside Park Country Club CHIRNSIDE PARK Tatts C M 37 City Bowls Club Colac COLAC Tabcorp C C 20 City Family Hotel BENDIGO Tatts H C 39 City Memorial Bowls Club WARRNAMBOOL Tatts C C 38 Clayton Bowls Club CLAYTON SOUTH Tatts C M 29 Clayton RSL CLAYTON Tatts C M 71 Clifton Springs Golf Club CLIFTON SPRINGS Tabcorp C C 40 Clocks at Flinders Street Station MELBOURNE Tatts C M 100 Club Fogolar Furlan Melbourne THORNBURY Tatts C M 52 Club Hawthorn HAWTHORN Tabcorp C M 43 Club Hotel (Ferntree Gully) FERNTREE GULLY Tabcorp H M 45 Club Hotel (Warragul) WARRAGUL Tatts H C 30 Club Italia Sporting Club NORTH SUNSHINE Tatts C M 38 Club Kilsyth BAYSWATER NORTH Tabcorp C M

134 Appendix 8 continued Gaming Venues as at 30 June 2011 (continued) Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Club Laverton LAVERTON Tabcorp C M 60 Club Leeds FOOTSCRAY Tatts C M 30 Club Ringwood RINGWOOD Tabcorp C M 75 Club Tivoli WINDSOR Tatts C M 18 Club Warrandyte WARRANDYTE Tabcorp C M 27 Cobden Golf Club COBDEN Tabcorp C C 28 Colac Bowling Club COLAC Tabcorp C C 20 Colac RSL COLAC Tatts C C 25 Commercial Hotel (Camperdown) CAMPERDOWN Tabcorp H C 29 Commercial Hotel (Swan Hill) SWAN HILL Tabcorp H C 18 Commercial Taverner WERRIBEE Tatts H M 75 Coolaroo Taverner COOLAROO Tatts H M 54 Corryong Sporting Complex CORRYONG Tabcorp C C 10 Court House Hotel (Bacchus Marsh) BACCHUS MARSH Tatts H C 40 Court House Hotel (Brunswick) BRUNSWICK Tabcorp H M 20 Court House Hotel (Footscray) FOOTSCRAY Tatts H M 21 Court Jester Hotel PRAHRAN Tatts H M 48 Cowes Golf Club COWES Tatts C C 8 Craigieburn Sporting Club CRAIGIEBURN Tabcorp C M 63 Craig s Royal Hotel BALLARAT Tabcorp H C 37 Cramers Hotel PRESTON Tatts H M 100 Cranbourne RSL CRANBOURNE Tatts C M 45 Cross Keys Hotel ESSENDON Tabcorp H M 40 Croxton Park Hotel THORNBURY Tatts H M 100 Croydon Hotel CROYDON Tabcorp H M 95 Cumberland Hotel CASTLEMAINE Tatts H C 30 Daisey s Club Hotel EAST RINGWOOD Tatts H M 75 Dandenong Club DANDENONG Tatts C M 86 Dandenong RSL DANDENONG Tatts C M 63 Dandenong Workers Social Club DANDENONG Tatts C M 77 Darebin RSL PRESTON Tatts C M 65 Dava Hotel MT MARTHA Tabcorp H M 32 Daylesford Bowling Club DAYLESFORD Tabcorp C C 32 Deer Park Club DEER PARK Tatts C M 68 Deer Park Hotel DEER PARK Tabcorp H M 100 Derrimut Hotel SUNSHINE Tabcorp H M 55 Diamond Creek Tavern DIAMOND CREEK Tabcorp H M 40 Dick Whittington Tavern ST KILDA Tatts H M 29 Dingley International Hotel DINGLEY Tabcorp H M 90 Doncaster Inn Hotel DONCASTER Tatts H M 100 Dorset Gardens Hotel CROYDON Tabcorp H M 97 Dromana Hotel DROMANA Tabcorp H M

135 Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Drums Hotel COBURG Tatts H M 85 East Malvern RSL MALVERN EAST Tatts C M 33 Eastwood Golf Club KILSYTH Tabcorp C M 19 Echuca Hotel ECHUCA Tabcorp H C 12 Echuca Workers and Services Club ECHUCA Tatts C C 84 Edwardes Lake Hotel RESERVOIR Tabcorp H M 100 Elsternwick Hotel ELWOOD Tatts H M 34 Eltham Hotel ELTHAM Tatts H M 57 Elwood RSL ELWOOD Tatts C M 34 Epping Hotel EPPING Tabcorp H M 40 Epping Plaza Hotel EPPING Tabcorp H M 100 Epping RSL EPPING Tatts C M 40 Esplanade Hotel QUEENSCLIFF Tatts H C 20 Essendon Football & Community Sporting Club ESSENDON Tatts C M 100 Excelsior Hotel THOMASTOWN Tabcorp H M 105 Fairfield & Alphington RSL FAIRFIELD Tatts C M 30 Family Hotel DROUIN Tatts H C 20 Fawkner RSL FAWKNER Tatts C M 35 Ferntree Gully Bowling Club FERNTREE GULLY Tabcorp C M 28 Ferntree Gully Hotel FERNTREE GULLY Tatts H M 90 First & Last Hotel FAWKNER Tatts H M 70 Flemington Racecourse Tabaret FLEMINGTON Tabcorp C M 80 Foresters Arms Hotel OAKLEIGH Tatts H M 46 Fortunes Bendigo BENDIGO Tabcorp C C 100 Foster Golf Club FOSTER Tabcorp C C 25 Fountain Gate Taverner NARRE WARREN Tabcorp H M 95 Frankston Football Club FRANKSTON Tabcorp C M 27 Frankston RSL FRANKSTON Tatts C M 82 Freccia Azzurra Club KEYSBOROUGH Tatts C M 35 Gateway Hotel CORIO Tatts H C 60 Geelong Combined Leagues Club BREAKWATER Tabcorp C C 105 Geelong Football Club GEELONG Tabcorp C C 100 Geelong RSL BELMONT Tatts C C 42 George Hotel BALLARAT Tatts H C 42 Gladstone Park Hotel TULLAMARINE Tabcorp H M 86 Glengala Hotel ARDEER Tatts H M 60 Glenroy RSL GLENROY Tatts C M 40 Golden Fleece Hotel MELTON Tabcorp H M 45 Golden Nugget MELBOURNE Tabcorp H M 60 Golf House Hotel BALLARAT Tabcorp H C 20 Gordon Hotel PORTLAND Tatts H C 23 Goulburn Valley Hotel SHEPPARTON Tatts H C

136 Appendix 8 continued Gaming Venues as at 30 June 2011 (continued) Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Grand Central Hotel (Hamilton) HAMILTON Tatts H C 40 Grand Hotel MORNINGTON Tabcorp H M 70 Grand Junction Hotel TRARALGON Tabcorp H C 34 Grand Terminus Hotel BAIRNSDALE Tatts H C 21 Great Western Hotel NEWTOWN Tabcorp H C 36 Green Gully Soccer Club KEILOR DOWNS Tabcorp C M 70 Greensborough Hotel GREENSBOROUGH Tabcorp H M 24 Greensborough RSL GREENSBOROUGH Tatts C M 78 Grosvenor Hotel ST KILDA Tabcorp H M 22 Grovedale Hotel GROVEDALE Tabcorp H C 80 Hallam Taverner HALLAM Tabcorp H M 92 Hampton Bowls Club HAMPTON Tabcorp C M 30 Hampton Park Tavern HAMPTON PARK Tatts H M 73 Hampton RSL HAMPTON Tatts C M 20 Harp of Erin Hotel EAST KEW Tabcorp H M 47 Hastings Cricket & Football Social Club HASTINGS Tatts C M 50 Healesville RSL HEALESVILLE Tatts C M 50 Heidelberg RSL HEIDELBERG Tatts C M 25 Highett Returned & Services Club HIGHETT Tatts C M 41 Highpoint Taverner MARIBYRNONG Tabcorp H M 70 Hill Top Golf and Country Club TATURA Tabcorp C C 20 Hogans Hotel WALLAN Tabcorp H C 30 Hoppers Crossing Club HOPPERS CROSSING Tabcorp C M 70 Hoppers Crossing Sports Club HOPPERS CROSSING Tabcorp C M 35 Horsham RSL HORSHAM Tatts C C 36 Horsham Sports & Community Club HORSHAM Tatts C C 54 Inverloch Esplanade Hotel INVERLOCH Tabcorp H C 17 Italian Australian Sporting and Social Club of Gippsland MORWELL Tatts C C 36 Italian Sports Club of Werribee WERRIBEE Tatts C M 57 Ivanhoe Hotel IVANHOE Tatts H M 100 Jokers on Ryrie GEELONG Tatts H C 47 Junction Hotel PRESTON Tabcorp H M 46 Junction Tabaret MOONEE PONDS Tabcorp C M 80 Kangaroo Flat Sports Club KANGAROO FLAT Tabcorp C C 48 Karingal Bowling Club FRANKSTON Tabcorp C M 29 Kealba Hotel KEALBA Tabcorp H M 86 Keilor East RSL ESSENDON Tatts C M 25 Keilor Hotel KEILOR Tatts H M 50 Kerang Sports and Entertainment Venue KERANG Tatts C C 45 Keysborough Hotel KEYSBOROUGH Tabcorp H M 89 Kilmore Trackside KILMORE Tabcorp C C 56 Kings Creek Hotel HASTINGS Tabcorp H M

137 Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Kirkpatricks Hotel MORNINGTON Tatts H M 40 Knox Club WANTIRNA Tabcorp C M 100 Knox Tavern WANTIRNA SOUTH Tabcorp H M 77 Kooringal Golf Club ALTONA Tabcorp C M 49 Korumburra Hotel KORUMBURRA Tabcorp H C 16 Kyabram Club KYABRAM Tatts C C 53 Kyneton Bowling Club KYNETON Tatts C C 25 Kyneton RSL KYNETON Tabcorp C C 28 Lakes Entrance Bowls Club LAKES ENTRANCE Tabcorp C C 53 Lakes Entrance RSL LAKES ENTRANCE Tabcorp C C 35 Lalor Bowling Club LALOR Tabcorp C M 36 Langwarrin Hotel LANGWARRIN Tabcorp H M 52 Lara Hotel LARA Tatts H C 20 Lara Sporting Club LARA Tabcorp C C 50 Leighoak OAKLEIGH Tabcorp C M 92 Leongatha RSL LEONGATHA Tatts C C 40 Leopold Sportsmans Club LEOPOLD Tabcorp C C 35 Lilydale Crown Hotel LILYDALE Tatts H M 68 Lincolnshire Arms Hotel ESSENDON Tabcorp H M 38 Loch Sport RSL LOCH SPORT Tatts C C 10 London Tavern CAULFIELD Tabcorp H M 50 Long Beach Hotel CHELSEA Tabcorp H M 49 Lord of the Isles Tavern NEWTOWN Tatts H C 60 Lorne Hotel LORNE Tatts H C 22 Lower Plenty Hotel LOWER PLENTY Tabcorp H M 85 L unico Hotel CLAYTON Tabcorp H M 28 Lynbrook Hotel LYNBROOK Tatts H M 32 Lyndhurst Club Hotel EAST BRUNSWICK Tatts H M 48 Mac s Hotel (Melton) MELTON Tabcorp H M 82 Mac s Hotel (Warrnambool) WARRNAMBOOL Tatts H C 31 Maffra Community Sports Club MAFFRA Tabcorp C C 35 Magpie and Stump Hotel WANDONG Tabcorp H C 24 Mail Exchange Hotel MELBOURNE Tatts H M 80 Malvern Vale Club Hotel MALVERN Tabcorp H M 30 Manhattan Hotel RINGWOOD Tatts H M 103 Manningham Club BULLEEN Tatts C M 100 Mansfield Golf Club MANSFIELD Tabcorp C C 29 Marine Hotel BRIGHTON Tatts H M 50 Maroondah Sports Club EAST RINGWOOD Tabcorp C M 56 Maryborough Golf Club MARYBOROUGH Tatts C C 43 Maryborough Highland Society MARYBOROUGH Tabcorp C C 56 Matthew Flinders Taverner CHADSTONE Tatts H M

138 Appendix 8 continued Gaming Venues as at 30 June 2011 (continued) Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * McCartins Hotel LEONGATHA Tabcorp H C 20 McKinnon Hotel McKINNON Tabcorp H M 19 Meadow Inn Hotel FAWKNER Tatts H M 73 Melton Country Club MELTON Tatts C M 90 Melton Entertainment Complex MELTON SOUTH Tabcorp C M 80 Mentone RSL MENTONE Tatts C M 25 Merbein Citizens Club MERBEIN Tabcorp C C 20 Mercure Grand Hotel on Swanston MELBOURNE Tabcorp H M 90 Midlands Golf Club BALLARAT Tatts C C 32 Milano s Hotel BRIGHTON Tatts H M 60 Mildura Gateway Tavern MILDURA Tatts H C 75 Mildura Golf Club MILDURA Tabcorp C C 20 Mildura Grand Hotel Resort MILDURA Tabcorp H C 19 Mildura RSL MILDURA Tatts C C 45 Mildura Working Mans Sports & Social Club MILDURA Tabcorp C C 67 Mitcham Hotel MITCHAM Tatts H M 100 Mitcham RSL MITCHAM Tabcorp C M 25 Mitchell River Tavern BAIRNSDALE Tabcorp H C 20 Moe Hotel MOE Tatts H C 27 Moe RSL Club MOE Tatts C C 41 Monash Hotel CLAYTON Tabcorp H M 50 Monbulk Bowling Club MONBULK Tabcorp C M 30 Montmorency RSL MONTMORENCY Tatts C M 35 Moonee Valley Legends MOONEE PONDS Tatts C M 105 Mooroopna Golf Club MOOROOPNA Tabcorp C C 44 Moreland Hotel BRUNSWICK Tabcorp H M 70 Mornington on Tanti Hotel MORNINGTON Tabcorp H M 23 Morwell Bowling Club MORWELL Tabcorp C C 63 Morwell Club MORWELL Tatts C C 35 Morwell Hotel MORWELL Tatts H C 30 Morwell RSL MORWELL Tatts C C 42 Motor Club Hotel CRANBOURNE Tatts H M 70 Mount Beauty Country Club MT BEAUTY Tabcorp C C 19 Mountain View Hotel GLEN WAVERLEY Tatts H M 85 Mulgrave Country Club WHEELERS HILL Tabcorp C M 105 Myrtleford Savoy Sporting Club MYRTLEFORD Tabcorp C C 26 Nagambie Lakes Entertainment Centre NAGAMBIE Tatts C C 32 New Bay Hotel BRIGHTON Tabcorp H M 50 Newmarket Tavern NEWMARKET Tatts H M 68 Noble Park Football Social Club NOBLE PARK Tatts C M 46 Noble Park RSL NOBLE PARK Tatts C M 30 Norlane Hotel NORLANE Tabcorp H C

139 Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * North Ballarat Sports Club BALLARAT Tatts C C 90 North Suburban Sports Club MOONEE PONDS Tatts C M 50 Northcote Park Football Club BRUNSWICK Tabcorp C M 85 Northcote RSL NORTHCOTE Tatts C M 56 Numurkah Golf & Bowls Club NUMURKAH Tabcorp C C 38 Oakleigh Junction Hotel OAKLEIGH Tatts H M 46 Oasis Oz Hotel NORTH MELBOURNE Tatts H M 22 Ocean Grove Bowling Club OCEAN GROVE Tabcorp C C 60 Old Dandy Inn DANDENONG Tabcorp H M 30 Old England Hotel HEIDELBERG Tatts H M 105 Olinda Creek Hotel LILYDALE Tabcorp H M 60 Olive Tree Hotel SUNBURY Tabcorp H M 43 Olympic Hotel PRESTON Tabcorp H M 80 Ouyen Club OUYEN Tabcorp C C 5 Pakenham Inn PAKENHAM Tatts H M 50 Pakenham Sports Club PAKENHAM Tatts C M 38 Palace Hotel CAMBERWELL Tatts H M 48 Parkview Hotel FITZROY NORTH Tatts H M 30 Pascoe Vale RSL PASCOE VALE Tatts C M 47 Pascoe Vale Taverner Hotel PASCOE VALE Tatts H M 51 Peninsula Club DROMANA Tabcorp C M 20 Peninsula Hotel Motel NEWCOMB Tatts H C 55 Phillip Island RSL COWES Tatts C C 53 Phoenix Hotel GEELONG Tabcorp H C 28 Pier Hotel FRANKSTON Tatts H M 97 Pinsent Hotel WANGARATTA Tabcorp H C 44 Players Hotel DANDENONG Tabcorp H M 25 Players on Lygon CARLTON Tatts H M 75 Plough Hotel MILL PARK Tatts H M 100 Portarlington Golf Club PORTARLINGTON Tabcorp C C 55 Portland Football Netball Cricket Club PORTLAND Tabcorp C C 25 Portland RSL Memorial Bowling Club PORTLAND Tatts C C 25 Powell Hotel FOOTSCRAY Tatts H M 30 Prahran Football Social Club PRAHRAN Tabcorp C M 81 Preston Hotel PRESTON Tatts H M 41 Prince Mark Hotel DOVETON Tatts H M 88 Queenscliff Bowling Tennis and Croquet Club QUEENSCLIFF Tabcorp C C 30 Racecourse Hotel (Malvern East) MALVERN EAST Tabcorp H M 40 Racecourse Hotel (Werribee) WERRIBEE Tabcorp H M 52 Railway Club Hotel SEYMOUR Tabcorp H C 33 Red Cliffs Club RED CLIFFS Tabcorp C C 34 Red Lion Hotel BALLARAT Tatts H C

140 Appendix 8 continued Gaming Venues as at 30 June 2011 (continued) Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Reggio Calabria Club WEST BRUNSWICK Tatts C M 34 Reservoir Bowling Club RESERVOIR Tatts C M 23 Reservoir RSL RESERVOIR Tabcorp C M 68 Richmond Tavern RICHMOND NIL C M 0 Rifle Club Hotel WILLIAMSTOWN Tatts H M 59 Ringwood RSL RINGWOOD Tatts C M 70 Rising Sun Hotel BENDIGO Tatts H C 35 Riversdale Hotel HAWTHORN Tabcorp H M 42 Riviera Hotel SEAFORD Tabcorp H M 45 Robinvale Golf Club ROBINVALE Tabcorp C C 25 Rose Shamrock & Thistle Hotel EAST RESERVOIR Tatts H M 60 Rosebud Country Club ROSEBUD Tabcorp C M 48 Rosebud Hotel ROSEBUD Tatts H M 70 Rosebud RSL ROSEBUD Tatts C M 75 Rosstown Hotel CARNEGIE Tabcorp H M 103 Roxburgh Park Hotel COOLAROO Tabcorp H M 71 Royal Exchange Hotel TRARALGON Tatts H C 35 Royal Hotel (Benalla) BENALLA Tabcorp H C 20 Royal Hotel (Daylesford) DAYLESFORD Tatts H C 18 Royal Hotel (Essendon) ESSENDON Tabcorp H M 70 Royal Hotel (Horsham) HORSHAM Tatts H C 23 Royal Hotel (Sunbury) SUNBURY Tabcorp H M 31 Royal Oak Hotel CHELTENHAM Tabcorp H M 76 Royal Oak Richmond RICHMOND Tabcorp C M 80 Royal Taverner FERNTREE GULLY Tatts H M 90 Rubicon Hotel Motel THORNTON Tabcorp H C 16 Rye Hotel RYE Tatts H M 30 Rye RSL Club RYE Tatts C M 100 Sale & District Greyhound Racing Club SALE Tabcorp C C 70 Sale Community Sports Club SALE Tatts C C 33 Sandbelt Club Hotel MOORABBIN Tabcorp H M 100 Sandown Greyhounds Tabaret SPRINGVALE Tabcorp C M 93 Sandown Park Hotel NOBLE PARK Tatts H M 90 Sandown Racecourse Highways Tabaret SPRINGVALE Tabcorp C M 90 Sandringham Hotel SANDRINGHAM Tabcorp H M 45 Sands Taverner CARRUM DOWNS Tatts H M 70 Seaford RSL SEAFORD Tatts C M 25 Seaford Taverner SEAFORD Tabcorp H M 105 Seagulls Nest NEWPORT Tabcorp C M 61 Sebastopol Bowling Club SEBASTOPOL Tatts C C 50 Seymour Club SEYMOUR Tatts C C 50 Shamrock Hotel BENDIGO Tabcorp H C

141 Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Shanghai Club MELBOURNE Tatts H M 48 Shell Club CORIO Tatts C C 100 Shepparton Club SHEPPARTON Tabcorp C C 61 Shepparton RSL SHEPPARTON Tatts C C 80 Sherbourne Terrace SHEPPARTON Tabcorp H C 39 Shoppingtown Hotel DONCASTER Tatts H M 100 Sir Henry Barkly Hotel HEIDELBERG Tatts H M 65 Skyways Taverner AIRPORT WEST Tatts H M 100 Somerville Hotel SOMERVILLE Tabcorp H M 39 South Oakleigh Club BENTLEIGH EAST Tatts C M 42 Sphinx Hotel NORTH GEELONG Tatts H C 63 Sporting Legends Club SALE Tabcorp C C 74 Sportspark Gaming and Entertainment Centre WENDOUREE Tabcorp C C 35 Springvale RSL Club SPRINGVALE Tatts C M 44 SS & A Wodonga WODONGA WEST Tatts C C 60 St Albans Hotel ST ALBANS Tatts H M 50 St Albans Sports Club ST ALBANS Tabcorp C M 30 St Arnaud Sporting Club ST ARNAUD Tabcorp C C 35 St George Workers Club GEELONG WEST Tabcorp C C 35 St Kilda Army & Navy Club ST KILDA Tatts C M 60 St Kilda Football Social Club MOORABBIN Tabcorp C M 83 Stamford Hotel ROWVILLE Tatts H M 103 Star Hotel (Bright) BRIGHT Tatts H C 18 Star Hotel (Sale) SALE Tatts H C 29 Stawell Harness Racing Club STAWELL Tabcorp C C 30 Steeples Tabaret MORNINGTON Tabcorp C M 85 Stoneys Club BACCHUS MARSH Tabcorp C C 40 Summerhill Hotel RESERVOIR Tabcorp H M 100 Sunbury Bowling Club SUNBURY Tatts C M 78 Sunbury Football Social Club SUNBURY Tabcorp C M 38 Sunbury United Sporting Club SUNBURY Tabcorp C M 27 Sunshine City Club SUNSHINE Tabcorp C M 23 Sunshine RSL SUNSHINE Tatts C M 60 Swan Hill Club SWAN HILL Tabcorp C C 35 Swan Hill RSL SWAN HILL Tatts C C 35 Sylvania Hotel CAMPBELLFIELD Tabcorp H M 87 Tankerville Arms Hotel FITZROY Tatts H M 49 Taylors Lakes Family Hotel TAYLORS LAKES Tatts H M 105 Templestowe Hotel LOWER TEMPLESTOWE Tabcorp H M 50 The Beach ALBERT PARK Tatts H M 32 The Bentleigh Club BENTLEIGH Tabcorp C M 80 The Borough Club EAGLEHAWK Tabcorp C C

142 Appendix 8 continued Gaming Venues as at 30 June 2011 (continued) Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * The Bridge Hotel MORDIALLOC Tatts H M 50 The Brook on Sneydes POINT COOK Tatts C M 80 The Brunswick Club BRUNSWICK Tatts C M 43 The Chase Hotel FOREST HILL Tabcorp H M 90 The Club CAROLINE SPRINGS Tatts C M 60 The Coach and Horses RINGWOOD Tabcorp C M 80 The Cove Hotel PATTERSON LAKES Tabcorp H M 45 The Elsternwick Club ELSTERNWICK Tabcorp C M 32 The Grand Hotel Frankston FRANKSTON Tabcorp H M 64 The International LILYDALE Tatts C M 80 The Kingston Club MORDIALLOC Tabcorp C M 70 The Lakes Entertainment Centre LAKES ENTRANCE Tatts C C 36 The Meeting Place at Melbourne Central MELBOURNE Tabcorp C M 56 The Millers Inn Hotel ALTONA NORTH Tatts H M 70 The Old Town N Country Tavern WANGARATTA Tatts H C 29 The Orbost Club ORBOST Tabcorp C C 23 The Prince Of Wales Hotel Richmond RICHMOND Tatts H M 40 The Rex PORT MELBOURNE Tatts C M 57 The Richmond Henty Hotel PORTLAND Tabcorp H C 32 The Sale RSL & Community Sub-Branch SALE Tatts C C 36 The Settlement at Cranbourne CRANBOURNE Tabcorp H M 44 The Sugar Gum Hotel SYDENHAM Tabcorp H M 50 The Tigers Clubhouse HOPPERS CROSSING Tabcorp C M 65 The Union Club Hotel COLAC Tabcorp H C 22 The Vale Hotel MULGRAVE Tabcorp H M 56 The Whalers Inn WARRNAMBOOL Tabcorp H C 45 The Yarram Country Club YARRAM Tatts C C 37 Tooradin & District Sports Club TOORADIN Tabcorp C M 42 Torquay Golf Club TORQUAY Tatts C C 40 Torquay Hotel TORQUAY Tabcorp H C 15 Tower Hotel EAST HAWTHORN Tabcorp H M 25 Town Hall Hotel Stawell STAWELL Tatts H C 23 Traralgon Bowls Club TRARALGON Tabcorp C C 54 Traralgon RSL TRARALGON Tatts C C 37 Trios Tabaret CRANBOURNE Tabcorp C M 75 Tudor Inn Hotel CHELTENHAM Tatts H M 56 Turfside Tabaret MOE Tabcorp C C 65 Upper Yarra RSL YARRA JUNCTION Tatts C M 30 Vaucluse Hotel RICHMOND Tabcorp H M 31 Vegas at Waverley Gardens MULGRAVE Tatts C M 75 Veneto Club BULLEEN Tatts C M 90 Vermont Football Club WANTIRNA Tabcorp C M

143 Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Vic Inn Williamstown WILLIAMSTOWN Tabcorp C M 60 Victoria Hotel (Shepparton) SHEPPARTON Tatts H C 45 Victoria on Hyde Hotel YARRAVILLE Tabcorp H M 24 Victorian Tavern GISBORNE Tabcorp H C 42 Village Belle Hotel ST KILDA Tabcorp H M 20 Village Green Hotel MULGRAVE Tabcorp H M 79 Vine Hotel Richmond RICHMOND Tatts H M 26 Waltzing Matilda Hotel SPRINGVALE Tabcorp H M 80 Wangaratta Club WANGARATTA Tabcorp C C 25 Wangaratta RSL WANGARATTA Tatts C C 32 Wantirna Club WANTIRNA Tatts C M 87 Warragul Club WARRAGUL Tabcorp C C 80 Warragul Country Club WARRAGUL Tatts C C 45 Warrnambool Bowls Club WARRNAMBOOL Tabcorp C C 45 Warrnambool Football Club Social Club WARRNAMBOOL Tabcorp C C 51 Warrnambool RSL WARRNAMBOOL Tatts C C 24 Watergardens Hotel TAYLORS LAKES Tatts H M 70 Waterloo Cup Hotel MOONEE PONDS Tabcorp H M 70 Watsonia RSL WATSONIA Tatts C M 83 Waurn Ponds Hotel WAURN PONDS Tabcorp H C 35 Waverley RSL Club GLEN WAVERLEY Tatts C M 67 Werribee Bowling Club WERRIBEE Tabcorp C M 19 Werribee Plaza Tavern WERRIBEE Tabcorp H M 80 Werribee RSL WERRIBEE Tatts C M 60 West Bendigo Sports & Entertainment Centre GOLDEN SQUARE Tabcorp C C 75 Bendigo Stadium West Heidelberg RSL WEST HEIDELBERG Tabcorp C M 31 West Side Tabaret HORSHAM Tabcorp C C 34 West Waters Hotel CAROLINE SPRINGS Tatts H M 80 Westend Market Hotel SUNSHINE Tatts H M 88 Westernport Hotel HASTINGS Tatts H M 40 Westmeadows Tavern WESTMEADOWS Tatts H M 42 Westside Taverner LAVERTON NORTH Tabcorp H M 70 Wheelers Hill Hotel WHEELERS HILL Tabcorp H M 50 White Eagle House BREAKWATER Tabcorp C C 35 Whittlesea Bowls Club WHITTLESEA Tabcorp C M 40 Williamstown RSL WILLIAMSTOWN Tatts C M 42 Windermere Hotel KANGAROO FLAT Tatts H C 40 Wodonga Hotel WODONGA Tatts H C 80 Wonthaggi Club WONTHAGGI Tabcorp C C 58 Wonthaggi Golf Club WONTHAGGI Tabcorp C C 15 Wonthaggi Workmen s Club WONTHAGGI Tatts C C

144 Appendix 8 continued Gaming Venues as at 30 June 2011 (continued) Gaming Club/ Metro/ EGM Venue Name Location Operator Hotel Country No. * Yallourn Bowling Club NEWBOROUGH Tabcorp C C 23 Yarra Valley Country Club BULLEEN Tabcorp C M 100 Yarraville Club YARRAVILLE Tatts C M 78 Yarraville Club Cricket Club MAIDSTONE Tabcorp C M 76 Yarraville Footscray Bowling Club SPOTSWOOD Tabcorp C M 29 York on Lilydale Taverner Resort MT EVELYN Tatts H M 72 Young & Jacksons Hotel MELBOURNE NIL H M 0 Zagame Boronia BORONIA Tabcorp H M 80 Zagame s Ballarat Club Hotel BALLARAT Tabcorp C C 105 Zagame s Brunswick Club Hotel BRUNSWICK Tabcorp H M 50 Zagame s Caulfield Club Hotel CAULFIELD EAST Tabcorp H M 100 Total for 514 venues: 26,778 * Number of electronic gaming machines licensed to operate. 142

145 Appendix 9 Registered Bookmakers as at 30 June 2011 Sole Trader Last Name Given Name(s) Last Name Given Name(s) Adams Allardice Archbold Ash Atchison Avdulla Baker Baker Barber Barker Beasley Beaver Begelhole Bell Bell Bickerton Bickerton Bon Bowles Brilliant Brown Brown Bull Burke Byrne Byrne Campagna Carvill Chalmers Cleary Cleary Cleary Connolly Coronica Coster Coster Cramp Crimmins Crowe Dalton De Campo De Campo Donald Dorrington Dorrington Dougherty Graham Geoffrey Craig William Ian William Stephen Robert Mark Anthony Peter Adam John Barry William Peter Robbie Alan Maxwell Jeffree John Walter Frederick Robyn Kaye Alexander Stewart Arthur Kevin Deirdre Elizabeth Paul Anthony Peter Noel Alec Ian Nathan Peter Smalbroke Peter Smalbroke John Alan John Daniel Brian Francis Michael Kevin Ernest Anthony Jason Matthew Timothy William Brendan Allen Lyndon Allen Rodney Allen Terence Richard Giuseppe Peter Graham Siobhan Nellie Michael John Daniel Thomas Carly Elizabeth Barry Francis Mark Sebastian Michael Geoffrey Charles Joanne May John Albert Steven James Doughty Dow Dow Elliott Engellener Erhardt Eskander Eskander Eskander Filgate Fitzpatrick Foy Galvan Galvan Gilham Girke Gleeson Gordon Graham Graham Green Grindal Hahnel Harrak Hart Hay Herft Hsu Hudson Hunter Hyland Jones Kafataris Kay Kennedy Kennedy Kerr Killian Kilmartin King King Lawrence Lillis Lucas Lynn MacLeod Anthony John Anthony Damien John Brendan Wayne Kenneth Greg John Reginald Martin Alan James Lisa Marie Michael Mark Jonathan Gary Michael Daryl John Danny Albert Sharon Lee Darren Paul Paul Damian John Stuart Francis Noel Ross William Gerard John Charles Brett Anthony Geoffrey Oswald Michael Kevin Francis Wayne Reginald Jodie Theresa Lyndon Mark Frank Norman William Edward Hugh Geoffrey Thomas Adrian Donald Con Peter Geoffrey William Alistair James Kasie Anne Calvin James Eric Leslie David John Alfred Norman Andrea Therese Peter James Terry Michael George Steven Thomas Ian Robert 143

146 Appendix 9 continued Registered Bookmakers as at 30 June 2011 (continued) Sole Trader (continued) Last Name Given Name(s) Last Name Given Name(s) Mann Manning Mansour Marantelli Marantelli Marantelli Marantelli Marshman McCutcheon McGrath McGrath McHenry McHenry McLauchlan Miles Mills Montgomery Musgrove Musolino Norris Nott Nott O Brien O Brien Oke Park Parkes Peterson Petrac Read Richards Robertson Rowlands Ryan Saber Saber Sampieri Sampieri Sampieri Schwarz Schwarz Short Brian Charles Maxwell Henry Gavin Anthony Adrian Paul Edward Peter Gavin Patrick Mark Anthony Kenneth Sydney Campbell Raymond Amy Judith Damien Joseph Dustin Tim Stephen Graeme David Ian Geoffrey Stephen Daniel James Leslie Robert Gregory John Bruno Anthony Charles Herbert Craig David Philip John Brian Patrick Julia Susan Norman Leonard Neil John Craig William Paul Anthony Steven Kathryn Louise Peter Gregory Angus Sinclair Jeffrey Hugh Dalton Garry Terrence Kevin Patrick Mark Kenneth Anita Graeme Charles Mark Anthony Alan Gerald Samuel Rick Charlton Norman Douglas Simkin Smeaton Starr Stiles Stoios Swannie Sylvester Taylor Thomas Thompson Tiddy Todd Veale Waddell Walker Wallace Walsh Walsh Walsh Waterhouse Watts Whiting Whiting Williams Wilson Wright Wright Douglas Bruce John Maurice Phillip John Peter Stephen David Raymond John Jason Mark Ian Wayne Garry Raymond David Alan Peter Winston Adrian John Jack Denis Francis John Lee Haydn John John Stewart Jonathan David Kevin John Thomas Robert Fred Richard John David Edward Edward Thomas Gerald Neil Neil Thomas Marie Therese Roger Thomas 144

147 Approved Partnership Name Members Last Name Members Given Name(s) B P & J S O'BRIEN O'BRIEN Brian Patrick O'BRIEN Julia Susan BELL / MANNING BELL Alexander Stewart MANNING Maxwell Henry BOOLBET SPORTS AND RACING ATCHISON Mark Anthony LUCAS Michael George D & S GALVAN GALVAN Danny Albert GALVAN Sharon Lee DOUBLEBET COSTER Peter Graham COSTER Siobhan Nellie E & D WHITING WHITING David Edward WHITING Edward Thomas F R J WATTS & J T HERFT HERFT Jodie Theresa WATTS Fred Richard FONEBET SCHWARZ Alan Gerald SCHWARZ Rick Charlton G & A MARANTELLI MARANTELLI Gavin Patrick MARANTELLI Adrian Paul G & M SAMPIERI PARTNERSHIP SAMPIERI Graeme Charles SAMPIERI Mark Anthony GALLOPBET HSU Lyndon Mark SAMPIERI Anita GEE GEE RACING GILHAM Darren Paul GRINDAL Brett Anthony JO & JOHN DORRINGTON DORRINGTON Joanne May DORRINGTON John Albert JOHN AND JONATHAN WALSH BOOKMAKING WALSH John Stewart WALSH Jonathan David K & M SABER SABER Kevin Patrick SABER Mark Kenneth KINGBET KING Alfred Norman KING Andrea Therese L & G FITZPATRICK RACING FITZPATRICK Gary Michael MILLS Daniel James LISA ESKANDER PARTNERSHIP ESKANDER Lisa Marie ESKANDER Michael LUCKYBET BAKER Adam John HYLAND Geoffrey Thomas LYNN & CRIMMINS CRIMMINS Daniel Thomas LYNN Steven Thomas McGRATH & McGRATH McGRATH Amy Judith McGRATH Damien Joseph P & C NOTT NOTT Craig David NOTT Philip John P & D BICKERTON BICKERTON Deirdre Elizabeth BICKERTON Paul Anthony P & N BROWN BROWN Nathan BROWN Peter 145

148 Appendix 9 continued Registered Bookmakers as at 30 June 2011 (continued) Approved Partnership (continued) Name Members Last Name Members Given Name(s) RACE BETTING BEGELHOLE Robyn Kaye PETERSON Paul SUREBET ASH Stephen Robert McHENRY Stephen Graeme TURFBET KILMARTIN David John LILLIS Terry WRIGHT ODDS WRIGHT Marie Therese WRIGHT Roger Thomas YOUR BEST BET CRAMP Michael John DONALD Geoffrey Charles Corporation Name ALAN ESKANDER BOOKMAKING PTY LTD CITYBET PTY LTD KENSON (BOOKMAKERS) PTY LTD TURF ACCOUNTANTS AUSTRALIA PTY LTD WINBET (AUST) PTY LTD 146

149 Appendix 10 Bingo Centres and Commercial Raffle Organisers as at 30 June 2011 Bingo Centres Bingo Centre Name Aspendale Edithvale RSL Bingo Centre Ballarat Bingo Centre Bingo City Broadway Bingo Centre Carrum Gardens Bingo Centre Club Bingo Community Bingo Centre Dorset Gardens Star Bingo Fawkner Bingo Centre Fountain Gate Bingo Centre Mornington Peninsula Bingo Centre Northern Bingo Centre Prahran Bingo Centre Raiders Bingo Centre St Albans Bingo Centre The Palais Bingo Centre Werribee Plaza Bingo Centre Western Suburbs Bingo Centre Location EDITHVALE BALLARAT ALTONA NORTH RESERVOIR CARRUM DOWNS SHEPPARTON BENDIGO CROYDON FAWKNER NARRE WARREN MORNINGTON BRUNSWICK PRAHRAN BREAKWATER ST ALBANS GEELONG HOPPERS CROSSING MAIDSTONE Commercial Raffle Organisers Apple Marketing Group Pty Ltd Level 12, 42 Marine Parade SOUTHPORT QLD 4215 Austview Holdings Pty Ltd 5/574 St Kilda Road MELBOURNE VIC 3004 Communication Direct Pty Ltd Level 1, Johnston Street COLLINGWOOD VIC 3066 Contact Centres Australia Pty Ltd Level 5, 241 Commonwealth Street SURRY HILLS NSW 2010 S.O. Asher Consultants Pty Ltd Pilot Partners Level 5, 175 Eagle Street BRISBANE QLD

150 Appendix 11 Licensing Activities Licence or Approval Type Gaming industry employee Issued New 2,740 2,138 Renewal 1, Replacement Refused Appealed 5 3 Appeal granted 2 *2 Appeal rejected 2 0 Appeal pending 1 2 Casino special employee Issued New Renewal Replacement Upgrade Refused 3 1 Appealed 1 0 Appeal granted 0 0 Appeal rejected 1 0 Casino operator New associate 2 2 Gaming operator New associate 4 13 Venue operator Issued New 59 1 Renewal 29 9 New nominee New associate Amendment Endorsement 2 0 Refused hour gaming applications Approved 0 0 Refused 0 0 Bookmakers Sole Trader new Issued 7 5 Sole Trader renewal Issued Corporate new Issued 1 0 Corporate renewal Issued 0 2 Partnerships new Issued 7 3 Partnerships renewal Issued 0 13 New nominee 0 0 Replacement 0 0 Refused 0 2 Appealed 0 0 Bookmaker key employees Issued New Renewal Replacement 0 0 Refused 0 0 Appealed 0 0 Note: * One of these appeals was pending from the previous year. 148

151 Licence or Approval Type Bingo centre operator Issued New 1 0 Renewal 0 0 New nominee 3 2 New associate 1 0 Amendment 0 0 Refused 0 0 Withdrawn by applicant 0 0 Appealed 0 0 Appeal granted 0 0 Commercial Raffle Organisers Issued New 1 0 Renewal 0 0 New nominee 1 0 New associate 0 0 Amendment 0 0 Refused 0 0 Controlled contracts Issued New 0 0 Variations 0 0 Exemptions 0 0 Roll of Manufacturers, Suppliers and Testers Issued New 3 1 New associate Refused 0 0 Voluntary removal 1 0 Premises approval Issued New 6 5 Refused 0 1 Minor gaming permits Issued Raffles Bingo Lucky Envelopes Fundraising functions Amendments Refused 0 0 Trade promotion lottery permits Issued New 3,272 2,928 Amendments Refused 3 1 Declaration of community or Issued New charitable organisation Issued Renewal N/A 1,363 Refused Revoked 0 0 Appealed 0 0 Appeal rejected 0 0 Reviewed Note: N/A means not applicable. 149

152 Appendix 12 Number of Active Licences at 30 June 2010 and 30 June 2011 There has been a further decline in the number of gaming industry employee licence holders during the year. This is the third full year in which 10-year licences fell due for renewal, beginning in March Again, renewal was not sought for most of the licences that fell due for renewal. Category Casino special employee 3,801 3,702 Gaming industry employee 37,685 33,762 Total 41,486 37,

153 Appendix 13 Roll of Manufacturers, Suppliers and Testers as at 30 June 2011 Ainsworth Game Technology Limited 10 Holker Street, Newington, New South Wales, AUSTRALIA 2128 I.G.T. (Australia) Pty Ltd 1 Rosebery Avenue, Rosebery, New South Wales, AUSTRALIA 2018 Amtek Corporation Pty Ltd Unit 4, 224 Turner Street, Port Melbourne, Victoria AUSTRALIA 3207 Konami Australia Pty Ltd Lord Street, Botany, New South Wales, AUSTRALIA 2019 Aristocrat Technologies Australia Pty Ltd Building A, Pinnacle Office Park, 85 Epping Road, North Ryde, New South Wales, AUSTRALIA 2113 B.G.I. Australia Pty Ltd C/- Corporate Secretarial Practice, 10 Shelley Street, Sydney, New South Wales, AUSTRALIA 2000 BMM Australia Pty Ltd Level 3, 810 Whitehorse Road, Box Hill, Victoria, AUSTRALIA 3128 Bytecraft Systems Pty Ltd 2 Monterey Road, Dandenong South, Victoria, AUSTRALIA 3175 Ecash Gaming Pty Ltd Level 1, Lyon Park Road, North Ryde, New South Wales, AUSTRALIA 2113 Enex Pty Ltd Enex Testlab, RMIT University, East Campus, Plenty Road, Bundoora, Victoria, AUSTRALIA 3083 Global Gaming Industries Pty Ltd Unit 14 1A Coulson Street, Erskineville, New South Wales, AUSTRALIA 2043 Konami Gaming Australia Pty Ltd Lord Street, Botany, New South Wales, AUSTRALIA 2019 PVS Australia Pty Ltd 651 Portrush Road, Glen Ormond, South Australia, AUSTRALIA 5064 QALAB Pty Ltd Pinnacle Office Park Building B, 85 Epping Road, North Ryde, New South Wales, AUSTRALIA 2113 Southern Gaming Services Pty Ltd Fenton Street, Huntingdale, Victoria, AUSTRALIA 3166 Shuffle Master Australasia Pty Ltd 1 Sheridan Close, Milperra, New South Wales, AUSTRALIA 2214 Wintech Investments Pty Ltd 6 Monterey Road, Dandenong, Victoria, AUSTRALIA 3175 WMS Gaming Inc 800 South Northpoint Boulevard, Waukegan, Illinois, USA GTA Pty Ltd Ayliffes Road, St Marys, South Australia, AUSTRALIA

154 Appendix 14 Responsible Gaming Training Course Providers as at 30 June Trading as Provider Address Telephone Offers full course? 1 Advanced Career Training St Laurence Community Services Inc 2 Bass Coast Adult Education Centre Inc Bass Coast Adult Education Centre Inc 90 Station Lake Road, Lara Vic, White Road, Wonthaggi, Vic, Box Hill Institute of TAFE Box Hill Institute of TAFE 465 Elgar Road, Box Hill, Vic, BRACE Education Training and Employment Ltd BRACE Education Training and Employment Ltd 602 Urquhart Street, Ballarat, Vic, CFT International Pty Ltd CFT International Pty Ltd PO Box 249, Warburton, Vic, Chisholm Institute of TAFE Chisholm Institute of TAFE 121 Stud Road, Dandenong, Vic, Coffee School Ton Ton Song Pty Ltd QG 25/8Quay Street, Haymarket, NSW, Complex Training Academy Complex Security Management Pty Ltd 9 COVE Training Centre of Vocational Education Pty Ltd Level 2, 541 King Street, West Melbourne, VIc, Bardia Avenue, Seaford, Vic, Crown Limited Crown Limited 8 Whiteman Street, Southbank, Vic, Diversitat Training Geelong Ethnic Communities Council Inc 12 Djerriwarrh Employment and Education Services Inc 13 East Gippsland Institute of TAFE 14 Education Centre Gippsland Djerriwarrh Employment and Education Services Inc East Gippsland Institute of TAFE Education Centre Gippsland 15 FS Learning Brad Fenby and Associates Pty Ltd 16 Gippsland Employment Skills Training Inc Gippsland Employment Skills Training Inc 17 GippsTAFE Central Gippsland Institute of TAFE 18 Good Taste Training and Education L & M Gelb Consulting Services Pty Ltd Shop 7, Centrepoint Arcade, Geelong, Vic, Station Road, Melton, Vic, Main Street, Bairnsdale, Vic, Smith Street, Warragul, Vic, st Floor, 109 Main Street, Mornington, Vic, Anzac Street, Moe, Vic, 3825 Cnr Monash Way and Princes Hwy, Morwell, Vic, 3480 Suite 12, 233 Cardigan Street, Carlton, Vic, Gordon Institute of TAFE Gordon Institute of TAFE 2 Fenwick Street, Geelong, Vic, Holmesglen Institute of TAFE Holmesglen Institute of TAFE 488 South Road, Moorabbin, Vic, 3189 Offers refresher course? (03) Yes No (03) Yes Yes (03) Yes No (03) Yes Yes Yes Yes (03) Yes Yes (03) Yes No Yes No (03) Yes No (03) Yes No (03) Yes Yes (03) Yes Yes (03) Yes Yes (03) Yes Yes (03) Yes Yes (03) Yes No (03) Yes No (03) Yes No (03) Yes No (03) Yes Yes

155 Trading as Provider Address Telephone Offers full course? 21 Hospitality Training Australia 22 LP Communications Pty Ltd Hospitality Training Victoria Pty Ltd LP Communications Pty Ltd Level 4, 250 Collins Street, Melbourne, Vic, Downes Lane Geelong, Vic, MADEC Australia MADEC Community College 126 Deakin Avenue, Mildura, Vic, Mint Training Pty Ltd Mint Training Pty Ltd 99 Queensbridge Street, Southbank, Vic, Murray Adult Community Education Swan Hill Inc 26 Peninsula Training & Employment Program Inc Murray ACE Peninsula Training & Employment Program Inc 27 Precise Training Precise Training Australia Pty Ltd 429 Campbell Street, Swan Hill, Vic, /10 Ninth Avenue, Rosebud, Vic, 3939 Level 1, 260 Dorset Road, Boronia, Vic, Pub School Iascend TAFE Pty Ltd Level 2, 108 Flinders Street, Melbourne, Vic, Quality Hospitality International 30 Quality Training and Education Centre ( QTEC ) 31 Security Training College Pty Ltd 32 Security Training Solutions Pty Ltd Quality Hospitality International Pty Ltd Bendigo Stadium Ltd Australasian College of Education and Training Pty Ltd Security Training Solutions Pty Ltd Suite 6, 112A Martin Street, Brighton, Vic, 3186 Cnr Marong Road and Inglis Street, Bendigo, Vic, 3550 Level 2, 63 Walker Street, Dandenong, Vic, /855 Ferntree Gully Road, Wheelers Hill, Vic, Smart OHS Edway Training Pty Ltd Ground Floor, 434 St Kilda Road, Melbourne, Vic, Somers Elite Training Peter John Somers 27 Fig Court, Cranbourne North, Vic, STEPS Strategic Training & Employment Placement Services Pty Ltd 36 Sunraysia Institute of TAFE Sunraysia Institute of TAFE 37 Victorian Bar School Complete Hospitality Training (Vic) Pty Ltd 38 William Angliss Institute of TAFE 39 Wodonga Institute of TAFE William Angliss Institute of TAFE Wodonga Institute of TAFE 3 Belair Avenue, Glenroy, Vic, 3046 Benetook Avenue, Mildura, Vic, Elizabeth Street, Melbourne, Vic, La Trobe Street, Melbourne, Vic, McKoy Street Wodonga, Vic, 3690 Offers refresher course? (03) Yes No (03) Yes No (03) Yes No Yes No (03) Yes No (03) Yes Yes (03) Yes Yes Yes Yes (03) Yes No Yes Yes Yes No (03) Yes Yes Yes Yes (03) Yes Yes (03) Yes Yes (03) Yes No (03) Yes Yes (03) Yes Yes (02) Yes Yes 153

156 Appendix 15 Community Benefit Statements Summary of the Total Claims made by Club Gaming Venues This report shows information for Community Benefit Statements lodged in in accordance with the determination of 8 February 2008 made by the then Minister for Gaming. See Appendix 3 of this report for details. Number of Community Benefit Statements lodged 265 $ 000 Net Gaming Revenue ( NGR ) for the financial year ,490 Total Community Benefit Amounts Claimed by Category Category $ 000 Class A (a) Donations, gifts and sponsorships (including cash, goods and services) 15,171 (b) Cost of providing and maintaining sporting activities for use by club members 28,159 (c) Cost of any subsidy for the provision of goods and services but excluding alcohol 11,553 (d) Voluntary Services provided by members and/or staff of the club to another person in the community 4,594 (e) Advice, support and services provided by the RSL (Victorian Branch) to ex-service personnel, their carers and families 832 Total Class A 60,309 Class B (a) Capital expenditure 3,922 (b) Financing Costs (including principal and interest) 8,831 (c) Retained earnings accumulated during the year 519 (d) Provision of buildings, plant and equipment over $10,000 per item excluding gaming equipment or the gaming machine area of the venue 2,259 (e) Operating costs 215,583 Total Class B 231,114 Class C (a) Provision of responsible gambling measures and activities but excluding those required by law 2 (b) Reimbursement of expenses reasonably incurred by volunteers 488 (c) CBS preparation and auditing expenses 293 Total Class C 783 Grand Total 292,206 Percentage of NGR claimed for community purposes (%)

157 Appendix 16 Gambling Player Loss and Taxes and Levies Payable For the year ended 30 June 2011, player loss in its various forms within Victoria amounted to $5,206.7 million and taxes and levies payable amounted to $1,646.9 million, made up as follows*: Source Player Loss Taxes and Levies $m $m Gaming Machines Hotels and Clubs 2, Health Benefit Levy Sub-Total Gaming Taxes 2, ,000.8 Casino Gaming Machines and Table Games 1, Wagering racing (totalisator), football, Trackside and sports betting Lotteries** Club Keno Total ,646.9 Taxation rates applicable to the above expenditure include: Gaming Machines Hotels and Clubs Tabcorp Hotels and Clubs Gaming Tax 24.24% of player loss Tattersall s Hotels and Clubs Gaming Tax 31.24% of player loss Community Support Fund Tax (Hotels only) 8.33% of player loss Health Benefit Levy (per gaming machine) $4, Casino Gaming Machines and Table Games General Player Casino Tax (tables only) 21.25% of player loss General Player Casino Tax (gaming machines only) 24.69% of player loss Commission Based Player Tax (Tables only) 9.00% of player loss Community Benefit Levy (all players) 1.00% of player loss Health Benefit Levy (per gaming machine) $4, Super Tax*** * These figures may not necessarily match corresponding figures in the Financial Statements due to a different reporting basis and different categorisation. ** Previously reported data includes player loss and taxes received from interstate and overseas jurisdictions. For comparison with previous reports, the total player loss and taxes received for were $483.1 million and $ million respectively. *** Scaled tax rate, applied at the conclusion of the year, to gaming revenue in excess of a calculated base amount as set out in section 22.2 of Schedule 1 to the Casino (Management Agreement) Act Super tax received for was $14.96 million. This amount is included in the schedule of Casino taxes above. 155

158 Appendix 16 continued Gambling Player Loss and Taxes and Levies Payable (continued) Wagering Totalisator (pari-mutuel) Betting Approved Betting Competitions 19.11% of player loss 19.11% of player loss Fixed Odds Fixed Odds Sportsbet and Trackside Wagering 10.91% of player loss Lotteries Public Lottery Tax (Australian Sales) Public Lottery Tax (Overseas Sales) Soccer Pools Gaming Tax (Australian Sales) Soccer Pools Gaming Tax (Overseas Sales) 79.40% of player loss 90.00% of player loss 57.52% of player loss 68.00% of player loss Club Keno Gaming Tax 24.24% of player loss 156

159 Appendix 17 Distribution of Taxes from Gambling Product Tax rate Application Public lotteries Saturday Night Lotto Monday/Wednesday Lotto Oz Lotto Powerball Super 66 Lucky Tix (scratchies) Lucky Keno Lucky Lines Lucky 3 Lucky 5 Red or Black Lucky Bingo Star Public lotteries Soccer pools Wagering Pari mutuel betting 79.40% of player loss (local sales) 90.00% of player loss (overseas sales) GRA (2)(c) 57.52% of player loss (local sales) 68.00% of player loss (overseas sales) GRA 5.4.3(2)(b) 19.11% of player loss GRA 4.6.3(1) Paid into Consolidated Fund and then 100% redirected to the Hospitals and Charities Fund and Mental Health Fund in proportions determined by the Treasurer GRA Paid into Consolidated Fund and then 100% redirected to the Hospitals and Charities Fund and Mental Health Fund in proportions determined by the Treasurer. GRA Paid into Consolidated Fund and then 100% redirected to the Hospitals and Charities Fund. GRA Wagering Approved betting competitions Fixed Odds Sportsbet competitions 19.11% of player loss GRA 4.6.3(1) 10.91% of player loss GRA 4.6.6(1) Paid into Consolidated Fund and then 100% redirected to the Hospitals and Charities Fund. GRA Paid into Consolidated Fund and then 100% redirected to the Hospitals and Charities Fund. GRA Fixed Odds Trackside Gaming Machines (in hotels and clubs) Tattersall's and Tabcorp Gaming Machines (in hotels and clubs) Tattersall's only Gaming Machines (in hotels only) Tattersall s and Tabcorp Gaming Machines (in hotels and clubs) Tattersall s and Tabcorp 10.91% of player loss GRA 4.6.6(1) 24.24% of player loss GRA 3.6.6(2) 7.00% of player loss Additional Tax for holder of Gaming Operator's Licence under GRA % of player loss GRA 3.6.6(2)(c) $4, per gaming machine Health Benefit Levy GRA 3.6.3(1) Paid into Consolidated Fund and then 100% redirected to the Hospitals and Charities Fund. GRA Paid into Consolidated Fund and then 100% redirected to the Hospitals and Charities Fund and Mental Health Fund in proportions determined by the Treasurer Paid into Consolidated Fund Paid into Consolidated Fund and then 100% redirected to the Community Support Fund Paid into Consolidated Fund and then 100% redirected to the Hospitals and Charities Fund 157

160 Appendix 17 continued Distribution of Taxes from Gambling (continued) Product Tax rate Application For cost of supervision of public lotteries licensees (Tattersall s and Intralot); wagering licensee (Tabcorp), gaming licensee (Tabcorp), gaming operator licensee (Tattersall s); interactive gaming licensee (nil). Defined in legislation as a tax. Casino EGMs Casino table games Casino EGMs and table games Casino table games and gaming machines (Commission Based Players) Casino EGMs Casino Super tax Club Keno Amount determined by the Treasurer calculated after taking advice from the Minister for Gaming on the cost of supervision by the VCGR GRA (Wagering and Gaming licensee); GRA (Public Lotteries licensees); GRA (Gaming Operator licensee) 24.69% of player loss CMAA Sch 1, 22.1(b)(ii) 21.25% of player loss CMAA Sch 1, 22.1(b)(ii) 1.00% of player loss Community Benefit Levy CMAA Sch 1, 22.1(d) 9.00% of player loss CMAA Sch 3, 22A.1 (a) $4, per gaming machine Health Benefit Levy CCA 114A Additional tax on sliding scale from 1% to 20% on gross gaming revenue (player loss) from all sources if over $880 million per annum (adjusted for CPI) 24.24% of player loss GRA (2)(a) Paid into Consolidated Fund Paid into Consolidated Fund Paid into Consolidated Fund Paid into Consolidated Fund and then 100% redirected to the Hospitals and Charities Fund Paid into Consolidated Fund Paid into Consolidated Fund and then 100% redirected to the Hospitals and Charities Fund Paid into Consolidated Fund Paid into Consolidated Fund and then 100% redirected to the Hospitals and Charities Fund and Mental Health Fund in proportions determined by the Treasurer. GRA Note: In this table GRA = Gambling Regulation Act 2003; CCA = Casino Control Act 1991; CMAA = Casino (Management Agreement) Act

161 Appendix 18 Player Loss from Gaming Machines Statistical Data Fact Sheet Date Adult No. of No. of Net EGM Average No. Average Average Average Population * Venues ** EGMs Expenditure*** EGMs per No. Adults Net EGM Net EGM 1,000 per Expenditure Expenditure Adults Venue per Adult per Hour # $ $ $ 30 June ,531, ,408 2,170,581, , June ,572, ,444 2,366,016, , June ,679, ,400 2,562,820, , June ,720, ,260 2,334,294, , June ,816, ,132 2,290,929, , June ,870, ,124 2,393,030, , June ,946, ,147 2,472,451, , June ,016, ,279 2,543,175, , June ,094, ,797 2,611,507, , June ,173, ,772 2,707,278, , June ,250, ,682 2,597,183, , June ,322, ,778 2,651,367, , * Adult Population Projections are sourced from Victoria in Future 2008, Department of Planning and Community Development. Note that the 2006, 2007 and 2008 figures have been revised to reflect new projections derived from the 2006 Census data. ** Only licensed venues with electronic gaming machines ( EGMs ) are reported in this table. Licensed venues with zero EGMs have been excluded from the total number of venues for each year so that they are not included when formulating the above averages. *** Net EGM expenditure is the total amount lost by players. # Average EGM Expenditure per Hour equals expenditure per EGM divided by operating hours in a year. Operating hours are calculated assuming that gaming venues are closed for the legislated minimum of 4 hours per day (operating hours = 20*365 or 20*366 in leap years). 159

162 Appendix 19 Distribution of Player Loss from Gaming Machines Tatts Gaming Machines Distribution Hotels (%) Clubs (%) Victorian Government Consolidated Revenue Community Support Fund Licence Fee * Sub-total Payment to ATO ( GST ) ** Tatts # # plus GST input credit refund *** 2.50 *** 3.33 Sub-total Venue Operator (hotel or club) less GST payment *** (2.50) *** (3.33) Sub-total Total Tabcorp Gaming Machines Distribution Hotels (%) Clubs (%) Victorian Government Consolidated Revenue Community Support Fund Licence Fee Sub-total Payment to ATO ( GST ) ** Tabcorp # # plus GST input credit refund *** 2.50 *** 3.33 Sub-total Venue Operator (hotel or club) less GST payment *** (2.50) *** (3.33) Sub-total Total * Tatts pays a licence fee into Consolidated Revenue as a percentage of player loss. Tabcorp paid a lump sum fee at the time of its public float. ** These amounts are paid by the gaming operator to the Australian Taxation Office ( ATO ) as GST payments and are compensated by reduced State tax. *** These amounts reflect the GST input tax credits paid/refundable between gaming operators and gaming venues, the net result being that the distribution is the same, post-gst, as it was pre-gst. # Effect of rounding. 160

163 Appendix 20 Ministerial Order for Regional Caps (pursuant to section 3.2.4(1) of the Gambling Regulation Act 2003) (Current as at 30 June 2011) I, Tony Robinson, MP, Minister for Gaming in the State of Victoria, pursuant to section 3.2.4(1) of the Gambling Regulation Act 2003 ( the Act ), hereby: (a) Revoke the order made pursuant to section 3.2.4(1) of the Act on 12 October (b) Determine under section 3.2.4(1)(a) of the Act the following 19 regions in the State of Victoria for the purposes of Chapter 3 of the Act to be: Region 1: the area covered by the local government area of the City of Ballarat as at 12 October Region 2: the area covered by that part of postcode 3081 included in the local government area of the City of Banyule as at 12 October Region 3: the area covered by the local government area of the Shire of Bass Coast as at 12 October Region 4: the area covered by that part of postcodes 3012, 3020, 3021, 3022, 3023 and 3038 included in the local government area of the City of Brimbank as at 12 October Region 5: the area covered by: (i) that part of postcodes 3177, 3803, 3975 and 3976 included in the local government area of the City of Casey as at 12 October 2006; and (ii) that part of postcode 3977 located north of Browns Road included in the local government area of the City of Casey as at 12 October Region 6: the area covered by the local government area of the City of Greater Dandenong as at 12 October Region 7: the area covered by the local government area of the City of Darebin as at 12 October Region 8: the area covered by the local government areas of the City of Greater Geelong and the Borough of Queenscliffe as at 12 October Region 9: the area covered by the local government area of the City of Greater Shepparton as at 12 October Region 10: the area covered by the local government area of the City of Hobsons Bay as at 12 October Region 11: the area covered by that part of postcodes 3043, 3047, 3048, 3060 and 3061 included in the local government area of the City of Hume as at 12 October Region 12: the area covered by the local government area of the City of Latrobe as at 12 October Region 13: the area covered by the local government area of the City of Maribyrnong as at 12 October Region 14: the area covered by that part of postcodes 3031, 3051 and 3053 included in the local government area of the City of Melbourne as at 12 October Region 15: the area covered by that part of postcodes 3147, 3148, 3166, 3167, 3168 and 3170 included in the local government area of the City of Monash as at 12 October Region 16: the area covered by the local government area of the City of Moonee Valley as at 12 October Region 17: the area covered by that part of postcodes 3055, 3056, 3057, 3058 and 3060 included in the local government area of the City of Moreland as at 12 October Region 18: the area covered by the local government area of the City of Warrnambool as at 12 October Region 19: the area covered by that part of postcodes 3074, 3075, 3076, 3082 and 3083 included in the local government area of the City of Whittlesea as at 12 October (c) Specify under section 3.2.4(1)(b)(ii) of the Act, in respect of the regions referred to in paragraph (b) of this order, that the maximum permissible number of gaming machines available for gaming in the region should be determined by the Victorian Commission for Gambling Regulation using the following criteria: Region 1: 9.49 gaming machines per thousand persons aged 18 years and above in that region. Region 2: 2.93 gaming machines per thousand persons aged 18 years and above in that region. Region 3: 9.44 gaming machines per thousand persons aged 18 years and above in that region. Region 4: 7.95 gaming machines per thousand persons aged 18 years and above in that region. 161

164 Appendix 20 continued Ministerial Order for Regional Caps (continued) Region 5: Region 6: Region 7: Region 8: Region 9: 8.87 gaming machines per thousand persons aged 18 years and above in that region gaming machines per thousand persons aged 18 years and above in that region gaming machines per thousand persons aged 18 years and above in that region gaming machines per thousand persons aged 18 years and above in that region gaming machines per thousand persons aged 18 years and above in that region. Region 10: 8.69 gaming machines per thousand persons aged 18 years and above in that region. Region 11: ten gaming machines per thousand persons aged 18 years and above in that region. Region 12: 9.36 gaming machines per thousand persons aged 18 years and above in that region. Region 13: 9.03 gaming machines per thousand persons aged 18 years and above in that region. Region 14: 6.73 gaming machines per thousand persons aged 18 years and above in that region. Region 15: 9.85 gaming machines per thousand persons aged 18 years and above in that region. Region 16: 8.12 gaming machines per thousand persons aged 18 years and above in that region. Region 17: 8.75 gaming machines per thousand persons aged 18 years and above in that region. Region 18: 9.52 gaming machines per thousand persons aged 18 years and above in that region. Region 19: 7.02 gaming machines per thousand persons aged 18 years and above in that region. (d) Require the Victorian Commission for Gambling Regulation to determine, under section 3.2.4(1)(c)(i) of the Act, on the basis of the criteria specified in paragraph (e) of this order, how gaming machines are to be removed from each of the regions referred in paragraph (b) of this order if the number of gaming machines available for gaming in the region exceeds the maximum permissible number. (e) Specify, in respect of the regions referred to in paragraph (b) of this order, the criteria that the Victorian Commission for Gambling Regulation must use in determining how gaming machines are to be removed from a region where the number of gaming machines available for gaming exceeds the maximum permissible number available for gaming in the region to be: (i) the method for determining where gaming machines will be removed from should be calculated by postcode in the first instance and then by venue in each postcode; (ii) a higher proportion of gaming machines should be removed from hotspot postcodes and venues; that is, postcodes and venues that have above average expenditure per gaming machine; (iii) removal of gaming machines should be initially determined on a proportional basis by relative share of gaming machines; (iv) for hotspot postcodes/venues, a weighting, equivalent to 33 per cent of the amount by which expenditure exceeds average expenditure per gaming machine, should be applied to determine the number of machines to be removed; (v) the number of gaming machines to be removed from a gaming venue should not exceed 70 per cent of the total number of gaming machines at that venue; (vi) a minimum of 20 gaming machines must remain in a gaming venue after gaming machines have been removed; and (vii) no gaming machines should be removed from a venue with less than 20 gaming machines. (f) Determine under section 3.2.4(1)(a) of the Act the following region in the State of Victoria, in addition to those regions referred to in paragraph (b), to be: Region 20: the area covered as at the date of this order by that part of the Shire of Yarra Ranges which is included in the Melbourne Statistical Division. (g) Specify under section 3.2.4(1)(b)(ii) of the Act, that the criterion for determining the maximum permissible number of gaming machines available for gaming in the region referred to as Region 20 in paragraph (f) of this order is a maximum of ten gaming machines per thousand persons aged 18 years and above in that region. (h) Require the Victorian Commission for Gambling Regulation to determine, under section 3.2.4(1)(c)(i) of the Act, on the basis of the criteria specified in paragraph (i) of this order, how gaming machines are to be removed from the region referred to as Region 20 in paragraph (f) of this order if the number of gaming machines available for gaming in the region exceeds the maximum permissible number. 162

165 (i) Specify under section 3.2.4(1)(c) of the Act, the following criteria for determining how gaming machines are to be removed from the region referred to as Region 20 in paragraph (f) of this order if the number of gaming machines available for gaming exceeds the maximum permissible number in that region, under this order: i) in the first instance, the determination is to be made on a proportional basis by relative share of gaming machines available for gaming in each approved venue in that region ii) the number of gaming machines to be removed from a gaming venue should not exceed 70 per cent of the total number of gaming machines at that venue iii) no gaming machines should be removed from a venue with less than 20 gaming machines iv) a minimum of 20 gaming machines must remain in a gaming venue after gaming machines have been removed. Dated 16 October 2009 HON TONY ROBINSON MP Minister for Gaming Compliance with Regional Caps Region Permitted Number as at 31 Dec 2009* EGMs Licensed as at 30 June City of Ballarat City of Banyule postcode area Shire of Bass Coast City of Brimbank postcode areas 3012, 3020, 3021, 3022, 3023 and City of Casey postcode areas 3177, 3803, 3975 and City of Greater Dandenong City of Darebin City of Greater Geelong and the Borough of Queenscliffe 1,421 1,383 9 City of Greater Shepparton City of Hobsons Bay City of Hume postcode areas 3043, 3047, 3048, 3060 and City of La Trobe City of Maribyrnong City of Melbourne postcode areas 3031, 3051 and City of Monash postcode areas 3147, 3148, 3166, 3167, 3168 and City of Moonee Valley City of Moreland postcode areas 3055, 3056, 3057, 3058 and City of Warrnambool City of Whittlesea postcode areas 3074, 3075, 3076, 3082 and Shire of Yarra Ranges 1, Note: * date by which all gaming machines in excess of the maximum permissible number determined by the VCGR for each capped region in Victoria had to be removed. 163

166 Appendix 21 Ministerial Order for Municipal Limits (pursuant to section 3.2.4(1) of the Gambling Regulation Act 2003) (Current as at 30 June 2011) I, Tony Robinson, MP, Minister for Gaming, under section of the Gambling Regulation Act 2003 ( the Act ) hereby: 1. Require the Victorian Commission for Gambling Regulation to determine under section 3.2.4(1)(b)(ii) of the Act, in accordance with the criterion specified in paragraph two of this Order, the maximum permissible number of gaming machines available for gaming for each municipal district in Victoria. 2. Specify under section 3.2.4(1)(b)(ii) of the Act, that the criterion for determining the maximum permissible number of gaming machines available for gaming in a municipal district in Victoria is a maximum of ten gaming machines per thousand persons in the municipal district who are aged 18 years and above. 3. Exclude from this Order the precincts of Melbourne central business district, Docklands and Southbank in the municipal district of the City of Melbourne as defined by the map of those precincts that is included in this Order. 4. Require the Victorian Commission for Gambling Regulation to determine, under section 3.2.4(1)(c)(ii) of the Act, on the basis of the criteria specified in paragraph 5 of this Order, how gaming machines are to be removed from a municipal district if the number of gaming machines available for gaming in the municipal district exceeds the maximum permissible number. 5. Specify under section 3.2.4(1)(c) of the Act, the following criteria for determining how gaming machines are to be removed from a municipal district if the number of gaming machines available for gaming exceeds the maximum number permissible for the municipal district under this Order: a) in the first instance, the determination is to be made on a proportional basis by relative share of gaming machines available for gaming in each approved venue in the municipal district b) the number of gaming machines to be removed from a gaming venue should not exceed 70 per cent of the total number of gaming machines at that venue c) no gaming machines should be removed from a venue with less than 20 gaming machines d) a minimum of 20 gaming machines must remain in a gaming venue after gaming machines have been removed. 6. Specify under section 3.2.4(1)(d) of the Act that the Victorian Commission for Gambling Regulation must make a determination under paragraph 4 of this Order by 30 September Specify under section 3.2.4(1)(e) of the Act that the maximum period within which gaming machines available for gaming that exceed the maximum permissible number are to be removed, is 3 months from 30 September Dated 10 June 2009 HON TONY ROBINSON MP Minister for Gaming 164

167 Compliance with Municipal Limits Municipal District Permitted Number as at 31 Dec 2009* EGMs Licensed as at 30 June 2011 Alpine Shire Ararat Rural City Banyule City # Baw Baw Shire Bayside City Benalla City Boroondara City 1, Brimbank City # Buloke Shire 53 0 Campaspe Shire Cardinia Shire Casey City # 1, Central Goldfields Shire Colac-Otway Shire Corangamite Shire East Gippsland Shire Frankston City Gannawarra Shire Glen Eira City 1, Glenelg Shire Golden Plains Shire Greater Bendigo City Hepburn Shire Hindmarsh Shire 48 0 Horsham Rural City Hume City # Indigo Shire Kingston City 1, Knox City 1, Loddon Shire 62 0 Macedon Ranges Shire Manningham City Mansfield Shire Maroondah City Municipal District Permitted Number as at 31 Dec 2009* EGMs Licensed as at 30 June 2011 Melbourne City ## Melton Shire Mildura Rural City Mitchell Shire Moira Shire Monash City # Moorabool Shire Moreland City # Mornington Peninsula Shire 1, Mount Alexander Shire Moyne Shire Murrindindi Shire Nillumbik Shire Northern Grampians Shire Port Phillip City Pyrenees Shire 53 0 South Gippsland Shire Southern Grampians Shire Stonnington City Strathbogie Shire Surf Coast Shire Swan Hill Rural City Towong Shire Wangaratta Rural City Wellington Shire West Wimmera Shire 35 0 Whitehorse City 1, Whittlesea City # Wodonga Rural City Wyndham City Yarra City Yarra Ranges Shire 4 0 Yarriambiack Shire 59 0 Note: * Date by which all gaming machines in excess of the maximum permissible number determined by the VCGR for each municipal district in Victoria had to be removed. # Applies to that part of the municipal district not covered by a regional cap. Refer Appendix 20 for a listing of capped regions. ## The precincts of Melbourne CBD, Docklands and Southbank within the City of Melbourne are excluded from the operation of the Ministerial Order dated 19 June A regional cap or municipal limit does not apply to these precincts. The figures provided here do not necessarily reflect the total number of electronic gaming machines that are licensed to operate within this municipal district. 165

168 Appendix 22 Representation on Working Parties The Commission is represented on the following national working parties: Regulators Responsible Gambling Working Party National Assessment Panel Accredited Testing Facilities Gaming Machine National Standard Working Party Lottery Regulators Working Party Inter-jurisdictional Probity Working Party and Conference Wagering Regulators Working Party Art Union, Raffles and Trade Promotion Lottery Working Party 166

169 Appendix 23 Commission Whistleblower Procedures 1. Statement of Support for Whistleblowers The Victorian Commission for Gambling Regulation is committed to the aims and objectives of the Whistleblowers Protection Act 2001 ( the Act ). The Commission does not tolerate improper conduct by its employees, officers or members, nor the taking of reprisals against those who come forward to disclose such conduct. The Commission recognises the value of transparency and accountability in its administrative and management practices and supports the making of disclosures that reveal corrupt conduct involving substantial mismanagement of public resources or conduct involving substantial risk to public health and safety, or to the environment. The Commission will take all reasonable steps to protect people who make such disclosures from any detrimental action in reprisal for making the disclosure. It will also afford natural justice to any person who is the subject of a disclosure. 2. Purpose of These Procedures These procedures establish a system for reporting disclosures of improper conduct or detrimental action by the Commission, its employees, members or officers. The system enables such disclosures to be made to the protected disclosure coordinator or to one of the nominated protected disclosure officers. Disclosures may be made by employees or members of the public. 3. Whistleblower A whistleblower is someone who makes a disclosure about improper or corrupt conduct, or detrimental action by a public body or public official with the view to the matter being investigated and appropriate action being taken. 4. Objects of the Act The Act commenced operation on 1 January The purpose of the Act is to encourage and facilitate the making of disclosures of improper conduct by public officers and public bodies. The Act provides protection to whistleblowers that make disclosures in accordance with the Act, and establishes a system for the matters disclosed to be investigated and rectifying action to be taken. 5. Definitions of Key Terms Three key concepts in the reporting system are improper conduct, corrupt conduct and detrimental action. Definitions of these terms are set out below. 5.1 Improper conduct A disclosure may be made about improper conduct by a public body or public officer. Improper conduct means conduct that is corrupt, a substantial mismanagement of public resources, or conduct involving substantial risk to public health or safety or to the environment. The conduct must be serious enough to constitute, if proved, a criminal offence or reasonable grounds for dismissal. Examples of improper conduct: A Commission employee sells Commission assets without authority and keeps the proceeds; A Commission employee takes bribes for favourable decisions. 167

170 Appendix 23 continued 5. Definitions of Key Terms (continued) 5.2 Corrupt conduct Corrupt conduct means: conduct of any person (whether or not a public officer) that adversely affects the honest performance of a public officer s or public body s functions; the performance of a public officer s functions dishonestly or with inappropriate partiality; conduct of a public officer, former public officer or a public body that amounts to a breach of public trust; conduct by a public officer, former public officer or a public body that amounts to the misuse of information or material acquired in the course of the performance of their official functions; or a conspiracy or attempt to engage in the above conduct. Examples of corrupt conduct: A Commission employee takes a bribe or receives a payment other than his or her wage or salary in exchange for the discharge of a public duty; A Commission employee sells confidential information. 5.3 Detrimental action The Act makes it an offence for a person to take detrimental action against a person in reprisal for a protected disclosure. Detrimental action includes: action causing injury, loss or damage; intimidation or harassment; and discrimination, disadvantage or adverse treatment in relation to a person s employment, career, profession, trade or business, including the taking of disciplinary action. Examples of detrimental conduct: The Commission refuses a deserved promotion to a whistleblower who made a protected disclosure; The Commission transfers or isolates in the workplace or changes the duties of a whistleblower because the whistleblower made a protected disclosure; A person threatens, abuses or harasses a whistleblower who has made a protected disclosure against a Commission employee, his or her family or friends. 6. The Reporting System 6.1 Contact persons within the Commission Disclosures of improper conduct or detrimental action by the Commission, its employees, members or officers, may be made to the following: The protected disclosure coordinator: Max Priestley Acting Executive Commissioner Level 5, 35 Spring Street Melbourne VIC The protected disclosure officers: Karen Stewart Senior Inspector, Compliance and Investigation Branch Level 5, 35 Spring Street MELBOURNE VIC

171 All correspondence, phone calls and s from internal or external whistleblowers will be referred to the protected disclosure coordinator. Where a person is contemplating making a disclosure and is concerned about approaching the protected disclosure coordinator or a protected disclosure officer in the workplace, he or she can call the relevant officer and request a meeting in a discreet location away from the workplace. 6.2 Alternative contact persons A disclosure about improper conduct or detrimental action by the Commission, its employees, members or officers, may also be made directly to the Ombudsman: The Ombudsman Victoria Mr George Brouwer Level 9, 459 Collins Street Melbourne VIC 3000 (DX , Melbourne) Internet: [email protected] Telephone: Toll Free: The following table sets out where disclosures about persons and bodies other than the Commission, its employees, members or officers, should be made. Person who is the subject of the Disclosure A public body or an employee, officer or member of a public body Member of Parliament (Legislative Assembly) Member of Parliament (Legislative Council) Councillor Chief Commissioner of Police Member of the police force Person/body to whom the disclosure must be made That public body or the Ombudsman Speaker of the Legislative Assembly President of the Legislative Council The Ombudsman The Ombudsman or Deputy Ombudsman The Ombudsman, Deputy Ombudsman or Chief Commissioner of Police 7. Roles and Responsibilities 7.1 Employees, members and officers generally Employees, members and officers are encouraged to report known or suspected incidences of improper conduct or detrimental action in accordance with these procedures. All employees, members and officers of the Commission have an important role to play in supporting those who have made a legitimate disclosure. They must refrain from any activity that is, or could be perceived to be, victimisation or harassment of a person who makes a disclosure. Furthermore, they should protect and maintain the confidentiality of a person they know or suspect to have made a disclosure. 7.2 Protected disclosure officers Protected disclosure officers will: be a contact point for general advice about the operation of the Act for any person wishing to make a disclosure about improper conduct or detrimental action; make arrangements for a disclosure to be made privately and discreetly and, if necessary, away from the workplace; receive any disclosure made orally or in writing (from internal and external whistleblowers); commit to writing any disclosure made orally; 169

172 Appendix 23 continued 7. Roles and Responsibilities (continued) impartially assess the allegation and determine whether it is a disclosure made in accordance with Part 2 of the Act (that is, a protected disclosure ); take all necessary steps to ensure that the identity of the whistleblower and the identity of any person who is the subject of the disclosure are kept confidential; and forward all disclosures and supporting evidence to the protected disclosure coordinator. 7.3 Protected disclosure coordinator The protected disclosure coordinator has a central clearinghouse role in the internal reporting system. He or she will: receive all disclosures forwarded from the protected disclosure officers; receive all phone calls, s and letters from members of the public or employees seeking to make a disclosure; impartially assess each disclosure to determine whether it is a public interest disclosure; refer all public interest disclosures to the Ombudsman; be responsible for carrying out, or appointing an investigator to carry out, an investigation referred to the public body by the Ombudsman; be responsible for overseeing and coordinating an investigation where an investigator has been appointed; appoint a welfare manager to support the whistleblower and to protect him or her from any reprisals; advise the whistleblower of the progress of an investigation into the disclosed matter; establish and manage a confidential filing system; collate and publish statistics on disclosures made; and take all necessary steps to ensure that the identity of the whistleblower and the identity of the person who is the subject of the disclosure are kept confidential. 7.4 Investigator The investigator will be responsible for carrying out an internal investigation into a disclosure where the Ombudsman has referred a matter to the public body. An investigator may be a person from within an organisation or a consultant engaged for that purpose. 7.5 Welfare manager The welfare manager is responsible for looking after the general welfare of the whistleblower. The welfare manager will: examine the immediate welfare and protection needs of a whistleblower who has made a disclosure and seek to foster a supportive work environment; advise the whistleblower of the legislative and administrative protections available to him or her; listen and respond to any concerns of harassment, intimidation or victimisation in reprisal for making a disclosure; keep a contemporaneous record of all aspects of the case management of the whistleblower including all contact and follow-up action; and discuss with the whistleblower what would be a realistic expectation for the outcome of an investigation of a disclosure. 8. Confidentiality The Commission will take all reasonable steps to protect the identity of a whistleblower. Maintaining confidentiality is crucial in ensuring that reprisals are not made against a whistleblower. The Act requires any person who receives information due to the handling or investigation of a protected disclosure not to disclose that information except in certain limited circumstances. Disclosure of information in breach of section 22 constitutes an offence that is punishable by a maximum fine of 60 penalty units or six months imprisonment or both. 170

173 The circumstances in which a person may disclose information obtained about a protected disclosure include: where exercising the functions of the public body under the Act; when making a report or recommendation under the Act; when publishing statistics in the annual report of a public body; and in criminal proceedings for certain offences in the Act. However, the Act prohibits the inclusion of particulars in any report or recommendation that are likely to lead to the identification of the whistleblower. The Act also prohibits the identification of any person who is the subject of a disclosure in any particulars included in an annual report. The Commission will ensure that all files, whether paper or electronic, are kept in a secure room and can be accessed only by the protected disclosure coordinator, protected disclosure officers, the investigator or welfare manager (in relation to welfare matters). All printed material will be kept in files that are clearly marked as a Whistleblower Protection Act matter, and warn of the criminal penalties that apply to any unauthorised divulging of information concerning a protected disclosure. All electronic files will be produced and stored on a stand-alone computer and be given password protection. Backup files will be kept on CD-ROM or floppy disc. All materials relevant to an investigation, such as tapes from interviews, will also be stored securely with the whistleblower files. The Commission will not documents relevant to a whistleblower matter and will ensure that all phone calls and meetings are conducted in private. It is also the responsibility of whistleblowers to keep their disclosure confidential. If a disclosure is repeated to an unauthorised person, the whistleblower will lose the protections that would otherwise have been afforded to them under the Act. For example, if a disclosure is repeated to the media, the whistleblower will not be protected from actions in defamation for any allegations reported. 9. Receiving and Assessing Disclosures Disclosures can be made orally or in writing as follows. An oral disclosure to a public body must be made by telephone or in person in private to a member, officer or employee of the public body. A written disclosure under the Act to a public body must be made by addressing the disclosure to the public body and sending or delivering the disclosure at the office of the public body. 9.1 Has the disclosure been made in accordance with Part 2 of the Act? Where a disclosure has been received by the protected disclosure officer or by the protected disclosure coordinator, he or she will assess whether the disclosure has been made in accordance with Part 2 of the Act and is, therefore, a protected disclosure. This includes being satisfied of the following: that the disclosure been made to the appropriate person; That the disclosure contains the essential elements of a protected disclosure; Where a disclosure is assessed to be a protected disclosure, is it a public interest disclosure Has the disclosure been made to the appropriate person? For the disclosure to be responded to by the Commission, it must concern the Commission or its employee, member or officer. If the disclosure concerns another public body, or an employee, officer or member of another public body, the person who has made the disclosure must be advised of the correct person or body to whom the disclosure should be directed. (See the table at 6.2, above.) If the disclosure has been made anonymously, it should be referred to the Ombudsman Does the disclosure contain the essential elements of a protected disclosure? To be a protected disclosure, a disclosure must satisfy the following criteria: did a natural person (that is, an individual person rather than a corporation) make the disclosure? does the disclosure relate to conduct of a public body or public officer acting in their official capacity? is the alleged conduct either improper conduct or detrimental action taken against a person in reprisal for making a protected disclosure? does the person making the disclosure have reasonable grounds for believing that the alleged conduct has occurred? 171

174 Appendix 23 continued 9. Receiving and Assessing Disclosures (continued) Where a disclosure is assessed not to be a protected disclosure, the matter does not need to be dealt with under the Act. The protected disclosure officer will decide how the matter should be responded to in consultation with the protected disclosure coordinator Is the disclosure a public interest disclosure? Where the protected disclosure officer or coordinator has received a disclosure that has been assessed to be a protected disclosure, the protected disclosure coordinator will determine whether the disclosure amounts to a public interest disclosure. This assessment will be made within 45 days of the receipt of the disclosure. In reaching a conclusion as to whether a protected disclosure is a public interest disclosure, the protected disclosure coordinator will consider whether the disclosure shows, or tends to show, that the public body or public officer to whom the disclosure relates: has engaged, is engaging or proposes to engage in improper conduct in its, his or her capacity as a public body or public officer; or has taken, is taking or proposes to take detrimental action in reprisal for the making of a protected disclosure. Where the protected disclosure coordinator concludes that the disclosure is a public interest disclosure, he or she will: notify the person who made the disclosure of that conclusion; and refer the disclosure to the Ombudsman for formal determination as to whether it is indeed a public interest disclosure. Where the protected disclosure coordinator concludes that the disclosure is not a public interest disclosure, he or she will: notify the person who made the disclosure of that conclusion; and advise that person that he or she may request the public body to refer the disclosure to the Ombudsman for a formal determination as to whether the disclosure is a public interest disclosure, and that this request must be made within 28 days of the notification. In either case, the protected disclosure coordinator will make the notification and the referral within 14 days of the conclusion being reached by the public body. Notification to the whistleblower is not necessary where the disclosure has been made anonymously. 10. Investigations Where the Ombudsman refers a protected disclosure to the Commission for investigation, the protected disclosure coordinator will appoint an investigator to carry out the investigation. The objectives of an investigation will be: to collate information relating to the allegation as quickly as possible. This may involve taking steps to protect or preserve documents, materials and equipment; to consider the information collected and to draw conclusions objectively and impartially; to maintain procedural fairness in the treatment of witnesses and any person who is the subject of the disclosure; and to make recommendations arising from the conclusions drawn concerning remedial or other appropriate action. Before commencing an investigation, the protected disclosure coordinator will draw up terms of reference. The terms of reference will set a date by which the investigation report is to be concluded, and will describe the resources available to the investigator to complete the investigation within the time set. The terms of reference will require the investigator to make regular reports to the protected disclosure coordinator who, in turn, is to keep the Ombudsman informed of the general progress. The investigator will prepare an investigation plan for approval by the protected disclosure coordinator. The plan will list the issues to be substantiated and describe the avenues of inquiry. It will address the following issues: what is being alleged? what are the possible findings or offences? what are the facts in issue? how is the inquiry to be conducted? what resources are required? 172

175 At the commencement of the investigation, the whistleblower should be: notified by the investigator that he or she has been appointed to conduct the investigation; asked to clarify any matters; and provide any additional material he or she might have. The investigator will be sensitive to the whistleblower s possible fear of reprisals and will be aware of the statutory protections provided to the whistleblower. The principles of natural justice will be followed in any investigation of a public interest disclosure. The Commission will have regard to the following issues in ensuring procedural fairness: any person who is the subject of the disclosure is entitled to know the allegations made against him or her and must be given the right to respond. (This does not mean that the person must be advised of the allegation as soon as the disclosure is received or the investigation has commenced); if the investigator is contemplating making a report adverse to the interests of any person, that person should be given the opportunity to put forward further material that may influence the outcome of the report and that person s defence should be fairly set out in the report; all relevant parties to a matter should be heard and all submissions should be considered; a decision should not be made until all reasonable inquiries have been made; the investigator or any decision maker should not have a personal or direct interest in the matter being investigated; all proceedings must be carried out fairly and without bias. Care should be taken to exclude perceived bias from the process; and the investigator must be impartial in assessing the credibility of the whistleblower and any witnesses. Where appropriate, conclusions as to credibility should be included in the investigation report Conduct of the investigation The investigator will make contemporaneous notes of all discussions and phone calls, and all interviews with witnesses will be taped. All information gathered in an investigation will be stored securely. Interviews will be conducted in private and the investigator will take all reasonable steps to protect the identity of the whistleblower. Where disclosure of the identity of the whistleblower cannot be avoided, due to the nature of the allegations, the investigator will warn the whistleblower and his or her welfare manager. It is in the discretion of the investigator to allow any witness to have legal or other representation or support during an interview. If a witness has a special need for legal representation or support, permission should be granted. Costs associated with legal or other representation will be the responsibility of the party engaging that representation Referral of an investigation to the Ombudsman The protected disclosure coordinator will make a decision regarding the referral of an investigation to the Ombudsman where, on the advice of the investigator: the investigation is being obstructed by, for example, the non-cooperation of key witnesses; or the investigation has revealed conduct that may constitute a criminal offence Reporting requirements The protected disclosure coordinator will ensure that the whistleblower is kept regularly informed concerning the handling and investigation of a protected disclosure. The protected disclosure coordinator will report to the Ombudsman about the progress of an investigation. Where the Ombudsman or the whistleblower requests information about the progress of an investigation, that information will be provided within 28 days of the date of the request. 173

176 Appendix 23 continued 11. Action Taken After an Investigation 11.1 Investigator s final report At the conclusion of the investigation, the investigator will submit a written report of his or her findings to the protected disclosure coordinator. The report will contain: the allegation(s); an account of all relevant information received and, if the investigator has rejected evidence as being unreliable, the reasons for this opinion being formed; the conclusions reached and the basis for them; and any recommendations arising from the conclusions. Where the investigator has found that the conduct disclosed by the whistleblower has occurred recommendations made by the investigator will include: the steps that need to be taken by the Commission to prevent the conduct from continuing or occurring in the future; and any action that should be taken by the Commission to remedy any harm or loss arising from the conduct. This action may include bringing disciplinary proceedings against any person responsible for the conduct, and referring the matter to an appropriate authority for further consideration. The report will be accompanied by: the transcript or other record of any oral evidence taken, including tape recordings; and all documents, statements or other exhibits received by the investigator and accepted as evidence during the course of the investigation. Where the investigator s report is to include an adverse comment against any person, that person will be given the opportunity to respond and his or her defence will be fairly included in the report. The report will not disclose particulars likely to lead to the identification of the whistleblower Action to be taken If the protected disclosure coordinator is satisfied that the investigation has found that the disclosed conduct has occurred, he or she will (acting also in his or her capacity as chief executive officer) decide what action will be taken to prevent the conduct from continuing or occurring in the future. He or she may also decide if action will be taken to remedy any harm or loss arising from the conduct. The protected disclosure coordinator will provide a written report to the Minister for Gaming, the Ombudsman and the whistleblower setting out the findings of the investigation and any remedial steps taken. Where the investigation concludes that the disclosed conduct did not occur, the protected disclosure coordinator will report these findings to the Ombudsman and to the whistleblower. 12. Managing the welfare of the whistleblower 12.1 Commitment to protecting whistleblowers The Commission is committed to the protection of genuine whistleblowers against detrimental action taken in reprisal for the making of protected disclosures. The protected disclosure coordinator is responsible for ensuring that whistleblowers are protected from direct and indirect detrimental action, and that the culture of the workplace is supportive of protected disclosures being made. The protected disclosure coordinator will appoint a welfare manager for all whistleblowers who have made a protected disclosure. All employees and officers will be advised that it is an offence for a person to take detrimental action in reprisal for a protected disclosure. The maximum penalty is a fine of 240 penalty units or two years imprisonment or both. The taking of detrimental action in breach of this provision can also be grounds for making a disclosure under the Act and can result in an investigation. 174

177 12.2 Keeping the whistleblower informed The protected disclosure coordinator will ensure that the whistleblower is kept informed of action taken in relation to his or her disclosure, and the time frames that apply. The whistleblower will be informed of the objectives of an investigation, the findings of an investigation, and the steps taken by the Commission to address any improper conduct that has been found to have occurred. The whistleblower will be given reasons for decisions made by the Commission in relation to a protected disclosure. All communication with the whistleblower will be in plain English (or other language as appropriate) Occurrence of detrimental action If a whistleblower reports an incident of harassment, discrimination or adverse treatment that would amount to detrimental action taken in reprisal for the making of the disclosure, the welfare manager will: record details of the incident; advise the whistleblower of his or her rights under the Act; and advise the protected disclosure coordinator of the detrimental action. The taking of detrimental action in reprisal for the making of a disclosure can be an offence against the Act as well as grounds for making a further disclosure. Where such detrimental action is reported, the protected disclosure coordinator will assess the report as a new disclosure under the Act. Where the protected disclosure coordinator is satisfied that the disclosure is a public interest disclosure, he or she will refer it to the Ombudsman. If the Ombudsman subsequently determines the matter to be a public interest disclosure, the Ombudsman may investigate the matter or refer it to another body for investigation as outlined in the Act Whistleblowers implicated in improper conduct Where a person who makes a disclosure is implicated in misconduct, the Commission will handle the disclosure and protect the whistleblower from reprisals in accordance with the Act, the Ombudsman s guidelines and these procedures. The Commission acknowledges that the act of whistleblowing should not shield whistleblowers from the reasonable consequences flowing from any involvement in improper conduct. Section 17 of the Act specifically provides that a person s liability for his or her own conduct is not affected by the person s disclosure of that conduct under the Act. However, in some circumstances, an admission may be a mitigating factor when considering disciplinary or other action. Acting in his or her capacity as chief executive officer, the protected disclosure coordinator will decide whether disciplinary or other action will be taken against a whistleblower. Where disciplinary or other action relates to conduct that is the subject of the whistleblower s disclosure, the disciplinary or other action will be taken only after the disclosed matter has been appropriately dealt with. In all cases where disciplinary or other action is being contemplated, the protected disclosure coordinator (acting in his or her capacity as chief executive officer) must be satisfied that it has been clearly demonstrated that: the intention to proceed with disciplinary action is not causally connected to the making of the disclosure (as opposed to the content of the disclosure or other available information); there are good and sufficient grounds that would fully justify action against any non-whistleblower in the same circumstances; and there are good and sufficient grounds that justify exercising any discretion to institute disciplinary or other action. The protected disclosure coordinator will thoroughly document the process, including recording the reasons why the disciplinary or other action is being taken, and the reasons why the action is not in retribution for the making of the disclosure. The protected disclosure coordinator will clearly advise the whistleblower of the proposed action to be taken, and of any mitigating factors that have been taken into account. 13. Management of the person against whom a disclosure has been made The Commission recognises that employees or officers against whom disclosures are made must also be supported during the handling and investigation of disclosures. The Commission will take all reasonable steps to ensure the confidentiality of the person who is the subject of the disclosure during the assessment and investigation process. Where investigations do not substantiate disclosures, the fact that the investigation has been carried out, the results of the investigation, and the identity of any person who is the subject of the disclosure will remain confidential. 175

178 Appendix 23 continued 13. Management of the person against whom a disclosure has been made (continued) The protected disclosure coordinator will ensure that any person who is the subject of any disclosure investigated by or on behalf of a public body is: informed as to the substance of the allegations; given the opportunity to answer the allegations before a final decision is made; informed as to the substance of any adverse comment that may be included in any report arising from the investigation; and has his or her defence set out fairly in any report. Once the allegations in a disclosure have been investigated, the protected disclosure coordinator will formally advise the person who is the subject of the disclosure of the outcome of the investigation. The Commission will give its full support to a person who is the subject of a disclosure where the allegations contained in a disclosure are clearly wrong or unsubstantiated. If the matter has been publicly disclosed, the protected disclosure officer (acting in his or her capacity as chief executive officer) will consider any request by that person to issue a statement of support setting out that the allegations were clearly wrong or unsubstantiated. 14. Criminal Offences The Commission will ensure that officers appointed to handle protected disclosures and all other employees and officers are aware of the following offences created by the Act: a. it is an offence for a person to take detrimental action against a person in reprisal for a protected disclosure being made. The Act provides a maximum penalty of a fine of 240 penalty units or two years imprisonment or both. b. it is an offence for a person to divulge information obtained as a result of the handling or investigation of a protected disclosure without legislative authority. The Act provides a maximum penalty of 60 penalty units or six months imprisonment or both. c. it is an offence for a person to obstruct the Ombudsman or any other person in the exercise of his or her powers under the Act. The Act provides a maximum penalty of 240 penalty units or two years imprisonment or both. d. it is an offence for a person knowingly to provide false information under the Act with the intention that it be acted on as a disclosed matter. The Act provides a maximum penalty of 240 penalty units, two years imprisonment or both. 15. Collating and Publishing Statistics The protected disclosure coordinator will establish a secure register to record the information required to be published in the annual report, and generally to keep account of the status of whistleblower disclosures. The register will be confidential and will not record any information that may identify the whistleblower. The register will contain the following information: the number and types of disclosures made to the public body during the year; the number of disclosures referred to the Ombudsman for determination as to whether they are public interest disclosures; the number and types of disclosed matters referred to the public body by the Ombudsman for investigation; the number and types of disclosures referred by the public body to the Ombudsman for investigation; the number and types of investigations taken over from the public body by the Ombudsman; the number of requests made by a whistleblower to the Ombudsman to take over an investigation by the public body; the number and types of disclosed matters that the public body has declined to investigate; the number and types of disclosed matters that were substantiated upon investigation and the action taken on completion of the investigation; and any recommendations made by the Ombudsman that relate to the public body. 16. Review These procedures will be reviewed annually to ensure that they meet the objectives of the Act and accord with the Ombudsman s guidelines. 176

179 Appendix 24 Staff Profile by Position In accordance with Financial Reporting Direction 29, these tables exclude all statutory appointees, including the Accountable Officer (Acting Executive Commissioner), part-time statutory appointments of the Chairman, Deputy Chair, two Commissioners and the Deputy Chair and two Sessional Commissioners appointed to perform the VCGR functions relating to the licence-awarding phase of the Gambling Licences Review being conducted by the Department of Justice. Full Time Equivalent ( FTE ) by Employment Status Fixed Term Ongoing & Casual Total Employees as at 30 June Employees as at 30 June Full Time Equivalent ( FTE ) for Employment Status by Gender and Age Employees as at 30 June 2011 Employees as at 30 June 2010 Ongoing Fixed Term & Casual Total Ongoing Fixed Term & Casual Gender Male Female Total Age < Over Total Full Time Equivalent ( FTE ) for Employment Status by Classification Classification Ongoing Employees as at 30 June 2011 Employees as at 30 June 2010 Fixed Term & Casual Total Ongoing Fixed Term & Casual VPS VPS VPS VPS VPS VPS STS * EO ** Total * Senior Technical Specialist ** Executive Officer Total Total 177

180 Appendix 25 Other Information Available on Request to the Relevant Minister, Members of Parliament and the Public* The following are prepared and available: a statement that declarations of pecuniary interests have been duly completed by all relevant officers; details of shares held by a senior officer as nominee or held beneficially in a statutory authority or subsidiary; details of publications produced by the entity about the entity and the places where the publications can be obtained; details of changes to prices, fees, charges, rates and levies charged by the entity; details of major external reviews carried out on the entity; details of research and development activities; details of major promotional, public relations and marketing activities undertaken by the entity to develop community awareness of the entity and the services it provides; details of assessments and measures undertaken to improve the occupational health and safety of employees; a general statement on industrial relations within the entity and details of time lost through industrial accidents and disputes; and a list of major committees sponsored by the entity, the purposes of each committee and the extent to which the purposes have been achieved. * Subject to any applicable freedom of information requirements. 178

181 Disclosure Index The Annual Report of the Commission is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Commission s compliance with statutory disclosure requirements. Legislation Requirement Page Ministerial Directions Report of Operations FRD Guidance Charter & Purpose FRD 22B Manner of establishment and the relevant Minister 12 FRD 22B Objectives, functions, powers and duties FRD 22B Nature and range of services provided Part 2 Management & Structure FRD 22B Organisational structure Financial & Other Information FRD 22B Operational and budgetary objectives and performance against objectives 10 FRD 22B Employment and conduct principles 55 FRD 22B Occupational health and safety 54 FRD 29 Workforce data disclosures 54, 177 FRD 15B Executive officer disclosures 55, 99 FRD 22B Summary of the financial results for the year FRD 22B Significant changes in financial position during the year FRD 22B Major changes or factors affecting performance 63 FRD 22B Subsequent events 99 FRD 22B Application and operation of the Freedom of Information Act FRD 22B Compliance with building and maintenance provisions of the Building Act FRD 22B Application and operation of the Whistleblowers Protection Act FRD 25 Victorian Industry Participation Policy disclosures 53 FRD 22B Details of consultancies over $100, FRD 22B Details of consultancies under $100, FRD 12A Disclosure of major contracts 56 FRD 24C Reporting of office-based environmental impacts FRD 22B Statement of availability of other information 61 FRD 10 Disclosure index SD Risk management compliance attestation

182 Disclosure Index continued Legislation Requirement Page Financial Statements Financial statements required under Part 7 of the FMA SD 4.2(b) Comprehensive Operating Statement 68 SD 4.2(b) Balance Sheet 69 SD 4.2(a) Statement of Changes in Equity 70 SD 4.2(b) Cash Flow Statement 71 SD 4.2(c) Compliance with Australian Accounting Standards and other authoritative pronouncements 73 SD 4.2(c) Compliance with Ministerial Directions 73 SD 4.2(d) Rounding of amounts 79 SD 4.2(c) Accountable Officer s declaration 103 Other disclosures in notes to the financial statements FRD 13 Disclosure of Parliamentary appropriations 81 FRD 11 Disclosure of ex-gratia payments 95 FRD 21A Responsible person and executive officer disclosures Legislation Building Act Freedom of Information Act Victorian Industry Participation Policy Act Whistleblowers Protection Act Key: FMA Financial Management Act 1994 FRD Financial Reporting Direction 180

183 Glossary Bingo Bingo is a game played by several people in which random numbers are called out and players cover the numbers on their individual ticket(s). The first person to cover a nominated arrangement of numbers on one ticket and call bingo is declared the winner and awarded the prize. A permit is required for the conduct of bingo unless no fee is charged, directly or indirectly, to participate in the games or the whole of the gross receipts from the session of bingo games is distributed as prizes during that session. Bingo Centre Premises in which more than seven sessions of bingo are conducted within a period of seven consecutive days by community and charitable organisations with the appropriate permits. Bingo Centre Operator A person, whether natural or corporate, holding a licence to operate a bingo centre under the Gambling Regulation Act Casino Means the gaming area within the Melbourne Casino Complex at Southbank, as defined by the casino boundary. Casino Agreement The Casino Agreement (as amended), dated 21 September 1993, is one of the documents governing the relationship between Crown and the Commission. Casino Management Agreement The Casino Management Agreement between Crown and the State of Victoria was entered into on 20 September The agreement has been varied by eight deeds of variation, each having been ratified by the Parliament of Victoria. The most recent variation is in the Eighth Deed of Variation dated 8 July Chief Commissioner s Exclusion Order A decision of the Chief Commissioner of Police under section 74 of the Casino Control Act 1991 to prohibit a person from being in any part of the Casino Complex or on specified racing tracks under the Racing Act Commercial Raffle Organiser A person, other than an employee of the holder of a minor gaming permit, who is retained on a commercial basis to conduct a raffle, in whole or in part. Commission Victorian Commission for Gambling Regulation, referred to by the acronym VCGR throughout the Annual Report. Community Benefit Statement A statement that must be completed each year by club and racing club venue operators indicating the amount of gaming revenue from each venue that has been used to benefit the community. Controlled Contract Certain contracts for the supply of goods and services to the Casino that are allowed by, or reported to, the Commission. Crown Means: a) in relation to the current holder of the casino licence in Victoria, Crown Melbourne Limited; b) in relation to the company which is the holding company of the current holder of the casino licence, Crown Limited whichever the context requires. 181

184 Glossary continued Entitlements Register The electronic register maintained by the VCGR which records the day on which each gaming machine entitlement was allocated, the name and address of the venue operator to which each entitlement was allocated, the geographic area condition and venue condition to which each entitlement is subject and the day on which each entitlement takes effect. Exclusion Order A notice issued to a person by the casino operator, the Chief Commissioner of Police or the Commission excluding that person from entering the gaming area of the Casino, either because the person has misbehaved in the gaming area of the Casino or because the person has asked to be excluded. There is a right of appeal against an exclusion order other than an exclusion order issued by the Chief Commissioner of Police. Gaming Industry Employee The holder of a licence under the Gambling Regulation Act 2003 who is employed to carry out prescribed duties at an approved gaming venue, by a gaming operator, at a bingo centre or who performs any other duties as prescribed in the Gambling Regulation Regulations Gaming Licence Licence held by Tabcorp Holdings Ltd authorising the ownership and operation of electronic gaming machines in licensed venues. Gaming Machine Entitlement An entitlement authorising a venue operator to acquire approved gaming machines and restricted components and to conduct gaming on one approved gaming machine in an approved venue operated by the venue operator from Gaming Operator s Licence Licence held by Tatts Group Limited authorising the ownership and operation of electronic gaming machines in licensed venues. Gross Gaming Revenue The total amount received for gaming at the Casino, less the amount of prizes paid out as winnings. Internal Control Manual A set of documents approved by the Commission and detailing the casino operator s system of controls and procedures to be implemented in the Casino. Intralot Intralot means Intralot Australia Pty Ltd, the holder of a Victorian public lottery licence authorising the operation of specified public lotteries with effect from 1 July Large Raffle A raffle where the total prize pool: will exceed $100,000; or will exceed $60,000 and the ticket price will be $35 or more. Special conditions apply in addition to those for a standard Raffle. Lucky Envelope A lottery ticket where the result is pre-determined. The ticket must be made so that the result cannot be seen until after it is sold. Melbourne Casino Complex The entire entertainment and hotel complex at Southbank including the Casino. 182

185 Monitor A person who will provide an independent monitoring system from 2012 to which all gaming machines must be connected before a game can be played on the gaming machine. The Monitor will ensure the integrity of gaming machine transactions and provide data and information on gaming machines for regulatory, taxation and research purposes. Net Gaming Revenue A term for that proportion of the gaming dollar that is not returned to players. This term is interchangeable with the terms player loss and gaming expenditure. Pooling Scheme An arrangement where community and charitable organisations conducting sessions of bingo pool the proceeds from their sessions and share in the distribution from the pool. Raffle A lottery in which a certain sum has been paid to enter or participate and where no money is offered as a prize except in the case of a prize for travel or accommodation where the value of the money does not exceed 10 per cent of the total value of the prize. Only organisations declared by the Commission to be community or charitable organisations may conduct a raffle. If the total prize value exceeds $5,000, a permit must first be obtained from the Commission. Roll of Manufacturers, Suppliers and Testers List of persons, whether natural or corporate, who manufacture or supply gaming machines or restricted components to gaming operators or who supply testing services for the evaluation of gaming machine types and games. Under the Gambling Regulation Act 2003 the Roll of Manufacturers, Suppliers and Testers is maintained by the Commission. Tabcorp Means, in relation to the current holder of the wagering licence and the gaming licence in Victoria under Part 3 of Chapter 4 of the Gambling Regulation Act 2003, Tabcorp Holdings Limited, whichever the context requires. Tatts means: a) in relation to the holder of the gaming operator s licence in Victoria, Tatts Group Limited, or its predecessor, Tattersall s Limited; or b) in relation to the holder of a lotteries licensee in Victoria, Tattersall s Sweeps Pty Ltd whichever the context requires. Trade Promotion Lottery A lottery, competition or game conducted by either a trade or business for the promotion of that trade or business. A permit is required for any such lottery with a total prize value greater than $5,000. Venue Operator A person who is the holder of a club venue operator s licence or a hotel venue operator s licence under the Gambling Regulation Act Both a club venue operator s licence and a hotel venue operator s licence allow the holder to possess, for operation at approved premises, electronic gaming machines obtained from a gaming operator. A club venue operator s licence also allows the holder to hold club gaming machine entitlements, which will allow the venue operator to own and operate electronic gaming machines at approved club premises from A hotel venue operator s licence also allows the holder to hold hotel gaming machine entitlements, which will allow the venue operator to own and operate electronic gaming machines at approved hotel premises from Withdrawal of Licence Means a decision of the casino operator under section 70 of the Casino Control Act 1991 to withdraw the future right of a person to enter the Melbourne Casino Complex (such a decision cannot be appealed). 183

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188 Level 5, 35 Spring Street Melbourne Victoria 3000 Australia PO Box 1988, Melbourne Victoria 3001 Australia Telephone Facsimile