2

2008

LEGISLATIVE ASSEMBLY OF THE
NORTHERN TERRITORY

MINISTER FOR RACING GAMING AND LICENSING

Gaming Machine Amendment (Anti-Proliferation) Bill 2008
SERIAL NO. 8

EXPLANATORY STATEMENT
GENERAL OUTLINE
The Gaming Machine Amendment (Anti-Proliferation) Bill 2008 amends the Gaming Machine Act and the 
Gaming Machine Regulations so as to provide a mechanism whereby restrictions may be imposed on gaming machine numbers, and other matters related to gaming machines in the Northern Territory, by regulation.  This amendment will allow government to better manage gaming machine numbers in the Northern Territory.
The Bill also provides that the Northern Territory Licensing Commission must reject without further inquiry any application for the grant of a gaming machine licence or for an increase in machines authorised under a licence if it would result in a breach of the maximum fixed number of machines in the Northern Territory set by regulation.
The Bill also sets out the new taxation percentage rates that apply to gross monthly profits of premises with gaming machine licences.

NOTES ON CLAUSES
Part 1	Preliminary matters
Clause 1.	Short Title
This is a formal clause which provides for the citation of the Bill.  
The Bill when passed may be cited as the Gaming Machine 
Amendment (Anti-Proliferation) Act 2008.
Clause 2.	Commencement
The Act is taken to have commenced on 18 July 2008, other than section 10 of the Act which will commence on the date fixed by the Administrator by Gazette notice. 
Part 2	Amendment of Gaming Machine Act
Clause 3.	Act amended
The clause provides that this Part amends the Gaming Machine Act. 
Clause 4	New Part 2A
This clause inserts a new Part 2A, setting out restrictions on gaming machine numbers in the Gaming Machine Act.
New section 22B provides that restrictions may be imposed on gaming machine numbers by regulation.  This clause provides that regulations may restrict the aggregate number of gaming machines authorised for use under a gaming machine licence in the Northern Territory to a maximum fixed number or the aggregate number of gaming machines authorised for use under gaming machine licences in a particular part of the Northern Territory to a maximum fixed number.  This clause also provides that regulations may impose a restriction of any kind on gaming machine numbers or impose any combination of restrictions on gaming machine numbers.
This new section also provides that the first regulations under this section may operate retrospectively from the date this section is taken to have commenced, that is, 18 July 2008.
Clause 4 also inserts a new section 22C which provides that the Northern Territory Licensing Commission must reject an application if the grant of an application for a gaming machine licence or for an increase in the number of gaming machines authorised for use under a gaming machine licence would result in a contravention of the maximum fixed number of gaming machines for use in the 
Northern Territory.  The clause provides that the Commission must reject the application without further inquiry. 
Clause 5		Amendment of section 25 (Consideration of application)
This clause amends section 25(14) of the Gaming Machine Act by omitting section 25(14)(b) and substituting a new paragraph (b) which provides that the number of gaming machines determined under section 25(12) is not to result in contravention of a restriction imposed under Part 2A.
Clause 6	Amendment of section 149 (Gaming machine tax)
This clause amends section 149 by omitting subsection 149(4) and substituting a new subsection 149(4) that provides that the percentage prescribed for subsection (3) may vary according to the amount of the gross monthly profit and different percentages may be prescribed for different components of the gross monthly profit. 
Clause 7	Amendment of section 194 (Regulations) 
This clause amends section 194 by omitting section 194(3).
Part 3	Amendment of Gaming Machine Regulations
Clause 8	Regulations amended
This clause provides that this Part amends the 
Gaming Machine Regulations. 
Clause 9	New Part 1A
This clause inserts a new Part 1A after regulation 2 which sets out restrictions on gaming machine numbers.
New Regulation 2AA provides that the aggregate number of gaming machines authorised for use under gaming machine licences in the Northern Territory is restricted to a maximum of 1,190.  
Clause 10	Repeal and substitution of regulation 33
This clause repeals regulation 33 and substitutes a new regulation 33.
New regulation 33 provides that for section 149(3) of the Act, a component of the gross monthly profit of licensed premises of category 1 and category 2 is liable to tax at the percentage rates set out in the table.  This provides that for gross monthly profits up to $10,000 premises will be taxed at 12.91%; for gross monthly profits from $10,001 up to $100,000 premises will be taxed at 22.91%; for gross monthly profits from $100,001 up to $200,000 premises will be taxed at 32.91%; for gross monthly profits from $200,001 and above premises will be taxed at 42.91%.