Pokies Machines and their Regulation in Australia

In Australia “poker machines” or “pokies” are officially termed Gaming Machines. Australian-style gaming machines frequently use video displays to simulate physical reels, usually five. These machines have additional bonus features and second-screen features such as free games and bonus levels. They also allow for multiple lines say up to 200 or multiple ways up to 3,125 to be played. The laws regulating the use of gaming machines in Australia are a matter for State governments, and as such they vary between States.

Pokies Machines in Australia

Pokies (Gaming) machines are found in casinos approximately one in each major city as well as pubs and clubs in some states usually sports, social, or RSL clubs. The first Australian state to legalize this style of gambling was New South Wales in 1956 when they were made legal in all registered clubs in the state. There are suggestions that the proliferation of poker machines has led to increased levels of problem gambling; however, the precise nature of this link is still open to research.

In 1999 the Australian Productivity Commission reported that Australia had nearly 180,000 poker machines, more than half of which were in New South Wales. This figure represented 2.6% of all the gambling machines in the world, and on a per capita basis, Australia had roughly five times as many gaming machines as the United States. Revenue from gaming machines in pubs and clubs accounts for more than half of the $4 billion in gambling revenue collected by state governments in fiscal year 2002 – 03

There is at least one casino in each major city. In 1956, New South Wales was first to legalise gaming machines for all registered clubs and pubs.
There are nearly 200,000 machines in Australia, and 100,308 of these are in NSW. The national figure is five times that of the US and represents around 20 per cent of all gaming machines in the world.
Revenue from gaming machines in pubs and clubs accounted for more than half of the gambling revenue collected by state governments in 2002-3.
In NSW and Victoria the mandatory return rate for machines in pubs and clubs in 87 per cent, and that applies to those in Melbourne’s Crown Casino too.
In Queensland, the return rate is 85 per cent in pubs and clubs, while casino machines must have a rate of 90 per cent.
Machines that accept $100 notes were banned in December 2007, except for in Crown Casino, where VIP members may still use them.
Machines with an automatic play button (that continued betting without any action from the gambler) were also banned.
All gaming machines in Victoria have an information screen showing return to player percentage and the odds of winning.
Machines in pubs are limited to paying out a maximum of $10,000 for a win.
In Western Australia, gaming machines are banned everywhere except in Burswood casino.

The Interactive Gambling Act (IGA) 2001

The Interactive Gambling Act (IGA) was passed in June 2001 by the Australian Government with the purpose of protecting the Australian public from the detrimental effects of online gambling.

The IGA is targeted at online gambling operators and makes it an offence for them to offer ‘real-money’ online interactive gambling to residents of Australia. It also makes it illegal for online gambling operators to advertise ‘real-money’ interactive gambling services (such as online poker and casino) to Australian citizens.

Accessing and using the interactive gambling services is not an offence. It is also allowed to companies based in Australia to offer their gambling services to gamblers located outside Australia with the exception of those countries that were called ‘designated countries’. A country can be called designated upon request of the government of this country and on condition that there is corresponding legislation in this country.

The law applies to all interactive gambling operators whether they are Australian or foreign owned or whether they are based in Australia or offshore.

The offence of offering Interactive Gambling Services to Australian residents carries a maximum fine of $220,000 per day for individuals within an Interactive Gambling operation or $1.1 million per day for the actual company.

The responsibility of upholding the IGA is the responsibility of individual gambling operators. The average Australian citizen cannot be punished for signing up and gambling online.

An offence will not be deemed to have been committed if the online gambling operator could not, with due diligence, have known that they were offering their services to residents of Australia. The IGA defines ‘reasonable diligence’ in the following ways:

Whether the operator informed potential customers about the law preventing operators offering Interactive Gambling services to Australian residents.
Whether a customer’s contracts with the online gambling operators stated that the customer could not use the service whilst physically present in Australia
Whether the customers had to provide personal details such as address and whether the customers’ details suggested whether they were residents of Australia

The Regulation of Pokies Machines in Australia

In Australia there are some federal regulations and standards for gaming machines but the majority of the gaming machine rules and regulations are controlled by the individual States and Territories.

These laws vary from state to state and cover everything from minimum return to player, maximum bets, how winnings are paid out and where the games are found.

Regulations by State and Territories

Australian Capital Territory

The ACT has a total of 5,200 gaming machines all of which are located in clubs and hotels. Casino Canberra is the only casino in the ACT and does not have any gaming machines.

Total Machines : 5,200
Machine Locations : Clubs (5,114) and Hotels (60)
24 Hour Gambling : No (5 hour break)
Cheque Payouts : Winnings over $1,200 are paid by cheque
Note Acceptors : Accept $5, $10 and $20 notes
Game Frequency : No restrictions
Maximum Bet : $10 per spin
Win Limits : None
Limits on Lines / Ways : None
Minimum RTP : 87%
Regulator : ACT Gambling and Racing Commission

Northern Territory

The Northern Territory has 2,195 gaming machines located in clubs, hotels and the two casinos operating in the territory – Sky City and Lasseters.

Total Machines : 2,195
Machine Locations : Clubs & Hotels (1,190), Casinos (1,005)
24 Hour Gambling : No (Hotels & Clubs), Yes (Casinos)
Cheque Payouts : Winnings over $500 are paid by cheque
Note Acceptors : Banned in hotels and clubs.
Game Frequency : No restrictions (National Standards)
Maximum Bet : $5 per spin (Clubs / Hotels), No Limit (Casino)
Win Limits : None
Limits on Lines / Ways : None
Minimum RTP : 85% (Clubs / Hotels), 88% (Casinos)
Regulator : NT Gambling and Licensing

New South Wales

New South Wales leads the country with 100,500 gaming machines which are located in clubs, hotels and the Star Casino in Sydney.

Total Machines : 100,500
Machine Locations : Clubs & Hotels (99,000), Casino (1,500)
24 Hour Gambling : No (Hotels & Clubs), Yes (Casino)
Cheque Payouts : Winnings over $5000 are paid by cheque
Note Acceptors : Accept $5, $10, $20, $50 and $100 notes
Game Frequency : No restrictions (National Standards)
Maximum Bet : $10 per spin (Clubs / Hotels), No Limit (Casino)
Win Limits (Clubs /Hotels) : $10,000, $500,000 (Inter-venue)
Win Limits (Casino) : None
Limits on Lines / Ways : None
Minimum RTP : 85%
Regulator : NSW Office of Liquor, Gaming and Racing

Queensland

There are almost 50,000 machines found in Queensland in clubs, hotels and four casinos located around the State with Brisbane’s Treasury Casino having the most games.

Total Machines : 47,811 (may vary)
Machine Locations : Clubs & Hotels (44,015), Casino (3,796 may vary)
24 Hour Gambling : No (Hotels & Clubs), Yes (Casino)
Cheque Payouts : Winnings over $5000 are paid by cheque
Note Acceptors : Accept $5, $10, $20, $50 notes. Casinos unrestricted.
Game Frequency : 3 seconds between game start and finish
Maximum Bet : $5 per spin (Clubs / Hotels), No Limit (Casino)
Win Limits (Clubs /Hotels) : $10,000, $25,000 (Jackpot)
Win Limits (Casino) : None
Limits on Lines / Ways : Maximum of 50 lines
Minimum RTP : 85% – 92% (Clubs / Hotels), 90% (Casinos)
Regulator : QLD Office of Liquor and Gaming

South Australia

South Australia has a total of 13,113 machines which are found in clubs, hotels and Adelaide Casino.

Total Machines : 13,113
Machine Locations : Clubs & Hotels (12,118), Casino (995)
24 Hour Gambling : No (Clubs / Hotels), Yes (Casino)
Cheque Payouts : Winnings over $1,000 can be paid by cheque
Note Acceptors : Banned. Machines accept coins only
Game Frequency : Minimum spin rate of 3.5 seconds
Maximum Bet : $10 per spin
Win Limits : $10,000 (Clubs / Hotels), No Limit (Casino)
Limits on Lines / Ways : None
Minimum RTP : 87.5%
Regulator : Office of Liquor and Gaming

Tasmania

In Tasmania there are 3,680 machines locates in both hotels and clubs and at the two casinos (Wrest Point and Country Club)

Total Machines : 3,680
Machine Locations : Clubs & Hotels (2,500), Casino (1,680)
24 Hour Gambling : No (Clubs / Hotels), Yes (Casino)
Cheque Payouts : Winnings over $1,000 are be paid by cheque
Note Acceptors : Banned in Hotels and Clubs
Game Frequency : Minimum spin rate of 3 seconds
Maximum Bet : $5 per spin
Win Limits : None
Limits on Lines / Ways : Maximum of 30 lines
Minimum RTP : 85%
Regulator : Department of Liquor and Gaming

Victoria

Gaming machines in Victoria total 30,000 and are found in hotels, clubs and at Crown Melbourne which has the largest amount of games in Australia.

Total Machines : 30,000
Machine Locations : Clubs & Hotels (27,500), Casino (2,500)
24 Hour Gambling : No (Clubs / Hotels), Yes (Casino)
Cheque Payouts : Winnings of $1,000 or more are be paid by cheque
Note Acceptors : Accept $5, $10, $20 and $50 notes
Game Frequency : Minimum spin rate of 2.14 seconds
Maximum Bet : $5 (Clubs / Hotels), None (Casino)
Win Limits : None
Limits on Lines / Ways : None
Minimum RTP : 87%
Regulator : VIC Commission for Gaming Regulation

Western Australia

In WA there are a total of 1,750 gaming machines located at Crown Perth.

Total Machines : 1,750
Machine Locations : Clubs & Hotels (N/A), Casino (1,750)
24 Hour Gambling : Yes
Cheque Payouts : No regulations
Note Acceptors : Unlimited
Game Frequency : National Standards
Maximum Bet : $225
Win Limits : None
Limits on Lines / Ways : None
Minimum RTP : 90%
Regulator : Department of Gaming, Racing and Liquor

Answers to few questions related to regulation of pokies in Victoria, Australian capital territory and in General

How is gambling regulated in Victoria?

The laws governing the conduct of gambling, the licensing of the gambling industry and the enforcement of licensees’ legal obligations are set out in the following legislation:

Gambling Regulation Act 2003
Casino Control Act 1991
Casino (Management Agreement) Act 1993
Gambling Regulation Regulations 2015
Casino Control (Licence Fees) Regulations 2015

The Gambling Regulation Act 2003 (Vic) is the main piece of legislation governing gambling in Victoria. It covers the legal operation of gaming machines, wagering and betting competitions, lotteries, keno games, bingo, raffles, and some aspects of interactive gaming not already governed by Commonwealth legislation under the Interactive Gambling Act 2001.

The Act also gives the Victorian Commission for Gambling and Liquor Regulation the power to regulate gambling and liquor in Victoria. The commission is an independent decision-making authority accountable to the Minister and Parliament of Victoria.

The commission is responsible for gambling and liquor licensing and undertakes compliance activities to prevent and detect breaches, while also informing and educating industry and the public about regulatory practices and requirements.

How can you have a say in what pokies are in your area?

In order to install new or additional pokie machines, a gaming venue needs (1) a license from the Victorian Commission for Gambling and Liquor Regulation (VCGLR) and (2) a planning permit issued by their local Council.

Before granting a venue a licence for new or additional pokie machines the VCGLR will hear written submissions and presentations from the local council as the representative of the community.
If you wish your council to take a position on an application for a licence to the VCGLR you should contact your local council or councillor(s). Note that councils usually have 60 days to respond to applications.
When an application for a planning permit is lodged with a local Council, the gaming venue may be required to send letters notifying neighbours of their proposal or posting an advertisement in their venue for a 14 day period.
If you object to a proposal for the installation or addition of pokie machines in your community, you can have your say and file a submission with your local Council. You can object as an individual or as a representative of a local community group that will be adversely affected by the planning proposal.
Although objections can be filed with the Council up until when the decision is made, objections are usually filed within the 14 day advertising period.
If the Council approves the planning permit you can then file an application for review of this decision in the Victorian Civil and Administrative Tribunal (VCAT) under the Planning and Environment List. In this review, VCAT considers the social and economic impacts on the community of the gaming venue’s proposal.
To object to VCAT about the Council’s decision, you must fill out an objector’s application form and send it to VCAT within 21 days of receiving the ‘Notice of Decision to Grant a Permit’ from your local Council.

How many pokies are there in Victoria?

The limit on pokie machines in Victoria was capped is 30,000 machines. As of 3 April 2015, 26,403 pokie machines operated at clubs and hotels in Victoria, including 18,760 located in the Melbourne metropolitan area. Additional to these pokies are 2,628 pokie machines at Crown Casino.

Therefore, in total, Victoria had 29,031 operational pokie machines at 30 April 2015 (Crown Melbourne, Facts and Figures).

Who determines the opening hours for gambling areas in gambling venues?

Opening hours vary from venue to venue and will depend on the provisions of the liquor license. In regards to gambling areas in gambling venues, apart from the Crown Casino which is permitted to operate 24 hours a day, gambling is not permitted for more than 20 hours a day.

All gambling venues have a liquor licence so their opening hours will depend on what their individual liquor licence allows. Although gambling is permitted for 20 hours a day, a venue may not hold a liquor license for this many hours. In this case, the lesser number of trading hours will apply.

Can a venue change its current pokies for new ones?

Yes, a venue operator can purchase new machines with different themes or games to replace existing ones provided the new machines are models approved by the Victorian Commission for Gambling and Liquor Regulation (VCGLR).

The operator cannot increase the number of machines in the venue without getting permission from the VCGLR.
If a venue operator acquires new gaming machines but does not install the machines in the gaming area, then under sections 3.5.15(1A) and (b) of theGambling Regulation Act 2003 the machines must be stored in an area approved by the VCGLR.
Likewise if an operator replaces the old machines with new ones the old ones must be stored in an approved area until disposed of or sold.
If a venue operator holding gaming machine entitlements wishes to sell a gaming machine, they may do so under section 3.4.1(ac) of the Gambling Regulation Act 2003.
A venue operator with no gaming machine entitlements requires permission of the VCGLR under s 3.2.2(2B) of the Gambling Regulation Act 2003, to be in possession of a gaming machine, to sell a gaming machine, or to dispose of a gaming machine.

How long are pokies licenses in Victoria granted for?

To operate pokies in Victoria, a club or hotel must hold a venue opertaor licence.

A license to operate pokie machines is granted for a maximum 10 year period. Venue operators are responsible for applying to the Victorian Commission for Gambling and Liquor Regulation (VCGLR) to renew their license before it expires.

Why are there pokies venues in shopping strips or shopping centres?

Pokies are prohibited in shopping strips and shopping centres under clauses 52.28-4 to 52.28-5 of the Victoria Planning Provision (VPP). However, pokies in the Capital City Zone (aka the Melbourne CBD) or in venues approved prior to 18 October 2006 are allowed to continue operating even if the venue is located in a shopping strip or shopping centre. Some of the venues with the highest losses continue to be those in shopping centres. These venues, however, cannot increase the number of machines they have above the number permitted before 18 October 2006.

Are new pokies venues allowed in shopping strips or shopping centres?

Yes and no. The installation or use of gaming machines in a strip shopping centre is prohibited under clause 52.28-5 of the Victoria Planning Provisions (VPP). Therefore, in general new pokies venues are not permitted in shopping strips or shopping centres.

However, the Capital City Zone is exempt from this prohibition. Therefore, new pokies venues may be permitted in shopping strips or centres in the Melbourne CBD.

A strip shopping centre is defined by meeting all of the criteria below:

It is in an area zoned for commercial use
It consists of a least two separate buildings on at least two separate adjoining lots
It is an area where a significant proportion of the buildings are shops, and
It is an area where a significant proportion of the lots abut a road that the public has access to.

What are the objectives of the ACT government for regulation of gaming machines?

The principal objectives with gaming machine regulation and control are to ensure that:

Gaming machine operations are conducted in accordance with the provisions of the Gaming Machine Act 2004 (the Act) and the Gaming Machine Regulations 2004 (the Regulations);
gaming machine operations in the ACT are of a high standard, are conducted fairly and without corruption and reflect the standards expected by the community and the ACT Government;
gaming machines and all associated technical equipment approved for installation in the ACT are of a high standard;
ACT Government imposed taxes and fees are collected in an effective, accurate and cost efficient way; and
as far as possible, the compliance effort required by licensees is minimised without compromising the effectiveness of the regulatory controls.
Under the Act a person may apply to the Commission for a licence to operate gaming machines. Restrictions apply in relation to class and number of gaming machines that can be operated under a licence by an eligible person.

What is pokies machine licence?

A gaming machine licence authorises the holder to possess and operate gaming machines. Each licence receives authorisation for an approved number of gaming machines.

What do you mean by pokies machine dealer’s licence?

A gaming machine dealer’s licence authorises the holder to manufacture gaming machines and prescribed gaming components and to sell or supply these to the State Procurement Board or to another gaming machine dealer.

What is pokies machine service licence?

A gaming machine service licence authorises the licensee to install, service and repair approved gaming machines, prescribed gaming machine components and gaming equipment.

What are pokies machine entitlements in South Australia?

Gaming machines cannot be operated unless the licensee holds one or more gaming machine entitlements. One gaming machine entitlement allows a licensee to operate one gaming machine. Entitlements may only be purchased through the trade system.

To be eligible to apply for a gaming machine licence a venue must hold either a hotel licence, club licence or a special circumstances licence (where that licence was granted on surrender of a hotel or club licence or is a major sporting venue or headquarters for a sporting code) under the Liquor Licensing Act 1997 as for south Australia. In South Australia, gaming machine licensees may acquire their own machines by purchase, lease, hire purchase or rental.

How can you obtain licence for pokies machines and what are the requirements?

To obtain licence for pokies machines you need to click on the links provided above under each Australian state regulator and fill the form available under each state regulator and submit your required documents so that your application is processed timely.