EXPLANATORY STATEMENT
Subject - Gaming Supervision Direction 2016
The Gaming Supervision Act 1998 (NI), in combination with the Gaming Act 1998 (NI) and the Bookmakers and Betting Exchange Act 1998 (NI) set out the framework for the regulation and operation of online gaming.
Section 25 of the Gaming Supervision Act 1998 (NI) provides the responsible Commonwealth Minister with the power to give directions of a general or specific nature to the Norfolk Island Gaming Authority (‘the Authority’).
The Commonwealth Minister has delegated the power to give a direction to certain positions, including persons holding the position of SES Band 2 in the Department of Infrastructure and Regional Development, in the Minister’s Norfolk Island Delegation Instrument 2015 (No 2).
The Gaming Supervision Direction 2016 (‘the Direction’) has been signed by a person holding the position of SES Band 2 in the Department of Infrastructure and Regional Development.
The Direction prohibits the Authority from issuing and renewing gaming licences, and requires the Authority to seek approval from a delegate of the Commonwealth Minister before performing certain other functions such as varying a licence or transferring a licence. It also requires the Authority to issue a direction to the Director of Gaming to act in a manner which gives effect to the Direction. It also requires the Authority to cooperate with a planned audit of the Authority.
As the Direction is machinery in nature, consultation was not undertaken.
Details of the Direction are set out in the Attachment.
The Direction is a legislative instrument for the purpose of the Legislation Act 2003.
The whole of the Direction commences on the day of registration.
Authority: Subsection 25(1) of the Gaming Supervision Act 1998 (NI)
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Gaming Supervision Direction 2016
This legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of Legislative Instrument
The Direction prohibits the Authority from issuing and renewing gaming licences, and requires the Authority to seek approval from a delegate of the Commonwealth Minister before performing certain other functions such as varying a licence or transferring a licence. It also requires the Authority to issue a direction to the Director of Gaming to act in a manner which gives effect to the Direction. It also requires the Authority to cooperate with a planned audit of the Authority.
Human rights implications
This disallowable legislative instrument does not engage any of the applicable rights or freedoms.
Conclusion
This disallowable legislative instrument is compatible with human rights as it does not raise any human rights issues.
ATTACHMENT
Details of the Gaming Supervision Direction 2016
Part 1—Preliminary
Clause 1 – Name of Instrument
Clause 1 provides the title of the Direction is the Gaming Supervision Direction 2016.
Clause 2 - Commencement
Clause 2 provides that the Direction commences on the day it is registered.
Clause 3 – Definitions
Clause 3 sets out a number of definitions which are relevant to the Instrument.
‘Authority’ is defined as the Norfolk Island Gaming Authority, which is established under section 5 of the Gaming Supervision Act 1998 (NI).
‘BBE Act’ is defined to mean the Bookmakers and Betting Exchange Act 1998 (NI).
‘Commonwealth Minister’ is defined to have the same meaning as in the Gaming Supervision Act 1998 (NI).
‘Delegate of the Commonwealth Minister’ is defined to mean a person who is a delegate for the purposes of section 25 of the Gaming Supervision Act 1998 (NI).
‘Director’ is defined to mean the Director of Gaming, a position which is appointed under paragraph 15(1)(a) of the Gaming Supervision Act 1998 (NI).
‘Gaming Act’ means the Gaming Act 1998 (NI).
‘Gaming Supervision Act’ means the Gaming Supervision Act 1998 (NI).
Clause 4 – Direction to the Authority about the performance of certain functions and duties under the Gaming Act.
This clause contains the delegate’s direction to the Gaming Authority in relation to functions and duties under the Gaming Act.
Paragraph 4(a) provides that the Authority must not grant a licence under section 7 or subsection 28D(1) of the Gaming Act. Section 7 relates to licences to conduct, operate or supervise interactive home gaming. Subsection 28D(1) relates to licences to conduct an internet lottery business in or from Norfolk Island, or any other purposes or activities which the Authority thinks fit and specifies in the licence.
Paragraph 4(b) provides the Authority must not enter into an agreement under section 28C(1) of the Gaming Act. Section 28C(1) relates to agreements with a person to conduct an internet lottery business in or from Norfolk Island.
Paragraph 4(c) provides the Authority must not deal with or grant an application for renewal of a licence made under section 8 of the Gaming Act. Section 8 allows a licensee to apply for renewal of an interactive home gaming licence not later than three months prior to its expiry. Subsection 8(2) of the Gaming Act provides that a licensee has no entitlement or legitimate expectation of renewal of a licence.
Paragraph 4(d) requires the Authority not to approve the variation of a licence under section 10 of the Gaming Act without prior approval from the Commonwealth Minister or a delegate of the Commonwealth Minister. Section 10 of the Gaming Act provides the Authority may vary the terms of a licence. Paragraph 4(d) of the Direction requires the Authority to gain approval from either the Commonwealth Minister or a delegate of the Commonwealth Minister before approving the varying of the licence.
Paragraph 4(e) requires the Authority not to approve the transfer of a licence under section 11 of the Gaming Act without prior approval from the Commonwealth Minister or a delegate of the Commonwealth Minister. Section 11 of the Gaming Act provides the Authority may approve the transfer of an interactive gaming licence.
Paragraph 4(f) requires the Authority not to approve the assignment of a licence under section 28J of the Gaming Act without prior approval from the Commonwealth Minister or a delegate of the Commonwealth Minister. Section 28A of the Gaming Act provides the Authority may approve the assignment of a licence. Paragraph 4(f) of the Direction requires the Authority to gain approval from either the Commonwealth Minister or a delegate of the Commonwealth Minister before approving the transfer of the licence.
Paragraph 4(g) requires the Authority not to dispose of or destroy any item of correspondence or other document held by the Authority or the Director that relates to the functions of the Authority or the Director.
Paragraph 4(h) requires the Authority to use its power under section 15(5) of the Gaming Supervision Act to direct the Director of Gaming to give effect to the directions given in clause 4 of the Directions.
Clause 5 – Direction to the Authority about the performance of certain functions and duties under the BBE Act
This clause contains the delegate’s direction to the Gaming Authority in relation to functions and duties under the BBE Act.
Paragraph 5(a) provides the Authority must not grant a licence under section 8 of the BBE Act. Section 8 relates to licences to act as a book maker in respect of race meetings, sports betting, or both.
Paragraph 5(b) provides the Authority must not deal with or grant any application for renewal of a licence under section 9 of the BBE Act. Section 9 allows a licensee to apply for renewal of a licence issued under the BBE Act not later than three months prior to its expiry. Subsection 9(2) of the BBE Act provides that a licensee has no entitlement or legitimate expectation of renewal of a licence.
Paragraph 5(c) requires the Authority not to approve the variation of a licence under section 11 of the BBE Act without prior approval from the Commonwealth Minister or a delegate of the Commonwealth Minister. Section 11 of the BBE Act provides the Authority may vary the terms of a licence.
Paragraph 5(d) requires the Authority not to approve the transfer of a licence under section 12 of the BBE Act without prior approval from the Commonwealth Minister or a delegate of the Commonwealth Minister. Section 12 of the BBE Act provides the Authority may approve the transfer of a licence.
Paragraph 5(e) requires the Authority not to dispose of or destroy any item of correspondence or other document held by the Authority or the Director that relates to the functions of the Authority or the Director.
Paragraph 5(f) requires the Authority to use its power under section 15(5) of the Gaming Supervision Act to direct the Director of Gaming to give effect to the directions given in clause 5 of the Directions.
Clause 6 – Direction to the Authority about the performance of certain functions and duties under the Gaming Supervision Act
Clause 6 contains a general direction to the Authority.
Paragraph 6(a) provides that if an external audit of the operations of the Authority or the Director has been arranged, the Authority must cooperate with that external audit. That cooperation includes but is not limited to the provision of information, assistance and resources to the auditor within any timeframe that the auditor may specify.
Paragraph 6(b) requires the Authority to use its power under section 15(5) of the Gaming Supervision Act to direct the Director of Gaming to give effect to the directions given in clause 6 of the Directions.