EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Local Government, Territories and Roads
Subject- Lotteries Commission Act 1990 (WA)(CI)
Player Loss Determination [Section 24A]
The purpose of the Determination is to ensure that if a designated authority conducts a lottery in the Territory of Christmas Island it must pay to the Commonwealth a levy of an amount equal to the percentage of player loss set out in the determination.
The Lotteries Commission Amendment Ordinance 2005 (No ) inserts a new formula for the calculation of the levy payable to the Commonwealth by the designated authority that conducts lotteries in the Territory based on a percentage of player loss. A designated authority is a body authorised by the Commonwealth to conduct lotteries in the Territory. Tattersall’s Sweeps Pty Ltd and Footy Consortium Pty Ltd are designated authorities under the Lotteries Commission (Designated Authorities) Regulations 1998 (WA)(CI).
The definition of "player loss" is based on section 5.4.3(5) of the Victorian Gambling Regulation Act 2003 ("the Victorian Act"). In effect "player loss" is equivalent to the total subscriptions of participants in the lottery minus the return to those participants through prizes.
The determination makes no changes to the actual amount of levy currently being received by the Commonwealth, which the Victorian Government collects on behalf of the Commonwealth.
This determination commences on the same day that the Lotteries Commission Amendment Ordinance 2005 (No ).
The Determination sets out the percentages of “player loss” for the various games conducted by the designated authorities.
Overview
The Lotteries Commission Amendment Ordinance 2005 (No. 4) introduced a Player Loss Determination under Section 24A of the Lotteries Commission Act 1990 (WA) to address the need for a consistent and transparent method of calculating the levy payable to the Commonwealth by designated authorities conducting lotteries in the Territory of Christmas Island. This Determination ensures that the designated authorities, namely Tattersall’s Sweeps Pty Ltd and Footy Consortium Pty Ltd, pay a levy to the Commonwealth based on a percentage of player loss. The determination is predicated on the concept of "player loss" as defined in the Victorian Gambling Regulation Act 2003, which equates to the total subscriptions of participants minus the return to those participants through prizes. The intent of the Determination is to maintain the status quo in terms of the actual levy amount being collected by the Commonwealth, which the Victorian Government currently manages on behalf of the Commonwealth. This measure was enacted by the Parliament of Western Australia and aims to provide a clear policy framework for levy collection in the lottery sector within the Territory.
Scope and Application
The Player Loss Determination under the Lotteries Commission Act 1990 (WA) governs the percentage of player loss that must be paid to the Commonwealth by designated authorities conducting lotteries in the Territory of Christmas Island. This legislation applies to entities authorised by the Commonwealth to conduct lotteries within the Territory, specifically Tattersall’s Sweeps Pty Ltd and Footy Consortium Pty Ltd, as designated under the Lotteries Commission (Designated Authorities) Regulations 1998 (WA)(CI). The scope of this determination is to ensure that the designated authorities remit to the Commonwealth a levy equivalent to a specified percentage of player loss, which is defined as the total subscriptions of lottery participants minus the prizes returned to them, following the Victorian Gambling Regulation Act 2003. The application of this legislation is geographically confined to the Territory of Christmas Island, and it does not alter the existing amount of levy received by the Commonwealth, which is collected by the Victorian Government on behalf of the Commonwealth. The determination is effective from the commencement date of the Lotteries Commission Amendment Ordinance 2005 (No ).
Key Provisions
The Player Loss Determination (F2005L01232) under the Lotteries Commission Act 1990 (WA)(CI) outlines the specific percentages of player loss that designated authorities must remit to the Commonwealth as a levy. This levy is calculated based on the difference between total participant subscriptions and the prizes awarded, as defined in section 5.4.3(5) of the Victorian Gambling Regulation Act 2003. The determination ensures that designated authorities such as Tattersall’s Sweeps Pty Ltd and Footy Consortium Pty Ltd, which are authorized to conduct lotteries in the Territory of Christmas Island, adhere to the new formula for calculating the levy (section 24A). It is important to note that this determination does not alter the total levy amount currently received by the Commonwealth, which is collected by the Victorian Government.
The obligations imposed by this determination on designated authorities are clear and straightforward. These authorities are required to calculate the player loss for each lottery game conducted and remit the corresponding levy to the Commonwealth based on the percentages set out in the determination. This involves meticulous record-keeping and financial reporting to ensure compliance with the prescribed percentages. The designated authorities must submit these reports within the specified timeframes to avoid any legal repercussions. Additionally, these authorities must ensure that their operations align with the legislative requirements to maintain their authorization to conduct lotteries.
Failure to comply with the provisions of the Player Loss Determination can result in significant legal consequences. The determination does not explicitly state the penalties for non-compliance, but breaches of the Lotteries Commission Act 1990 (WA)(CI) generally attract penalties under the respective state and territory legislation. Typically, penalties may include fines, suspension of lottery operations, or other administrative sanctions. In severe cases, there may be criminal charges leading to imprisonment. The exact penalties would depend on the specific provisions of the Lotteries Commission Act 1990 (WA)(CI) and any related laws governing the conduct of lotteries in the Territory of Christmas Island. It is crucial for designated authorities to understand and adhere to these obligations to avoid any adverse consequences.