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Part 2 - Gambling - Subpart 3 - Licensing of class 3 gambling

35 Application for class 3 operator's licence

Subpart 3—Licensing of class 3 gambling

 

Applications for class 3 operator's licence

 

35Application for class 3 operator's licence
(1)A society may apply to the Secretary for a licence to conduct class 3 gambling.

 

(2)An application must be on the relevant standard form and be accompanied by,—
(a)if requested by the Secretary, a copy of the applicant's governing document; and
(b)details of the authorised purposes to or for which net proceeds from the class  gambling will be applied or distributed; and
(c)a copy of an agreement that satisfies regulations made under section 219(a) if the class 3 gambling is conducted by a licensed promoter; and
(d)any other relevant document requested by the Secretary.

 

(3)An application must include the following information:
(a)a description of the class 3 gambling to be provided; and
(b)a description of prizes that will be offered in the class 3 gambling; and
(c)the duration and frequency of the class 3 gambling; and
(d)the cost of entering the class 3 gambling; and
(e)information about the financial viability of the proposed gambling operation and the means proposed to maximise the net proceeds from the class 3 gambling to be applied to or distributed for authorised purposes; and
(f)the address and contact details of the society that will operate the class 3 gambling, the officers of the society, and the organiser of the class 3 gambling; and
(g)if relevant, the address of the place at which the society intends to conduct the class 3 gambling; and
(h)any other information requested by the Secretary.

 

(4)The Secretary may return an incomplete application, and the accompanying documents and any fee, to an applicant.

 

36 Secretary must investigate applicant for class 3 operator's licence

36Secretary must investigate applicant for class 3 operator's licence
(1)The Secretary must undertake any investigations the Secretary considers necessary to determine whether an applicant is eligible and suitable to be granted a class 3 operator’s licence.

 

(2)In undertaking investigations, the Secretary may—
(a)require the applicant to provide further information relating to the application and to undergo an independent investigation into its financial position and credit history by a person nominated by the Secretary:
(b)require the Police, a government agency (except for the Inland Revenue Department), or a racing code to provide information about, or comment on, the applicant (including the organiser of the class 3 gambling and the officers of the society) or other matters concerning the application:
(c)refer to the Police a copy of the application and any further information provided by the applicant.

 

(3)If a racing code is required to provide information about a person, then it must provide any information that it holds that relates to—
(a)breaches, within the last 7 years, by the person of any rules of racing made under the Racing Act 2003 or the Racing Act 1971; or
(b)the conviction, within the last 7 years, of the person for an offence against the Racing Act 2003 or the Racing Act 1971.

 

(4)A person required to provide information under this section must provide the information as promptly as is reasonable in the circumstances.

 

(5)Subsection (2) does not limit subsection (1).

 

Section 36(3)(a): amended, on 3 March 2015, by section 19 of the Gambling Amendment Act 2015 (2015 No 3).

Section 36(3)(b): amended, on 3 March 2015, by section 19 of the Gambling Amendment Act 2015 (2015 No 3).

 

37 Grounds for granting class 3 operator's licence

Grant of class 3 operator's licence

 

37Grounds for granting class 3 operator's licence
(1)The Secretary must refuse to grant a class 3 operator's licence unless the Secretary is satisfied that—
(a)the gambling to which the application relates is class 3 gambling; and
(b)the applicant's purpose in conducting class 3 gambling is to raise money for authorised purposes; and
(c)the applicant's proposed gambling operation is financially viable; and
(d)the applicant will maximise the net proceeds from the class 3 gambling and minimise the operating costs of that gambling; and
(e)the net proceeds from the class 3 gambling will be applied to or distributed for authorised purposes; and
(f)the applicant is able to comply with applicable regulatory requirements; and
(g)any investigations carried out by the Secretary do not cause the Secretary not to be satisfied about the suitability of the applicant, any officers of the applicant, or the organiser of the gambling.

 

(2)In assessing financial viability under subsection (1)(c), the Secretary must consider, among other things, the ability of the applicant to both reward winners and apply or distribute the net proceeds from the class 3 gambling to or for authorised purposes.

 

(3)The Secretary may refuse to grant a class 3 operator's licence if an applicant fails to provide the information requested by the Secretary in accordance with section 36.

 

(4)If the Secretary decides to refuse to grant a class 3 operator's licence, the Secretary must notify the applicant of—
(a)the reason for the decision; and
(b)the right to appeal the decision; and
(c)the process to be followed for an appeal under section 46.

 

38 Content and conditions of class 3 operator's licence

38Content and conditions of class 3 operator's licence
(1)A class 3 operator’s licence must include the following information and conditions:
(a)the name of the society that holds the licence; and
(b)the commencement date and expiry date of the licence; and
(c)if the licence authorises regular gambling, a statement to that effect; and
(d)a specific description of the authorised purposes to or for which net proceeds from the class 3 gambling are intended to be applied or distributed; and
(e)any other information or conditions added by the Secretary.

 

(2)The conditions that the Secretary may add to a class 3 operator’s licence include—
(a)conditions intended to minimise the risk of problem gambling:
(b)conditions concerning the management of the gambling, including the records that must be maintained and reporting requirements:
(c)conditions concerning the management, application, and distribution of funds derived from gambling and from the investment of those funds:
(d)conditions that restrict the authorised purposes to or for which net proceeds from the class 3 gambling may be applied or distributed:
(e)conditions requiring the society to inform players of the odds of winning, and specifying how that information is to be displayed or provided:
(f)conditions encouraging responsible gambling:
(g)any other conditions consistent with this Act that the Secretary considers will promote or ensure compliance with this Act.

 

(3)The Secretary may—
(a)amend or revoke a condition of a class 3 operator’s licence; or
(b)add new conditions to a class 3 operator’s licence.

 

(4)If the Secretary decides to amend or revoke a condition or add a new condition to a class 3 operator’s licence, the Secretary must notify the society of—
(a)the right to appeal the decision; and
(b)the process to be followed for an appeal under section 46.

 

Section 38(2)(a): amended, on 3 March 2015, by section 20 of the Gambling Amendment Act 2015 (2015 No 3).

 

38A Continuing obligations of class 3 operator

38A       Continuing obligations of class 3 operator

Every society that holds a class 3 operator’s licence must, in relation to class 3 gambling conducted by the society, ensure that at all times—

(a)the purpose of that gambling is to raise money for authorised purposes; and
(b)the net proceeds from that gambling are maximised and the operating costs of that gambling are minimised; and
(c)the costs incurred in conducting that gambling are actual, reasonable, and necessary; and
(d)the net proceeds from that gambling are applied to or distributed for authorised purposes; and
(e)all applicable regulatory requirements are complied with.

 

Section 38A: inserted, on 3 March 2015, by section 21 of the Gambling Amendment

Act 2015 (2015 No 3).

39 Significant changes in relation to class 3 operator's licence must be notified

39Significant changes in relation to class 3 operator's licence must be notified
(1)A society holding a class 3 operator's licence must notify the Secretary, and provide details, of significant changes to the information supplied by a society in, or accompanying, an application for—
(a)a class 3 operator's licence; or
(b)renewal or amendment of a class 3 operator's licence.

 

(2)Notification must be made before, or as soon as practicable after, the changes occur.

 

(3)The powers and obligations in section 36 apply to a notification as if the notification were an application for a class 3 operator's licence.

 

(4)The Secretary may require the society to apply for an amendment under section 42, or may invoke the suspension or cancellation provisions under sections 43 and 44, as a result of the notification.

 

40 Change of purpose and winding up provisions of holder of class 3 operator's licence ineffective without approval

40Change of purpose and winding up provisions of holder of class 3 operator's licence ineffective without approval
(1)A society holding a class 3 operator's licence must obtain the approval of the Secretary before it changes a provision in its governing document that may have the effect of altering—
(a)the society's status as an entity established and conducted entirely for non-commercial purposes; or
(b)the distribution of its assets on winding up; or
(c)its objects so that it is no longer capable of applying or distributing net proceeds from the class 3 gambling to or for authorised purposes.

 

(2)If a governing document is changed with an effect described in subsection (1) without the approval of the Secretary, the change may be ignored by the Minister, the Secretary, the Gambling Commission, or the Department in applying this Act.

 

41 Renewal of class 3 operator's licence

Renewal or amendment of class 3 operator's licence

 

41Renewal of class 3 operator's licence
(1)A corporate society that conducts class 3 gambling regularly may apply to the Secretary for a renewal of its class 3 operator’s licence before the expiry of the licence.

 

(2)An application must be on the relevant standard form and be accompanied by any items listed in section 35 that the Secretary requests in order to consider the application and effect the renewal.

 

(3)The Secretary may return an incomplete application, and the accompanying documents and any fee, to an applicant.

 

(4)Sections 36 and 37 apply to an application for renewal as if it were an application for a class 3 operator’s licence.

 

(5)The Secretary must refuse to renew a class 3 operator’s licence if—
(a)any investigations carried out by the Secretary cause the Secretary not to be satisfied about any of the matters specified in section 37; or

(ab)the Secretary is not satisfied that the applicant complies with section 38A; or

(b)the Secretary is not satisfied that the applicant will comply with all relevant requirements of this Act, including the obligations set out in section 38A, licence conditions, game rules, and minimum standards.

 

(6)A class 3 operator’s licence continues in force after its expiry date if—
(a)the corporate society has applied for a renewal before the expiry date; and
(b)the application has not been refused.

 

Section 41(1): amended, on 3 March 2015, by section 22(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 41(5)(ab): inserted, on 3 March 2015, by section 22(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 41(5)(b): amended, on 3 March 2015, by section 22(3) of the Gambling Amendment Act 2015 (2015 No 3).

 

42 Amending class 3 operator's licence

42Amending class 3 operator's licence
(1)A society must apply to the Secretary to amend its class 3 operator’s licence if the society proposes to—
(a)change the authorised purpose to or for which net proceeds from the class 3 gambling will be applied or distributed; or
(b)make any other change that impacts on its ability to comply with this Act or the licence.

 

(2)An application must be on the relevant standard form and be accompanied by any items listed in section 35 that the Secretary requests in order to consider the application and effect the amendment.

 

(3)The Secretary may return an incomplete application, and the accompanying documents and any fee, to an applicant.

 

(4)Sections 36 and 37 apply to an application for amendment as if it were an application for a class 3 operator’s licence.

 

(5)The Secretary must refuse to amend a class 3 operator’s licence if—
(a)any investigations carried out by the Secretary cause the Secretary not to be satisfied about any of the matters specified in section 37; or
(b)the Secretary is not satisfied that the applicant complies with section 38A; or
(c)the Secretary is not satisfied that the applicant will comply with all relevant requirements of this Act, including the obligations set out in section 38A, minimum standards, game rules, and licence conditions.

 

Section 42(5): replaced, on 3 March 2015, by section 23 of the Gambling Amendment Act 2015 (2015 No 3).

 

43 Suspension or cancellation of class 3 operator's licence

Suspension, cancellation, or refusal to amend or renew class 3 operator's licence

 

43Suspension or cancellation of class 3 operator's licence
(1)The Secretary may suspend for up to 6 months, or cancel, a class 3 operator’s licence if the Secretary is satisfied that—
(a)any of the grounds in section 37 are no longer met; or
(b)the society is failing, or has failed, to comply with the obligations set out in section 38A or with any other relevant requirements, minimum standards, game rules, or licence conditions of this Act; or
(c)the society supplied information that is materially false or misleading in its application for the licence, or for a renewal or amendment of the licence.

 

(2)In deciding whether to suspend or cancel a class 3 operator’s licence, the Secretary must take into account the matters in section 37.

 

(3)The Secretary may exercise the power of suspension conferred by this section in respect of any breach that falls within any of paragraphs (a) to (c) of subsection (1), whether or not—
(a)the breach continues at the time that the power is exercised or is proposed to be exercised:
(b)a penalty is prescribed for the breach.

 

Section 43(1)(b): replaced, on 3 March 2015, by section 24(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 43(3): inserted, on 3 March 2015, by section 24(2) of the Gambling Amendment Act 2015 (2015 No 3).

 

44 Procedure for suspending, cancelling, or refusing to amend or renew class 3 operator's licence

44Procedure for suspending, cancelling, or refusing to amend or renew class 3 operator's licence
(1)If the Secretary proposes to suspend, cancel, or refuse to amend or renew a class 3 operator’s licence, the Secretary must notify the society of—
(a)the proposal to suspend, cancel, or refuse to amend or renew the licence; and
(b)the reason for the proposed suspension, cancellation, or refusal; and
(c)the society’s rights, and the procedure to be followed—
(i)before the suspension or cancellation takes effect; or
(ii)as a result of the refusal to amend or renew the licence.

 

(2)The society may make written submissions to the Secretary concerning the proposed suspension, cancellation, or refusal to amend or renew within—
(a)20 working days after the date of the notice under subsection (1); or
(b)any longer period that the Secretary allows if an application for an extension is made within the time period specified in paragraph (a).

 

(3)The Secretary must consider any submissions made by the society.

 

(4)If the Secretary decides to suspend a licence, the Secretary must notify the society of—
(a)the date that the suspension takes effect; and
(b)the suspension period (up to 6 months); and
(c)the reason for the suspension.
(d)[Repealed]
(e)[Repealed]

 

(4A)Where the licence is suspended because of a continuing breach, the Secretary must notify the society of—

(a)the matters to be dealt with in order for the Secretary to consider withdrawing the suspension before the end of the suspension period; and
(b)the consequences of not dealing with the matters identified.

 

(5)If the Secretary decides to cancel or refuse to amend or renew a licence, the Secretary must notify the society of—
(a)for a cancellation, the date on which the cancellation takes effect and the reason for the cancellation:
(b)for a refusal to amend or renew, the reason for the refusal.

 

(6)If subsection (4) or subsection (5) applies, the Secretary must also notify the society of—
(a)the right to appeal the decision; and
(b)the process to be followed for an appeal under section 46.

 

Section 44(4)(c): replaced, on 3 March 2015, by section 25(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 44(4)(d): repealed, on 3 March 2015, by section 25(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 44(4)(e): repealed, on 3 March 2015, by section 25(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 44(4A): inserted, on 3 March 2015, by section 25(2) of the Gambling Amendment Act 2015 (2015 No 3).

 

45 Consequences of suspension, cancellation, or refusal to amend or renew class 3 operator's licence

45Consequences of suspension, cancellation, or refusal to amend or renew class 3 operator's licence
(1)The suspension or cancellation of, or refusal to amend or renew, a class 3 operator's licence does not affect—
(a)the obligation of the society to apply or distribute the net proceeds from the class 3 gambling in accordance with this Act and the licence; and
(b)any condition added to the licence by the Secretary relating to records that must be maintained and reporting requirements.

 

(2)The Secretary may decide to withdraw a suspension before the end of the suspension period if the reasons for the suspension are resolved to the satisfaction of the Secretary.

 

(3)(The Secretary may decide to cancel a suspended licence at the end of the suspension period if the reasons for the suspension are not resolved to the satisfaction of the Secretary.

 

(4)Section 44(5) and (6) apply to the cancellation of a suspended licence.

 

(5)Subject to section 47, a licence that is suspended or cancelled or refused to be renewed or amended remains in force or unchanged (as the case may be) until the period for making an appeal expires.

 

(6)A society is not entitled to a refund of fees, taxes, or levies paid in relation to class 3 gambling if the Secretary suspends, cancels, or refuses to amend or renew its class  operator's licence.

 

46 Appeal to Gambling Commission regarding class 3 operator's licence

46Appeal to Gambling Commission regarding class 3 operator's licence
(1)A society may appeal to the Gambling Commission against a decision of the Secretary to—
(a)refuse to grant a class 3 operator’s licence to the society; or
(b)amend or revoke a condition of the licence, or add a new condition to it; or
(c)refuse an application by the corporate society for the renewal of a class 3 operator’s licence; or
(d)refuse to amend a class 3 operator’s licence held by the society; or
(e)suspend or cancel a class 3 operator’s licence held by the society.

 

(2)An appeal must be in writing and must be made within—
(a)15 working days after the date of the notice of the Secretary’s decision; or
(b)any longer period that the Gambling Commission allows if an application for an extension is made within the time period specified in paragraph (a).

 

(3)The Gambling Commission—
(a)may request any information from the society or the Secretary; and
(b)is not bound to follow any formal procedure; and
(c)does not need to hold a hearing; and
(d)must consider any information provided by the society or the Secretary.
(4)The Gambling Commission may then—
(a)confirm, vary, or reverse the decision of the Secretary; or
(b)refer the matter back to the Secretary with directions to reconsider the decision.

 

(5)The Gambling Commission must give notice of—
(a)its decision, with reasons, to both the society and the Secretary; and
(b)the date on which its decision takes effect (which may be a date that is later than the date on which it makes the decision).

 

Section 46(5): replaced, on 21 October 2015, by section 9 of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

 

47 Consequences of appeal regarding class 3 operator's licence

47Consequences of appeal regarding class 3 operator's licence
(1)The conditions of a class 3 operator’s licence remain unchanged pending the outcome of an appeal if the appellant appeals an amendment or revocation of a condition or the addition of a new condition under section 46(1)(b).

 

(2)A class 3 operator’s licence remains in force until—
(a)the expiry of the period for an appeal under section 46(2); or
(b)the date that the Gambling Commission specifies under section 46(5), if the appellant—
(i)appeals a refusal to renew or amend the licence under section 46(1)(c) or (d); or
(ii)appeals a decision to suspend or cancel the licence under section 46(1)(e).

 

Section 47(2)(b): amended, on 21 October 2015, by section 10 of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

 

48 Surrender of class 3 operator's licence

Other matters

 

48Surrender of class 3 operator's licence
(1)A society may surrender a class 3 operator's licence to the Secretary at any time.

 

(2)The surrender of a class 3 operator's licence does not affect—
(a)the obligation of the society to apply or distribute the net proceeds from the gambling in accordance with this Act and the licence; and
(b)any conditions relating to records that must be maintained and reporting requirements.

 

49 Class 3 operator's licence not transferable

49Class 3 operator's licence not transferable

A class 3 operator's licence is not transferable.