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The New South Wales Government introduced the Gaming Machines Act in April 2002. The legislation regulates the number of gaming machines available to the patrons of licensed premises such as hotels and clubs. The legislation provides for a system of capping of the number of machines state-wide and a procedure for the transfer of machine entitlements between license holders.

Because gaming machines are such an important revenue raiser for hotels and clubs their transfer attracts significant sums of money. It is not uncommon for the buyer of a city hotel machine entitlement to pay over $100,000.

There has been some tension between registered clubs and hotels in the way legislation applies to each of them. For example, the legislation places a much greater cap on the overall number of gaming machines within the club industry compared with the hotel industry. As the entitlements can only be traded from hotel to hotel and from club to club the market in the hotel industry is much "hotter". The latest annual report of the Liquor Administration Board shows as at 30 June 2002 there were 24,628 gaming machines in 1,828 hotels and 76,830 gaming machines in 1,388 registered clubs in New South Wales.


This Information Outline is provided courtesy of Matthews Folbigg who are experienced in this area of law. They are located at Level 7 The Barrington, 10-14 Smith Street, Parramatta NSW 2124 or call them on (02) 9635-7966 if you would like more information on this legal topic, or you wish to obtain formal advice regarding your situation.

MatthewsFolbigg is a large commercial law firm based in Parramatta, New South Wales. The firm has Accredited Specialists in Business Law, Property, Immigration, Family Law and Personal Injury. MatthewsFolbigg has specialist groups advising clients in corporate structures, intellectual property, and information technology plus franchising, estate planning and insolvency work.

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