Tuesday, 30 May 2023

Gambling Regulation Amendment Bill 2023

Introduction and first reading

The PRESIDENT (12:06): I have a message from the Assembly:

The Legislative Assembly presents for the agreement of the Legislative Council ‘A Bill for an Act to amend the Gambling Regulation Act 2003 in relation to wagering and betting and to make consequential amendments to other Acts and for other purposes’.

Jaclyn SYMES (Northern Victoria – Attorney-General, Minister for Emergency Services) (12:07): I move:

That the bill be now read a first time.

Motion agreed to.

Read first time.

Jaclyn SYMES: I move, by leave:

That the second reading be taken forthwith.

Motion agreed to.

Statement of compatibility

Jaclyn SYMES (Northern Victoria – Attorney-General, Minister for Emergency Services) (12:07): I lay on the table a statement of compatibility with the Charter of Human Rights and Responsibilities Act 2006:

Opening paragraphs

In accordance with section 28 of the Charter of Human Rights and Responsibilities Act 2006, (the Charter), I make this Statement of Compatibility with respect to the Gambling Regulation Amendment Bill 2023.

In my opinion, the Gambling Regulation Amendment Bill 2023, as introduced to the Legislative Council, is compatible with human rights as set out in the Charter. I base my opinion on the reasons outlined in this statement.

Human Rights Issues

The Bill amends the Gambling Regulation Act 2003 to make changes to the wagering and betting licence framework to permit multiple licences and remove the ‘no less favourable’ racing industry funding requirement for the wagering and betting licence.

The proposals in the Bill do not engage any rights of persons under the Charter.

The amendments in the Bill will affect wagering and betting licensees, VicRacing Pty Ltd and Racing Products Victoria Pty Ltd. Wagering and betting licensees are required to be corporations under the Gambling Regulation Act.

The Hon. Lizzie Blandthorn MP

Minister for Disability, Ageing and Carers

Minister for Child Protection and Family Services

Second reading

Jaclyn SYMES (Northern Victoria – Attorney-General, Minister for Emergency Services) (12:07): I move:

That the bill be now read a second time.

Ordered that second-reading speech be incorporated into Hansard:

The Bill makes important changes to the structure of wagering and betting and will provide the necessary flexibility for government in awarding future wagering and betting licences – in order to yield the greatest benefit for the State.

A wagering and betting licence is issued under Chapter 4 of the Gambling Regulation Act 2003 (the Act) which allows the licensee to conduct several gambling activities, including:

• pari-mutuel and fixed odds betting;

• simulated racing;

• operating the only off-course wagering and betting retail network in Victoria; and

• establishing and operating a betting exchange.

The current wagering and betting licence was awarded in 2011 and is due to expire on 15 August 2024.

The process for the awarding a wagering and betting licence to operate from 15 August 2024 is underway.

The proposed reforms in this Bill will provide flexibility for the government to ensure that the value of future wagering and betting licences is maximised for the State.

I now turn to the provisions of the Bill before the House.

The Bill amends the Act to enable the Minister to determine the number of wagering and betting licences and any exclusivity periods for future licensing processes.

Currently the Act only permits one wagering and betting licence to be in operation at the same time. This restricts the options that the State can present to the market to attract greater interest in the wagering and betting licence.

The Bill introduces an approach with the option to issue multiple licences and incorporate exclusivity periods within the licence to increase competition for the 2024 wagering and betting licence or licences.

This approach is consistent with provisions for the public lottery licence and Keno licences.

An exclusivity period means that the State would not be able to issue another wagering and betting licence that has effect during the period of exclusivity. For example, the State could issue one wagering and betting licence for a term of 20 years with an exclusivity period of 10 years. After 10 years, the State could issue additional licences.

No subsequent wagering and betting licences could be issued on an exclusive basis until all existing wagering and betting licences have expired.

The Bill also repeals the ‘no less favourable’ racing industry funding requirement for issuing a new wagering and betting licence.

In simple terms, the ‘no less favourable’ requirement provides that to award a post-2024 licence, the Minister must determine that the arrangements between the Victorian racing industry and a licence applicant are ‘no less favourable’ to the Victorian racing industry than the arrangements under the current wagering and betting licence.

Failure to remove the ‘no less favourable’ requirement will reduce competition, with the likely outcome being the prevention of the State from awarding a post-2024 wagering and betting licence.

Not awarding a post-2024 wagering and betting licence would result in significant foregone revenue for government and would have a negative effect on employment.

The Bill will remove the ‘no less favourable’ requirement to enable future wagering and betting licences to be issued without being required to determine that the licensee has entered into ‘no less favourable’ funding arrangements with the Victorian racing industry.

These changes are reflective of the changing wagering and betting environment, with the proliferation of online wagering and lowering demand for land-based wagering.

In conclusion, these are important amendments that provide for a more competitive wagering and betting licence process and greater flexibility for government in awarding the licence(s).

Ultimately, they should also lead to greater financial benefit for the State of Victoria.

I commend the Bill to the house.

Georgie CROZIER (Southern Metropolitan) (12:08): I move:

That debate on this bill be adjourned until later this day.

Motion agreed to and debate adjourned until later this day.