Today, the Court of Appeal has decided that the Department of Internal Affairs can impose suspensions or cancellations of pokie licenses for one-off breaches of regulations. Previously, there was some misunderstanding of the issue, with some gaming venues claiming that they could not have their licenses suspended for prior beaches.
This is a very important decision for the local gambling market, as it ensures that gaming operators will receive adequate punishment when they disobey local regulations. Suspension disadvantages gaming operators in a number of ways. Firstly, they lose out on valuable gambling revenue while they are unable to run their pokies.
Secondly, it challenges their relationship with gaming venues, as pub and club owners would prefer to work with reliable operators. Suspension is seen as a valuable step in the enforcement of gaming laws. When breaches occur, most operators are provided with a warning, then a suspension. The final step is cancellation of their gaming licenses.
This graduated process helps to ensure that gaming operators and pokie providers adhere to local gambling regulations. “We believe the use of suspensions is an important method of ensuring compliance with the Gambling Act as this helps ensure that community organisations receive the maximum amount of grant funding from pokie proceeds,” says Maarten Quivooy, General Manager of Internal Affairs’ Regulatory Services.
“Suspensions operate as both a penalty and a deterrent”. The first case that will be affected by this ruling is regards Pub Charity’s funding breach in 2009, when the organization misappropriated pokie grants. Pub Charity received a one-day suspension but appealed the decision at the High Court, stating that operators could not be punished for past, non-continuing violations.
Now that the Court of Appeals has corrected this issue, Pub Charity’s case will be reconsidered by the Gambling Commission.