Racing (Race Fields) Regulations 2009

Racing (Race Fields) Regulations 2009

I, the Governor in and over the State of Tasmania and its Dependencies in the Commonwealth of Australia, acting with the advice of the Executive Council, make the following regulations under the Racing Regulation Act 2004 .

PETER G. UNDERWOOD

Governor

By His Excellency's Command,

MICHAEL AIRD

Minister for Racing

1.   Short title

These regulations may be cited as the Racing (Race Fields) Regulations 2009 .

2.   Commencement

These regulations take effect on the day on which the Racing Regulation Amendment (Race Fields) Act 2008 commences.

3.   Interpretation

(1)  In these regulations –

Act means the Racing Regulation Act 2004 ;

approval means a race field information publication approval;

approval holder means a wagering operator who holds an approval;

approval period means the duration of the approval referred to in regulation 6(a) ;

assessable turnover means the aggregate of wagers taken on Tasmanian racing, reduced by allowable bets back to Tasmanian licensed or registered wagering operators and any other wagering operator who holds a Tasmanian race field information publication approval;

bet back means a wager that is made by the approval holder on the backer's side of the wagering transaction in relation to Tasmanian races or contingencies related to Tasmanian races;

betting exchange has the same meaning as in the Gaming Control Act 1993 ;

gross revenue, in relation to an approval holder, means –

(a) for a bookmaker, the total amount of all bets accepted by the approval holder less the sum of all winnings paid in respect of those bets, after any applicable GST has been deducted; or

(b) for a totalizator, the total amount of all wagers accepted by the approval holder in each totalizator conducted by the approval holder less the sum of all winnings paid in respect of those wagers, after any applicable GST has been deducted; or

(c) for a betting exchange, the total commission that the approval holder deducts, in accordance with State or Territory requirements, in respect of its wagering operations, after any applicable GST has been deducted;

GST has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth;

key employee, in relation to an applicant for or holder of an approval, means a person (whether or not appointed under a contract of service) who is –

(a) employed in a managerial or supervisory capacity in relation to the conduct of wagering operations by the applicant or holder; or

(b) authorised to make decisions, involving the exercise of his or her discretion, that regulate the operations of the applicant or holder in relation to the conduct of wagering operations; or

(c) concerned or engaged, in any manner, in the conduct of wagering operations by the applicant or holder;

race field information publication fee means a fee referred to in regulation 4(2) and imposed by the Director under that regulation on a wagering operator who has obtained approval to publish Tasmanian race field information;

relevant financial interest means –

(a) any share in the capital of the business; or

(b) any entitlement to receive any income derived from the business, whether the entitlement arises at law or in equity or otherwise;

relevant position means the position of director, manager or other executive position or secretary, however those positions are designated;

relevant power means any power, whether exercisable by voting or otherwise and whether exercisable alone or in association with others –

(a) to participate in any directorial, managerial or executive decision; or

(b) to elect or appoint any person to any relevant position;

wagering operations means operations relating to –

(a) betting conducted by a bookmaker, totalizator or any other wagering operator on a fixed-odds basis; or

(b) betting conducted by means of a totalizator; or

(c) betting conducted by means of a betting exchange.

(2)  For the purposes of these regulations, a person is a "business associate" of an applicant for, or the holder of, an approval if the person –

(a) holds or will hold any relevant financial interest, or is or will be entitled to exercise any relevant power (whether in his or her own right or on behalf of any other person), in the business of the applicant or holder, and by virtue of that interest or power is or will be able (in the opinion of the Director) to exercise a significant influence over or in respect of the conduct of that business; or

(b) holds or will hold any relevant position, whether in his or her own right or on behalf of any other person, in the business of the applicant or holder.

4.   Fees for race field information publication approvals

(1)  The Director may impose a condition on an approval (in addition to any other condition relating to fees) that the approval holder must pay a fee (application fee) to the Director to cover the cost of assessing the application for the approval.

(2)  The Director is to impose a condition on an approval that the approval holder must pay to the Secretary of the Department, unless the approval holder is not required to pay a fee under regulation 5(2) , the following fees:

(a) in relation to a publication in Australia of Tasmanian race field information made in the course of the wagering operations of an approval holder, a fee determined by Tasracing pursuant to section 11(1)(qa) of the Act that does not exceed 10 percent of the approval holder's gross revenue in respect of the approval period that relates to the race (or class of races) covered by the approval;

(b) in relation to any other publication of Tasmanian race field information, a fee determined by Tasracing pursuant to section 11(1)(qa) of the Act.

Note

In granting race field information publication approvals, and imposing conditions on those approvals, the Director is subject to section 92 of the Commonwealth Constitution (Trade within the Commonwealth to be free etc.).

5.   Exempt turnover threshold

(1)  An approval holder who has a combined assessable turnover on all 3 codes of racing in Tasmania in excess of $2,500,000 in the financial year to which the approval relates is required to pay a fee referred to in regulation 4(2)(a) .

(2)  An approval holder who has a combined assessable turnover on all 3 codes of racing of $2,500,000 or less in the financial year to which the approval relates is not required to pay a fee referred to in regulation 4(2)(a) .

(3)  If the approval relates only to part of a financial year, the assessable turnover is to be adjusted on a pro rata basis.

(4)  If an approval holder holds a licence to operate a betting exchange, the backer's side of wagering transactions made through the operation of that betting exchange is regarded as that approval holder's assessable turnover even if that approval holder is not a party to the contract that constitutes the wagering transaction.

6.   Other conditions on race field information publication approvals

(1)  For the purposes of section 54B(2)(b) of the Act, the following kinds of conditions are prescribed as permissible conditions:

(a) conditions specifying the duration of the approval (including conditions that the approval operates until it expires or is cancelled);

(b) conditions specifying the manner of publication that is authorised under the approval;

(c) conditions specifying events that must be notified to the Director, including, but not limited to, the following events:

(i) a change in the persons or bodies having a controlling interest in the approval holder;

(ii) a change in financial circumstances of the approval holder (such as the insolvency of the approval holder or a significant improvement in the wagering revenue of the approval holder);

(iii) the commencement (in Tasmania or elsewhere) of any prosecution or disciplinary action against the approval holder under any legislation, rules of racing or rules of betting;

(d) conditions requiring the approval holder to provide the Director with information and access to enable the Director to audit and assess the approval holder's compliance with the approval (including access to the approval holder's financial and wagering records);

(e) conditions specifying the times within which the approval holder must pay any fees due under the approval (for example, monthly);

(f) conditions requiring the approval holder to provide the Director with details of the approval holder's gross revenue and specifying the manner and form (for example, electronically) in which, and the times within which, those details must be provided to the Director (for example, monthly);

(g) if the approval holder conducts wagering operations in Australia, a condition that requires the approval holder to hold (and continue to hold) an appropriate licence or authority (however described) under relevant State or Territory legislation that authorises it to carry out those wagering operations;

(h) conditions relating to the preservation of the integrity and reputation of the relevant kind of racing in Tasmania including, but not limited to, the following conditions:

(i) requiring the approval holder to provide the Director with access to all the approval holder's betting information and analyses in relation to the race field information covered by the approval;

(ii) requiring the approval holder to furnish information to any inquiry or investigation specified by the Director within the time specified by the Director;

(iii) requiring the approval holder to cooperate with any inquiry or investigation specified by the Director, including by providing requested details of any betting account to the inquiry or investigation;

(iv) requiring the approval holder to permit the Director to monitor wagering activity that relates to the race field information covered by the approval;

(v) requiring the approval holder not to open or maintain any account for a person who is the subject of a warning-off notice issued by a specified body, registered club, steward or the Director or who is disqualified from participating in any racing activities by a specified body, steward or the Director;

(vi) requiring the approval holder not to open an account for a person who has not properly established his or her identity (for example, by way of the 100-point identification checks commonly used by authorised deposit-taking institutions);

(vii) requiring the approval holder to use a secure computer system, or other system approved by the Director, for the approval holder's wagering operations to ensure that a proper audit trail of all wagers is kept;

(viii) requiring the approval holder to participate in any online wagering monitoring system specified by the Director.

Note

An approval may relate to a single race or a class of races. A class may be defined in many ways including geography, time or category.

(2)  For the purposes of subregulation (1)(h)(v) , "specified body" means any of the following:

(a) Tasracing;

(b) the relevant racing control body of another State or a Territory that is responsible for each code of racing in that State or Territory;

(c) the Australian Racing Board;

(d) Harness Racing Australia Inc.;

(e) Greyhounds Australasia Limited.

7.   Applications for race field information publication approvals

(1)  An application for an approval must –

(a) be in writing; and

(b) be in a form approved by the Director; and

(c) be signed by the applicant; and

(d) contain the following information:

(i) the name and contact details of the applicant;

(ii) details of the proposed publication or publications of Tasmanian race field information (including the race or class of races to which the approval is to relate and the time and manner of publication);

(iii) details of the applicant's licence to operate (whether under legislation of Tasmania or elsewhere);

(iv) details of the types of wagering offered by the applicant;

(v) details of the applicant's history of wagering operations and publications of Tasmanian race field information (including details of the applicant's past wagering turnover in relation to racing in Tasmania);

(vi) details of the criminal history (if any) of the key employees or business associates of the applicant that are known to the applicant;

(vii) details of any disciplinary action under any legislation, rules of racing or rules of betting (whether in Tasmania or elsewhere) that has been taken against the key employees or business associates of the applicant that are known to the applicant;

(viii) details of the applicant's policy and procedure for dealing with racing integrity issues relating to racing in Tasmania (such as suspect betting transactions and frauds).

(2)  An application for an approval is to be made at least 30 days before the race to which the approval relates (or if the approval is to relate to a class of races, the first race belonging to that class) is to take place.

8.   Criteria for determination of applications

(1)  For the purposes of section 54C(3) of the Act, the following criteria are prescribed:

(a) whether –

(i) the applicant is a fit and proper person to hold the approval; and

(ii) granting the approval will, or will be likely to, undermine the integrity of the conduct of racing in Tasmania;

(b) whether or not the applicant holds a licence or authority (however described) under any State or Territory legislation to carry out the applicant's wagering operations (whether in Tasmania or elsewhere).

(2)  In determining an approval application, the Director must not take into account –

(a) the location in Australia where the applicant –

(i) resides or carries out his or her activities (in relation to an individual); or

(ii) has its head office or principal place of business (in relation to a corporation); and

(b) whether the applicant is licensed or authorised under the legislation of Tasmania as distinct from the legislation of another State or a Territory.

9.   Grounds for cancellation or variation of approvals

(1)  For the purposes of section 54B(5) of the Act, the following grounds for the cancellation or variation of an approval are prescribed:

(a) the approval holder has breached a condition of the approval;

(b) there has been a change in the persons that have a controlling interest in the approval holder;

(c) the approval holder, or a key employee or business associate of the approval holder, has been convicted of an offence (whether in Tasmania or elsewhere);

(d) disciplinary action has been taken against the approval holder, or a key employee or business associate of the approval holder, under any legislation, rules of racing or rules of betting (whether in Tasmania or elsewhere);

(e) the approval holder has employed or engaged a person as a key employee who has a criminal record or has been the subject of disciplinary action under any legislation, rules of racing or rules of betting (whether in Tasmania or elsewhere);

(f) a business associate of the approval holder has a criminal record or has been the subject of disciplinary action under any legislation, rules of racing or rules of betting (whether in Tasmania or elsewhere).

(2)  Without limiting subregulation (1) , a change in financial circumstances of the approval holder (for example, a significant improvement in the wagering turnover of the approval holder or the insolvency of the approval holder) is prescribed as a ground for the variation of an approval.

10.   Distribution of race field information publication fees

(1)  The Secretary of the Department, out of race field information publication fees paid pursuant to regulation 4(2) , subject to section 54B(4B) of the Act, is to pay a race field information publication fee to Tasracing.

(2)  The race field information publication fee is to be paid to Tasracing in accordance with an agreement entered into between the Secretary of the Department and Tasracing.

(3)  Without limiting the generality of subregulation (2) , an agreement made under that subregulation may specify conditions relating to –

(a) the payment of the fee (including the manner in which, and the timeframe within which, the fee is to be paid); and

(b) such other matters as the parties agree.

(4)  Before making a payment under subregulation (1) , the Secretary of the Department pursuant to section 54B(4A) of the Act, on the recommendation of the Director, is to deduct an administration fee to cover the costs in respect of the collection and distribution of the race field information publication fees.

(5)  The Secretary of the Department is to pay to the Director the administration fee referred to in subregulation (4) within 30 days of deducting the fee.

(6)  For the purposes of section 54B(4A) of the Act, the prescribed percentage is 5 per cent.

Displayed and numbered in accordance with the Rules Publication Act 1953.

Notified in the Gazette on 1 July 2009

These regulations are administered in the Department of Infrastructure, Energy and Resources.