Gaming Machine Site Licenses – Operating Authorities

Fast facts

1. Importantly, section 109 of Gaming Machine Act 1991 states that “An encumbrance to the extent it is an operating authority is of
   no effect”. As such, if a tenant is a licensee and their lease/agreement is terminated the freehold owner or mortgagee has no rights
   to the operating authorities under the Gaming Machine Act 1991.
2. In certain circumstances, an interested person who applies under the Liquor Act 1992 for authorization to conduct the business of a
   licensee on an interim basis may apply for a concurrent authorization to be a substitute licensee under the Gaming Act 1992. A
   substitute licensee may only continue trading at the premises, but they cannot sell or tender for more gaming authorities
3. A gaming licence cannot be transferred. A new licence must be issued. Where there is an existing gaming licence, a new licence is
   issued subject to the surrender of the old licence. In this instance, the old operating authorities are automatically transferred to the
   new licence. Only then may the licensee sell or tender for more gaming authorities.
4. If a gaming machine licence is cancelled by the Commissioner for any reason, the authorities become operating authorities of the
   state and no compensation are payable to a licensee or any other person.

Gaming Machine Act 1991

Section 109 (4) Special authorization to conduct gaming

(3) If a person (the substitute licensee) is authorised under the Liquor Act 1992, part 5,
division 2 to conduct the business of a licensee under that Act on the premises, the
commissioner may grant a concurrent authorization to the substitute licensee under
this section.

(4) While an authorisation under this section remains in force, the substitute
licensee—

(a) is authorised to conduct gaming on the licensed premises as if the
substitute licensee was the licensee
under the gaming machine licence; and

(b) is subject to all the liabilities of the licensee under the
gaming machine licence.

109H Operating authority not to be encumbered

An encumbrance to the extent it is an operating authority is of no effect.