Key Changes for the Regulation of Online Wagering Take Effect from July 1, 2024

July 3, 2024 | Online Gaming

Australia, July 1, 2024 — The regulatory regime applying to online sports bookmakers (and other regulated wagering services, including betting exchanges and on-course bookmakers) licensed in the Northern Territory (the NT) will change with effect from 1 July 2024.

The Racing and Wagering Act 2024 (RWA) comes into effect on 1 July 2024 and repeals the Racing and Betting Act 1983 (RBA).

The RWA includes transitional provisions which allow continuity of certain aspects of the current regulatory regime.

We outline below the material elements of the RWA which apply to online sports bookmakers1.

The Commission:

  • a new Commission will be formed under the RWA to be called the Northern Territory Racing and Wagering Commission (the NTRWC)
  • any matters pending before the Northern Territory Racing Commission (NTRC), will be determined by the NTRWC under the RBA (as if it were not repealed)
  • a licence application pending under the RBA will be determined by the NTRWC under the provisions of the RBA (as if it were not repealed)
  • members are to be appointed to form the NTRWC in early July 2024 – it is quite likely that the NTRWC will include members of the current NTRC
  • the NTRWC will be formed of 6 members (including a Chair and a Deputy Chair)
  • the first meeting of the NTRWC is scheduled for 1 August 2024 – unless an earlier meeting is held

Licence and Conditions:

  • a licence granted under the RWA is required to conduct wagering with members of the public in relation to a:
    • thoroughbred, harness, or greyhound race
    • sporting event declared by the NTRWC; and/or
    • novelty event that complies with rules issued by the NTRWC
  • a licence granted under the RBA continues in effect
  • the term of a licence granted under the RWA (including a licence renewed under the RWA) will be for a maximum of 20 years
  • conditions applicable to the licence granted under the RBA are deemed conditions under the RWA (unless inconsistent with the RWA)
  • Key Person Licence:
    • the term of any key person licence granted under the RWA will be for a maximum of 5 years (previously a licence was required to be renewed annually)

Codes of Practice and Novelty Events Guidelines:

  • the Codes of Practice and Novelty Events Guidelines in force under the RBA, will continue to apply under the RWA

Fees, Tax, and Levy:

  • Application Fee for a new licence – $28,200
  • Renewal Fee – $28,200
  • Security – maximum amount of $250,000
  • Annual Licence Fee – $28,200
  • Tax:
    • 5% of total amount of wagers made by the licensee with persons minus the total amount paid by the licensee to those persons for the wagers;
    • the tax payable annually is capped at $1,410,000;
    • to be paid by the 14th day of each month;
  • Levy:
    • a new Racing and Wagering Fund (RWF) will be established under the RWA
    • licensees are required to make a monthly payment (levy) to the RWF
    • payment levies are due to be paid on a monthly basis in arrears, with the payment due by the 14th day of every month
    • the levy is calculated in accordance with the formula outlined in the Racing and Wagering Regulations 2024, being an amount equivalent to 0.05% of the difference between the total wagers (excluding free or bonus wagers) and the aggregate winnings, less allowed deductions (with a cap on the deductions that may be claimed annually of $250,000)
    • the levy will replace the existing mandatory requirement to provide benefits to the NT, although existing arrangements are still expected to be honoured

Continued Requirements:

  • a Nominee resident in the NT (representing the licensee) must be appointed
  • premises to conduct the licensed business must be established in the NT.

To view all formatting for this article (eg, tables, footnotes), please access the original here.

AUTHORS: Jamie Nettleton and Samuel Gauci

SOURCE: Lexology  / Addisons

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