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National Gambling Act, 2004 (Act No. 7 of 2004)

Chapter 2 : National Gambling Policy

Part D : Registration and certification of machines and devices

26. Limited pay-out machines

 

1) Cognisant of the potentially detrimental socio-economic impact of a proliferation of limited pay-out machines, the Minister must regulate the limited pay-out machine industry in accordance with this section.

 

2) The Minister, by regulation made in accordance with section 87, must-
a) establish a program for the gradual introduction of limited pay-out machines in the Republic, in clearly defined and delineated phases;
b) establish a mechanism for ongoing socio-economic impact assessment of the use of limited pay-out machines in the Republic;
c) establish criteria which, on the basis of the assessments contemplated in paragraph (b), must be satisfied before the commencement of each successive phase of the program to introduce limited pay-out machines in the Republic;
d) prescribe a limit on the maximum number of licensed limited pay-out machines that may be introduced in each phase-
i) within the Republic;
ii) within any particular province; and
iii) at any one site, and may prescribe different site maximums applicable in different circumstances;
e) after consulting the Board, determine the circumstances in which a site may be licensed, and for that purpose, may establish different categories of sites, and different requirements with respect to each such category; and
f) prescribe a limit on the maximum-
i) aggregate stake permitted to commence and complete a limited pay-out gambling game;
ii) single pay-outs allowed from a limited pay-out machine; and
iii) aggregate pay-out in respect of each game played.

 

3) In addition to the requirements of subsection (2), the Minister, by regulation made in accordance with section 87, may prescribe minimum standards concerning applications for licences with regard to limited pay-out gambling machines, including-
a) standard information to be required from applicants;
b) minimum evaluation criteria to be applied by licensing authorities;
c) evaluation procedures to be followed by licensing authorities;
d) compliance standards for limited pay-out machines, including the maximum number of single game cycles over a particular period of time;
e) the methods by which a prize won on a limited pay-out machine may be paid;
f) any essential or defining elements of a limited pay-out gambling game;
g) the procedures that constitute the start and end of a single game on a limited pay-out machine;
h) the accounting standards that must be met, and accounting records that must be kept, by route operators, site operators and independent site operators;
i) minimum information to be provided by licensees concerning the sourcing, distribution, movements, conversions and disposal of limited pay-out machines; or
j) measures to limit the potentially negative socio-economic consequences of access to gambling opportunities, including public notices at licensed premises.

 

4) A person must not
a) distribute a limited pay-out machine to a site operator or independent site operator, or allow such a machine to be made available for play unless that machine has been registered in accordance with this Part; or
b) move a limited pay-out machine from one site to another without the prior approval of, and subject to monitoring and control by, the provincial licensing authority that registered that machine.

 

a) must not make available for play-
i) more limited pay-out machines than the maximum number for which the operator is licensed; or
ii) on any particular site, more limited pay-out machines than that site is licensed to accommodate;
b) must maintain the limited pay-out machines owned and operated by that route operator; and
c) must collect money from those machines and pay any applicable provincial taxes or levies in respect of those machines.

 

6) In any province, provincial law may provide for a smaller number of limited pay-out machines to be licensed-
a) in that province, than the number prescribed by the Minister in terms of subsection (2)(d)(ii); or
b) at any one site in that province, than the number prescribed by the Minister in terms of subsection (2)(d)(iii).