Gaming Machine Operating Authorities Re-allocation Scheme
On 8 May 2001 the Queensland Government introduced a state-wide cap on the total number of gaming machines in hotels. As part of this cap, the Queensland Government also announced the creation of a scheme that would allow the trade of gaming machines (authorities) that become available in the market.
The scheme allows the re-allocation of gaming machine authorities that become available within the cap as a result of a hotel closing, a reduction in the number of approved gaming machines or the surrender or cancellation of the gaming machine licence.
As a result, authorities are sold via public tender sales. Sales are conducted by competitive tender in each of the three authority regions and authorities are only able to be sold in the region from which they originated. The Public Trustee of Queensland, acting on behalf of Queensland Treasury, conducts the tender process.
Licencees should use:
Form 7A - Application to decrease the approved number of gaming machines granted to a licensee
(PDF 230 K)or the:
Form 12 – Notification of surrender of a gaming machine licence to place authorities in the pool for sale. (PDF 290 K)
Sales (tenders) of gaming machine operating authorities (hotels)
Licensees will be eligible to purchase authorities for two (2) years after the grant of a licence or one (1) year after approval of an increase. In either case, the Commission may extend this period for a further year if the applicant can prove that exceptional circumstances have prevented the installation of gaming machines. The maximum number of authorities you may possess is equal to the approved number of gaming machines fixed for the premises by the Commission.
The sale process is essentially a tender auction, with bids made through the lodgement of a tender bid form provided to eligible purchasers at the commencement of the sale. Only one tender bid form per eligible premises will be accepted and you may not bid more than one amount per operating authority. If you are licensed to operate gaming machines at more than one premises, a separate tender bid form for each eligible premises will be required.
Tender documents must be lodged in the tender box at the office of the Public Trustee of Queensland. The Office of Liquor and Gaming Regulation (OLGR) cannot accept any tender documents. Documents posted or faxed will not be accepted.
Once the tender has closed the Public Trustee will allocate each operating authority against valid tenders in order of highest to lowest bid. Documents lodged without the lodgement fee (currently $55) or received after the closing time will be declared invalid. Where you are lodging bids for more than one premises a lodgement fee will be required for each. The Public Trustee will notify successful bidders of their allocation and require payment within five working days. Payment for each operating authority will be the amount bid on your tender form, an administration fee of $440 per operating authority, and stamp duty.
How much do I bid for an operating authorityHow much you should bid for an operating authority is a matter for you and/or your accountant to determine.
The Public Trustee will set a minimum acceptable price for each region and any bids below the amount set will not be successful. The minimum acceptable price will not be disclosed.
Staff at OLGR and the Public Trustee’s office are unable to assist you with how much to bid. However, details of the average price paid in previous tenders is available in the Table – Operating authority tender sales.
How do I know when the tender is called?
The Public Trustee will place an advertisement in the Courier Mail announcing the commencement of a tender.
The advertisement will state the number of operating authorities available for sale in each region, the closing date and lodgement details.
OLGR will provide all eligible buyers with a tender bid form by registered mail once the tender has been advertised. Sellers will also receive forms by registered mail.
Last reviewed 12 November 2010