Accounting and auditing venue requirements
Accounting and Auditing Venue Requirements (AAVR) include specific conditions that gaming venue operators in Victoria must adhere to.
In 2022, clauses 128 and 129 of the Gambling and Liquor Legislation Amendment Bill 2022(opens in a new window) introduced Division 7 of Part 5 (Chapter 3) to the Gambling Regulation Act 2003 (the Act).
This requires venue operators to:
- deal with jackpot funds on the retirement of a linked jackpot arrangement
- transfer unpaid jackpot funds on the transfer of an approved venue
- deal with unpaid jackpot funds where the venue operator ceases to hold a licence or operate gaming machines.
This change took effect on 10 March 2023.
To ensure compliance with this Division of the Act, the Victorian Gambling and Casino Control Commission (VGCCC) amended the AAVR.
Please view the AAVR (version 4.8) for more detail on new requirements.
Division 7 of the Act and AAVR changes
This references Division 7 of the Gambling Regulation Act 2003 (the Act) and associated changes to the AAVR.
The Jackpot Special Prize Pools (JSPP) of a Linked Jackpot Arrangement (LJA) is decided from the time the LJA starts operating. If a jackpot started operating after 16 August 2012, the JSPP is:
- the value of all accumulated jackpot contributions from the LJA since this time, and
- less the value of jackpot prizes paid in relation to the LJA.
Monitoring Linked Jackpot Arrangements
Venue operators must regularly monitor the operations of every LJA at their gaming venues (also known as poker machines).
Venue operators must maintain adequate supporting documentation to show they follow the required processes of monitoring LJAs.
Monitoring the participation of machines in LJAs
Venue operators must ensure all poker machines configured to be linked to LJAs, are actively participating in them at all times.
Each poker machine configured to participate in LJAs must display the required signage indicating its active participation.
Failure to display the required signage may indicate that the poker machine has stopped participating in LJAs.
Any poker machine that has stopped participating in LJAs must be investigated and fixed accordingly.
The monitoring licensee or venue's service provider should be called to fix any poker machines not linked to a jackpot as required.
If unable to immediately correct the issue:
- the poker machine should be removed from game play mode, or
- patrons must be informed the machine isn't currently participating in LJAs until the issue is corrected.
Venue operators must monitor the operation of each LJA. This is to ensure that:
- the LJA is operating in line with the approved jackpot conditions
- information being reported by the monitoring licensee in relation to the LJA is accurate and complete.
Monitoring the operation of LJAs includes an assessment of:
- jackpot contributions:
- the percentage of turnover from each poker machine in the jackpot, accumulated in the individual linked jackpot pool (which funds jackpot prizes awarded under the LJA), and
- the jackpot won:
- the value of the jackpot prizes awarded under the LJA.
To provide adequate supporting documents for this, venue operators must provide:
- an independent tally of daily jackpot contributions to the LJAs, in line with the:
- approved jackpot conditions and
- reported turnover of the linked poker machines
- a comparison of independently tallied jackpot contributions, to the value of amounts reported by the monitoring licensee
- a review of the reported amounts
- a balance of reported jackpot amounts won, with actual wins paid.
Any discrepancies in balances should be immediately reported to the monitoring licensee for further investigation.
Venue operators must periodically bank (verified) jackpot contributions into a separate bank account for the sole purpose of managing jackpot contribution and winnings. This account should be maintained solely for the operation of LJAs.
These amounts should be:
- monitored, and
- used to pay linked jackpot prizes.
Negative JSPP balance for a retired LJA from 10 March 2023
When a LJA is retired the venue operator must liaise with Intralot Gaming Service (IGS) to allocate the JSPP balance of the retired LJA, to the JSPP of another LJA within 60 days.
If no LJA is operating within the venue after 60 days of retiring the LJA, the venue must cease to account for the negative JSPP balance.
Positive JSPP balance for a retired LJA from 10 March 2023
The venue operator must liaise with IGS to allocate the JSPP balance of the retired LJA, to another operating LJA at the approved venue within 60 days. The positive JSPP balance will be carried forward to the JSPP of the operating LJA.
If no LJA is operating within the venue after 60 days of retiring the LJA, the venue must pay the unpaid jackpot funds to the VGCCC.
Payment to the VGCCC must be within 7 days of the 60-day period ending.
Obligations as outgoing venue operator
Before the change of ownership, the outgoing venue operator may transfer unpaid jackpot funds to the incoming venue operator.
The outgoing venue operator must give the VGCCC written notice at least 48 hours before transferring unpaid jackpot funds. If the incoming venue operator rejects the transfer of those funds, the outgoing venue operator must pay them to the VGCCC within 28 days.
If the incoming venue operator only accepts transfer of part of the unpaid jackpot funds, the outgoing venue operator must pay them to the VGCCC within 28 days (less the amount transferred to the incoming venue operator).
Obligations as incoming venue operator
If the incoming venue operator accepts the transfer of any unpaid jackpot funds from the outgoing venue operator, they must allocate those funds to the LJAs at the approved venue. This must happen immediately after change of ownership.
They can elect where to commence their linked jackpots within the specified prize range limit of the jackpot arrangement.
Payment to the Gambling Harm Response Fund
The Commission will issue an invoice to the venue operator if a balance is due to be paid, for further distribution to the Gambling Harm Response Fund.
Correct monitoring of value of the JSPP
The monitoring licensee will assist in measuring all:
- linked jackpot contributions, and
- jackpot prizes paid.
Please get in touch with IGS for any assistance in this regard.
JSPP transfer process
IGS is aware of the requirements around JSPP monitoring and transferring process, either:
- at the point of retiring an individual LJA, or
- transferring venue ownership to a new venue operator.
Venue operators can contact the IGS in relation to policies and procedures governing the jackpot transfer process.
Updated