Hearings

We are the independent, statutory authority that regulates Victoria’s gambling industry.

Our Commissioners make decisions on gambling matters, including applications for:

• new gaming venues
• more gaming machines
• disciplinary actions, and
• considering appeals of decisions made by our delegates.

Hearings and inquiries

The Victorian Gambling and Casino Control Commission (Commission) may conduct meetings and inquiries in public or private. We will generally hold public hearings, unless we need to consider confidentiality.

We must publish details of upcoming public hearings on our website.

The Commission’s role

Under the Gambling Regulation Act 2003 (the Act), the Commission must decide on applications to:

• approve a premises as suitable for gaming (including the number of gaming machines permitted), and
• vary (increase or decrease) the number of gaming machines (also known as poker machines) at a premises.

As part of processing these applications, the local government authority (LGA) of the applicant's premises, is given the opportunity to make a submission to the Commission.

Surrounding LGAs and other interested parties (businesses, community groups, individuals) may also make submissions to the Commission about an application, through the LGA or directly to us.

The ‘no net detriment’ test

The Commission can't (under the Act) approve an application unless it's satisfied ‘the net economic and social impact of the proposal will not be detrimental to the wellbeing of the community of the municipal district'.

This is known as the ‘no net detriment’ test.

If the application is to approve a premises for gaming, the Commission must also be satisfied that the premises are:

• suitable for management and operation of gaming machines, or
• will be suitable once building works are complete.

Factors relevant to ‘no net detriment’ test

Certain factors can be relevant when assessing the impact of a proposal. Previous decisions of the Commission, and the Victorian Civil and Administrative Tribunal (VCAT), show this.

Not all factors, however, will be relevant to every decision. The following are some, but not all, examples:

1. Location and surroundings

The location and surroundings of the premises will likely influence the impact a proposal would have on the community. The:

• accessibility of the premises to the community, and
• what other facilities are nearby

are often relevant, especially if they are used by people who may be more vulnerable to gambling-related harm.

2. Non-problem gambling expenditure

Gambling is considered a legitimate, lawful activity. Meaning new gaming expenditure that doesn't cause harm, is usually considered beneficial.

3. Supply contracts

A supply contract:

• is any contract between the premises and a supplier, and
• would occur as a result of the proposal, regardless of whether the contract relates to poker machines.

The applicant can give an estimate of supply contracts it would enter into if their application is approved. These contracts are generally considered a benefit to the community, especially if the applicant can show they'd be with suppliers from the municipal district.

4. Complementary expenditure

Complementary expenditure is the increased economic activity in the municipal district or regional area that:

• would happen if the application was approved, and
• does not include spending on poker machines or staff.

Complementary expenditure can be money spent:

• inside the premises, or
• within the municipal district or regional area.

E.g., if a proposal includes building a new bistro, the spending that would occur on meals is internal complementary expenditure.

External complementary expenditure can be difficult to estimate, but is more likely to occur if, for example, more people visit the municipal district or regional area as a result of the proposal.

5. Increased gaming competition

An increase in gaming competition may be considered a benefit, as increased choice and opportunities can promote a more competitive gaming industry.

This may occur in circumstances where:

• demand currently outstrips supply, or
• the proposal would provide new types of gaming machines that are not currently available in the area.

6. Expenditure on capital works

Applications often include building or construction work. This can range from:

• minor works to an existing premises, to
• the construction of a new premises,

with some planned works dependent on an application being approved.

Even though benefits associated with capital works are usually short-term, these works are generally considered a benefit to the community. This is especially true if the applicant can show the work would be done by people from the municipal district.

7. Additional services and facilities

Some proposals include the creation or expansion of services or facilities, such as:

• a larger bistro
• a new function room, or
• a sporting facility.

While new services or facilities are considered a potential benefit to the community, this will depend on specific circumstances. E.g., a new swimming pool would likely not be considered to have much benefit if there's already a public pool nearby.

If the proposal includes a playground, a consideration will be whether or not it complies with Guidelines for children’s play areas.

8. Ongoing employment

Applications can result in additional staff being employed to work in the gaming machine area (GMA) or elsewhere on the premises.

New jobs are generally considered a benefit to the community, especially if the applicant can show that those jobs would be filled by people from the municipal district.

9. Problem gambling and gambling-related harm

Every application comes with a risk of increased gaming expenditure from people who are experiencing gambling-related harm. This type of spending is considered a negative impact.

Gambling-related harm may be experienced by anyone. It is recognised that communities characterised by socio-economic disadvantage are more vulnerable to:

• problem gambling, and
• the negative impacts of gambling,

so the level of vulnerability that exists in the community is relevant. The applicant’s responsible gambling practices are also considered.

10. Community wellbeing

The impact a proposal could have on a community’s wellbeing might be reflected in the community’s attitude toward the proposal. Submissions and surveys are often used as proof of how the community feels, however, as each application is considered individually, submissions must address the specific application.

Submissions from those not considered a community member where the premises are located are likely to have less weight. While judgement is used in each case to decide what ‘community’ is relevant, the term generally refers to those who live or work in the municipal district.

11. Diversion of trade

Diversion of trade refers to the decrease in spending in the community, that would occur as a result of the proposal.

It is often difficult to estimate the exact amount of spending that will be diverted. There are two types of diverted trade:

Gaming expenditure

Although a proposal would usually result in increased gaming expenditure at the premises, some of the spending might be diverted from other premises nearby. This transferred expenditure is usually not given any weight.

Non-gaming expenditure

The proposal could also divert non-gaming expenditure in the community. E.g., if the proposal results in better facilities or services, it could lead to a decrease in spending at nearby businesses with similar facilities or services.

12. Community contributions

An applicant’s proposal may include community contributions. A community contribution is something given or done to benefit the community where the premises is located.

Community contributions are generally regarded as a benefit, but only if they genuinely depend on the application being approved. In the same way, existing community contributions are only relevant if they continue after the application is successful.

Community contributions are usually a set amount of money, although some types of in-kind goods, and/or services may also be considered. The weight given to a contribution will depend on its impact on the community, not just the amount of what it offers. The Commission does not enforce or seek community contributions, as they're a matter for applicants.

Conditions

Applications may be approved, subject to conditions. Conditions can relate to any matter the Commission deems fit, but often relate to specific parts of the proposal such as:

• community contributions
• capital works
• harm minimisation measures, or
• employment.

All conditions imposed by the Commission need to be complied with. Conditions help ensure the expected benefits will happen if the application is approved.