On this page

  • About gaming machine entitlements
  • Allocation of new gaming machine entitlements
  • Variations to payment terms due to financial hardship
  • Transfer of gaming machine entitlements
  • Tax arrangements from August 2022

About gaming machine entitlements

Venue operators may only operate gaming machines if they hold gaming machine entitlements. Each entitlement authorises a venue operator to operate one gaming machine in an approved venue.

Allocation of new gaming machine entitlements

From 16 August 2022, new 20-year gaming machine entitlements begin for clubs and hotels. These are referred to as post-2022 entitlements.

The post-2022 gaming machine entitlements were allocated to venue operators through a process undertaken in October 2018.

This process resulted in the allocation of:

  • 13,211 club entitlements and
  • 14,099 hotel entitlements.

Following the allocation process, venue operators signed agreements setting out payment terms for the balance of the new entitlement purchase price.

Under these agreements, venue operators can:

  • pay the full amount on 16 August 2022, or
  • opt to pay by instalments under the deferred payment arrangements (over seven years for clubs and five years for hotels).

Interest will be payable on outstanding entitlement payments under the deferred payment arrangement.

Allocation monitoring

The Gambling and Lotteries Licence Independent Review Panel (the Panel) monitored the allocation process. The Panel was formed in accordance to the Gambling Regulation Act 2003 (Vic) (External link).

The key aim of the Panel is to oversee the integrity of the gambling licensing processes. The Panel has produced the following reports:

Ratio of club and hotel post-2022 gaming machine entitlements allocations

For new gaming machine entitlements:

  • 48.49% of those entitlements must be club gaming machine entitlements
  • 51.51% of those entitlements must be hotel gaming machine entitlements.

For more information, read the declaration made by the Minister for Consumer Affairs, Gaming and Liquor Regulation.

Variations to payment terms due to financial hardship

Venue operators facing financial hardship can request a variation to their payment terms.

For further information, see Request to vary payment terms for gaming machine entitlements.

Transfer of gaming machine entitlements

Venue operators can now transfer post-2022 gaming machine entitlements to allow for new venues or increases in existing venues. 

Profit tax

Profit tax is payable on post-2022 entitlements transferred at a price higher than the allocation price. 

This is to prevent venue operators profiting from acquiring entitlements outside of the initial 2017 allocation process.  

Profit tax for the seller:

  • The tax is 100 per cent of the difference between the price paid at allocation and the transfer price.

Profit tax for the buyer:

  • The tax is 100 per cent of the difference between the price that it would have paid for the entitlements at allocation (HAP) and the transfer price.

The Gaming Machine Entitlement Allocation and Transfer Rules (External link) specify how the HAP is determined to calculate the amount payable to the Treasurer on transfers of gaming machine entitlements that take effect on 16 August 2022.

Tax arrangements from August 2022

The current tax arrangements will be amended to:

  • introduce a new tax bracket for venue operators earning between $6667 and $12,500 per month in average per machine revenue
  • increase the tax rate for the top (highest paying) bracket
  • introduce a sliding scale for the club tax concession.

The tables below show the current and new tax brackets and rates, as well as the new sliding scale for the club tax concession.

Tax rate and threshold tables for clubs and hotels

Club tax rates: current and from August 2022
Monthly average per machine revenue ($) Current: tax rate (%) Monthly average per machine revenue ($) From August 2022: tax rate (%) Tax concession rate (%)
Less than 2666 0 Less than 2666 0 8.33
2666 or more and less than 12,500 46.70 2666 or more and less than 6667 46.70 8.33
6667 or more and less than to 12,500 51.17 6.33
12,500 or more 54.20 12,500 or more 60.67 4.33

 

Hotel tax rates: current and from August 2022
Monthly average per machine revenue ($) Current: tax rate (%) Monthly average per machine revenue ($) From August 2022: tax rate (%)
Less than 2666 8.33 Less than 2666 8.33
2666 or more and less than 12,500 55.03 2666 or more and less than 6667 55.03
6667 or more and less than to 12,500 57.50
12,500 or more 62.53 12,500 or more 65.00

Gambling licensing program

Queries

Further information about gaming machine entitlement arrangements is available from the Victorian Gambling and Casino Control Commission (External link).

If you have a query about applying for financial hardship consideration email gamingandliquor@justice.vic.gov.au (External link).