The treatment of accumulated gaming machine progressive prize or jackpot amounts

The intent of the requirements of the Gaming Machines Regulation 2019 (GMR) is to return accumulated jackpot amounts to patrons through appropriate ‘dispersal’ to progressive jackpot machines or systems within a venue, or to transfer these amounts via payment to the Secretary. Amounts transferred to the Secretary are paid into the Community Development Fund (for payments from hoteliers) and into the ClubGRANTS Fund (for payments from registered clubs).

Historically, communications provided by L&GNSW have resulted in some venues actioning dispersals within six (6) months of disposal or conversion, without having the required approval from the Independent Liquor & Gaming Authority (Authority). This practice does not align with the requirements of clause 82 of the GMR, and is an unreasonable outcome for the pool of patrons who have contributed to the jackpot amounts.

Clarified process for dispersals

To clarify historical communications and assist industry to comply with the requirements of the GMR, L&GNSW encourages venues to review their practices so that they align with the following key steps:

1. All dispersals must be actioned at the time of disposal or conversion, in line with clause 82 of the GMR.
2. Dispersals can be actioned in one of three ways:
   1. transferred to a progressive machine/system at the time the disposal or conversion takes place, or
   2. paid to the Secretary (to go towards the Community Development Fund or ClubGRANTS Fund) where it is determined that a transfer cannot be completed, or
   3. in exceptional circumstances, the Authority may approve an alternative proposal, noting that the timeframe for completion of the dispersal method is to be within six (6) months, or any later time approved by the Authority.

Dispersal Process Map