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Level 25, 1 O’Connell Street,
Sdyney NSW 2000
+61 2 8248 5800
www.tglaw.com.au
ENTITLEMENTS:
PLAYING THE
GAME
PROPERLY
Brett Boon and Arj Puveendran
Clubs that want to buy or sell
gaming machine entitlements need
to understand the fundamentals
when negotiating in this
marketplace.
In any industry, it is important
that each party that enters into
a transaction takes all steps to
get it right. Sometimes, parties
miss certain steps to cut costs
or approach the transaction
commercially - only to suffer the
consequences at a later stage.
IQ 36
These can be straightforward
transactions: a club agrees to sell
some of its entitlements to another
club, lodges an application with
Liquor & Gaming NSW, and then
arranges to switch on the gaming
machines attached to the new
entitlements once the application is
approved.
However, there are a number of
steps that clubs may miss which
could mean that the value each
party is expecting won’t be realised.
Below are 6 key issues clubs
should watch out for:
1. Contracts: As the transaction
can appear straightforward,
clubs sometimes avoid signing
a contract. However, it is
essential to have a properly
drafted contract in place. As for
all transactions, anything can
happen – clubs need to be able
to go back to a proper document
that sets out each party’s rights
and obligations.