2. Subject to approval: Any
agreement to buy and
sell entitlements must be
specifically subject to approval
by Liquor & Gaming NSW. Unlike
other transactions involving the
sale of assets, the transfer of
entitlements must be approved.
It is also a good idea to specify a
date by which approval needs to
be granted. Thus, the contract
of sale needs to state that if
approval is not granted by a
certain date, then the parties are
under no obligation to go ahead
with the transaction.
3. Member approval: If the selling
club has less than 10 gaming
machine entitlements (or if
the transfer will reduce their
entitlements below 10), then
Liquor & Gaming NSW requires
them to obtain approval from
the members. This helps ensure
the members are comfortable
with selling a key asset of the
club’s business when they have
few entitlements remaining.
The contract of sale must be
conditional upon getting this
approval.
4. Local Impact Assessment
(LIA): If the purchasing club
is transferring entitlements
between different Local
Government Areas, then it
should examine whether an LIA
is required, and the likelihood of
success.
5. Large clubs: If the purchasing
club will hold more than 450
entitlements after the transfer
but an LIA is not required for the
application, Liquor & Gaming
NSW requires the club to make
submissions on the impact from
the increased number of gaming
machines on the amenity of
the local area. The club must
ensure these submissions are
properly drafted. In particular, it
must carefully consider the kind
of benefits granted to the local
community – for example, it can
provide specific details about a
community or charitable project.
6. Stamp duty: Stamp duty on
gaming machine entitlements
was abolished from 1 July 2016.
However, if a club has made an
agreement before that date,
duty may still be applicable.
If you would like to discuss any of
the matters dealt with this in the
article, please contact either Brett
Boon on 02 8248 5832 or at bboon@
tglaw.com.au or Arj Puveendran on
02 8248 3494 or at apuveendran@
tglaw.com.au.
THE CLUBS, GAMING & LEISURE
LEGAL SPECIALISTS
Acting for all types of clubs across Australia, Thomson Geer is proud to
be part of the gaming and leisure industry and is dedicated to delivering
a pre-eminent service across the whole spectrum of the industry.
We work with both domestic and international clients on a range of
matters from providing ongoing advice to advising on the largest and
most complex projects and transactions in the industry.
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Registered clubs law
Liquor and gaming law
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Corporate governance
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FOR A CONFIDENTIAL DISCUSSION PLEASE CONTACT:
Brett Boon P +61 2 8248 5832 M +61 4 1480 8265 E [email protected]
ADVICE | TRANSACTIONS | DISPUTES
Domestic & Cross Border
www.tglaw.com.au
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