Regulatory Compliance - Author Template

Author: Frances Mattias

Submission Date: 8/02/2024
Record Type: Sub Obligation
Applicable Jurisdiction:
Commonwealth ACT ✘ NSW NT QLD VIC SA TAS WA
Frequency: [Insert text here] Due Date: [Insert text here]
Core Obligation Title (if this is a sub obligation): [Insert text here]
Title: Gaming rules

Short Description (Directional):

The Council must only conduct two-up games or authorise two-up games to be conducted on behalf
of the Council on ANZAC Day, Victory in the Pacific Day and Remembrance Day, unless it is the
Council of Broken Hill. All games of two-up must be conducted in accordance with the two-up
gaming rules and the authorisation and conditions of authorisation issued by the Minister for
Gaming and Racing. The Council must comply with any notices or directions given by the Minister for
Gaming and Racing or an authorised inspector.

Short Description (Questional):

Does the Council only conduct two-up games or authorise two-up games to be conducted on behalf
of the Council on ANZAC Day, Victory in the Pacific Day and Remembrance Day, unless it is the
Council of Broken Hill? Are all games of two-up conducted in accordance with the two-up gaming
rules and the authorisation and conditions of authorisation issued by the Minister for Gaming and
Racing? Does the Council must comply with any notices or directions given by the Minister for
Gaming and Racing or an authorised inspector?

Practical Guidance (Explanation – the What and the How):

Two-up is a gambling game that involves spinning coins in the air and placing bets on whether the
coin faces show heads or tails. Two-up can only be lawfully conducted in NSW on:
 ANZAC day, which is on the 25th of April in any year
 Victory in the Pacific Day, which is on the 15th of August in any year
 Remembrance Day, which is the 11th of November in any year but only after 12 noon
It is not lawful to play two-up at any other time. The one exception to this is Broken Hill, where two-
up is played all year round under a special licence from the NSW Government.

NSW legislation regulates the playing of two-up games in order to ensure that all games:
 are conducted in an honest manner and with appropriate controls for the prevention of
fraudulent activity
 are conducted free from any unlawful influence and exploitation
 minimise any adverse social effects and the potential of harm associated with lawful
gambling to individuals and families
Two-up gaming rules
The following rules apply to a game of two-up:
  a permit is not required
 for the purposes of participating in the game:
o no payment or other benefit may be given or sought for the right to participate in
the game, other than the placing of money via a bet
o no payment or other benefit may be given or sought for the right to enter the
premises on which the game is to be conducted. This does not exclude a premises
charging an entrance fee or charge to a licensed racecourse or other ground, as long
as the fee or charge is not directly related to the game of two-up. A licensed
racecourse is a racecourse licensed under the Betting and Racing Act 1998 (NSW) No
114
o it is prohibited by any person to give or seek a commission on, percentage of, or fee
for, bets or winnings, whether or not that person is a participant in the game
 minors, who are persons under 18 years, are not allowed to play two-up
 the prize pool comprises all money invested by players
 subject to the deduction of a fundraising amount for a benefiting charity, all bets and wagers
must be given as winnings
 fundraising two-up may only be conducted on the premises of a registered club. A registered
club is a club that holds a club licence

Two-ups at registered clubs

A registered club that conducts a game of two-up which involves a payment, benefit, commission,
percentage or fee, is still lawfully conducted if the following conditions are met:
 the club has authorised the conduct of the game, and
 all payments or other benefits involved are entirely disposed of:
o for the benefit of a charity, body or other organisation prescribed by the regulations
o if no such charity, body or other organisation is prescribed, the payments or benefits
must be disposed of for the benefit of any charity or charitable purpose, and are not
to form part of the funds of the club. A charitable purpose includes any benevolent,
philanthropic or patriotic purpose

Two-up at Broken Hill

In order for a game of two-up conducted by or on behalf of the Council of Broken Hill (the Council)
to be lawful, the following conditions must be met:
 the game must be conducted at an approved location in Broken Hill
 the game must be conducted in accordance with the Minister for Gaming and Racing’s (the
Minister) authorisation. The Minister’s authorisation may specify that the Council may:
o enter into arrangements with other persons to conduct games of two-up on the
Council’s behalf
o charge and receive payment from any person for the right to enter the approved
two-up premises and participate in games of two-up
o receive a commission on, percentage of, or fee for, bets or winnings in respect of
games of two-up
 the game must be conducted in accordance with any conditions specified in the Minister’s
authorisation. Some conditions that the Minister may impose include, but are not limited to,
conditions relating to any one or more of the following:
o who may conduct games of two-up on the Council’s behalf
o the manner in which any funds received by the Council in connection with games of
two-up are to be applied, and the giving of information by the Council to the
Minister relating to such funds
 o the payment by the Council to the Minister of an amount from the funds received in
connection with games of two-up conducted by or on behalf of the Council
o the approved two-up premises
o the days and the times when games of two-up may be conducted
o the rules in accordance with which games of two-up are to be conducted
 the Council, or any person conducting games of two-up on behalf of the Council, must not in
connection with any game of two-up:
o accept any bet made other than by means of money
o lend money or any other valuable thing, or
o extend any form of credit
 the council, any person conducting games of two-up on the Council’s behalf, or any key
employee (see Definition), must comply with any directions or notices given by the Minister
in relation to any game of two-up conducted by or on behalf of the Council
 the Council, any person conducting games of two-up on the Council’s behalf, or any key
employee, must comply with any directions or requests for information given by an
authorised inspector who is appointed on the Minister’s behalf

The Council is permitted to make rules in relation to the conduct of two-up games by or on behalf of
the Council. Such rules must be consistent with the law and with any conditions imposed by the
Minister. Furthermore, a rule:
 must be approved in writing by the Minister prior to it being made
 must be published in the Gazette
 takes effect on and from the date of publication or on any date as specified in the rule
 a power to make rules also includes a power to amend or repeal a rule

Control Action:

A game of two-up must:

 only be conducted in NSW on ANZAC day, Victory in the Pacific Day or Remembrance Day,
unless the Council of Broken Hill is conducting the game or permitting it to be conducted on
the Council’s behalf
 for the purposes of participating in the game:
o prohibit the making or receiving of payment or other benefits for the right to
participate in the game, other than the placing of money via a bet
o prohibit the making or receiving of payment or other benefits for the right to enter a
premises on which the game is to be conducted
o prohibit any person to give or seek a commission on, percentage of, or fee for, bets
or winnings
 not be conducted with minors
 ensure the prize pool comprises all money invested by players
 give all bets and wagers as winnings, subject to the deduction of any fundraising amount
 be conducted in accordance with the two-up gaming rules and the authorisation and
conditions of authorisation issued by the Minister
Consequence:

If the Council fails to ensure that any games of two-up conducted by or on behalf of the Council are
conducted in a lawful manner and in accordance with the rules or conditions of the authorisation,
then the Minister may revoke or suspend the Council’s authorisation to conduct games of two-up.
(Gambling (Two-up) Act 1998 (NSW) No 115, s 14)
If a person does any of the following:
 obstructs or hinders an inspector
 fails to produce for inspection any documents requested by the inspector relating to the
conduct of a game of two-up in the possession, or under the control, of the person
 fails without reasonable excuse to attend before an inspector and answer questions or
supply information when required so to do by the inspector, or
 provides an inspector information which the person knows is false or misleading in a
material particular
then they may be found guilty of an offence and face a pecuniary penalty of up to $2,200.
(Gambling (Two-up) Act 1998 (NSW) No 115, s 20)

Failure by the Council or any person to whom a notice is given by the Minister to:
 provide information and documents specified in the notice regarding the conduct of games
of two-up by or on behalf of the Council, or
 attend before the Minister or an inspector for examination relating to any matters relevant
to the conduct of a game of two-up by or on behalf of the Council,
is an offence which may result in a pecuniary penalty of up to $2,200.
(Gambling (Two-up) Act 1998 No 115, s 21)

If a person who is concerned in the conduct or playing of a game of two-up makes or accepts any bet
with or from a minor, or permits such a bet to be made or accepted with or from a minor, then that
person may be found guilty of an offence and face a pecuniary penalty of up to $5,500 or 12 months
imprisonment, or both.
(Gambling (Two-up) Act 1998 (NSW) No 115, s 24)

Tools:

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Compliance Source:

Gambling (Two-up) Act 1998 (NSW), No 115

Registered Clubs Act 1976 (NSW) No 31, s 4

Unlawful Gambling Act 1998 (NSW) No 113, s 4

Betting and Racing Act 1998 (NSW) No 114, s 4

Definitions:

Gambling (Two-up) Act 1998 No 115, s4

key employee means a person (whether or not employed under a contract of service) who is:
(a) employed in a managerial or supervisory capacity in relation to the conduct of games of two-
up by or on behalf of the Council, or
(b) authorised to make decisions, involving the exercise of games of two-up conducted by or on
behalf of the Council, or
(c) concerned or engaged, in any manner prescribed by the regulations, in the conduct of games
of two-up by or on behalf of the Council.