Section 70 Gaming Machines Act 2001
Possession of Approved Gaming Machine by Unauthorised Person

70 Possession of approved gaming machine by unauthorised person

(1) A person who is in possession of an approved gaming machine is guilty of an offence unless the person
(a) is the holder of a gaming-related licence, or
(b) is a hotelier or club lawfully in possession of the approved gaming machine, or
(c) has possession of the approved gaming machine in the ordinary course of a business involving the transportation or storage of goods, or
(d) is an inspector exercising functions under this Act, or
(e) is in lawful possession of the approved gaming machine as a consequence of its seizure under the authority of a search warrant under section 184.

Maximum penalty – 100 penalty units or imprisonment for 12 months, or both.

(2) This section does not apply to the possession of an approved gaming machine
(a) by a hotelier if the hotel licence has been cancelled under the Liquor Act 2007 and the possession has not extended beyond a reasonable time after the cancellation, or
(b) by a club if
(i) the club has been disqualified from holding a licence under the Liquor Act 2007 and the period of disqualification has not expired, or
(ii) the licence of the club has been cancelled under the Liquor Act 2007,
and the possession has not extended beyond a reasonable time after the disqualification or cancellation.

(3) This section does not apply to a person in possession of an approved gaming machine if
(a) the possession resulted from the exercise of a power conferred on the person by a mortgage and has not extended beyond 21 days after the exercise of the power, or
(b) if the person obtained possession of the gaming machine by exercising a power or proprietary right under financial or other arrangements approved by the Authority and has not retained possession beyond 21 days after the exercise of the power.

What is an approved gaming machine?

An approved gaming machine is defined by section 4 of the Act (the definitions section) as a gaming machine declared under section 64 to be an approved gaming machine and includes—

(a)  any subsidiary equipment approved by the Authority for use in connection with the gaming machine, and

(b)  any component of the gaming machine (other than a component prescribed by the regulations as not being part of the gaming machine), and

(c)  any specially approved gaming machine within the meaning of section 141.

Section 64 of the Act sets out the requirements for a gaming machine to be approved, and reads as follows:

64   Declaration of approved gaming machines

(1)  The Authority may declare that a device referred to in the declaration is an approved gaming machine for the purposes of this Act.

(2)  A declaration under this section—

(a)  may refer to a device specifically or by reference to a class or description of devices, and

(b)  may be a temporary declaration pending final determination of an application for declaration of the device as an approved gaming machine.

(3)  The Authority may refuse to make a declaration of a device as an approved gaming machine if the Authority is of the opinion that the declaration would relate to a device that does not meet the approved technical standards.

(4)  If an approved gaming machine kept by a hotelier or club is modified in such a way that it is in the form of a different approved gaming machine, it ceases to be an approved gaming machine despite being in that form unless—

(a)  the material used to effect the modification was supplied by the holder of a dealer’s licence (either directly or through the holder of another gaming-related licence), and

(b)  the modification was effected in accordance with a variation of the authorisation in force in relation to the keeping of the approved gaming machine.

(5)  A minor or insignificant variation does not prevent a device from being an approved gaming machine if the variation does not affect its security or integrity or the manner in which the device from which it varies was designed and programmed to function.

(6)  The Authority may revoke a declaration in force under this section if it considers that it is necessary to do so in the public interest or if it is a temporary declaration.

(6A)  A device ceases to be an approved gaming device if the Authority has authorised the destruction of that device or devices of that class or description under section 81A.

(7)  A device ceases to be an approved gaming machine if its declaration as an approved gaming machine is revoked.

(8)  If the Authority revokes the declaration of a device as an approved gaming machine, the revocation does not take effect until the hotelier, club or holder of the dealer’s licence who is in possession of the device has been given or served written notice of the revocation—

(a)  by post, or

(b)  by email to an email address specified by the hotelier, club or holder of the dealer’s licence for the service of the notice.

Who is an authorised person?

Section 56 of the Act sets out the requirements for being an authorised person for the purposes of possessing gaming machines.

The section reads as follows:

56   Requirement for authorisation to keep or dispose of gaming machines

(1)  A hotelier or club must not keep or dispose of an approved gaming machine unless—

(a)  the keeping or disposal of the gaming machine is authorised by the Authority, and

(b)  the hotelier or club complies with the requirements of or under this Act in relation to the keeping or disposal of the gaming machine and with the conditions to which the authorisation is subject.

Maximum penalty—100 penalty units.

(2)  The Authority may, by instrument in writing, authorise a hotelier or club to keep or dispose of approved gaming machines. An authorisation to keep approved gaming machines may be varied by the Authority from time to time.

(3)  An authorisation to keep approved gaming machines is an authorisation that relates to the total number of approved gaming machines kept in the hotel or on the premises of the club concerned at any one time as well as to the keeping of a particular approved gaming machine.

(4)  The total number of approved gaming machines that the Authority may authorise to be kept in a hotel from time to time consists of the following—

(a)  the number of approved gaming machines that corresponds to the number of gaming machine entitlements held in respect of the hotel licence,

(b)  the number of approved gaming machines that corresponds to the number of permits (as referred to in Part 3) held in respect of the hotel licence.

(5)  The total number of approved gaming machines that the Authority may authorise to be kept on any club premises from time to time is the number of approved gaming machines that corresponds to the number of gaming machine entitlements held in respect of the club licence.

(6)  An authorisation by the Authority under this section is subject—

(a)  to such conditions as may be imposed by the Authority in relation to the keeping or disposal of the approved gaming machines to which the authorisation relates, and

(b)  to such conditions as are specified in this Act or as may be prescribed by the regulations.

(7)  The Authority may vary an authorisation under this section in relation to a particular approved gaming machine to allow a modification of the gaming machine in accordance with section 64.

(8)  In the instrument by which the Authority authorises the keeping or disposal of approved gaming machines, or by which it varies such an authorisation, the Authority is to identify each of the approved gaming machines to which the authorisation relates.

The sections that follow section 56 set out the process for applying for authorisation.

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