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The Gaming And Lotteries Acts (Amendment) Act, 2011 (Bill No. 77)

A Bill entitled

AN ACT to amend the Gaming Act and the Lotteries and Other

Games Act.

BE IT ENACTED by the President, by and with the advice and consent of the House of Representatives, in this present Parliament assembled, and by the authority of the same as follows:-

1. The short title of this Act is the Gaming and Lotteries Acts

(Amendment) Act, 2011.

PART I

AMENDMENTS TO THE GAMING ACT

2. This Part amends the Gaming Act, and it shall be read and construed as one with the Gaming Act, hereinafter in this Part referred to as "the principal Act".

3. In subarticle (3) of article 15 of the principal Act, for the words "A casino licence remains in force for", there shall be substituted the words "A casino licence remains in force for up to".

4. Subarticle (3) of article 16 of the principal Act shall be substituted by the following:

"(3) Determinations and variations under subarticle (1)
shall not be made at intervals of less than twelve months.".

Short title.

Amendments to the Gaming Act. Cap. 400.

Amendment of article 15 of the principal Act.

Amendment of article 16 of the principal Act.

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Addition of new article to the principal Act.

5. Immediately after article 42 of the principal Act, there shall be added the following new article:

"Adminis- trative penalties.
42A. (1) The Authority may, with the concurrence of any licensee or holder of a permit issued in terms of article 36 who contravenes a condition of his licence or, as the case may be, of his permit, or any directive issued by the Authority in terms of this Act or of regulations made thereunder and applicable to such licensee or, as the case may be, to such permit holder where such contravention amounts to an offence against this Act, impose administrative penalties or sanctions upon such licensee or holder of a permit as an alternative to proceedings in Court.
(2) For the purposes of subarticle (1), where the Authority decides to exercise its powers thereunder, the Authority shall enter into an agreement in writing with the offender whereby the said offender pays a sum which shall not exceed two hundred and thirty-five thousand euro (€235,000.00), as the Authority shall determine, and upon the signing of any such agreement between the Authority and the offender, all criminal liability of the offender under this Act, with regard to the offence or offences in relation to which the agreement has been entered, shall be extinguished:
Provided that any such agreement and the provisions of this article shall be without prejudice to the power of the Authority, where applicable, to cancel or suspend the licence held by the offender in terms of the provisions of this Act relating to cancellation or suspension of the relevant licence.
(3) The provisions of subarticle (2) shall apply also in any case where the offender has been charged before a Court in relation to the offence, but before final judgement has been given in the case.
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(4) Any sum due by virtue of an agreement entered into in terms of subarticle (2) shall be due to the Authority as a civil debt. The Authority shall not enter into an agreement as is referred to in subarticle (2), unless such agreement is accompanied by the payment of the sum due or by an adequate and sufficient security for its payment.".

6. Immediately after paragraph (g) of article 50 of the principal Act, there shall be added the following new paragraph:

"(h) regulate the operations of casinos on vessels, including but not limited to aircraft and ships, which are registered in Malta and determine the tax and licence fees which shall apply to such operations as well as determine which provisions of this Act shall either apply or not apply for such operations.".

PART II

AMENDMENTS TO THE LOTTERIES AND OTHER GAMES ACT

7. This Part amends the Lotteries and Other Games Act, and it shall be read and construed as one with the Lotteries and Other Games Act, hereinafter in this Part referred to as "the principal Act".

8. Subarticle (1) of article 2 of the principal Act shall be amended as follows:

(a) immediately after the definition "amusement game" there shall be added the following new definition:
" "amusement game with prize" means a game played by means of an amusement machine with prize;";
(b) in the definition "amusement machine token", immediately after the words "in amusement machines" there shall be added the words "or amusement machines with prize";
(c) immediately after the definition "amusement machine token" there shall be added the following new definition:
" "amusement machine with prize" means any type of machine, whether operated electrically, electronically, mechanically, manually or otherwise, used for the purpose

Amendment of article 50 of the principal Act.

Amendment of the Lotteries and Other Games Act. Cap. 438.

Amendment of article 2 of the principal Act.

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of playing games exclusively for amusement purposes and not for gambling purposes, and which is operated by the insertion of money or any amusement machine token, and where in the operation thereof a successful player receives or is offered a prize in money or of a monetary value;"; and
(d) immediately after the definition "seasonal tombola (bingo) hall licence" there shall be added the following new definition:

Amendment of article 7 of the principal Act.

" "skill game" or "game of skill" means a game for money or money’s worth the results of which depend, mainly, on the skill of the participant, but does not include a sport event;".

9. Article 7 of the principal Act shall be amended as follows:

(a) in the marginal note thereof, for the words "Placing on the market, etc., of relevant gaming devices." there shall be substituted the words "Placing on the market, etc., of relevant gaming devices, amusement machines and amusement machines with prize.";
(b) subarticle (3) thereof shall be renumbered as subarticle (5);
(c) immediately after subarticle (2) thereof, there shall be added the following new subarticles:
"(3) No person shall manufacture, assemble, place on the market, distribute, supply, sell, lease, transfer, make available for use, host or operate any amusement machine or amusement machine with prize, or any part or parts thereof, unless such person is in possession of a valid licence to this effect issued by the Authority or unless such person is exempted from such licensing requirement in respect of such amusement machine or amusement machines with prize or such activity in terms of regulations made under this Act.
(4) An application for a licence to manufacture, assemble, place on the market, distribute, supply, sell, lease, transfer, make available for use, host or operate any amusement machine or amusement machine with prize, or any part or parts thereof, shall be made in such form and manner required by the Authority or as prescribed by regulations, and in granting such licence the Authority may subject it to such conditions as it may deem appropriate or as may be prescribed by regulations. The Authority may
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order the cancellation, suspension, or imposition of any condition on any such licence in such circumstances as may be prescribed by regulations or in the said licence."; and
(d) in subarticle (5) thereof, as re-numbered, for the words "subarticle (1)" there shall be substituted the words "subarticles (1) and (3)".

10. Immediately after paragraph (m) of article 11 of the principal Act, there shall be added the following new paragraph:

"(n) to enter into bilateral or multilateral agreements or memoranda of understanding with other local or overseas regulatory authorities, or other government agencies, for various matters including but not limited to exchange of information and other forms of collaboration.".

11. Article 18 of the principal Act shall be amended as follows:

(a) in paragraph (a) of subarticle (1) thereof -
(i) immediately after the words "amusement machine," wherever they occur there shall be added the words "amusement machine with prize,"; and
(ii) for the words "amusement games" wherever they occur there shall be substituted the words "amusement games or amusement games with prize";
(b) in paragraph (b) of subarticle (1) thereof -
(i) in sub-paragraph (i) thereof, for the words "the operation of games or amusement games", there shall be substituted the words "the operation of authorised games"; and
(ii) in sub-paragraph (ii) thereof, immediately after the words "or amusement games", there shall be added the words "or amusement games with prize";
(c) in paragraph (c) of subarticle (1) thereof, immediately after the words "or amusement machine" there shall be added the words "or amusement machine with prize" and immediately after the words "or amusement games" there shall be added the words "or amusement games with prize";

Amendment of article 11 of the principal Act.

Amendment of article 18 of the principal Act.

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(d) in paragraph (d) of subarticle (1) thereof, immediately after the words "or amusement games" there shall be added the words "or amusement games with prize"; and immediately after the words "or amusement machine" there shall be added the words "or amusement machine with prize";
(e) in sub-paragraph (ii) of paragraph (f) of subarticle (1) thereof immediately after the words "or amusement games" there shall be added the words "or amusement games with prize"; and
(f) immediately after subarticle (3) thereof, there shall be added the following new subarticle:

Amendment of article 20 of the principal Act.

Amendment of article 67 of the principal Act.

Amendment of article 68 of the principal Act.

Amendment of article 78 of the principal Act.

"(4) The licensee shall bear the cost of any inspection and investigation held by the Authority through its inspectors, other Authority officers or third parties appointed by the Authority. The Authority shall have the right to impose any reasonable administrative fee or charge in order to cover its costs in terms of this subarticle.".

12. In article 20 of the principal Act, immediately after the words "amusement game" there shall be added the words "or amusement game with prize".

13. In subarticle (1) of article 67 of the principal Act, for the words "two years" there shall be substituted the words "five years", and in the first proviso thereto, for the words "three years" there shall be substituted the words "six years".

14. In subarticle (2) of article 68 of the principal Act, the words "and shall not be less than seven thousand euro (€ 7000.00)" shall be deleted.

15. Article 78 of the principal Act shall be amended as follows:

(a) in subarticle (3) thereof, immediately after the words "specified games", there shall be added the words "and, or skill games";
(b) in paragraph (c) of subarticle (3) thereof, immediately after the words "such games", there shall be added the words "and, or skill games";
(c) in paragraph (d) of subarticle (3) thereof, immediately after the words "such games", there shall be added the words "and, or skill games";
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(d) in subarticle (5) thereof, immediately after the words "specified amusement machines," there shall be added the words "amusement machines with prize," and for the words "or specified amusement games," there shall be substituted the words ", specified amusement games or amusement games with prize,";
(e) in paragraph (a) of subarticle (5) thereof, immediately after the words "amusement machines" there shall be added the words "or amusement machines with prize";
(f) in paragraph (c) of subarticle (5) thereof, immediately after the words "amusement machines" there shall be added the words ", amusement machines with prize";
(g) in paragraph (d) of subarticle (5) thereof, immediately after the words "amusement machines" there shall be added the words "and, or amusement machines with prize";
(h) in paragraph (f) of subarticle (5) thereof, immediately after the words "amusement game" there shall be added the words "and, or an amusement game with prize";
(i) in paragraph (g) of subarticle (5) thereof, immediately after the words "amusement game" there shall be added the words "and, or an amusement game with prize";
(j) in paragraph (h) of subarticle (5) thereof, immediately after the words "amusement games" there shall be added the words "and, or amusement games with prize"; and immediately after the words "amusement machines", wherever they occur in the said paragraph, there shall be added the words "and, or amusement games with prize"; and
(k) in paragraph (i) of subarticle (5) thereof, immediately after the words "specified categories of amusement machines" there shall be added the words "and, or amusement machines with prize", and immediately after the words "specified categories of amusement games" there shall be added the words ", amusement games with prize".

Objects and Reasons

The main objects of this Bill are to include, within the Lotteries and Other Games Act, the prohibition of amusement machines as well
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as amusement machines with prize unless such machines are licensed by the Lotteries and Gaming Authority. Furthermore, the Bill is proposing amendments to the Gaming Act, whereby the Lotteries and Gaming Authority shall have the possibility of granting casino licences for less than ten years as well as impose administrative penalties on licence holders for any breach of the provisions of the Act or of any regulations made thereunder.