Trading round for gaming entitlements
Trading rounds allow an eligible person to purchase and sell gaming machine entitlements. They are usually held at least twice a year at the discretion of the Commissioner for Liquor and Gambling.
Each gaming machine entitlement gives the licence holder the right to operate a single gaming machine at their venue. Without holding an entitlement a licence holder can't own or operate a gaming machine.
When the commissioner announces a trading round, all gaming machine licence holders are notified by post or email of:
- the closing date to submit offers to purchase or sell gaming machine entitlements, usually four weeks from the announcement
- the trading day - the date when the commissioner will determine which offers have been successful and announce the results.
Who can participate
- anyone who holds a gaming machine licence
- a person carrying on the business of a licensee - eg a landlord or mortgagee with the approval of the commissioner
- anyone who holds a temporary gaming machine licence
- the operator of the Adelaide casino, SKYCITY Adelaide
- the holder of the special club licence, Club One.
To sell entitlements in a trading round the applicant must actually hold the number of entitlements and have the lawful right to sell them. Entitlements that have been allocated to a gaming machine licence under an agreement with Club One may not be sold in the trading round by the licence holder.
When a trading round is announced, an eligible person can submit an offer online to:
- purchase a gaming machine entitlement by specifying the maximum price that they would be willing to pay for the entitlement
- sell a gaming machine entitlement by specifying the minimum price that they would be willing to accept as payment for the entitlement.
Offers to purchase or sell gaming machine entitlements can only be made online and will only be accepted until the time and date fixed by the commissioner.
Any offers submitted in previous trading rounds are not carried over to subsequent trading rounds.
On trading day
On trading day, the commissioner will determine:
- which offers have been successful
- the purchaser price (the amount that successful purchasers will pay)
- the vendor price (the amount that successful sellers will be paid)
All applicants will be advised by email of the results and whether their respective offers have been successful.
Successful purchasers will receive an invoice requesting payment of the purchaser price plus GST for each entitlement within 14 days of the trading day.
The proceeds from successful purchasers will be paid to successful vendors (sellers) within 42 days of the day fixed by the commissioner as the trading day.
How the price is calculated
The calculation takes into consideration:
- how many sellers and buyers have submitted offers
- the maximum price purchasers are willing to pay
- the minimum price that sellers are willing to receive
- whether entitlements are being sold by a profit organisation or a non-profit association
- that one in every four entitlements sold during a trading round will be either be taken out of circulation and cancelled or transferred to Club One.
Each successful purchaser will pay the same purchase price plus GST. The price will be equal to or less than the amount offered.
Each successful seller will receive the same vendor price plus GST regardless of the offer that was made. The price will be equal to or more than the amount offered.
Some applicants may be unsuccessful in purchasing or selling entitlements, depending on the number of participants and the nominated prices.
Contact the CBS Trade Team