Trading gaming entitlements

The way gaming machine entitlements can be traded in South Australia has changed. Learn more about the new Gaming Machine Entitlement Exchange (GMEX). A gaming machine entitlement allows a gaming machine licence holder the right to operate a single gaming machine at their venue. Licensees must have gaming machine entitlements to own or operate gaming machines.

Licence holders can buy or sell their gaming machine entitlements online via the Gaming Machine Entitlement Exchange (GMEX).

Who can access GMEX

You must be authorised and registered to use GMEX. This will be:

anyone who holds a gaming machine licence or person authorised by a licence holder
a person carrying on the business of a licensee - eg a landlord or mortgagee with the approval of the Liquor and Gambling Commissioner
anyone who holds a temporary gaming machine licence
the operator of the Adelaide casino, SKYCITY Adelaide or a person authorised by the licensee
the holder of the special club licence, Club One (SA) or a person authorised by the licensee.

How to trade online

Trading can occur at any time using GMEX.

GMEX is an open market-based trading system where sellers and buyers make or accept offers to trade gaming machine entitlements.

Consumer and Business Services (CBS) reviews and approves these trade agreements but has no role in coordinating payments or negotiating trades.

See more information in the GMEX user guide.

Buying and selling entitlements

On GMEX, licensees can post:

an offer to sell their gaming machine entitlements and buyers can respond to these offers online.
expressions of interest to purchase entitlements and sellers can respond.

If the offer or expression of interest is accepted, both parties will enter into a trade agreement. CBS will then review and approve the trade agreement if all regulatory requirements have been met.

Forfeitures

For every gaming machine entitlement sold, a tiered rate specifies how many additional entitlements must be offered for sale, allowing a portion of entitlements to be cancelled.

This helps to redue the overall number of gaming machines in South Australia - a commitment of the State Government.

This tiered rate of forfeiture also applies to non-profit gaming operators who sell their entitlements on GMEX.

Club One can only sell its entitlements to non-profit associations. Those sales are not subject to the forfeiture rules.

Visit the CBS website for more about the tiered rate of forfeiture.

What happens next

Gaming machine entitlements will be transferred when:

CBS has approved the trade agreement
the seller has received full payment and advised CBS.

Both parties will receive an updated gaming machine licence from CBS stating the new number of gaming machine entitlements.

The Commissioner will notify the Independent Gaming Corporation (IGC) so that any related gaming machines can be disconnected from the gaming machine monitoring system.

It is an offence to have more gaming machines on your premises than the number of gaming machine entitlements held. If gaming machines are attached to the entitlements sold, it is your responsibility to contact a licensed gaming machine dealer to disconnect and remove the gaming machine from the venue.

List of gaming machine dealers (PDF 65KB)