Trading rounds allow an eligible person to purchase or sell gaming machine entitlements. They're usually held at least twice a year at the discretion of the Liquor and Gambling Commissioner.
When the commissioner announces a trading round, all gaming machine licence holders are notified 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.
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.
Download - The approved trading system explained (PDF 519KB)
Who can participate
- anyone who holds a gaming machine licence or gaming machine entitlement
- 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.
How to apply
When a trading round is announced, an eligible person can submit an offer 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 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 rounds.
Buy an entitlement
Before you begin
Ensure you have the relevant documents prepared and scanned before beginning this application.
You must have documentation confirming your capacity to purchase entitlements including:
- a copy of your current bank statement or written confirmation from your financial institution indicating that you have the funds available or capacity to purchase the entitlements
- credit card details (VISA or Mastercard only) for payment of the administration fee.
The online application form will be available when the next trading round is announced.
What happens next
On trading day you'll be notified by email of the outcome. If your offer is successful, you'll receive an invoice requesting full payment either by EFT or bank cheque. Credit card payments can't be accepted.
Full payment for entitlements purchased, which is the purchaser price plus GST, must be made to the commissioner within 14 days of the trading day.
After the commissioner has received payment from all successful purchasers and has dispersed money to all the successful sellers, you'll be advised in writing of the date that entitlements will be transferred to your licence. This is known as the vesting date.
You'll receive an updated gaming machine licence stating the new number of gaming machine entitlements.
Sell an entitlement
Before you begin
Ensure you have the relevant documents prepared and scanned before beginning this application.
You must have documentation showing that you have the lawful right to sell an entitlement. This may include:
- confirmation that your landlord approves the sale of entitlements, if the gaming machine licence relates to premises under a lease agreement
- confirmation that a financier or credit provider has approved the sale of entitlements, if there's a bill of sale, charge or mortgage over the assets of the business
- if the gaming machine licence is held by a club or community hotel, that the committee has agreed to the sale of entitlements by providing a copy of the relevant minutes.
The online application form will be available when the next trading round is announced.
What happens next
On trading day you'll be notified by email of the outcome. If your offer is successful, the funds will be paid by EFT to your nominated account within 42 days of the trading day.
Once the proceeds have been disbursed you'll receive written notification of the date that the entitlements will be transferred from your licence. This is known as the vesting date.
If applicable, the commissioner will notify the Independent Gaming Corporation (IGC) so that any related gaming machines can be disconnected from the gaming machine monitoring system.
You'll receive an updated gaming machine licence stating the new number of gaming entitlements held under the licence.
It's an offence to have more gaming machines on the premises than the number of entitlements held. If gaming machines are attached to the entitlement sold, it's your responsibility to contact a licensed gaming machine dealer to disconnect and remove the gaming machine from the venue.
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 taken out of circulation and cancelled or transferred to Club One.
Purchasers
Successful purchasers will receive an invoice requesting full payment either by EFT or bank cheque. Credit card payments can't be accepted. Full payment, which is the purchaser price plus GST, must be made to the commissioner within 14 days of the trading day.
Each purchaser will pay the same purchaser price plus GST. The price will be equal to or less than the amount offered.
Some applicants may be unsuccessful in purchasing entitlements, depending on the number of participants and the nominated prices.
Sellers
The proceeds from the trading round will be paid to successful vendors (sellers) within 42 days of the day fixed by the commissioner as the trading day.
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 selling entitlements, depending on the number of participants and the nominated prices.
Download How does the approved trading system work? (PDF 626 KB)
