Liquor and Gaming NSW > Gaming & Wagering > Local Impact Assessment (LIA) public register

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​Local Impact Assessment

The Local Impact Assessment (LIA) looks at the impact to communities of an increase in gaming machines. The LIA process ensures local councils, police and residents have a say in what happens in their community.

An LIA is completed by clubs or hotels that request an increase to gaming machines in their venues,​​ or when a hotel or club changes location.

LIAs that are pending approval can be viewed on the LIA public register.

What is a Local Impact Assessment

    A Local Impact Assessment (LIA) is designed to assess the impact of additional gaming machines on the local community.

    The LIA process ensures that individuals and organisations can make a submission in response to a gaming machine threshold increase proposed by a club or a hotel.

    You don't need to submit an LIA with your threshold increase application if you apply for transfer of gaming machine entitlements or permits:

    1. within the same Local Government Area (LGA);  or
    2. if your venue is located in a Band 1 LGA and, if the application is approved, the total threshold increase for the venue in the past 12 months would not exceed 20.

    All LIAs (both pending and determined) can be viewed on the LIA Public Register. ​

    A merits review of contentious licensing decisions and disciplinary matters can be sought by persons with standing to the New South Wales Civil and Administrative Tribunal (NCAT). The review of licensing decisions, which  includes decisions in relation to an application for an increase in gaming machine threshold requiring a Local Impact Assessment - Class 2, apply to applications lodged with ILGA from 1 March 2016.​​​

    NCAT decisions on licensing matters will be published on the ​NSW Case Law ​​website under the Administrative and Equal Opportunity Division as they become available. ​

    For further information about the liquor and gaming review process visit the About Review Process page.

    Local Government Area Classification

    The Independent Liquor and Gaming Authority is required to classify each LGA in NSW into one of three 'bands' – Band 1, Band 2, or Band 3 (s.33, Gaming Machines Act 2001). The methodology that has been adopted classifies LGAs as part of a ranking process, with all LGAs ranked according to:

    • per capita gaming machine expenditure
    • gaming machine density, and
    • the ABS Socio-Economic Indexes for Areas (SEIFA) score.

    Scores for all three measures are equally weighted for each LGA, and scores are then ranked in order of value. Ranks for each of these measures are combined to give a final score for each LGA. LGAs are then divided into country or metropolitan regions with the top 25% by region classified as Band 3, the next 25% as Band 2, and the remainder as Band 1. Click here for the data used to establish rankings scores and bandings for each LGA.

    A Band 3 LGA has a high number of gaming machines per capita, high gaming machine profit per capita, and a low index of socio-economic relative disadvantage score, and thus is considered to have a relatively high risk of gambling-related harm. A Band 2 LGA has less risk, and a Band 1 LGA has relatively the least risk of gaming-related harm.

    ​Band 1 LGA
    ​Band 2 LGA
    ​Band 3 LGA
    - low gaming machine density
    ​- moderate gaming machine density
    ​- high gaming machine density
     - low gaming machine expenditure - moderate gaming machine expenditure
    - high gaming machine expenditure
    ​ - high SEIFA score
     - moderate SEIFA score low SEIFA score
    View FS3031 All Local Government Areas​​​ by band fact sheet ​(PDF, 260KB).

    2016 Council amalgamations and LGA banding

    During 2016, Rockdale City Council and the City of Botany Bay amalgamated to form the Bayside Council. On 14 June 2017, the Independent Liquor and Gaming Authority approved the banding classification for the newly formed Bayside Council LGA as Band 2 and the reclassification of Tenterfield LGA as Band 2.

    Local Impact Assessment (LIA) Review

    A review of the LIA process commenced in May 2017. The review is considering the operation of the LIA process, including whether levels of risk should continue to be assessed at the LGA boundary level or at another level.  For further information on the LIA review click here.

    ​Class 1 and Class 2 LIA

    Depending on the LGA band and the size of a threshold increase sought, there are two types of LIA required.

    Class 1 LIA

    Class 1 LIA must demonstrate that approval of a threshold increase application will result in a positive contribution to the local community.Class 1 LIA is required for venues seeking a threshold increase:

    • Between 21 to 40 in a Band 1 LGA;
    • Up to 20 in a Band 2 LGA.​
    For Class 1 LIA, a venue has up to 2 years from the date of the approval in which to acquire gaming machine entitlements for the approved threshold increase – class 1 quota.

    After that time any unfulfilled class 1 quota automatically expires.

    Class 2 LIA

    Class 2 LIA must demonstrate that the approval of a threshold increase application will provide an overall net positive impact on the local community.

    Class 2 LIA is required for venues seeking a threshold increase of:
    • More than 40 in a Band 1 LGA;
    • More than 20 in a Band 2 LGA;
    • Any increase in a Band 3 LGA.
    For Class 2 LIA, a venue has up to 5 years from the date of the approval in which to acquire gaming machine entitlements for the approved threshold increase – class 2 quota.

    After that time, any unfulfilled class 2 quota automatically expires.

    Exceptions

    A LIA is not required if total approved threshold increase in the past 12 months for a venue in a Band 1 LGA would not exceed 20.

    A LIA is not required for transfer of entitlements and permits within the same LGA.

    Special provisions apply for:
    • clubs establishing in (or near) new development areas.
    • clubs transferring entitlements from a closing, nearby related club
    • venues (established prior to 18 October 2002) in retail shopping centre​s with less than 40 shops​.​