Leasing scheme for Gaming Machine Entitlements

Small clubs and hotels are able to improve their ongoing financial viability, under a new gaming machine leasing scheme that was passed by Parliament in March 2018.

The proposed scheme allows small clubs and hotels to lease out their gaming machines to help them improve their finances and continue to offer services to their local communities.

Rigorous gambling harm safeguards continue to apply, including:

• eligibility criteria for lessor venues would be limited to small clubs and hotels
• any venue wishing to increase the number of gaming machines it is allowed to operate is still subject to  a strengthened Local Impact Assessment (LIA) process requirements which assesses the impact an increase in the number of gaming machines in an area would have on the local community
• clubs and hotels in low risk areas would not be allowed to lease machines to venues in high risk areas
• leasing scheme would not lead to an increase in the number of GMEs in NSW.

Venues that lease gaming machines are also required to pay an additional levy on the revenue from the leased machines, which will be managed by the Responsible Gambling Fund. From 1 September 2019, the Gaming Machine Regulation 2019 specifies that the levy is to be at least 5% of gaming machine lease payments or $1,000 per lease for each year the lease operates (whichever is higher).

More information 

• Fact sheet (PDF 183.0 KB)