OFFICE OF THE LIQUOR AND GAMING COMMISSIONER GAMING MACHINES ACT

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					OFFICE OF THE LIQUOR AND GAMING COMMISSIONER GAMING MACHINES ACT 1992 ANNUAL REPORT 1998 - 99

CONTENTS
INTRODUCTION........................................................................................................................... 3 GAMING LICENCES.....................................................................................................................4 APPROVAL OF PERSONS........................................................................................................... 8 MONITORING AND COMPLIANCE........................................................................................... 8 RELEASE OF INFORMATION.....................................................................................................8 TECHNICAL ISSUES.................................................................................................................... 9 INTERACTIVE GAMBLING........................................................................................................ 10 OTHER INFORMATION............................................................................................................... 10 GAMING TAX............................................................................................................................... 11 STATISTICAL INFORMATION................................................................................................... 12 ORGANISATION INFORMATION.............................................................................................. 13 ORGANISATION CHART..............................................................................................Appendix 1 STATISTICS TABLES AND GRAPHS
MONTHLY GAMING STATISTICS TOTAL BETS LESS TOTAL WINS = NET GAMBLING REVENUE (GRAPH) GAMING TAX EARNED PER MONTH (GRAPH) MONTHLY GAMING MACHINE AND VENUE INSTALLATIONS (TABLE) MONTHLY GAMING MACHINE AND VENUE INSTALLATIONS (GRAPH) AVERAGE RETURN TO PLAYER% (GRAPH) MANUFACTURER’S SHARE OF GAMING MACHINE MARKET (TABLE) MANUFACTURER’S SHARE OF GAMING MACHINE MARKET (GRAPH) GROWTH IN GAMING VENUES (GRAPH) GROWTH IN GAMING MACHINE INSTALLATIONS (GRAPH)

CONTACTS.......................................................................................................................Back Page

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INTRODUCTION
The Liquor and Gaming Commissioner is responsible for the administration of the Gaming Machines Act 1992. The Act provides under Section 5, that the Commissioner is responsible to the Gaming Supervisory Authority for the constant scrutiny of the operations under all licences under the Act. The Act established a structure in which all industry participants are licensed or approved to carry out specific roles in relation to the gaming machine industry in South Australia. The Commissioner is responsible for various functions including: ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ determination of all applications for licences under the Act approval of persons in a position of authority, approval of gaming managers, approval of gaming employees approval of agents of the State Supply Board approval of gaming machines and games, and the central monitoring system approval of the number of machines per licensed premises and the authorised gaming hours collection of gaming tax inspection, monitoring and scrutiny of gaming operations disciplinary action against licensees, including the power to reprimand, suspend or revoke a licence review of barrings of persons by licensees

At 30 June 1999 there were 539 venues operating a total of 11944 gaming machines.

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GAMING LICENCES
GAMING MACHINE LICENCES
A gaming machine licence authorises the holder to possess and operate gaming machines. The maximum number of gaming machines that a licence holder can possess and operate is 40. To be eligible to apply for a gaming machine licence a venue must hold either a hotel licence, club licence or a special circumstances licence (where that licence was granted on surrender of a hotel or club licence or is a major sporting venue or headquarters for a sporting code) under the Liquor Licensing Act 1997. As at 30 June 1999 there were 550 gaming machine licences granted. Of these, 539 licensees were operating gaming machines under the following categories of licence: 416 82 41 Hotels Clubs Special Circumstances

Of the 41 Special Circumstances licences, 1 is the headquarters for a major sporting code, 1 is a major sporting venue, both operating as clubs, and the remaining 39 pertain to surrendered hotel licences.

GAMING MACHINE MONITORING LICENCE
The gaming machine monitor licence authorises the holder to provide and operate an approved computer system for the monitoring of all gaming machines. The monitoring licence is held by the Independent Gaming Corporation Ltd which is an incorporated body jointly owned by the Australian Hotels Association (SA) and the Licensed Clubs Association of SA Inc. Monitoring System The central computer monitoring system to which all gaming machines are connected is a prime source of control over the security and proper operation of gaming machines. The system also collects, processes and summarises gaming statistics for all venues and provides the basic information for this Office to assess and collect gaming tax. Upgrades On 20 October 1998 the Liquor and Gaming Commissioner approved a new version of SC300 Site Controller software known as Rev F. Video Lottery Consultants Inc (VLC) and IGC Ltd developed this new software in response to a number of minor issues identified since the commencement of gaming in 1994. Rev F also includes support for the Information Data Port. A staged installation program commenced in December 1998. As of 30 June 1999 in accordance with the program, 323 venues had Site Controllers operating Rev F software. As the gaming machine industry develops, the demand for new functionality and flexible reporting capabilities from the gaming machine monitoring system continues to increase. In light of the increasing requirements of the system, the Independent Gaming Corporation issued a Request For Proposal (RFP) to three suppliers of gaming machine monitoring systems in March 1998. The RFP sought submissions for the supply of a new monitoring system. The IGC and an independent consultant assessed each submission and in June 1998 IGC Ltd recommended that Video Lottery Consultants Inc (VLC) supply the Advanced Gaming System (AGS) as the replacement for the existing system.. The AGS offers significant functional improvements over the existing system as well as being fully Year 2000 compliant. Development and testing of the new monitoring system has been under way since November 1998. The Commissioner engaged a specialist testing laboratory (Gaming Laboratories Australia) to provide an independent report on the operation

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of the system. Following completion of testing and final approval it is expected that the new monitoring system will be operational in September 1999. Information Data Port As reported in last years Annual Report, IGC Ltd was in the process of developing an electronic interface to the SC300 Site Controller known as the Information Data Port (IDP). This facility allows gaming machine operators to access significantly more accounting and statistical information electronically, thus reducing the need for manual meter reads and analysis. Problems encountered with the new version of Site Controller software which supports the IDP delayed the testing and approval of the facility. Approval was given on 8 February 1999. As at 30 June 1999, there were 28 IDP’s installed, with orders for a further 78. Fees IGC Ltd charges an establishment fee for new gaming machine operators. This was maintained at $1,500 for 1998/99. Monitoring fees are charged for each gaming machine connected to the monitoring system and are charged at a monthly rate. Monitoring fees are the prime source of income for the Independent Gaming Corporation and must cover all the Corporation’s costs. Accordingly, monitoring fees are approved by the Treasurer and are reviewed on a regular basis. The Treasurer approved a monitoring fee of $51.67 per machine per month effective on 1 July 1998. Gambler’s Rehabilitation Fund During the reporting year, the Independent Gaming Corporation Ltd provided $1.5 million to the Gambler’s Rehabilitation Fund which is administered by the Minister for Human Services. Board Members The Directors of the Independent Gaming Corporation Ltd as at 30 June 1999 were: ♦ ♦ ♦ ♦ ♦ ♦ ♦ Mr Barry Francis Beazley - Chairman Mr Peter John Hurley - Deputy Chairman Mr Colin Wayne Dunsford Mr Robin James Guy Mr Steven Ploubidis Mr William Cochrane Mr Gregory Stephen Fahey

During 1998/99 Mr Max Beck who was a founding member and previous Chair of the IGC Board, resigned. The Commissioner would like to record his appreciation for the significant contribution made by Mr Beck to the establishment of the gaming industry in South Australia.

GAMING MACHINE SUPPLIER’S LICENCE
The gaming machine supplier’s licence authorises the holder, acting through an approved agent, to purchase from a licensed gaming machine dealer, and to sell or supply to the holders of a gaming machine licence, approved gaming machines, prescribed gaming machine components and gaming equipment. The gaming machine supplier’s licence is held by the State Supply Board. As at 30 June 1999, the approved agent of the Board under the gaming machine supplier’s licence was: ♦ David Alexander Burrows The Board, its agents and staff have, through their efforts, contributed to the stability and integrity of the gaming industry.

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GAMING MACHINE SERVICE LICENCE
The gaming machine service licence authorises the licensee to install, service and repair approved gaming machines, prescribed gaming machine components and gaming equipment. The State Supply Board, as holder of the licence, has appointed approved agents to perform the work authorised under the licence. Wang Australia Pty Ltd and AWA Gaming Services Pty Ltd are the approved agents of the Board under the service licence. At the commencement of gaming in 1994, Bull HN Information Systems Australia Pty Ltd were approved as the only agent. Bull’s operations were taken over by Wang Australia Pty Ltd in early 1995. AWA Gaming Services Pty Ltd was approved as an agent on 12 January 1998. The advent of a second service agent has provided a degree of competition and element of choice for gaming licensees. The following companies, including persons in a position of authority and employees, have been approved as subcontractors to the approved service agents to provide for the installation, service and repair of gaming machines in country areas:

Wang Australia Pty Ltd

AWA Gaming Services Pty Ltd

♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦

Island Television Services Whyalla Computer Centre Oaklands Electrical David Bird Electronics Riverland Gaming Green Triangle Electronics Pty. Ltd. Darren Smith Electrical Pty. Ltd. West Coast Electronics Fleet Electronic Service Mike Maylins Electrical GJ & JV Clark Donna’s Electrical Service Packsaddle Store Electec Pty. Ltd. Outback Electronics

♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦

Hey tech Office Services Morony Hi Fi & Video Thorn’s Radio & TV Augusta Electronic Centre Riverland Electronic Services Sam Jude Electrical Mid North Communications Peter Hancock Ceduna Business Equipment CJ & DJ Briggs

The Independent Gaming Corporation Ltd is directly responsible for the service and maintenance of the Central Monitoring System. However, IGC Ltd is required to appoint sub-contractors for the installation, servicing and repair of the central processor hardware for the Central Monitoring System. Throughout the year the following sub-contractors have been approved to perform service and maintenance functions: ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ Stratus Computers Pty Ltd NCCS Pty Ltd Telstra Corporation Ltd Video Lotteries Consultants Inc Video Lotteries Technologies Inc Wang Australia Pty Ltd AWA Gaming Services Pty Ltd IGA Technology Pty Ltd Osix Pty Ltd

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GAMING MACHINE DEALERS
A gaming machine dealer’s licence authorises the holder to manufacture gaming machines and prescribed gaming components and to sell or supply these to the Board or another gaming machine dealer. As at 30 June 1999 the following gaming machine dealer’s licences had been granted: ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ Aristocrat Leisure Industries Pty. Ltd. IGT (Australia) Pty. Ltd. Konami Australia Pty. Ltd. Pacific Gaming Pty. Ltd. Victorian Gaming Systems Manufacturing Pty. Ltd. Neo Interactive Systems Millwell Pty. Ltd. Paolo Annecchini Amusement Machines Pty. Ltd. Precise Craft Pty. Ltd. Gaming Machines (SA) Pty. Ltd. BGI Australia Pty. Ltd. Maximum Gaming Pty. Ltd. Multinational Entertainment Pty. Ltd. Video Lottery Consultants Inc. Macmont (NT) Pty. Ltd. Olympic Amusements Pty. Ltd. (Surrendered 7 September 1998)

Of these, six are manufacturers who have marketed new gaming machines or games in South Australia. In early 1998 IGT (Australia) Pty Ltd acquired Olympic Amusements Pty Ltd. Consequently Olympic’s licence has been surrendered and IGT has given an undertaking that it will continue to provide support for Olympic products already approved and operating in this jurisdiction. As the volume of new gaming machines moving into the market has decreased, problems associated with the delivery of the machines have largely disappeared. The incidence of poor quality machines and game software has also fallen. A regular fortnightly Technical and Quality meeting of relevant industry participants has assisted in the identification and resolution of problems.

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APPROVAL OF PERSONS
As at 30 June 1999, a total of 7065 persons were approved in relation to various gaming licences under the Act. Persons approved include gaming machine managers, gaming machine employees, committee members of licensed clubs, directors and shareholders of licensee companies, agents of the Board, subcontractors and employees of the agent to the holder of the gaming machine service licence, employees and sub-contractors to the holder of the gaming machine monitor licence and any other person in a position of authority to exert influence in a body that holds a licence.

MONITORING AND COMPLIANCE
Gaming Venues
All gaming venues were inspected at least once during 1998/99 for compliance with the provisions of the Gaming Machines Act. Indeed a significant number were visited or inspected on more than one occasion for a variety of reasons. Inspections involve determining that the venue does not possess more than the number of machines approved, ensuring that the layout of the gaming area conforms with the layout approved by the Commissioner, that Eftpos facilities are located outside of the designated gaming area, that signage including warning notices to minors is prominently displayed, that approved persons are wearing appropriate identification, that the area is adequately supervised, and that log books have been properly completed. Inspectors also have regard to any particular conditions that attach to each gaming machine licence. As well as ensuring that all persons involved with the conduct of gaming were approved, venues were also inspected as to their requirement that proper records and accounts of gaming activity were maintained. With the increased use of computerised inhouse or proprietary systems together with the new IDP, the standard of record keeping has greatly improved in recent years.

Monitoring System
One of the primary functions of the Office of the Liquor and Gaming Commissioner is to maintain scrutiny over the operation of the central computer monitoring system to not only ensure the proper operation of the system but also the standard and accuracy of the statistical information which is produced by the system. The monitoring system has continued to perform to specifications and has been an important element of the scrutiny of gaming operations.

RELEASE OF INFORMATION
As has been reported previously, the demand for information in relation to the gaming industry continues to grow. The requests come from a variety of sources including the media, new entrants to the gaming industry, finance and business houses, other gaming jurisdictions, government, academics, students researches, Breakeven groups and problem gambling agencies. In addition to the regular requests from the above sources, this Office also provided information to the various inquiries undertaken in 1998/99 such as the Productivity Commission Inquiry on Australia’s Gambling Industries and to the Legislative Council’s Select Committee on Internet and Interactive Home Gambling and Gambling by Other Means of Telecommunication in South Australia and to various members of Parliament. Such requests continue to place demands on the resources available. Increasingly this Office also receives requests for information relating to the financial performance of individual gaming venues and the consistent approach to these requests has been that this information is commercially sensitive and confidential and should be a matter for individual venues.

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TECHNICAL ISSUES
TESTING AND EVALUATION OF GAMING MACHINES
Schedule 1(a) under the Gaming Machines Act provides that only approved gaming machines, games and prescribed components may operate in South Australia. Section 40 of the Act then gives the Commissioner the power to approve machines, games and equipment. Testing and evaluation of gaming machines has been conducted for the Commissioner primarily by Gaming Laboratories Australia. However testing has also been undertaken by Bellamy, Miller and Moneypenny and Technical Systems Testing Pty Ltd. As at 30 June 1999, 17 machines and 197 games are currently approved. During 1998/99, the test laboratory operated by Techsearch Inc., known as GTest, strengthened its association with the well-established Gaming Laboratories International Inc. (GLI). In line with this, GTest established a second office in Rosebery, NSW and formally adopted the name Gaming Laboratories Australia (GLA). A number of game approvals include more than one variation of the basic game, such as the return to player percentage, maximum bet and optional game features. In addition to the certification received from GLA that a gaming machine or game meets the South Australian Gaming Machine Technical Standards, the Independent Gaming Corporation provides a certificate attesting to the fact that the machine or game conforms to the monitoring system’s communications protocol.

NATIONAL STANDARDS FOR GAMING MACHINES
Work has continued with other Australasian gaming jurisdictions to establish uniform technical standards for gaming machines. Standards have been developed covering hardware, software, artwork, game submissions and communications. The process of developing standards has minimised the differing requirements of each gaming jurisdiction. In developing these standards the working party, on which South Australia is represented, has consulted with the gaming machine manufacturers, testing laboratories and other industry participants. It is anticipated that South Australia will adopt the National Standards from 1 January 2000.

YEAR 2000 COMPLIANCE
Existing Games and Machines The Commissioner co-ordinated a Year 2000 compliance program to establish the compliance status of existing games and machines and formulated strategies to ensure that compliance issues are addressed prior to the Year 2000 rollover. A Year 2000 Compliance Report including strategies for non-compliant machines was sought and received from all gaming machine manufacturers. Independent tests of all machines and games were also completed in conjunction with the Independent Gaming Corporation. On 10 June 1999, The Commissioner advised all gaming venues of the manufacturers’ advice and the results of testing. The Commissioner also indicated what action was required to ensure Year 2000 Compliance. The Commissioner will continue to provide relevant information to licensees regarding the compliance status of games and machines. New Games and Machines All new gaming machines and games approved since the beginning of December 1997 have been specifically evaluated for year 2000 compliance. Monitoring System As part of the acceptance testing of the new AGS monitoring system, IGC Ltd, VLC and GLA have performed extensive tests to ensure that the system will function properly into the Year 2000.

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INTERACTIVE GAMBLING
As the number of internet users around the world grows rapidly, so too does the potential market for interactive gambling operators. Given the expansion in the market, new developments in the industry occur almost daily. Several Australian jurisdictions have already introduced legislation which licences internet gambling. In South Australia, the Legislative Council established a Select Committee on Internet and Interactive Home Gambling and Gambling by Other Means of Telecommunication to report on the issue of internet gambling. Staff from the Commissioner’s Office, in conjunction with personnel from other Australian jurisdictions have been involved in the development of technical standards and administrative/audit procedures associated with the regulation of interactive home gambling. The Commissioner’s Office has also provided detailed information as well as a live presentation of interactive/internet gambling to the Select Committee of the Legislative Council. A watching brief on interstate and overseas developments in interactive gambling is maintained by this Office.

OTHER INFORMATION
Voluntary Code of Practice
1998 saw the establishment of the Gaming Machine Advertising and Promotion Voluntary Code of Practice. The Code, supported by the Australian Hotels Association, Licensed Clubs’ Association and Centacare was developed in consultation with the Liquor and Gaming Commissioner. The Code focuses on responsible delivery of gaming products and is a positive development and extension of the Smart Play program developed and implemented by the hotel and club industry. The Code also establishes a complaint resolution process and provides for the Code to be reviewed on a regular basis by a committee comprising the Australian Hotels Association, the Licensed Clubs’ Association, the Liquor and Gaming Commissioner and the Chair, Gamblers Rehabilitation Fund.

Working Parties
As with interactive gambling, South Australia is represented on a number of inter-jurisdictional working parties examining and developing proposals and solutions in relation to Gaming Machine Technical Standards, Accreditation of gaming testing laboratories, Mutual Recognition of Casino and Gaming Licences and approvals, Gambling Research, Risk Management, Exchange of Information and Responsible Gaming Practices.

Banning of Amusement Arcade Game
Following a complaint received from a member of the public concerning a particular “arcade” type game, the Commissioner investigated the device. The device offered players the chance to win plush toys from the popular ‘South Park’ television show. Prizes were won by reference to three spinning reels which displayed numbers corresponding to different prizes. Advice received from the Crown indicated that these devices were caught by the definition of a “gaming machine” under the Gaming Machines Act, 1992. The Treasurer issued a press release on 5 May 1999 stating that although as Minister he had power to exempt such machines from the provisions of the Act, he believed that “Gaming machines are adult entertainment and the Government will not accept any machines which are specifically targeted at children.” The Commissioner advised operators that such machines should be withdrawn within 28 days.
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GAMING TAX
Effective from 1 July 1998, the Gaming Machines Act, 1992 was amended by the Gaming Machines (Gaming Tax) Amendment Act 1998. While the calculation of gaming tax retained the three tiered, Net Gambling Revenue based tax calculation, the amendment provided for a change in the percentage rates of gaming tax to be applied and differentiated the rates between hotels and clubs. Two sets of rates applied for the 1998/99 year distinguishing between a non-profit business and any other business. A non-profit business is defined as “a business carried out pursuant to a gaming machine licence held by or on behalf of a body corporate or association, where the Minister is satisfied that the profits of the business cannot be returned to the members or shareholders of the body corporate or association”. Effectively this definition applies to all incorporated clubs and also includes community hotels. The rates effective for 1998/99 were as follows: For a non-profit business: Annual NGR per venue up to $399,000 $399,000 to $945,000 above $945,000 Tax Rate 30% $119,700 + 35% of excess $310,800 + 40% of excess

The surcharge of 0.5% of NGR introduced in 1997/98 continued to be charged. For any other business: Annual NGR per venue up to $399,000 $399,000 to $945,000 above $945,000 Tax Rate 35% $139,650 + 43.5% of excess $377,160 + 50% of excess

The surcharge of 0.5% of NGR introduced in 1997/98 continued to be charged.

Refunds Because gaming tax is assessed in respect of a holder of a gaming machine licence and not the premises to which the licence relates, given the method of calculation of tax, refunds are often paid to outgoing licensees when hotel licences are transferred during the financial year. Because of this method of calculation of tax, the incoming licensee is also liable to pay less tax than would ordinarily have been paid if the licence was held for the full twelve months. In 1998/99 the cumulative impact of lost gaming tax revenue due to transfers of licences was in the order of $1.5 million. The Commissioner believes this is an unintended consequence of the taxation provisions of the Act and intends to recommend to the government that the legislation be amended to deal with this anomaly.

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STATISTICAL INFORMATION
Installation Rates
The installation rate of machines fell progressively since the start of gaming in 1994 up until this year which saw a significant increase over 1997/98. The monthly average number of installations have been as follows: 153 157 99 37 87 in in in in in 1994/95 1995/96 1996/97 1997/98 1998/99

The increase in number of installations compared to 1997/98 may have been caused by industry concern that a freeze or moratorium on gaming machines was likely.

Average Net Gambling Revenue
The average net gambling revenue per machine per day has risen in 1998/99 after plateauing in the previous 2 years. 1994/95 1995/96 1996/97 1997/98 1998/99 $98/machine/day $105/machine/day $100/machine/day $101/machine/day $107/machine/day

Return to Player
Actual return to player continues to increase with competition in the industry and with players demanding games with higher return to player rates. For the 12 months to 30 June 1999 the actual return to player percentage was 88.12%. This represented an increase of 0.11% over 1997/98. The chart titled Average Return to Player % shows the average 6 monthly increase since the commencement of gaming.

Machine Numbers
As at 30 June there were 539 venues operating 11944 machines. This represented a increase of 26 venues and 1046 machines over the 12 month period to 30 June 1999. Of the 84 Clubs operating machines as at 30 June 1999: ♦ ♦ ♦ ♦ 33 (39.3%) had 10 machines or less 29 (34.5%) had between 11 and 20 machines inclusive 7 (8.3%) had between 21 and 30 machines inclusive 15 ( 17.9%)had between 31 and 40 machines inclusive

Of the 455 hotels operating machines as at 30 June 1999: ♦ ♦ ♦ ♦ 151 (33.2%) had 10 machines or less 81 (17.8%) had between 11 and 20 machines inclusive 44 (9.7%) had between 21 and 30 machines inclusive 179 ( 39.3%)had between 31 and 40 machines inclusive
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ORGANISATION INFORMATION
Organisation Structure
The organisation structure of the Office of the Liquor and Gaming Commissioner is attached as Appendix 1. The structure reflects an integration of related liquor and gaming functions which has proved to be not only cost efficient but also effective. I believe that the integrated liquor and gaming model reflects best practice. I take the opportunity to record my thanks to all staff for their continued efforts in 1998-99.

Staffing
1998/99 Budget Average full time equivalent staff 19.8 1998/99 Actual Average full time equivalent staff 17.5

Budget Information
Actual expenditure for 1998/99 for gaming machine administration was $1.270 M against a budget of $1.545 M. 1998/99 Budget $0.842 mil $0.703 mil ----------$1.545 mil 1998/99 Actual $0.937 mil Salaries $0.333 mil Goods and Services ---------$1.270 mil Total

The variation in budget for salaries was due primarily to back pay as a result of recent salary increases. The variation in goods and services was due primarily to carrying over funds for computerised licensing system..

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ORGANISATION CHART - OFFICE OF THE LIQUOR AND GAMING COMMISSIONER

APPENDIX 1

LIQUOR & GAMING COMMISSIONER

LIQUOR LICENSING

GAMING ADMINISTRATION

CASINO REGULATION

p Compliance p Investigations p Field Monitoring

p p p p

Monitoring of Central Computer Financial Reconciliation Statistics Financial Examination

p Technical Advice p Game Approvals p Standards

p Administration p Projects p Inter-jurisdictional Working Parties

MONTHLY GAMING STATISTICS

Month Jul-1998 Aug Sep Oct Nov Dec Jan-1999 Feb Mar Apr May Jun-1999 98/99 Year

TOTAL BETS $ $ $ $ $ $ $ $ $ $ $ $

TOTAL WINS 274,912,499 276,725,787 266,868,880 286,884,310 261,211,226 277,817,085 260,448,095 245,104,052 279,656,085 279,589,065 288,885,065 283,137,985

NET GAMBLING REVENUE $ $ $ $ $ $ $ $ $ $ $ $ $ 37,226,206 37,341,048 35,836,244 38,747,279 35,157,571 37,532,741 35,179,607 33,027,996 37,703,300 37,931,799 38,746,651 38,035,876 442,466,318 $ $ $ $ $ $ $ $ $ $ $ $ $

TAX

SURCHARGE 186,131 $ 186,705 $ 179,181 $ 193,736 $ 175,788 $ 187,664 $ 175,898 $ 165,140 $ 188,517 $ 189,662 $ 193,733 $ 190,180 $ 2,212,335 $

FINES

VENUE SHARE
21,008,748 21,086,170 20,303,305 21,880,368 20,033,960 21,238,597 20,118,578 18,950,612 21,428,563 21,568,356 21,961,179 21,592,809

312,138,705 $ 314,066,835 $ 302,705,124 $ 325,631,588 $ 296,368,797 $ 315,349,826 $ 295,627,702 $ 278,132,047 $ 317,359,384 $ 317,520,864 $ 327,631,716 $ 321,173,861 $

16,030,203 $ 16,067,823 $ 15,353,627 $ 16,669,900 $ 14,947,823 $ 16,105,791 $ 14,875,533 $ 13,912,244 $ 16,086,220 $ 16,173,781 $ 16,585,233 $ 16,250,218 $ 189,058,396 $

1,124 $ 350 $ 131 $ 3,275 $ $

689 $ 9,598 $ $ $ $

6,506 $ 2,669 $

$ 3,723,706,449

$ 3,281,240,134

24,342 $ 251,171,245

TOTAL BETS LESS TOTAL WINS = NET GAMBLING REVENUE
TOTAL BETS

$340,000,000 $320,000,000 $300,000,000 $280,000,000 $260,000,000 $240,000,000 $220,000,000 $200,000,000 $180,000,000 $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0
Jul1998 Aug Sep Oct Nov Dec

TOTAL WINS NET GAMBLING REVENUE

Jan1999

Feb

Mar

Apr

May

Jun1999

GAMING TAX EARNED PER MONTH
$17,000,000 $16,000,000 $15,000,000 $14,000,000 $13,000,000 $12,000,000 $11,000,000 $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0
Jul1998 Aug Sep Oct Nov Dec Jan1999 Feb Mar Apr May Jun1999

MONTHLY GAMING MACHINE AND VENUE INSTALLATIONS

MONTH Jul-1998 Aug Sep Oct Nov Dec Jan-1999 Feb Mar Apr May Jun-1999

VENUES 518 520 519 521 523 527 528 529 533 536 539 539

GAMING MACHINES 10998 11019 11035 11154 11239 11432 11489 11570 11657 11740 11832 11944

MONTHLY GAMING MACHINE AND VENUE INSTALLATIONS
13000 12500 12000 11500 600 11000 575 10500 700 675 650 625

LIVE GAMING MACHINES

550 10000 9500 9000 8500 8000 7500 375 7000 350 6500 325 6000 5500 5000
Jul-1998 Aug Sep Oct Nov Dec Jan-1999 Feb Mar Apr May

525 500 475 GAMING MACHINES 450 425 VENUES 400

300 275 250
Jun-1999

LIVE VENUES

AVERAGE RETURN TO PLAYER % 6 MONTHLY SINCE COMMENCEMENT OF GAMING
88.20% 88.15% 88.10% 88.05% 88.00% 87.95% 87.90%
Return To Player %

87.85% 87.80% 87.75% 87.70% 87.65% 87.60% 87.55% 87.50% 87.45% 87.40% Dec-1994

Jun-1995

Dec-1995

Jun-1996

Dec-1996

Jun-1997

Dec-1997

Jun-1998

Dec-1998

Jun-1999

Period Ending

MANUFACTURER'S SHARE OF GAMING MACHINE MARKET
(June 1999)

MANUFACTURER Aristocrat IGT Datacraft Olympic VGS Pacific Vidco TOTAL
NOTE:

MACHINE COUNT 7762 1565 861 1143 331 304 49 12015

%SHARE 64.60% 13.03% 7.17% 9.51% 2.75% 2.53% 0.41% 100.0%

The total number of gaming machines for June 1999 is higher than the amount reported as the number of machines installed in venues as at 30 June 1999. This chart takes into account data on any machine installed at any time during June with the difference due to machines being installed and removed from venues.

MANUFACTURER'S SHARE OF GAMING MACHINES MARKET (June 1999)

Olympic 9.51% Datacraft 7.17%

VGS 2.75%

Pacific 2.53%

Vidco 0.41%

IGT 13.03%

Aristocrat 64.60%

GROWTH IN GAMING VENUES
500

Hotels
450 428

455

Clubs
400 343

402

350

No. of Venues

300 252 250

200

150 82 74 55 50 85 84

100

0 30/06/1995 30/06/1996 30/06/1997 30/06/1998 30/06/1999

GROWTH IN GAMING MACHINE INSTALLATIONS
12000 Hotels 10000 9057

Clubs
9498

10495

8000 No. of Machines

7907

6238 6000

4000

2000 1136

1355

1394

1400

1449

0 30/06/1995 30/06/1996 30/06/1997 30/06/1998 30/06/1999

CONTACTS
OFFICE OF THE LIQUOR AND GAMING COMMISSIONER LOCATION
Level 9, East Wing 50 Grenfell Street ADELAIDE SA 5000 GPO Box 2169 ADELAIDE SA 5001 DX 363 (08) 8226 8331

POSTAL ADDRESS

FACSIMILE PHONE NUMBERS
GENERAL INQUIRIES COMPLAINTS EVALUATION OF GAMING MACHINES GAMING MACHINE MALFUNCTIONS GAMING TAX & STATISTICS INSPECTORATE LICENCE APPLICATIONS PERSON APPROVALS RECORD KEEPING REQUIREMENTS

(08) 8226 8410 (08) 8226 8476 (08) 8226 8447 (08) 8226 8447 (08) 8226 8464 (08) 8226 8480 (08) 8226 8410 (08) 8226 8474 (08) 8226 8464


				
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