Amusement Machines Regulations, 2011

L.N. 74 of 2011

LOTTERIES AND OTHER GAMES ACT

(CAP. 438)

Amusement Machines Regulations, 2011

IN exercise of the powers conferred upon him by article 78(5) of

the Lotteries and other Games Act, the Minister of Finance, the

Economy and Investment, after consultation with the Lotteries and

Gaming Authority, has made the following regulations:-

PART I

Preliminary

(1) The title of these regulations is the Amusement Citation and

commencement.

Machines Regulations, 2011.

(2) These regulations shall come into force on the 15th day of

March, 2011.

(3) These regulations have been notified in terms of the

procedure for the provision of information in the field of technical

standards and regulations and rules pertaining to information society

services on the 11th day of March, 2010, which was followed by a

standstill period, as laid down in Directive 98/34/EC of the European

Parliament and of the Council.

PART II

Definitions

(Regulation 3)

LICENCES

CLASSES OF LICENCES

Applicants may apply for either or both of the following licences -

1. Class 1 Licence shall cover the following activities

(a)

the manufacture or assembling of an amusement machine;

(b) the placing on the market, distribution, supply, sale, granting on

lease or transfer of an amusement machine; and

(c)

the operation of an amusement machine.

2. Class 2 Licence shall cover the hosting by any person, in any premises

accessible to the public which is managed, run or otherwise controlled by him, of

amusement machines.

(1)

In these regulations, unless the context otherwise Interpretation.

requires

"the Act" means the Lotteries and Other Games Act;

"administrator" means a person who manages, controls or

administers an applicant or a licensee, including but not limited to a

director, a manager or a trustee, and any person who carries out such

functions even if under another title;

"applicant" means a person that files an application for a

licence in terms of regulation 3 or 10 or a person that files an

application for an authorisation in terms of regulation 13;

"approved amusement machine" means an amusement machine

that has been examined and approved for operation by the Authority

following an application submitted in terms of regulation 13;

"approved area" means that area, within a licensed premises,

approved by the Authority for the hosting of amusement machines;

"associated persons" means qualifying holders, officers,

administrators, partners or other associates of a Class 1 licensee or of

an applicant for a Class 1 Licence, as the case may be;

"Class 1 Licence" means a licence granted by the Authority in

terms of regulation 3, and the term "Class 1 licensee" shall be

construed accordingly;

"Class 2 Licence" means a licence granted by the Authority in

terms of regulation 10, and the term "Class 2 licensee" shall be

construed accordingly;

"equivalent amusement machine" means an amusement

machine which has been approved and, or otherwise authorised by the

competent authority of another Member State and which satisfies the

technical requirements laid down in these regulations for approved

amusement machines;

"hosting" means the placing of, or the allowing, suffering or

otherwise permitting the placing of, in a premises or any part thereof,

which is accessible to the public; and the term "host" shall be

construed accordingly;

"kiddie-ride" means an amusement ride designed primarily for

use by children which entertains the rider with motion, including but

not be limited to, track rides, miniature ferris wheel rides, carousel

rides, hydraulic rides, base rides and free movement (bumper car-

like) rides;

"licence" means a Class 1 Licence or a Class 2 Licence granted

by the Authority in terms of these regulations;

"licensed premises" means a premises in respect of which a

Class 2 licence has been issued by the Authority to a Class 2 licensee

in terms of these regulations;

"Member State" means a Member State of the European Union

or the European Economic Area;

"the Minister" means the Minister responsible for finance;

"other amusement machine" shall mean an amusement machine

listed in the Third Schedule;

"operate" means the making available for hosting, and for the

purposes of these regulations shall not include the use by a player of

an amusement machine for the purpose of playing an amusement

game;

"person" includes an individual or an entity regardless of the

legal form thereof;

"personal background information" means such security,

criminal, historical and financial information as may be required by

the Authority from time to time for the purpose of determining the

suitability of an applicant to become a Class 1 licensee or of a Class 1

licensee to retain a licence;

"premises" means any venue or other physical infrastructure;

"premises accessible to the public" means premises accessible

to the public whether for free or for a charge and includes private

clubs where memberships are given or sold for the privilege of

belonging to the private club and accessing premises for social or

business purposes;

"qualifying holding" means

(a) a direct or indirect holding in an entity of at least

twenty per centum of the capital in issue, provided that where

the rights held as to the percentage of votes, to profits available

for distribution and to rights to assets available for distribution

on a winding up in respect of such holding are not identical, the

highest percentage figure shall be deemed to be the percentage

of equity holding held; or

(b) an equity holding which makes it possible for the

holder thereof to appoint the majority of the administrators of

the entity,

and the term "qualifying holder" shall be construed accordingly;

"subsidiary" has the same meaning as is assigned to the term Cap. 386.

"subsidiary undertaking" by the Companies Act.

(2) Except as otherwise expressly provided in these

regulations, nothing in these regulations shall prejudice the operation

of, or shall be deemed to substitute or to derogate from any provision

of the Act or any other law or regulation.

(3) In these regulations, in case of any conflict of

interpretation between the English and the Maltese texts, the English

text shall prevail.

(4) Terms used in these regulations and not defined shall,

unless the context otherwise requires, have the same meaning

assigned to them in the Act.

PART III

Licences - General

(Regulations 5, 11 and 13)

FEES

CLASS 1 LICENCE APPLICATION AND ANNUAL FEES

1. With every application for a Class 1 licence, the applicant shall pay to

the Authority, in terms of regulation 5, a one-time non-refundable fee of €2,000.

2. The annual fee payable by a Class 1 licensee shall be €1,000 per

amusement machine registered in his name.

CLASS 2 LICENCE APPLICATION AND ANNUAL FEES

3. With every application for a Class 2 licence, the applicant shall pay to

the Authority, in terms of regulation 11, a one-time non-refundable fee of €1,000.

4. The annual fee payable by a Class 2 licensee is €1,000 per premises

managed, run or otherwise controlled by him.

AMUSEMENT MACHINE REGISTRATION FEE

5. With every application for registration of an amusement machine, the

applicant shall pay to the Authority, in terms of regulation 13(2)(g), a one-time

non-refundable fee of €80 per amusement machine.

(1) Notwithstanding the provisions of any other law,

regulation, or authorisation, no person shall

(a)

manufacture or assemble;

(b) place on the market, distribute, supply, sell, grant on

lease or transfer;

(c)

operate; or

(d) in any premises accessible to the public which is

managed, run or otherwise controlled by him, host;

an amusement machine, unless such person is in possession of a valid

licence issued by the Authority as set out in the First Schedule.

(2) Notwithstanding the provisions of sub-regulation (1),

where a person, already legally established in another Member State

and duly licensed to provide or to carry out the activities listed in sub-

regulation (1)(a) to (c) by the competent authority of another Member

State (the "Service Provider") applies for a licence to provide or carry

out the activities listed in sub-regulation (1)(a) to (c) in Malta

(a)

the Authority shall, in terms of the applicable

provisions of the Services (Internal Market) Act, not duplicate

requirements or controls which are equivalent or essentially

comparable as regards their purpose to which such Service

Provider may already be subject to in the Member State in

which he is already legally established; and

(b) the Authority shall recognise the right of a Service

Provider to exercise his freedom to provide or carry out the

same activities in Malta on a temporary and occasional basis in

terms of the applicable provisions of the Services (Internal

Market) Act.

A Service Provider shall, notwithstanding the provisions of sub-

regulation (1)(a) to (c), not be required to obtain a licence in respect

of the said activities, and the following regulations shall not apply to

a Service Provider -

(i)

regulations 4 to 7;

(ii)

sub-regulation (1) of regulation 8; and

(iii)

regulation 9,

(hereinafter referred to as the "excluded regulations").

For the purposes of these regulations any references to a Class 1

licensee other than in an excluded regulation shall be deemed to

include a reference to a Service Provider.

(3) The determination of whether the provision or the carrying

out of the activities listed in sub-regulation (1)(a) to (c) are being

provided on a temporary and occasional basis in Malta, shall be

assessed by the Authority by reference to all the particular

circumstances, including but not limited to, the duration, frequency,

regularity and continuity of the provision or the carrying out of the

activities listed in sub-regulation (1)(a) to (c).

(4) Where the Authority determines that the provision or the

carrying out of the activities listed in sub-regulation (1)(a) to (c) are

not being provided on a temporary and occasional basis by a Service

Provider in Malta, such Service Provider shall, upon notification by

the Authority of such a determination, be prohibited from providing

or carrying out the activities listed in sub-regulation (1)(a) to (c)

unless such person is in possession of a valid licence issued by the

Authority as set out in the First Schedule.

(5) Except where these regulations expressly provide

otherwise, a person may qualify for more than one type or class of

authorisation, licence or approval under these regulations.

Class 1 Licence

(Regulation 18)

OTHER AMUSEMENT MACHINES

1. The following are other amusement machines in terms of these

regulations

(a)

billiards, pool and, or

snooker

tables

unless

operated

electronically through video display;

(b) table-soccer tables unless operated electronically through video

display; and

(c)

‘kiddie-rides’.

2. With every application for registration of an other amusement machine,

the applicant must pay to the Authority, in terms of regulation 18(2)(b), a one-time

non-refundable fee of €70 per other amusement machine.

3. The annual fee payable by a person carrying out an activity listed in

regulation 3(1)(d) in respect of an other amusement machine is €100 per other

amusement machine hosted in such premises in which the said activities are

carried out.

(1) A Class 1 licence may be granted by the Authority Class 1 Licence.

to a person for the purpose of authorising such person to carry out one

or more of the activities set out in regulation 3(1)(a) to (c). In order to

obtain a Class 1 licence the applicant shall apply in writing to the

Authority, provided that the Authority may designate that the

applicant may also apply by electronic means.

(2) Applications for a Class 1 licence shall be made on such

forms provided by the Authority from time to time and shall be

accompanied by inter alia

(a) personal background information of the applicant

and of any associated person as determined by the Authority;

(b) criminal record information of the applicant and of

any associated person as determined by the Authority;

(c)

in the case of an applicant who is an individual, a

passport size photo of the applicant;

(d) a bank reference or other proof of credit-worthiness

of the applicant and of any associated person as determined by

the Authority;

(e)

a copy of the identity card or passport or certificate

of incorporation, as the case may be, of the applicant and of any

associated person as determined by the Authority;

(f) the memorandum and Articles of Association or other

constitutional documents of the applicant, where applicable; and

(g) such other information as may be required in the

application form.

(1) The granting of a Class 1 licence under these

regulations shall in all cases be subject to the payment of a non-

refundable application fee as set forth in the Second Schedule.

(2) The Authority may further require applicants for a Class 1

licence to pay, in addition to the application fee referred to in sub-

regulation (1), the actual costs incurred by the Authority for the

purpose of conducting investigations into such applicant’s

background, suitability and qualifications to be granted a Class 1

licence and of verifying the information submitted by such applicant

in terms of these regulations.

(3) The application fee referred to in sub-regulation (1) shall

be paid contemporaneously with the filing of the application for a

Class 1 licence.

(4) No application for a Class 1 licence shall be processed, and

no Class 1 licence shall be issued or renewed, until payment of all

amounts due to the Authority in connection with the processing of the

application, the grant of the Class 1 licence and the monitoring and

enforcement thereof has been effected.

(5) Following the granting of a Class 1 licence, a Class 1

licensee shall pay an annual Class 1 licence fee as set out in the

Second Schedule, together with, where required by the Authority, the

actual costs incurred by the Authority for the purpose of conducting

investigations into such Class 1 licensee’s background, suitability and

qualifications to retain a Class 1 licence and of verifying the

information submitted by such Class 1 licensee in terms of these

regulations. Such annual Class 1 licence fee and, where applicable,

the costs incurred by the Authority as aforesaid, shall be payable by

the Class 1 licensee by not later than thirty days prior to the lapse of

every calendar year following the date of issue of the Class 1 licence.

(6) If a Class 1 licensee fails to pay the annual licence fee as

set out in the Second Schedule and, or any other amount due pursuant

to sub-regulation (5), within the time period set out in sub-regulation

(5), the Class 1 licence shall lapse automatically.

A Class 1 licence granted under these regulations shall be Term of Class 1

for a term of one year, automatically renewable for further periods of Licence.

one year each, subject to continued compliance by the Class 1

licensee with the provisions of the Act and of these regulations, with

the terms and conditions of the Class 1 licence and with any directive

or code of conduct issued by the Authority in terms of the Act or of

these regulations applicable to such Class 1 licence.

(1) The Authority shall not grant or renew a Class 1 Grant and

licence applied for under these regulations unless it is reasonably renewal

1 Licence.

satisfied that the applicant and any associated persons are fit and

proper persons.

(2) In determining whether the applicant for the granting or

renewal of a Class 1 licence and the associated persons are fit and

proper persons, the Authority shall have regard to

(a)

the character and business reputation of the

applicant and any associated person; and

(b) such other matters as may be included in directives

issued by the Authority from time to time.

(3) A Class 1 licence shall be in such form and shall contain

such particulars as the Authority may determine.

(1) In granting a Class 1 licence the Authority may Conditions of

subject such licence to such terms, conditions or requirements as it Class 1 Licence.

may deem appropriate, and after the grant of such Class 1 licence the

Authority may from time to time vary or revoke any term, condition

or requirement so imposed, or impose new terms, conditions or

requirements

Provided that such terms, conditions and requirements are

necessary and proportionate, in fulfilment of the Authority’s

functions under the Act and in conformity with Community laws.

(2) In granting a Class 1 licence, the Authority may, if

reasonably justified by overriding reasons relating to public interest,

impose conditions related to the number of amusement machines that

can be owned and, or operated by a Class 1 licensee.

(1) Notwithstanding anything contained in any other

law or regulation, the approval in writing of the Authority shall be

required before any person may lawfully -

(a)

increase an existing qualifying holding in a Class 1

licensee to cause it to equal or exceed thirty per centum or fifty

per centum or to cause the Class 1 licensee to become that

person’s subsidiary;

(b) reduce an existing qualifying holding in a Class 1

licensee so as to cause it to fall below thirty per centum, or to

cause the Class 1 licensee to cease to be that person’s

subsidiary;

(c)

reduce a qualifying holding in a Class 1 licensee so

as to cause it to cease to be a qualifying holding; or

(d)

divest himself of a qualifying holding in a Class 1

licensee.

(2) It shall be the duty of the Class 1 licensee to notify the

Authority forthwith upon becoming aware that any person intends to

take any of the actions listed in sub-regulation (1).

(3) The Authority may request such information as it deems

necessary to be furnished to it in connection with the notification

referred to in sub-regulation (2).

(4) Within eight weeks of receipt of the notification referred to

in sub-regulation (2) or of the information referred to in sub-

regulation (3), whichever is later, the Authority shall

(a)

grant unconditional consent to the taking of the

action;

(b) grant consent to the taking of the action subject to

such conditions as the Authority may deem appropriate; or

(c)

refuse consent to the taking of the action

Provided that where the Authority fails for any reason to issue

such a notice within the aforesaid period, this fact shall be construed

as if the consent has been granted in terms of paragraph (a).

Class 2 Licence

(1) It shall not be lawful for any person to host an Class 2 Licence.

amusement machine in a premises accessible to the public which is

managed, run or otherwise controlled by him unless such person is in

possession of a Class 2 licence issued by the Authority in respect of

that particular premises

Provided that where more than one person manages, runs or

otherwise controls the same premises, only one Class 2 licence shall

be required in respect of that particular premises and the limitation set

out in regulation 3(1)(d) shall not apply to such other persons not

holding a Class 2 licence in respect of that licensed premises.

(2) Applications for a Class 2 licence shall be made on such

forms provided by the Authority from time to time and shall be

accompanied by such information as the Authority shall determine,

including inter alia

(a)

proof of title on, or permit to set up, the premises;

(b) criminal record information of the applicant as

determined by the Authority;

(c)

description of the nature, location, and dimensions

of the premises in respect of which an application for a Class 2

licence is submitted;

(d) a plan to scale of the premises in respect of which an

application for a Class 2 licence is submitted;

(e)

diagrams that indicate clearly the proposed

approved area within the premises in respect of which an

application for a Class 2 licence is submitted;

(f)

an undertaking completed on the appropriate form

provided by the Authority to the effect that the premises in

respect of which an application for a Class 2 licence is

submitted shall not be used for the purpose of placing relevant

gaming devices therein; and

(g) such other information as may be required in the

application form.

(3) The Authority shall not grant a Class 2 licence applied for

under these regulations unless it is reasonably satisfied that the

applicant is a fit and proper person.

(4) In determining whether the applicant for the granting of a

Class 2 licence is a fit and proper person, the Authority shall have

regard to

(a)

the character and business reputation of the

applicant; and

(b) such other matters as may be included in directives

issued by the Authority from time to time.

(1) A Class 2 licence granted under these regulations

shall be for a term of one year, automatically renewable for further

periods of one year each, subject to continued compliance by the

Class 2 licensee with the provisions of the Act and of these

regulations, with the terms and conditions of the Class 2 licence and

with any directive or code of conduct issued by the Authority in terms

of the Act or of these regulations applicable to such Class 2 licence.

(2) The granting of a Class 2 licence under these regulations

shall in all cases be subject to the payment of a non-refundable

application fee as set forth in the Second Schedule.

(3) The Authority may further require applicants for a Class 2

licence to pay, in addition to the application fee referred to in sub-

regulation (2), the actual costs incurred by the Authority for the

purpose of conducting investigations into such applicant’s

background, suitability and qualifications to be granted a Class 2

licence and verifying the information submitted by such applicant in

terms of these regulations.

(4) The application fee referred to in sub-regulation (2) shall

be paid contemporaneously with the filing of the application for a

Class 2 licence.

(5) No application for a Class 2 licence shall be processed, and

no Class 2 licence shall be issued or renewed, until payment of all

amounts due to the Authority in connection with the processing of the

application, the grant of the Class 2 licence and the monitoring and

enforcement thereof has been effected.

(6) Following the granting of a Class 2 licence, a Class 2

licensee shall pay an annual Class 2 licence fee as set out in the

Second Schedule, together with, where required by the Authority, the

actual costs incurred by the Authority for the purpose of conducting

investigations into such Class 2 licensee’s background, suitability and

qualifications to retain a Class 2 licence and of verifying the

information submitted by such Class 2 licensee in terms of these

regulations. Such annual Class 2 licence fee and, where applicable,

the costs incurred by the Authority as aforesaid, shall be payable by

the Class 2 licensee by not later than thirty days prior to the lapse of

every calendar year following the date of issue of the Class 2 licence.

(7) If a Class 2 licensee fails to pay the annual licence fee as

set out in the Second Schedule and, or any other amount due pursuant

to sub-regulation (6), within the time period set out in sub-regulation

(6), the Class 2 licence shall lapse automatically.

(1) In granting a Class 2 licence the Authority may Class 2 licence

subject it to such terms, conditions or requirements as it may deem conditions.

appropriate, and after the grant of such Class 2 licence the Authority

may from time to time vary or revoke any term, condition or

requirement so imposed, or impose new terms, conditions or

requirements

Provided that such terms, conditions and requirements are

necessary and proportionate, in fulfilment of the Authority’s

functions under the Act and in conformity with Community laws.

(2) In granting a Class 2 licence, the Authority may, if

reasonably justified by overriding reasons relating to public interest,

inter alia

(a)

impose conditions in relation to the licensed

premises or the approved area, including but not limited to the

type of amusement machines and amusement games which can

be hosted therein;

(b) impose conditions on the maximum number or the

type of amusement machines which can be hosted at the

licensed premises;

(c)

require the Class 2 licensee to notify and, or obtain

the approval of the Authority prior to carrying out any of the

activities specified in the Class 2 licence.

(3) It shall not be lawful for a Class 2 licensee to host any

amusement machines in any premises managed, run or otherwise

controlled by him unless such amusement machines are approved

amusement machines or equivalent amusement machines.

Amusement Machines and Amusement Games

(1) No person shall carry out any of the activities listed

in regulation 3(1)(b) and (c) unless and until the amusement machine

in respect of which such activity is carried out has been approved and

registered by the Authority following the submission, by such person

to the Authority, of an application for that purpose

Provided that no such approval and registration shall be required

with respect to equivalent amusement machines.

(2) Applications made under sub-regulation (1) shall be made

by persons carrying out any of the activities listed in regulation

3(1)(b) and (c) on such forms as may be prescribed by the Authority

from time to time and shall be accompanied by the following

(a)

a manufacturer’s certificate for the amusement

machine in conformity with Community law and standards;

(b) manuals, including software manuals, and any other

documents issued by the manufacturer of the amusement

machine containing

(i)

a full description of the amusement machine;

(ii) the theme of the amusement game or

amusement games that can be played on the amusement

machine;

(iii) instructions to be followed by players of the

amusement machine; and

(iv) all the rules pertaining to the amusement

game or amusement games that can be played on the

amusement machine;

(c)

the details of the licence held by the person

submitting the application;

(d) the details of the premises where such amusement

machine will be hosted and the details of the relative Class 2

licensee;

(e)

a statement of compliance with the terms of these

regulations;

(f)

proof of the legal title of the applicant over the

amusement machine, or the relevant agreement or agreements

governing the commercial relationship between the owner,

seller or distributor of the amusement machine and the person

carrying out the activities listed in regulation 3(1)(a) to (c);

(g) the non-refundable fee for registration of the

amusement machines as set out in the Second Schedule.

(3) Any person carrying out any of the activities listed in

regulation 3(1)(b) and (c) through the use of equivalent amusement

machines shall, prior to the date of commencement of such activities,

submit to the Authority, by electronic means or otherwise, in such

form as may be determined by the Authority from time to time and

made available on the official website of the Authority, a copy of the

documents referred to in sub-regulation (2)(a) to (g) or evidence in

the form of an attestation, certificate or document issued by the

competent authority of the Member State which authorised such

equivalent amusement machine that such documents have already

been submitted to the competent authority of that Member State.

(4) The Authority may in accordance with the provisions of

the Act and the Services (Internal Market) Act impose additional Cap. 500.

requirements and take any measure which it deems necessary with

respect of equivalent amusement machines.

(1) Where the application submitted pursuant to Registration of

regulation 13 is approved by the Authority, the Authority shall amusement

machines.

proceed to

(a)

register the amusement machine in the name of the

applicant and shall issue a certificate to that effect to the

applicant;

(b) issue a registration tag to be permanently affixed to

the amusement machine, setting out

(i) the registration number allocated by the

Authority to the amusement machine;

(ii) the unique

manufacturer’s

amusement

machine serial number;

(iii) the name of the manufacturer of the

amusement machine;

(iv) the brand name of the amusement machine;

(v)

the amusement machine model number.

(2) The registration tag shall remain the property of the

Authority and no person, other than officials, employees or agents of

the Authority, shall affix, remove, erase or otherwise tamper with the

registration tag.

(3) The Authority shall maintain a register containing the

records of the amusement machines registered in accordance with this

regulation.

(4) The Authority may place seals on key components of the

amusement machines.

(5) In the event that the registration tag mentioned in sub-

regulation (1)(b) is for any reason detached from the amusement

machine or otherwise damaged, it shall be the duty of the applicant

and any Class 2 Licensee hosting the amusement machine to

immediately notify the Authority and disconnect and render

inoperable the amusement machine until an official of the Authority

has checked, certified and re-affixed such registration tag.

(1) The person in whose favour an amusement machine

is registered shall not effect or suffer to be effected any changes to the

amusement machine before obtaining the approval of the Authority,

which approval shall be manifested by the issue of a replacement

registration tag to be affixed by an inspector over, or in replacement

of, the existing registration tag and, where applicable, by the

replacement of seals placed on key components of the amusement

machine.

(2) It shall be the duty of the person in whose favour a

amusement machine is registered and of the qualifying holders and

administrators thereof to notify the Authority forthwith, and in any

case within no later than three working days, of any change in the

details submitted to the Authority referred to in regulation 13(2) and

(3)

Provided that no change in the ownership, operation,

management or possession of an amusement machine shall take place

until approved by the Authority.

(3) No person may dispose of, destroy or otherwise

permanently withdraw from operation an amusement machine unless

and until the Authority shall have granted its approval for such

purpose and thereafter removed the amusement machine’s

registration tag and struck the amusement machine off the register.

(1) Any person carrying out an activity referred to in

regulation 3(1)(b) and (c) shall, at all times, ensure that any

amusement machine used or involved in carrying out any such

activity

(a)

is hosted in an approved area;

(b)

has a registration tag affixed thereto;

(c)

is functioning properly and, when that is not the

case, is immediately shut down until repaired and fit for

operation;

(d)

is not used to offer or play a game as defined in the

Act;

(e)

is not modified, tampered with, re-programmed or

otherwise altered, save with the approval of the Authority.

(2) It shall be unlawful for any person to, directly or indirectly,

offer or receive a prize, reward or other benefit of a monetary value or

capable of being converted into a prize, reward or other benefit of a

monetary value, as a result of, or in connection with, the use by any

person of an amusement machine.

PART IV

Further requirements applicable to amusement machines

An amusement machine approved and, or registered by the Further

Authority in terms of these regulations shall also meet the following requirements

be met by

amusement

requirements

machines.

(a)

the amusement machine shall provide the player

with

(i)

the name of the amusement game;

(ii) the cost of a credit;

(iii) the rules of the amusement game;

(iv) warnings against excessive playing;

(b) the maximum price to play one amusement game

shall in no case exceed two euro;

(c)

amusement machines shall not have bill acceptors or

any other device which is capable of accepting bank notes or

payments through credit cards, debit cards or prepaid cards,

provided that the Authority may at any time direct that

amusement machines be modified or re-programmed in such a

way as to accept only amusement machine tokens approved by

the Authority;

(d) amusement machines shall not give out, print or

otherwise produce any real or fictitious currency or any bills,

tokens, vouchers or any other ticket whatsoever.

PART V

Other Amusement Machines

(1) Regulations 3 to 17, 22(1), 22(2) and 23 to 30 shall

not apply to other amusement machines or any person carrying out

any of the activities set out in regulation 3(1) in respect of other

amusement machines.

(2) Notwithstanding any other law, regulation or authorisation,

no person shall carry out any activity listed in regulation 3(1)(d) in

respect of an other amusement machine unless such person

(a)

registers the other amusement machine with the

Authority by submitting such form as the Authority may

prescribe;

(b) pays to the Authority the registration fee and the

annual fee specified in the Third Schedule;

(c)

affixes on the other amusement machine the

registration tag issued by the Authority upon registration of the

other amusement machine in terms of this regulation.

(3) The maximum price to play one amusement game on an

other amusement machine shall in no case exceed one euro.

(4) The Authority may from time to time issue directives by

virtue of which the Third Schedule shall be amended.

PART VI

Enforcement

(1) Without prejudice to anything contained in the Act,

an inspector shall, for the purpose of ascertaining that these

regulations and that all the conditions of a licence issued by the

Authority under these regulations are being complied with, and that

the full amount of fees payable under these regulations are being paid,

have the following powers

(a)

to inspect amusement machines;

(b) to remove an amusement machine from its present

location in order for an inspection or examination to be carried

out at a site approved and designated by the Authority, for the

purpose of ensuring compliance with these regulations;

(c)

to take such measures as may be necessary, in case

of doubt or contestation, to conclusively determine whether a

device is an amusement machine or otherwise;

(d) to inspect the premises where amusement machines

are hosted; and

(e)

to request information or the production for

inspection of any document or other thing for the purposes of

conducting an inspection.

(2) An inspector removing an amusement machine from any

premises shall provide a receipt for it to the person who manages,

runs or otherwise controls such premises and, subject to sub-

regulation (3), shall promptly return the amusement machine to the

same premises after completion of the inspection and, or examination

as the case may be.

(3) An inspector may detain for the purposes of evidence any

amusement machine that the inspector discovers while acting under

this regulation and believes, on reasonable grounds, may afford

evidence of a violation of, or non-compliance with, anything

contained in these regulations.

The person who manages, runs or otherwise controls a Assistance to be

premises wherein amusement machines are hosted, and any employee given

inspectors.

or agent of such person, shall give all reasonable assistance to the

inspector conducting an inspection in terms of these regulations to

enable the inspector to exercise the powers granted to him by the Act

and these regulations and shall furnish the inspector with such

amusement machine, information or other thing as the inspector may

reasonably request.

PART VII

Offences and Penalties

(1) Any person who contravenes any provision of these Offences.

regulations shall on conviction be liable to a fine (multa) of not less

than one thousand euro (€1,000) and not exceeding two hundred and

fifty thousand euro (€250,000) in respect of any contravention of, or

failure to comply with, the provisions of these regulations and, or the

seizure, removal, confiscation, destruction or disabling of amusement

machines or any equipment or software related or connected thereto.

(2) The provisions of article 68 of the Act shall apply mutatis

mutandis and any reference contained therein to a licensee or holder

of a permit issued in terms of article 36 of the Act shall be deemed to

be a reference to a "licensee" as defined in these regulations.

PART VIII

Transitory Provisions

(1) Any person who, on the date of the coming into

force of these regulations, already carries out any of the activities

listed in regulation 3(1), hereinafter also called an "incumbent", shall,

notwithstanding the provisions of any other law, regulation or

authorisation, within a peremptory period of two months from the

date of entry into force of these regulations

(a)

apply with the Authority for the relevant licence in

terms of these regulations;

(b) where applicable, apply with the Authority for the

authorisation referred to in regulation 13; and

(c)

pay the registration fees prescribed in these

regulations, provided that the aggregate of such fees payable by

persons holding a valid authorization in writing from the

Commissioner of Police issued in terms of the Use of

Amusement Machines (Restriction) Regulations, shall, upon

presentation of such authorization in writing to the Authority, be

reduced pro rata by the amount paid by such person to the

Commissioner of Police for the purpose of the issue thereof.

(2) Notwithstanding anything contained in these regulations,

an incumbent shall not be deemed to be in breach of the provisions of

these regulations until the happening of one of the following events,

whichever is earlier

(a)

the incumbent fails to submit an application in

accordance with sub-regulation (1) within the time period

stipulated therein;

(b) the Authority informs the incumbent that the

application submitted by him in terms of sub-regulation (1) has

been refused and that no licence and, or authorisation shall be

granted

Provided that the Authority may grant such incumbent a period

of not more than fifteen days to provide such other information or

supplemental documentation or to carry out such acts as the Authority

may deem necessary for the purpose of determining whether the

licence and, or authorisation is to be granted in accordance with these

regulations.

(3) The provisions of sub-regulations (1) and (2) shall not

apply to other amusement machines. Any person who on the date of

the coming into force of these regulations already hosts, in any

premises accessible to the public which is managed, run or otherwise

controlled by him, an other amusement machine, shall,

notwithstanding the provisions of any other law, regulation or

authorisation, within a peremptory period of two months from the

date of entry into force of these regulations, comply with the

requirements set out in regulation 18(2), provided that such licence

application fees and, or amusement machine authorisation fees as

may be prescribed in these regulations, and provided that the

aggregate of such fees payable by persons holding a valid

authorization in writing from the Commissioner of Police issued in

terms of the Amusement Machines (Restriction) Regulations, 1988 S.L. 10.36.

shall, upon presentation of such authorization in writing to the

Authority, be reduced pro rata by the amount paid by such person to

the Commissioner of Police for the purpose of the issue thereof.

(4) Notwithstanding anything contained in these regulations,

any person referred to in sub-regulation (3) shall not be deemed to be

in breach of the provisions of these regulations until the lapse of the

time period referred to therein as long as within such time period the

requirements of regulation 18(2) shall have been complied with.

PART IX

General

(1) Every person seeking to obtain a licence, Application

authorization or other approval from the Authority in terms of these procedure.

regulations shall submit to the Authority the appropriate application

form, together with such ancillary documentation as may be required

in terms of these regulations and in terms of the application form

Provided that in addition to the requirements set out in this sub-

regulation, the Authority may, in ensuring whether an applicant

satisfies the requirements in these regulations, request and conduct an

interview with such applicant.

(2) The Authority shall not commence processing an

application form unless the application form is complete. In the event

that it receives an incomplete application form, the Authority shall

inform the applicant of the need to supply any additional information

or documentation. For the purposes of this sub-regulation, an

application form shall not be deemed to be complete unless the

application form is correctly filled in and unless the Authority is in

receipt of all the documentation required to be submitted together

with the application form as set out therein and as set out in these

regulations.

(3) The Authority shall determine whether an applicant shall

be granted a licence, authorization or approval within no more than

one hundred and twenty days after the date of receipt of an

application form which is complete in accordance with the

requirements of sub-regulation (2).

(4) The period mentioned in sub-regulation (3) may, prior to

the expiry of such period, be extended by the Authority for one period

of not more than thirty days. Such extension and the reasons thereof

shall be notified to the applicant.

(5) The Authority shall acknowledge receipt of a complete

application form and, where applicable, the application fee, by letter

to the applicant, which shall specify

(a)

the period within which the Authority shall

determine the application, as set out in sub-regulation (3) and

sub-regulation (4);

(b) the procedure in terms of which a refusal by the

Authority to grant a licence, authorization or other approval

may be appealed from in accordance with regulation 30; and

(c)

a statement in accordance with sub-regulation (6)

that in the absence of a response by the Authority within the

period specified in accordance with paragraph (a), the licence,

authorization or approval applied for shall be deemed to have

been granted.

(6) Where the Authority does not determine whether an

applicant shall be granted a licence, authorization or approval within

the period mentioned in sub-regulation (3), or within the extended

period mentioned in sub-regulation (4), such applicant shall, for all

intents and purposes, be deemed to have been granted the licence,

authorization or approval.

(7) Where a licence, authorization or approval is refused, the

Authority shall inform the applicant of such decision and state the

reasons for such refusal.

(1) A licence or authorisation granted by the Authority

in terms of these regulations may not be assigned or transferred in any

way whatsoever to any other person without the prior written

approval of the Authority.

(2) In the event that a licensee wishes to surrender a licence or

an authorisation, he shall notify the Authority in writing and the

Authority shall proceed to cancel the licence or authorisation

accordingly. A cancellation of a licence or of an authorisation shall

not affect any liability of the licensee for anything done or omitted to

be done before the date of cancellation.

(3) It shall be the duty of a licensee and of the qualifying

holders and administrators thereof to notify the Authority of the

happening of any of the following

(a)

any change in the administrators of the licensee;

(b)

any material changes in

(i) the information and documentation provided

to the Authority in terms of these regulations, or any other

information or documentation provided by the licensee to

the Authority in terms of any other provision of the Act, or

in terms of conditions attached to the licence; or

(ii) any material change in the circumstances that

may be reasonably expected to affect the abilities of the

licensee to comply with the Act, these regulations and the

licence;

(c)

any resolution or intended resolution, or any

application or intended application to any Court or other

institution or authority, or any other action, for the dissolution

and winding up of the licensee or the declaration of bankruptcy

of the licensee as soon as they become aware of such changes,

resolutions or intended resolutions, applications or intended

applications or actions.

(4) The notification referred to in sub-regulation (3) shall be

made on such forms as prescribed by the Authority by not later than

five days from the happening of any of the events referred to in sub-

regulation (3).

(5) Where as a result of a change referred to in sub-regulation

(3), irrespective of whether such change has been notified to the

Authority, a situation is brought about that, had it existed at the time

of the application for a licence or authorisation under these

regulations, it would have precluded the grant of the licence or

authorisation, the Authority shall by notice inform the licensee

accordingly. In the event that such situation is not remedied to the

satisfaction of the Authority within one month from the notice, the

Authority may revoke or suspend the licence or the authorisation.

(1) Every licensee shall at all times comply with the

provisions of the Act, these regulations, the directives issued by the

Authority from time to time and the conditions of the licence or

licences held. Furthermore every licensee shall carry out the activities

specified in the licence in accordance with the procedures, codes of

conduct and internal controls which may be prescribed by the

Authority from time to time, and all such procedures, codes of

conduct and internal controls shall, for all intents and purposes, be

deemed to be conditions of the licence, whether or not expressly

included therein.

(2) Every licensee shall maintain accounting and technical

records of its operations and shall forward same to the Authority in

such form, detail and at such frequency as may be prescribed by the

Authority in codes of conduct which may be prescribed for this

purpose by the Authority from time to time.

(3) Every licensee shall promptly report to the Authority any

fact or circumstance relating to the operation of amusement machines

which he reasonably suspects to constitute an offence under these

regulations or the Act.

(4) The granting by the Authority of a licence or authorisation

under these regulations to any person shall not relieve such person

from obtaining any other permit, approval or licence required by or

under any other law or regulations.

The Authority may revoke or suspend a licence or

authorisation granted in terms of these regulations on any of the

following grounds

(a)

the licensee contravenes any provision of the Act or

these regulations, or is found by the Authority to be in breach of

any condition of the licence or any directive issued by the

Authority in terms of the Act or regulations made thereunder;

(b) the licensee knowingly or negligently supplies to the

Authority information that is false or misleading;

(c)

the licensee is being wound up or otherwise

dissolved; or

(d)

the Authority is reasonably satisfied that the licensee

is not, or has ceased to be, a suitable person to hold the licence.

(1) Where a ground for revocation, suspension or non- Review

renewal of a licence arises under these regulations, the Authority procedure.

shall, by means of a duly reasoned notice in writing, request the

licensee to show cause why the licence should not be suspended or

revoked or why the licence should be renewed on the ground or

grounds set out in the notice. Such notice shall specify the time, not

being less than twenty-one days, within which the licensee or

interested person is to file a response with the Authority.

(2) The Authority shall consider any response made under

sub-regulation (1) in such manner that

(a)

where the matter is resolved to its satisfaction, it

shall take no further action and shall inform the licensee in

writing accordingly;

(b) where, although the matter is not resolved to its

satisfaction, it considers that further action is not warranted, it

shall caution the licensee in writing; or

(c)

where the matter is not resolved to its satisfaction

and it considers that further action is warranted, it may

(i) by notice in writing give such direction to the

licensee as it considers appropriate;

(ii) suspend the licence for such period as it

thinks fit; or

(iii) revoke or not renew the licence.

(3) Where a direction given by the Authority under sub-

regulation (2)(c)(i) is not complied with within the time specified in

the notice, the Authority may revoke, suspend or not renew the

licence.

(4) The Authority shall in the case of any action taken in terms

of sub-regulation (2)(b) and (c), provide the licensee with reasons for

its decision.

(5) The suspension, revocation or non-renewal of a licence

shall not affect any liability of the licensee for anything done or

omitted to be done before the date of suspension, revocation or non-

renewal.

(6) The liability of the licensee to pay any fee shall continue

throughout any period during which the licence is suspended.

The Authority may issue Codes of Conduct regulating the

conduct and operations of Class 1 licensees and Class 2 licensees.

In the event of reasonable doubt as to whether a licence or

authorization is required in terms of these regulations, the matter shall

be determined by the Authority.

(1) Any person who feels aggrieved by a decision of the

Authority taken in terms of these regulations may appeal to the

Administrative Review Tribunal constituted in terms of the

Administrative Justice Act, in accordance with the provisions of this

regulation

Provided that in any case, a person filing an appeal with the

Administrative Review Tribunal shall explain and bring evidence of

his juridical interest in impugning the decision being appealed from.

(2) An appeal from a decision of the Authority shall be made

by application and shall be filed with the secretary of the

Administrative Review Tribunal within twenty days from the date on

which the said decision was notified to the party appealing.

(3) The application of appeal shall be notified to the Authority

which shall file its reply thereto with the secretary of the

Administrative Review Tribunal within the time granted for such

purpose by the Administrative Review Tribunal.

(1) The decision of the Authority under appeal shall

remain in force pending an appeal, whether before the Administrative

Review Tribunal or the Court of Appeal (Inferior Jurisdiction), unless

otherwise determined by the Administrative Review Tribunal.

(2) The Administrative Review Tribunal or the Court of

Appeal, as the case may be, where it considers it to be appropriate,

may on the application of a party to the appeal, suspend the decision

of the Authority, pending the final determination of the appeal. The

Administrative Review Tribunal or the Court of Appeal in deciding to

suspend the decision shall state their reasons for doing so.