Nothern Territory Gaming Control (Internet Gaming) Regulations

Dated 17 December 1998.

2. DEFINITIONS
In these Regulations, unless the contrary intention appears -

"approved" means approved by the Director;

"approved computer system" means a computer system, approved under regulation 4, for internet gaming and includes a computer system changed in accordance with an approval under regulation 4 or a direction of the Director under regulation 11;

"approved control system" means a control system approved under regulation 10;

"computer system" means a combination of computer hardware and computer software used or intended to be used by an internet gaming licensee for the conduct of, or ancillary to the conduct of, internet games;

"control system" has the meaning it has in regulation 6;

"financial institution" means -

(a) a bank;

(b) a building society;

(c) a credit union;

(d) a friendly society; or

(e) another entity prescribed under regulation 3;

"gaming record", in relation to an internet gaming licensee, means a record kept in any form or medium, electronic or otherwise, about the operations conducted by the licensee under his or her licence;

"internet game" means a game conducted by means of the internet but does not include a game conducted by means of the internet in accordance with the Act by an approved association;

"internet gaming key employee licence" means -

(a) a provisional internet gaming key employee licence; or

(b) a full internet gaming key employee licence;

"internet gaming licence" means a licence granted under Division 5 of Part 4 of the Act;

"internet gaming licensee" means a person to whom an internet gaming licence has been granted or assigned;

"key duties" has the meaning it has under regulation 12;

"player" means a natural person who participates in an internet game;

"player's account" has the meaning it has in regulation 50;

"registered player", in relation to an internet gaming licensee, means a person registered with the licensee as a player under regulation 47(1).

(a) for approval of the computer system the licensee proposes to use to conduct internet games; or

(b) for approval to change the licensee's approved  computer system.

(a) consider the application;

(b) evaluate the system or proposed change as soon as practicable if the Director believes it is necessary to do so to decide the application; and

(c) after considering the application and, if necessary, the evaluation of the system or proposed change - approve or refuse to approve the computer system or change.

(3) Before evaluating the computer system or proposed change, the Director may require the internet gaming licensee to pay to the Director the reasonable costs of the Director of evaluating the computer system or proposed change.

(4) The Director must promptly give the internet gaming licensee written notice of the Director's decision.

(5) If the Director decides to refuse to give an approval, the notice under subregulation (4) must state the reasons for the decision.

5. INTERNET GAMES MUST BE CONDUCTED UNDER APPROVED COMPUTER SYSTEM
(1) An internet gaming licensee must not conduct an internet game except under the licensee's approved computer system.

Penalty: $2,000.

(2) An internet gaming licensee must not change, or authorise a change to, the licensee's approved computer system unless the change is approved by the Director in writing under regulation 10 or 11.

Penalty: $2,000.

(2) Without limiting subregulation (1), a control system includes -

(a) the accounting systems, financial procedures and chart of accounts, the administrative systems and procedures, the computer software and hardware and the standard forms and terms used to conduct internet games;

(b) the procedures including, if appropriate, formulas for or with respect to the hold percentages and their calculation and verification to be followed in conducting internet games;

(c) the procedures and standards for maintaining the integrity of all data and equipment used in conducting internet games;

(d) the procedures for recording and paying prizes won in internet games and maintaining and using players' accounts including the procedures for paying in and out of any account, foreign currency dealings and the recording of all transactions relating to gaming operations;

(e) the structure of the organisation to which it relates including -

(i) the management structure and description of positions within the management structure and the responsibilities and functions of those positions;
(ii) the employee structure and description of positions within the employee structure and the responsibilities and functions of those positions;

(iii) the chain of authority that shows the diversity of responsibility among employees engaged in all operations of the internet gaming business including primary and secondary supervisory positions; and

(iv) if the organisation uses an agent - the terms and conditions of the agency agreement including to whom the agent is to report or to whom the agent is accountable within the organisation; and

(f) all measures for securing all data and equipment and the premises where they are to be located or stored (as applicable).

Penalty: $2,000.

(2) A submission under subregulation (1) must describe and explain the internet gaming licensee's proposed control system.

9. CHANGE OF APPROVED CONTROL SYSTEM
(1) An internet gaming licensee may change his or her approved control system only -

(a) with the approval of the Director under regulation 10; or

(b) in accordance with a direction of the Director under regulation 11.

10. Consideration of and decisions about submissions
(1) The Director must consider a submission received under regulation 8 or 9 and approve or refuse to approve the internet gaming licensee's proposed control system or the proposed change to the licensee's approved control system.

(2) In considering the submission, the Director may, by written notice to the internet gaming licensee, require him or her -

(a) to give the Director further information about the submission that is necessary and reasonable to help the Director make a decision about the submission; or

(b) to allow the Director to submit to tests the proposed control system or the approved control system as proposed to be changed.

(a) whether the submission satisfies the requirements under this Part for the submission; and

(b) whether the internet gaming licensee's proposed control system, or approved control system as proposed to be changed, is capable of providing satisfactory and effective control over the conduct of internet games.

(5) The Director must promptly give the internet gaming licensee written notice of the Director's decision to give an approval or to refuse to give an approval.

(6) If the Director decides to refuse to give an approval, the notice is to state the reasons for the decision.

(7) If the Director believes a submission can easily be rectified to enable the Director to approve  the internet gaming licensee's proposed control system or the proposed change to the licensee's approved control system, a notice under subregulation (6) is to also -

(a) explain how the submission may be changed so as to enable the Director to give an approval; and

(b) invite the internet gaming licensee to resubmit the submission after making the appropriate changes.

(2) If the internet gaming licensee does not comply with the direction, the approval of the internet gaming licensee's control system under regulation 10 is cancelled.

(a) occupies or acts in a key position, or carries out key functions, in relation to operations carried out under an internet gaming licence or the business of the internet gaming licensee;

(b) is in a position to control or exercise significant influence over the operations conducted under an internet gaming licence;

(c) occupies or acts in a position designated in the internet gaming licensee's approved control system as a key position; or

(d) occupies a position, or carries out a function, that is designated as a key position or a key function by the Director by notice in writing to the licensee under subregulation (2).

13. PERSON PERFORMING KEY DUTIES TO HOLD INTERNET GAMING KEY EMPLOYEE LICENCE
(1) The holder of an internet gaming licence must not allow a person to perform key duties in relation to the licence unless the person holds an internet gaming key employee licence authorising the person to perform those duties.

Penalty: $2,000.

(2) A person must not -

(a) perform key duties in relation to an internet gaming licence unless he or she holds an internet gaming key employee licence permitting the performance of those duties; or

(b) perform key duties in relation to an internet gaming licence except in accordance with his or her internet gaming key employee licence.

Penalty: $2,000.

(3) Subregulations (1) and (2) do not apply to a person performing key duties who is appointed by the Director under section 47P of the Act to perform those duties.

14. APPLICATION FOR LICENCE
(1) A person who -

(a) intends to perform key duties in relation to an internet gaming licence; and

(b) has attained the age of 18 years,

may apply to the Director for an internet gaming key employee licence.

(2) An application under subregulation (1) is to be in the approved form and accompanied by -

(a) a certificate signed by or on behalf of an internet gaming licensee stating that he or she -

(i) will engage the applicant, subject to the applicant being granted the internet gaming key employee licence, to perform key duties in relation to the internet gaming licence; and

(ii) has carried out his or her own investigations and inquiries into the probity of the applicant and that the applicant is competent to perform the duties for which he or she is to be employed;

(c) an extract of the applicant's birth certificate, passport, refugee certificate or naturalisation certificate;

(d) if the applicant's name has changed since birth - a certified copy of the document by which the name change occurred or that otherwise provides evidence of the change;

(f) a written statement signed by a member of the Police Force verifying that the applicant has had his or her fingerprints and palm prints taken;

(g) the written consents, authorities and indemnities necessary to enable the Director to obtain -

(i) a criminal history report in respect of the applicant; and
(ii) information concerning the financial background of the applicant; and

(h) an application fee of $250.

(3) Subject to subregulation (5), if, before an internet gaming key employee licence is granted or refused, there is a change in the information supplied by an applicant in support of his or her application for the licence, the applicant must give written particulars of the change, verified by a statutory declaration signed by the applicant.

Penalty: $2,000.

(4) The written particulars that are received under subregulation (3) are to be considered to be part of the application.

(5) An applicant is not required to provide to the Director written particulars of a change in the information supplied by him or her to the Director in support of his or her application if the Director has notified the applicant in writing that it is not necessary to do so.

(6) In determining for the purposes of subregulation (5) whether it is necessary for an applicant to give particulars of a change in respect of the information, the Director is to have regard to -

(a) the suitability of the applicant for the grant of the internet gaming key employee licence; and

(b) the nature of the information concerned.