After section 76ZC of the Principal Act , the following Division is inserted in Part 4A:

Division 5 - Betting exchange operations

Subdivision 1 - Introductory

76ZDA.     Application of Division

This Division applies to a Tasmanian gaming licence with a betting exchange endorsement.

76ZDB.     Interpretation of Division

In this Division –

approved form means a form approved by the Commission;

betting exchange means a facility that enables persons to –

(a) place or accept, through the betting exchange operator, wagers with other persons; or

(b) place with the betting exchange operator wagers that, on acceptance, are matched with opposing wagers placed with and accepted by the operator (so as to offset all risk to the operator);

betting exchange commission means commission that, under section 76ZDD , a betting exchange operator is entitled to in respect of brokered wagering;

betting exchange exclusion order means an order made by the Commission under section 76ZDI(3)(a) ;

betting exchange operator means the holder of a Tasmanian gaming licence with a betting exchange endorsement;

broker wagering means, by means of a betting exchange, to broker wagering between persons –

(a) directly (as in the manner referred to in paragraph (a) of the definition of "betting exchange"); or

(b) indirectly, by matching opposing bets placed with and accepted by the betting exchange operator (as in the manner referred to in paragraph (b) of the definition of "betting exchange");

brokered wagering event means a competition or event, whether of a sporting or non-sporting kind, in respect of which a betting exchange operator brokers wagering;

excluded person , in relation to a betting exchange operator, means a person who is excluded from wagering through the operator's betting exchange because of –

(a) a betting exchange self-exclusion notice; or

(b) a betting exchange exclusion order;

instruct means instruct by instrument in writing;

lead-in period , in relation to a betting exchange operator, means the 12-month period immediately following the date on which the operator's Tasmanian gaming licence is first endorsed with a betting exchange endorsement;

regulatory Agency means –

(a) the Commission; or

(b) the Director of Racing appointed under section 5 of the Racing Regulation Act 2004 ; or

(c) a Council within the meaning of the Racing Regulation Act 2004 ; or

(d) another person or body, nominated by the Commission, that, either in this State or elsewhere, exercises powers or performs functions in respect of the conduct of racing or gaming activities;

Tasmanian betting exchange operations , of a betting exchange operator, means the brokered wagering conducted under the operator's betting exchange endorsement;

wagering rules  means rules that a licensed provider is required to have in place pursuant to section 76ZDC(d) .

Subdivision 2 - Licensing provisions

76ZDC.     Special conditions

A Tasmanian gaming licence with a betting exchange endorsement is, in addition to any other conditions it may have, subject to the following special conditions:

(a) the licensed provider must only broker wagering for registered players;

(b) the wagering funds of registered players must be held in trust by the licensed provider (or by an agent of the licensed provider approved by the Commission) and must not be disbursed or otherwise dealt with except as authorised under this Act or as the Commission, by instrument in writing, from time to time authorises;

(c) for the purposes of paragraph (b) , an account used for the licensed provider's Tasmanian betting exchange operations must –

(i) not be used for any other purposes; and

(ii) be maintained with an authorised deposit-taking institution that carries on business in Australia, at a branch or office of that institution that is physically located in Tasmania; and

(iii) be independently audited at least once every 12 months, and at such other times as the Commission may instruct;

(d) the licensed provider must have in place wagering rules for each brokered wagering event and its contingencies and ensure that registered players can consult those rules electronically;

(e) the licensed provider must ensure that the Commission is able to inspect the wagering rules electronically at any time;

(f) the Commission, in its discretion, may, by means of an instruction, disallow any wagering rules that it considers to be –

(i) oppressive or unfair; or

(ii) inadequate or incomplete; or

(iii) misleading, inaccurate or poorly drafted; or

(iv) unsatisfactory on other grounds;

(g) the licensed provider must not broker wagering under disallowed wagering rules;

(h) the licensed provider must not broker wagering in respect of a contingency for which there are no wagering rules;

(i) any wagering that occurs under wagering rules before their disallowance is to be settled as the Commission, either generally or in the specific case and whether before or after the settlement of wagering, instructs;

(j) the Commission, in its discretion, may instruct the licensed provider not to broker wagering on a competition or event that the Commission considers is not a fit subject for betting exchange wagering and the licensed provider must comply with that instruction;

(k) any wagering that occurs in respect of brokered wagering events before their prohibition under paragraph (j) is to be settled as the Commission, either generally or in the specific case and whether before or after the settlement of wagering, instructs;

(l) the licensed provider must not broker wagering on contingencies relating to –

(i) competitions or events held in Tasmania that are unlawful; or

(ii) competitions or events held elsewhere that would, if they were to be held in Tasmania, be unlawful;

(m) the licensed provider must, in taking any betting exchange commission authorised under section 76ZDD , comply with such conditions as the Commission specifies in the authorisation;

(n) the licensed provider must, for –

(i) the purpose of ensuring the probity of brokered wagering and brokered wagering events; and

(ii) other purposes determined by the Commission –

furnish such regulatory Agencies with such information in such time and manner as the Commission from time to time instructs the licensed provider;

(o) the Commission may, for fee or otherwise, for –

(i) the purpose of ensuring the probity of brokered wagering and brokered wagering events; and

(ii) other purposes determined by the Commission –

furnish another regulatory Agency with information furnished to the Commission by the licensed provider.

76ZDD.     Betting exchange commission

(1)  A Tasmanian gaming licence with a betting exchange endorsement entitles its holder to such commission in respect of brokered wagering as the Commission from time to time authorises in writing.

(2)  Authorisations under subsection (1) may be of –

(a) general application; or

(b) specific application, with the result that different rates of commission may apply in such different circumstances (whether as to time, wagering category or otherwise) as are specified in the authorisations.

Subdivision 3 - Licensing of employees

76ZDE.     Certain employees to be issued with special employee's licence

(1)  This section applies to a person who is employed by a betting exchange operator during the lead-in period to exercise or perform a function (referred to in this section as "the function" ) of a special employee for the operator's Tasmanian betting exchange operations.

(2)  The Commission, as soon as practicable after the commencement of the lead-in period or, if applicable, after the person is employed, is to issue the person with a special employee's licence under Division 3 of Part 4 authorising the person to exercise or perform the function.

(3)  The special employee's licence so issued remains in force only for the duration of the lead-in period but, for the avoidance of doubt, sections 56 , 56A , 60 , 64 and 65 apply to that licence.

(4)  Until the Commission issues the special employee's licence, the person is taken to be the holder of a provisional special employee's licence under Division 3 of Part 4 authorising the person to exercise or perform the function.

(5)  Expressions that are defined in Division 3 of Part 4 and used in this section have the same meaning in this section as they have in that Division.

76ZDF.     Certain employees to be issued with technician's licence

(1)  This section applies to a person who is employed by a betting exchange operator during the lead-in period to exercise or perform a function of a technician (referred to in this section as "the function" ) for the operator's Tasmanian betting exchange operations.

(2)  The Commission, as soon as practicable after the start of the lead-in period or, if applicable, after the person is employed, is to issue the person with a technician's licence under Division 4 of Part 4 authorising the person to exercise or perform the function.

(3)  The technician's licence so issued remains in force only until the end of the lead-in period but, for the avoidance of doubt, sections 56 , 56A , 60 , 64 and 65 apply, with any necessary modification, to that licence.

(4)  Until the Commission issues the technician's licence, the person is taken to be the holder of a provisional technician's licence under Division 4 of Part 4 authorising the person to exercise or perform the function.

(5)  Expressions that are defined in Division 4 of Part 4 and used in this section have the same meaning in this section as they have in that Division.

Subdivision 4 - Miscellaneous

76ZDG.     Offshore computer equipment

(1)  A betting exchange operator may, with the written approval of the Commission, use offshore computer equipment for Tasmanian betting exchange operations.

(2)  A betting exchange operator who uses offshore computer equipment for Tasmanian betting exchange operations pursuant to a permission under subsection (1) must comply with such instructions as the Commission may from time to time give the betting exchange operator regarding that computer equipment and its use.

Penalty:  Fine not exceeding 10 000 penalty units.

(3)  In this section –

computer equipment includes a class of computer equipment;

offshore computer equipment means a computer, computer server or other computer equipment located outside Tasmania.

76ZDH.     Self-exclusion from brokered wagering

(1)  A registered player may, by written notice to a betting exchange operator –

(a) bar himself or herself from wagering with the betting exchange operator; or

(b) revoke such a bar.

(2)  A notice under subsection (1)(a) is called a "betting exchange self-exclusion notice" and a notice under subsection (1)(b) is called a "betting exchange self-exclusion revocation notice" .

(3)  A betting exchange self-exclusion notice or betting exchange self-exclusion revocation notice takes effect when it is received by the betting exchange operator.

(4)  As soon as practicable (and in any event no later than 3 days) after receiving a betting exchange self-exclusion notice, a betting exchange operator must –

(a) remove the name of the person who has given the notice from the register kept under section 76ZU ; and

(b) ensure that all persons employed by the operator in connection with Tasmanian betting exchange operations know of the notice; and

(c) give written notice or a copy of the notice to the Commission.

Penalty:  Fine not exceeding 10 000 penalty units.

(5)  A betting exchange operator that receives a betting exchange self-exclusion notice must ensure that, as soon as practicable after the determination of any outstanding wagers of the excluded person and the deduction of authorised commission and statutory charges –

(a) the excluded person's betting exchange wagering account is closed; and

(b) any wagering funds standing to the credit of that account immediately before its closure are remitted to the excluded person.

Penalty:  Fine not exceeding 10 000 penalty units.

(6)  As soon as practicable after receiving a betting exchange self-exclusion revocation notice, the betting exchange operator is to –

(a) restore the name of the person who has given the notice to the register kept under section 76ZU ; and

(b) ensure that all persons employed by the operator in connection with Tasmanian betting exchange operations know of the notice; and

(c) give written notice or a copy of the notice to the Commission.

(7)  Despite any other provision of this section, a betting exchange self-exclusion notice is not capable of being revoked within 6 months after it is given.

(8)  For the avoidance of doubt, a reference in this section to a written notice includes a reference to an email, fax or other form of electronic notice.

76ZDI.     Third-party exclusion from brokered wagering

(1)  A person who has a close personal interest in the welfare of another person who wagers through betting exchanges may, in an approved form, apply to the Commission for an order to prohibit that other person from engaging in that kind of wagering.

(2)  The Commission must, on receipt of the application, provide the affected person with a written notice –

(a) informing the affected person of the making of the application and the reasons for it; and

(b) inviting the affected person to make representations to the Commission about the application within the reasonable time specified in the notice.

(3)  After considering representations made by the applicant and the affected person, the Commission must –

(a) if it is satisfied that it is in the public interest and the interests of the affected person to do so, make an order (called a "betting exchange exclusion order" ) prohibiting the affected person from wagering through betting exchanges; or

(b) if it is not so satisfied, refuse the application.

(4)  The Commission must, if the application is refused, notify the applicant and the affected person in writing of that refusal and the reasons for it.

(5)  The Commission must, on making a betting exchange exclusion order, provide a copy of it to –

(a) the applicant; and

(b) the affected person; and

(c) each betting exchange operator.

(6)  As soon as practicable (and in any event no later than 3 days) after receiving a copy of a betting exchange exclusion order from the Commission, a betting exchange operator must –

(a) ensure that all persons employed by the operator in connection with Tasmanian betting exchange operations know of the order; and

(b) remove the affected person's name from the register kept under section 76ZU .

Penalty:  Fine not exceeding 10 000 penalty units.

(7)  A betting exchange operator that receives a copy of a betting exchange exclusion order from the Commission must ensure that, as soon as practicable after the determination of any outstanding wagers of the affected person and the deduction of authorised commission and statutory charges –

(a) the affected person's betting exchange wagering account is closed; and

(b) any wagering funds standing to the credit of that account immediately before its closure are remitted to the affected person.

Penalty:  Fine not exceeding 10 000 penalty units.

(8)  A betting exchange exclusion order has effect until it is revoked under section 76ZDJ .

(9)  In this section –

affected person means, according to the context, the person in respect of whom –

(a) an application for a betting exchange exclusion order is made; or

(b) a betting exchange exclusion order is made and in force.

76ZDJ.     Revocation of betting exchange exclusion orders

(1)  This section applies if a betting exchange exclusion order is in force.

(2)  The person who applied for the order or the affected person may, in an approved form, apply to the Commission to have it revoked.

(3)  The Commission must, on receipt of the application, provide the respondent with a written notice –

(a) informing the respondent of the making of the application and the reasons for it; and

(b) inviting the respondent to make representations to the Commission about the application within the reasonable time specified in the notice.

(4)  After considering representations made by the applicant and the respondent, the Commission must –

(a) if it is satisfied that it is in the public interest and the interests of the affected person to do so, make an order (called a "revocation order" ) revoking the betting exchange exclusion order; or

(b) if it is not so satisfied, refuse the application.

(5)  The Commission must, if the application is refused, notify the applicant and respondent in writing of that refusal and the reasons for it.

(6)  The Commission must, on making a revocation order, provide a copy of it to –

(a) the applicant; and

(b) the respondent; and

(c) each betting exchange operator.

(7)  In this section –

affected person means the person in respect of whom a betting exchange exclusion order is in force;

respondent , in relation to an application for revocation under subsection (2) , means whichever of the following persons was not the applicant:

(a) the affected person;

(b) the person who applied for the relevant betting exchange exclusion order.

76ZDK.     Register of persons excluded from betting exchange wagering

A betting exchange operator must –

(a) keep an up-to-date register of excluded persons; and

(b) ensure that the Commission is able to inspect that register electronically at any time.

Penalty:  Fine not exceeding 10 000 penalty units.

Subdivision 5 - Offences

76ZDL.     Restrictions on brokered wagering

A betting exchange operator must not –

(a) broker wagering by or between persons who are not registered players; or

(b) cause or allow persons who are not registered players to engage in wagering through a betting exchange operated by the betting exchange operator; or

(c) solicit, by direct advertising, direct inducements or other direct means, excluded persons to engage in wagering through a betting exchange.

Penalty:  In the case of –

(a) a first offence, a fine not exceeding 10 000 penalty units; and

(b) a subsequent offence, a fine not exceeding 50 000 penalty units.

76ZDM.     Restrictions on wagering by interested persons

(1)  A person must not wager through a betting exchange if the person is a direct participant in the brokered wagering event to which the wager relates.

Penalty:  Fine not exceeding 10 000 penalty units or imprisonment for a term not exceeding 4 years, or both.

(2)  A person who has an interest in the outcome of a brokered wagering event must not, through a betting exchange, place or accept a wager of a kind that could reasonably be taken to constitute an inducement for –

(a) a human competitor in the event –

(i) to withdraw from, become disqualified for or fail to participate in the event; or

(ii) not to participate in the event to the best of the human competitor's ability; or

(iii) to interfere with or jeopardise, contrary to the rules of the event, the performance of other human competitors, or any non-human competitors, in the event; or

(iv) to commit an offence against section 165 ; or

(b) an official in the event –

(i) not to officiate in the event impartially; or

(ii) to commit an offence against section 165 .

Penalty:  Fine not exceeding 10 000 penalty units or imprisonment for a term not exceeding 4 years, or both.

(3)  The owner of a horse or greyhound must not wager through a betting exchange that, in a race or event in which the horse or greyhound is competing or entered to compete, the horse or greyhound will fail to –

(a) win first place; or

(b) be placed second; or

(c) be placed third; or

(d) win first place or be placed second or third; or

(e) win first place or be placed second; or

(f) win first place or be placed third; or

(g) be placed second or third.

Penalty:  Fine not exceeding 10 000 penalty units or imprisonment for a term not exceeding 4 years, or both.

(4)  A betting exchange operator must inform the Commission immediately if the operator knows or reasonably suspects that a person has placed or accepted, or is trying to place or accept, a wager of the kind referred to in subsection (1) , (2) or (3) through the operator's betting exchange.

Penalty:  Fine not exceeding 10 000 penalty units.

(5)  For the purposes of this section, a person is taken to have an interest in the outcome of a brokered wagering event if the person is –

(a) a direct or indirect participant in the event; or

(b) an associate of a direct or indirect participant in the event.

(6)  For the purposes of this section, a person is another person's associate if the first-mentioned person –

(a) holds or will hold any relevant financial interest, or is or will be entitled to exercise any relevant power (whether in right of the first-mentioned person or on behalf of any other person) in a business of the other person, and by virtue of that interest or power, is able or will be able to exercise a significant influence over or with respect to the management or operation of that business; or

(b) holds or will hold any relevant position (whether in right of the first-mentioned person or on behalf of any other person) in a business of the other person; or

(c) is a relative of the other person.

(7)  In this section –

competitor includes, in the case of a horse race, a jockey or driver of a horse competing or entered to compete in the race;

direct participant , in a brokered wagering event, means –

(a) in the case of a horse race, a licensed person who trains, rides or drives, or performs another function in respect of, a horse in the race; or

(b) in the case of a greyhound race, a licensed person who, other than as an owner, trains, or performs another function in respect of, a greyhound in the race; or

(c) in any other case, a person who –

(i) competes in the event; or

(ii) is entitled, under the rules of the event, to give direct technical or logistical support to a person competing in the event while it is underway;

Example 1 The members of pit crews in a motor race give direct technical and logistical support to the drivers competing in that race.

indirect participant , in a brokered wagering event, means a person who, though not a direct participant in the event, is capable of influencing or deciding the outcome of the event or the outcome of a contingency relating to that event;

Example 2 A team doctor or physiotherapist, a sportsground curator, an official, a member of a tribunal that hears protests or appeals concerning rules, disqualifications or results.

licensed means licensed or registered under –

(a) the Rules of Racing within the meaning of the Racing Regulation Act 2004 ; or

(b) rules in force in another State, or in a Territory, that are equivalent or substantially equivalent to the rules referred to in paragraph (a) ;

official includes marshal, scorer, steward, time-keeper and umpire;

partner means the person with whom a person is in a personal relationship within the meaning of the Relationships Act 2003 ;

relative means spouse, partner, parent, child or sibling (whether of the full or half blood);

relevant financial interest , in relation to a business, means –

(a) any share in the capital of the business; or

(b) any entitlement to receive any income derived from the business;

relevant position , in relation to a business, means the position of director, manager or other executive position or secretary, however that position is designated in that business;

relevant power means any power, whether exercisable by voting or otherwise and whether exercisable alone or in association with others –

(a) to participate in a directorial, managerial or executive decision; or

(b) to elect or appoint any person to any relevant position.

(8)  The examples in subsection (7) are a part of the law.