Consumer and Business Services (CBS) has commenced consultation on a range of proposals that will change the way that Gaming Machine Entitlements (GMEs) are traded in South Australia.

After considering a report by the Liquor and Gambling Commissioner titled ‘Statutory Review of Approved Trading System’, the Government of South Australia is interested to hear feedback from the broader community on several alternative trading options. This is to achieve the statutory objective of reducing the number of machines in the state to 13,081 or less.

A discussion paper has been released seeking feedback from members of the public, gaming operators, advisory bodies, help services and researchers.

Consultation will close on 3 November 2023.

The options being canvassed include:

• permitting direct trading of entitlements between licensed premises operated by the same hotel gaming operator (external from the approved trading system)
• establishing a new ‘open market’ entitlement trading scheme using a web-based trading platform managed by CBS
• introducing a fixed rate of forfeiture to better achieve GME reductions.

Any feedback will inform the advice provided to the Government of South Australia about changing the rules of the approved trading system commencing mid-2024.

Under the rules of the current Approved Trading System only the Liquor and Gambling Commissioner can instigate a trading round during which gaming machine licence holders submit sealed bids to buy or sell entitlements to CBS.

As part of each trading round every fourth entitlement sold must be forfeited to the Commissioner and either cancelled if sold by a hotel or transferred to Club One if sold by a licensed club. Club One is a not-for-profit organisation supporting community clubs and non-profit organisations in SA.

Further information about the rules of the current Approved Trading System is available here.