National Gambling Act, 2004 (Act No. 7 of 2004)Chapter 2 : National Gambling PolicyPart D : Registration and certification of machines and devices26. Limited pay-out machines |
| 1) | Cognisant of the potentially detrimental socio-economic impact of a proliferation of limited pay-out machines, the Minister must regulate the limited pay-out machine industry in accordance with this section. |
| 2) | The Minister, by regulation made in accordance with section 87, must- |
| a) | establish a program for the gradual introduction of limited pay-out machines in the Republic, in clearly defined and delineated phases; |
| b) | establish a mechanism for ongoing socio-economic impact assessment of the use of limited pay-out machines in the Republic; |
| c) | establish criteria which, on the basis of the assessments contemplated in paragraph (b), must be satisfied before the commencement of each successive phase of the program to introduce limited pay-out machines in the Republic; |
| d) | prescribe a limit on the maximum number of licensed limited pay-out machines that may be introduced in each phase- |
| i) | within the Republic; |
| ii) | within any particular province; and |
| iii) | at any one site, and may prescribe different site maximums applicable in different circumstances; |
| e) | after consulting the Board, determine the circumstances in which a site may be licensed, and for that purpose, may establish different categories of sites, and different requirements with respect to each such category; and |
| f) | prescribe a limit on the maximum- |
| i) | aggregate stake permitted to commence and complete a limited pay-out gambling game; |
| ii) | single pay-outs allowed from a limited pay-out machine; and |
| iii) | aggregate pay-out in respect of each game played. |
| 3) | In addition to the requirements of subsection (2), the Minister, by regulation made in accordance with section 87, may prescribe minimum standards concerning applications for licences with regard to limited pay-out gambling machines, including- |
| a) | standard information to be required from applicants; |
| b) | minimum evaluation criteria to be applied by licensing authorities; |
| c) | evaluation procedures to be followed by licensing authorities; |
| d) | compliance standards for limited pay-out machines, including the maximum number of single game cycles over a particular period of time; |
| e) | the methods by which a prize won on a limited pay-out machine may be paid; |
| f) | any essential or defining elements of a limited pay-out gambling game; |
| g) | the procedures that constitute the start and end of a single game on a limited pay-out machine; |
| h) | the accounting standards that must be met, and accounting records that must be kept, by route operators, site operators and independent site operators; |
| i) | minimum information to be provided by licensees concerning the sourcing, distribution, movements, conversions and disposal of limited pay-out machines; or |
| j) | measures to limit the potentially negative socio-economic consequences of access to gambling opportunities, including public notices at licensed premises. |
| 4) | A person must not |
| a) | distribute a limited pay-out machine to a site operator or independent site operator, or allow such a machine to be made available for play unless that machine has been registered in accordance with this Part; or |
| b) | move a limited pay-out machine from one site to another without the prior approval of, and subject to monitoring and control by, the provincial licensing authority that registered that machine. |
| 5) | A route operator- |
| a) | must not make available for play- |
| i) | more limited pay-out machines than the maximum number for which the operator is licensed; or |
| ii) | on any particular site, more limited pay-out machines than that site is licensed to accommodate; |
| b) | must maintain the limited pay-out machines owned and operated by that route operator; and |
| c) | must collect money from those machines and pay any applicable provincial taxes or levies in respect of those machines. |
| 6) | In any province, provincial law may provide for a smaller number of limited pay-out machines to be licensed- |
| a) | in that province, than the number prescribed by the Minister in terms of subsection (2)(d)(ii); or |
| b) | at any one site in that province, than the number prescribed by the Minister in terms of subsection (2)(d)(iii). |