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Jackpot monitoring and unpaid linked jackpot arrangements

Other related content
GamblingGaming venue operator

The Accounting and Auditing Venue Requirements (AAVR) include specific conditions that gaming venue operators in Victoria must adhere to.

In 2022, clauses 128 and 129 of the Gambling and Liquor Legislation Amendment Bill 2022 introduced Division 7 of Part 5 of Chapter 3 to the Gambling Regulation Act 2003 (the Act).

This requires venue operators to 

a) deal with jackpot funds on the retirement of jackpot

b) transfer of unpaid jackpot funds on the transfer of the approved venue 

c) deal with unpaid jackpot funds where the venue operator ceases to hold a licence or to operate gaming machines 

d) deal with jackpots that were retired before the commencement of Division 7 

This change took effect on 10 March 2023. To ensure compliance with this Division of the Act, the Victorian Gambling and Casino Control Commission (the Commission) has amended the AAVR. Please refer to the AAVR version 4.7 for further detail in relation to the new requirements governing linked jackpot management and treating unpaid jackpot prizes.  This web page is designed to provide further information in relation to the key changes to the AAVR associated with jackpot management, monitoring of Jackpot Special Prize Pool (JSPP),  and payment of unpaid jackpot funds in relation to Linked Jackpot Arrangement (LJA).

Retiring individual LJA

If a venue operator decides to retire an LJA, the venue operator must transfer the JSPP balance of the retired LJA to another LJA operating at the approved venue. The transferred JSPP balance will be accounted for in the calculation of the JSPP of the operating LJA.  If there is no other LJA at the venue at the time of retirement, the JSPP balance must be transferred to the JSPP of another LJA should the venue re-introduce an LJA at the venue within 60 days of the retirement.  The venue operator must allocate the JSPP balance (if positive) to another LJA’s overflow pool to ensure the it is returned to players. If no LJA is operating within the venue after 60 days of retiring the LJA, the venue must pay the JSPP balance ( if positive) to the Commission within 7 days after the end of that 60-day period. 

Retiring historical LJA

For any LJAs that are retired between 16 August 2012 and 09 March 2023, section 3.5.47 of the Act requires that the venue operator may allocate the balance (whether in surplus or deficit) of the JSPP in relation to that LJA to the JSPP of another LJA operating in the approved venue in 12 months.  Within 7 days after the end of the 12 months, the venue operator must pay any remaining unpaid jackpot funds in relation to the historically retired LJA to the Commission for further payment into the RGF.

New requirements applicable to a change in Gaming Venue Operator at an approve venue

Any associated liabilities regarding unpaid jackpot funds must be accounted for upon changing the venue operator. Upon sale of a venue, the outgoing venue operator may transfer any unpaid jackpot funds in relation to an LJA at the outgoing venue to the incoming venue, or pay to the Commission for payment into the RGF any unpaid jackpot funds in relation to the LJA less an amount transferred to the incoming venue operator within 28 days.   If the incoming venue operator accepts the JSPP liability from the outgoing venue operator, the incoming venue must allocate the funds transferred from the outgoing venue to a special prize pool related to an LJA operating at the incoming venue immediately after the change of ownership. The Commission and the monitoring licensee must be advised of the transfer at least 48 hours before the venue changes hands to allow for the required processes to occur.   An outstanding balance in the venue’s JSPP is only applicable to that venue and cannot be transferred between gaming venues owned by the same gaming operator.  In transfer of ownership is occurring prior to 10 March 2024, and the requirements pursuant to section 3.5.47 in relation to historically retired jackpots have not been actioned, a venue operator must:

 a) liaise with IGS to allocate the JSPP balance before the change of ownership, or

 b) pay any unpaid jackpot funds in relation to the historically retired LJA to the Commission for payment into RGF within 28 days.

Should you require any further assistance, please email [email protected]

Division 7 of the Gambling Regulation Act 2003 (the Act) and associated changes to the Accounting and Auditing Venue Requirements (AAVR)

When do I start to accumulate amounts to the Jackpot Special Prize Pool (JSPP) in relation to Linked Jackpot Arrangement (LJA)? The JSPP of an LJA is determined from the time when the LJA starts operating. If a jackpot started operating since 16 August 2012, the JSPP is the value of all accumulated jackpot contributions from the LJA since this time, less the value of jackpot prizes paid in relation to the LJA.

LJA retired between 16 August 2012 and 09 March 2023

 A venue operator must keep a record of all LJAs and verify the JSPP balance using the Bos Portal monitoring report.   Once the total JSPP balance is verified for those retired jackpots between 16 August 2012 and 09 March 2023, the venue operator must liaise with IGS, the monitoring licensee that facilitates the transfer of the JSPP balance, to allocate the JSPP balance (whether surplus or deficit) to another LJA operating in the venue within 12 months. Otherwise, the venue operator must pay any remaining balance (if positive) to the Commission or write off the negative balance within 7 days after the end of the 12-month period. 

Negative JSPP balance for a retired LJA from 10 March 2023 onwards

The venue operator must liaise with IGS to allocate the JSPP balance of the retired LJA to the JSPP of another LJA within 60 days.  If no LJA is operating within the venue after 60 days of retiring the LJA, the venue must write off the negative JSPP balance within 7 days after the end of that 60-day period.  

Positive JSPP balance for a retired LJA from 10 March 2023 onwards

 The venue operator must liaise with IGS to allocate the JSPP balance of the retired LJA to another operating LJA at the approved venue within 60 days.  The positive JSPP balance will be carried forward to the JSPP of the operating LJA. The venue operator must also allocate the positive JSPP balance to the ‘overflow’ pool of the operating LJA. If no LJA is operating within the venue after 60 days of retiring the LJA, the venue must pay the unpaid jackpot funds to the Commission within 7 days after the end of that 60-day period. 

Calculate the JSPP balance from 10 March 2023 onwards

JSPP balance is the value of jackpot contributions less jackpot prizes in relation to the LJA  plus JSPP carried forward from retired LJA in the approved venue.

Transfer the liability to a new venue operator

Yes, the outgoing venue operator may transfer unpaid jackpot liability in the JSPP to the incoming venue operator if both the outgoing and incoming venue operators agree.

Obligations as outgoing venue operator when the venue changes ownership

Before the change of ownership, the outgoing venue operator may transfer unpaid jackpot funds to the incoming venue operator.  The outgoing venue operator must give the Commission written notice at least 48 hours before transferring the unpaid jackpot funds.  If the incoming venue operator rejects the transfer of the unpaid jackpot funds from the outgoing venue operator, the outgoing venue operator must pay the unpaid jackpot funds to the Commission within 28 days.  If the incoming venue operator only accepts the transfer of part of the unpaid jackpot funds from the outgoing venue operator. The incoming venue operator must pay the unpaid jackpot funds less the amount transferred to the incoming venue operator to the Commission within 28 days. 

Obligations as incoming venue operator when the venue changes ownership

If the incoming venue operator accepts the transfer of all or part of unpaid jackpot funds from the outgoing venue operator, the incoming venue operator must allocate the unpaid jackpot funds from the outgoing venue operator to the LJAs at the approved venue immediately after the change of ownership.  The incoming venue operator may reject the transfer of the unpaid jackpot funds from the outgoing venue operator and can elect where to commence their linked jackpots within the specified prize range limit of the jackpot arrangement.

Obligations as outgoing venue operator when the venue changes ownership before the settlement of historical LJA retirement

The outgoing venue operator must contact IGS to allocate any unpaid JSPP balance (whether in surplus or deficit) of those LJAs retired between 16 August 2012 and 09 March 2023 to another LJA operating in the venue before the change of ownership.  Otherwise, the outgoing venue operator must pay the JSPP balance (if positive) to the Commission or write off the negative balance within 28 days after the change of ownership.  Before 48 hours of the change of ownership, the outgoing venue must notify the Commission on their treatment of the historically retired LJAs. 

Notify the Commission about the treatment of unpaid jackpot liability as an outgoing venue

The Commission will provide you instruction of information required when you apply for the removal of premises from the Commission.

Payment to the RGF

The Commission will issue an invoice to the venue operator if a balance is due to be paid. 

Correct monitoring of the value of the JSPP

The monitoring licensee will assist in quantifying all linked jackpot contributions and jackpot prizes paid. Please get in touch with IGS should you require any assistance in this regard. 

JSPP transfer process, in line with the AAVR

 IGS clearly understands what the Commission requires regarding managing jackpot liability, either at the point of retiring an individual LJA or transferring venue ownership to a new venue operator.  Venue operators can contact IGS in relation to policies and procedures governing the jackpot transfer process.