Moving GMEs on Amalgamation?

The recently released Independent Liquor & Gaming Authority (“ILGA”) Guideline 16 (Version 2) “Late-night gaming applications” is impacting amalgamation decisions by Clubs. Clubs (Parent Clubs) who are looking to save another Club (Child Club) often take on significant liabilities and contract obligations as part of the amalgamation process. To offset the cost of providing this financial support, Parent Club’s often consider moving the Gaming Machine Entitlements (GMEs) of the Child Club to an existing Parent Club owned club premise. This GME transfer may be captured by Guideline 16 (Version 2) and can potentially result in gaming machine operations at the destination club having to cease at 12 midnight or 2am. This could be to the financial detriment of the Parent Club. Parent Club’s should not be assuming that they can move GMEs to support the amalgamation. For independent advice on amalgamations, contact Michael Anderson, by email michael.anderson@elitelegal.com.au