Integrity agreements and contribution agreements
62E Integrity agreements and contribution agreements
A person (the operator) must not conduct betting operations in relation to a race held in this State by a racing club (SA race betting operations) unless the operator has entered into an integrity agreement and a contribution agreement with the relevant racing controlling authority conforming with the requirements of this section and both agreements are in force. Maximum penalty: Maximum penalty: $25 000 or imprisonment for 1 year.
Subsection (1)—
applies whether the SA race betting operations are conducted wholly within or outside the State or partly in the State and partly outside the
State; and
does not apply in relation to betting operations conducted by a licensed racing club under an on-course totalisator betting licence in relation to a race held by the club.
Without limiting the matters that may be included in an integrity agreement, the agreement must include—
provisions requiring the operator to provide to the racing controlling authority on request information about the operator's SA race betting operations (which may include information relating to trade secrets or business processes, financial information and information identifying or relating to persons making bets), verified, if the controlling authority so requires, by statutory declaration; and
provisions requiring the operator to implement specified measures to identify potential issues of probity in relation to the operator's SA race betting operations and report identified issues to the racing controlling authority; and
provisions requiring the operator to inform the racing controlling authority of any criminal or disciplinary proceedings commenced against the operator, or a close associate of the operator, in connection with any betting operations; and
provisions requiring the operator to facilitate investigations or inquiries into the conduct of the operator's SA race betting operations;
and
provisions establishing a dispute resolution procedure;
and
other provisions prescribed by regulation.
Without limiting the matters that may be included in a contribution agreement, the agreement must include—
provisions requiring the operator to make contributions to the relevant racing controlling authority in respect of the operator's SA race betting operations and setting out how those contributions are to be calculated and the terms for payment; and
provisions requiring the operator to provide to the relevant racing controlling authority such information as is reasonably required for the purposes of calculating the contributions due to the controlling authority, verified, if the controlling authority so requires, by statutory declaration;
and
provisions requiring the operator to provide to the relevant racing controlling authority an annual report verifying that contributions have been made as required by the agreement prepared by the auditor of accounts that the operator is required to keep under the Corporations Act 2001 of the Commonwealth, as in force from time to time, or some other registered company auditor;
and
provisions establishing a dispute resolution procedure;
and
other provisions prescribed by regulation.
If a person seeks to negotiate an agreement with a racing controlling authority under this section, the controlling authority must negotiate with the person in good faith subject to and in accordance with legal requirements (including, without limitation, the requirements relating to authority to conduct betting operations in this State under the
Lottery and Gaming
Act 1936 and this Act and the requirements of section 92 of the Constitution of the
Commonwealth).
An integrity agreement or contribution agreement may be varied by a later agreement between the parties.
Contributions payable under a contribution agreement are recoverable as a debt due to the racing controlling authority.
If the operator holds a licence under this Act, it is a condition of the licence that the operator must perform its obligations under an integrity agreement and contribution agreement.
For the purposes of subsection (1), the racing distribution agreement will be taken to be a contribution agreement entered into by the holder of the major betting operations licence with each of the racing controlling authorities.
The following is, subject to conditions and limitations prescribed by regulation, authorised for the purposes of section 51 of the
Trade Practices Act 1974 of the Commonwealth, as in force from time to time, and the Competition Code of South Australia:
entering into or giving effect to an agreement by racing controlling authorities, Racing SA Pty Ltd (ACN 095 660 058) and any other agents of racing controlling authorities (or any combination of those persons and bodies) following negotiations conducted for the purposes of a racing controlling authority entering into, giving effect to or enforcing an integrity agreement or contribution agreement;
entering into, giving effect to or enforcing an integrity agreement or contribution agreement by racing controlling authorities, Racing SA Pty Ltd (ACN 095 660 058), any other agents of racing controlling authorities (or any combination of those persons and bodies) acting collectively;
entering into, giving effect to or enforcing an integrity agreement or contribution agreement by a racing controlling authority acting alone.
Subsection (10) applies to action whether taken before or after the commencement of that subsection.
Subsection (10) applies only in relation to provisions required by this section to be included in an integrity agreement or contribution agreement.
If an operator conducts SA race betting operations when a contribution agreement is not in force, the relevant racing controlling authority may—
recover as a debt due to the controlling authority by the operator contributions in respect of the betting operations calculated in accordance with the regulations; and
by written notice to the operator, require the operator to provide to the controlling authority such information as is reasonably required for the purposes of calculating the contributions, verified, if the controlling authority so requires, by statutory declaration.
In this section—
entering into an agreement means entering into or negotiating an agreement, including acting collectively or in combination with others in or with respect to the negotiation of an agreement;
giving effect to an agreement includes complying with an obligation or exercising a right or power under the agreement;
relevant racing controlling authority, in relation to a race, means—
in the case of a horse race—the racing controlling authority for horse racing;
in the case of a harness race—the racing controlling authority for harness racing;
in the case of a greyhound race—the racing controlling authority for greyhound racing.
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