NEXT HOTEL GAMING MACHINE TENDER CLOSES 27 SEPTEMBER
The next tender for hotel electronic gaming machine operating authorities in Queensland opened on Wednesday 6 September 2023 and will close at 4pm on Wednesday 27 September 2023.
Minimum acceptable prices for authorities and number for sale across the three regions are:
REGION / NUMBER AVAILABLE / MINIMUM PRICE
South East / 12 available / $352,078
Coastal / 24 available / $171,771
Western / Nil / $44,477 – no market
GAMING MACHINE OPERATING AUTHORITIES TENDERSALE – TRIAL EXTENDED
On 1 July 2022, the government reduced the tax commission (for sellers) on the sale of hotel gaming machine authorities from 33 per cent to 15 per cent for a 12-month trial period. The trial also included the publication of a minimum acceptable price for tendered authorities in each of the 3 authority regions.
This trial has been extended for a further 12 months until 30 June 2024. The September 2023 Tender is the first tender under the extended trial (1 of 3 tenders in the extended trial period), and the fourth tender to be held under the 15%commission rate and minimum acceptable price conditions.
See the results of the previous 3 tenders held under the trial conditions:
RESULTS OF PREVIOUS TENDERS
May 2023 (third tender under the trial conditions)
January 2023 (second tender under the trial conditions)
September 2023 (first tender under the trial conditions
The minimum acceptable prices are based on a weighted average of recent tender results in South East and Coastal regions with the price for the Western region established taking account of historic sales data (due to the lack of recent sales).
The tender process is a competitive one with available authorities awarded to the highest bidders. The minimum acceptable price operates as a reserve price rather than a guarantee. If the minimum price is not met for any available authorities, they will be retained for the next tender.
The hotel sector is at capacity under our cap of 19,500 EGM’s. Authorities only become available via existing venues decreasing EGM’s or surrendering entire gaming licence within each respective pool’s geographic area.
Please contact the QHA on 07 3221 6999 for any information regarding the Hotel Gaming Machine Operating Authorities Tenders.