The reduced tax commission for sellers from 33 per cent to 15 per cent and the publication of a minimum acceptable price will be continued for another year.

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.

These minimum acceptable prices act as a reserve price, rather than a guarantee that bidders will be able to obtain an operating authority at that price or a guarantee to sellers that their operating authorities will be sold.

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.

From 1 July 2024, the sales commission for category 1 licensed premises operating authorities will revert to 33 per cent.

By extending the trial, the government will have a continuous two-year period of data from which to evaluate the effectiveness of these measures on the transfer of operating authorities.

Planning will commence shortly, in consultation with the Public Trustee, for the next tender round. Further advice will be forthcoming.