About gaming machine entitlements
Allocation of new gaming machine entitlements
Variations to payment terms due to financial hardship
Transfer of gaming machine entitlements
Tax arrangements from August 2022
On this page
About gaming machine entitlements
Venue operators may only operate gaming machines if they hold gaming machine entitlements. Each entitlement authorises a venue operator to operate one gaming machine in a venue approved by the Victorian Gambling and Casino Control Commission (VGCCC).
Allocation of new gaming machine entitlements
From 16 August 2022, new 20-year gaming machine entitlements began for clubs and hotels. These are referred to as post-2022 entitlements.
The post-2022 gaming machine entitlements were allocated to venue operators through a process undertaken in October 2018. Of the total 27,372 entitlements that can operate in gaming venues in Victoria:
- no more than 13,273 can be operated in club venues (48.49%), and
- no more than 14,099 can be operated in hotel venues (51.51%).
Following the allocation process, venue operators signed agreements setting out payment terms for the balance of the new entitlement purchase price.
Under these agreements, venue operators could:
- pay the full amount on 16 August 2022, or
- opt to pay by instalments under the deferred payment arrangements (over seven years for clubs and five years for hotels).
Interest is payable on outstanding entitlement amounts under the deferred payment arrangement.
Variations to payment terms due to financial hardship
Venue operators facing financial hardship can request a variation to their payment terms to postpone certain payments.
For further information, see Request to vary payment terms for gaming machine entitlements.
Transfer of gaming machine entitlements
Venue operators can transfer post-2022 gaming machine entitlements to allow for new venues or increases in existing venues. Venue operators can apply to the VGCCC to transfer ownership of entitlements via the VGCCC online services portal. Further information can be found on the VGCCC’s website (External link).
For previous and current rules around the transfer of entitlements, see Gaming machine entitlement allocation and transfer rules.
Tax arrangements from August 2022
The current tax arrangements were amended to:
- introduce a new tax bracket for venue operators earning between $6,667 and $12,500 per month in average per machine revenue
- increase the tax rate for the top (highest paying) bracket
- introduce a sliding scale for the club tax concession.
The tables below show the previous and current tax brackets and rates, as well as the new sliding scale for the club tax concession.
Tax rate and threshold tables for clubs and hotels
| Monthly average per machine revenue ($) | Previous tax rate (%) | Monthly average per machine revenue ($) | Current tax rate (%) | Tax concession rate (%) |
| Less than 2,666 | 0 | Less than 2,666 | 0 | 8.33 |
| 2,666 or more and less than 12,500 | 46.70 | 2,666 or more and less than 6667 | 46.70 | 8.33 |
| 6,667 or more and less than to 12,500 | 51.17 | 6.33 | ||
| 12,500 or more | 54.20 | 12,500 or more | 60.67 | 4.33 |
| Monthly average per machine revenue ($) | Previous tax rate (%) | Monthly average per machine revenue ($) | Current tax rate (%) |
| Less than 2,666 | 8.33 | Less than 2,666 | 8.33 |
| 2,666 or more and less than 12,500 | 55.03 | 2,666 or more and less than 6,667 | 55.03 |
| 6,667 or more and less than to 12,500 | 57.50 | ||
| 12,500 or more | 62.53 | 12,500 or more | 65.00 |
Gambling licensing program
Queries
Further information about gaming machine entitlement arrangements is available from the Victorian Gambling and Casino Control Commission (External link)
If you have a query about applying for financial hardship consideration email gamingandliquor@justice.vic.gov.au (External link)