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The Gaming Control Amendment Act

This is an unofficial version.
If you need an official copy, contact Statutory Publications.

S.M. 2004, c. 6

Bill 10, 2nd Session, 38th Legislature

The Gaming Control Amendment Act

(Assented to June 10, 2004)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

C.C.S.M. c. G5 amended

1           The Gaming Control Act is amended by this Act.

2           The heading for Part 1 is replaced with the following:

PART 1

DEFINITIONS

3(1)        Section 1 is amended by replacing the definitions "gaming activity", "gaming device", "licence", "supplier" and "video lottery terminal" with the following:

"gaming activity" means a lottery scheme referred to in clause 207(1)(b), (c), (d), or (f) of the Criminal Code (Canada), and provincial gaming; (« activité de jeu »)

"gaming device" means a prescribed device that is used in a lottery scheme; (« dispositif de jeu »)

"licence" means a licence authorizing the conduct and management of a lottery scheme, that is issued under section 12 or 57 to a charitable or religious organization, the board of a fair or exhibition, the operator of a concession leased by the board, or an amusement operator; (« licence »)

"supplier" means a business entity or association of persons that

(a) makes, sells, advertises or distributes gaming supplies, or

(b) provides a gaming service, directly or indirectly, to the Corporation or to a licensing authority, gaming operator or licence holder; (« fournisseur »)

"video lottery terminal" means an automatic or electronic machine that

(a) accepts consideration for allowing a person to engage the machine for the chance of realizing a reward, and

(b) has a maximum reward prescribed under The Manitoba Lotteries Corporation Act for being engaged any one time. (« appareil de loterie vidéo »)

3(2)        Section 1 is amended by adding the following definitions:

"gaming operator" means a business entity or association of persons that owns or operates premises, in whole or in part, in which the Corporation conducts and manages provincial gaming, but does not include a siteholder or others excluded from this definition by regulation; (« exploitant de jeux de hasard »)

"gaming service" means a service that is prescribed as a gaming service or that is within a class of services prescribed as gaming services; (« service lié aux jeux de hasard »)

"gaming supplies" means

(a) supplies, equipment and devices designed to be used in gaming activity, and

(b) things that are not used in gaming activity but are prescribed as gaming supplies or are within a class of things prescribed as gaming supplies,

but does not include classes of supplies, equipment, devices or things excluded from this definition by regulation; (« fournitures pour jeux de hasard »)

"licence holder" means the holder of a licence issued under this Act; (« titulaire de licence »)

"prescribed" means prescribed by regulation;

"provincial gaming" means a lottery scheme referred to in clause 207(1)(a) of the Criminal Code (Canada); (« activité de jeu provinciale »)

"registrant" means a person, business entity or association of persons registered under Part 4; (« titulaire d'inscription »)

3(3)        Section 1 is amended in the definition "business entity" by striking out "conducting or intending to conduct a business or undertaking in the Province".

3(4)        Section 1 is amended in the definition "operating authority" by striking out "or a body".

3(5)        Section 1 is amended in the definition "principal" by replacing clause (d) with the following:

(d) in the case of an association of persons, the persons who direct the affairs of the association;

3(6)        Section 1 is amended in the definition "siteholder" by striking out "or a body or an association" and substituting "or association".

3(7)        Section 1 is amended by repealing the definitions "application", "body", "licensing authority", "race track", "slot machine" and "technical integrity".

4           The following heading is added before section 2:

PART 1.1

GAMING CONTROL COMMISSION

5(1)        Section 4 is amended by adding the following after clause (h):

(h.1) to perform a responsible gaming education function;

5(2)        Clause 4(j) is amended by striking out "ensure" and substituting "perform an approval function for".

6           Subsection 6(4) is replaced with the following:

Executive Director may delegate

6(4)        The Executive Director may authorize another employee of the Commission to perform any of the duties or exercise any of the powers of the Executive Director under this Act and the regulations. Such an authorization must be made in writing.

7           The following is added after section 9:

PART 2.1

RESPONSIBLE GAMING

Responsible gaming policy

9.1         In accordance with the regulations, the Corporation and every gaming operator must adopt and implement a responsible gaming policy. The policy is to set out the following:

1.  Training programs in responsible gaming for employees and others directly involved in providing its gaming activity.

2.  Information to be provided to assist persons who attend premises in which gaming activity is taking place to make informed decisions about gaming, including the methods to be used to disseminate that information.

3.  Initiatives relating to educate the public respecting responsible gaming.

4.  A voluntary exclusion program for its patrons, including how the program is to operate.

5.  Prescribed responsible gaming initiatives.

Draft to be submitted to Commission

9.2(1)      The Corporation and every gaming operator must submit to the Commission a draft of its responsible gaming policy, and any other information and material requested.

Commission may make recommendations

9.2(2)      After reviewing the draft policy, the Commission may recommend amendments to the Corporation or gaming operator that submitted it.

Implementation of responsible gaming policy

9.2(3)      After considering any recommendations of the Commission, the Corporation or gaming operator must

(a) adopt its responsible gaming policy as soon as practicable; and

(b) ensure that its gaming activities comply with that policy.

Commission may request review

9.3(1)      The Commission may request the Corporation or a gaming operator to review its responsible gaming policy if, in the opinion of the Commission, a responsible gaming initiative should be considered for inclusion or modification.

Periodic review

9.3(2)      The Corporation and every gaming operator must review its responsible gaming policy

(a) at least once every five years; and

(b) at any other time when requested by the Commission under subsection (1).

Policy available on request

9.4         The Corporation and every gaming operator must make its responsible gaming policy available to the public.

8           Part 3 is replaced with the following:

PART 3

LICENSING

Designation of Commission

10(1)       The Lieutenant Governor in Council may, by order, designate the Commission in the manner required by clause 207(1)(b), (c) or (d) of the Criminal Code (Canada) as an authority to license the conduct and management of lottery schemes in Manitoba.

Licence required

10(2)       Where the Commission has been designated as an authority to license the conduct and management of lottery schemes under subsection (1), every charitable or religious organization, every board of a fair or exhibition or operator of a concession leased by such a board, and every amusement operator, may conduct and manage a lottery scheme in Manitoba only under a licence issued by the Commission.

Licence application

11(1)       An application for a licence must be made in the form and at the time specified by the Commission.

Inquiry and investigation by Executive Director

11(2)       The Executive Director may make any inquiries or investigations that he or she considers appropriate to determine

(a) the applicant's eligibility for a licence; and

(b) the honesty, integrity and financial history of the applicant or the honesty and integrity of its principals.

Charitable and religious organizations

11(3)       If the applicant is a charitable or religious organization, it must also satisfy the Executive Director of the appropriateness of

(a) its financial plan related to the lottery scheme;

(b) its intended use of the net proceeds of the lottery scheme; and

(c) the event it intends to operate in connection with the lottery scheme.

Information re applicant

11(4)       For the purpose of carrying out an inquiry or investigation under this section, an applicant and its principals shall

(a) provide the Executive Director with all information that the Executive Director considers appropriate;

(b) consent to the release to the Executive Director of information and records about the applicant and its principals requested by the Executive Director that are in the custody or control of third parties; and

(c) confirm, by way of statutory declaration, any information so requested by the Executive Director.

Powers of Executive Director

12(1)       The Executive Director may

(a) issue a licence to an eligible applicant, if satisfied

(i) with the honesty, integrity and financial history of the applicant and the honesty and integrity of its principals, if any, and

(ii) if the applicant is a charitable or religious organization, with the appropriateness of its financial plan, its intended use of the net proceeds of the lottery scheme, and the event that it intends to operate in connection with the lottery scheme; or

(b) refuse the application.

Imposing terms and conditions

12(2)       The Executive Director may at any time impose terms and conditions on a licence issued under this section. The licence holder shall conduct and manage its lottery scheme in accordance with those terms and conditions.

Fees

12(3)       The Commission may prescribe a fee to be remitted for issuance of a licence, which may be different for different classes of licence holders.

9           Part 4 is replaced with the following:

PART 4

REGISTRATION

Persons who must register

14(1)       A person who wishes to become one of the following must apply to the Commission to be registered:

(a) an employee of the Corporation or of a gaming operator;

(b) a person who is regularly in premises in which gaming activity is taking place for the purpose of providing, directly or indirectly, a gaming service.

Business entities or associations of persons who must register

14(2)       A business entity or association of persons that wishes to become one of the following must apply to the Commission to be registered:

(a) a gaming operator;

(b) a siteholder;

(c) a supplier.

Application for registration

14(3)       An application for registration must be made in the form and at the time specified by the Commission.

Inquiry and investigation by Executive Director

14(4)       The Executive Director may make any inquiries or investigations that he or she considers appropriate to determine the honesty, integrity and financial history of an applicant for registration and its principals. If the applicant is a siteholder, the Executive Director may also inquire into and investigate the suitability of the siteholder's premises for gaming activity.

Costs

14(5)       The Commission may require that the reasonable costs of conducting an inquiry or investigation under this section be remitted to it by

(a) the applicant, if the applicant is applying to be registered as a gaming operator or supplier;

(b) the Corporation, if the applicant is applying to be registered

(i) under subsection (1) in relation to the Corporation, or

(ii) as a siteholder; or

(c) the gaming operator, if the applicant is applying to be registered under subsection (1) in relation to a gaming operator.

Information

14(6)       Subsection 11(4) applies, with necessary changes, to an applicant for registration.

Registration

15(1)       The Executive Director may, with respect to an application under section 14,

(a) register the applicant, if satisfied with

(i) the honesty, integrity and financial history of the applicant and its principals, if any, and

(ii) if the applicant is a siteholder, the proposed site; or

(b) refuse to register the applicant.

Imposing terms and conditions

15(2)       The Executive Director may at any time impose terms and conditions on a registration issued under subsection (1). The registrant shall conduct its activities in accordance with those terms and conditions.

Terms and conditions — siteholders

15(3)       For a siteholder's registration, the Executive Director shall not impose terms or conditions respecting

(a) the siteholder's hours of operation; or

(b) the number of video lottery terminals on the siteholder's premises.

Registering video lottery terminals

16(1)       The Corporation shall register every video lottery terminal with the Commission.

Registering gaming devices

16(2)       The Corporation, a gaming operator or a licence holder shall register every gaming device with the Commission.

Fee

17(1)       The Commission may prescribe a fee to be remitted for registering

(a) an employee or person under subsection 14(1);

(b) a supplier;

(c) a video lottery terminal; or

(d) a gaming device.

Content of fee regulation

17(2)       A regulation under subsection (1) may prescribe

(a) different fees for different classes of registrations; and

(b) who is to remit the fee.

Prohibitions — persons

18(1)       Unless registered under this Part, no person shall

(a) become an employee of the Corporation or of a gaming operator; or

(b) for the purpose of providing a gaming service, regularly be in premises in which gaming activity is taking place.

Prohibitions — business entity or association of persons

18(2)       Unless registered under this Part, no business entity or association of persons shall act as a gaming operator, siteholder or supplier.

Prohibitions — Corporation

19          Where a lottery scheme is being conducted and managed by the government through the Corporation, either alone or in conjunction with the government of a province other than Manitoba, the Corporation shall not

(a) employ a person;

(b) permit a person to regularly be in its premises in which gaming activity is taking place for the purpose of providing it a gaming service;

(c) purchase or receive gaming supplies or gaming services from a supplier; or

(d)  enter into an agreement with a gaming operator or siteholder;

who is not registered under this Part.

Prohibitions — gaming operator

20          A gaming operator shall not

(a) employ a person;

(b) permit a person to regularly be in its premises in which gaming activity is taking place for the purpose of providing it a gaming service; or

(c) purchase or receive any gaming supplies or gaming services from a supplier;

who is not registered under this Part.

Employees whose registration is suspended

21          If the Commission has suspended the registration of an employee of the Corporation or of a gaming operator, the Corporation or gaming operator may continue to employ that person but shall not allow him or her, while suspended, to be actively employed in the conduct or management of a lottery scheme.

10          Part 5 is replaced with the following:

PART 5

TECHNICAL INTEGRITY OF LOTTERY SCHEMES

Prior approval of Commission required

27(1)       The Corporation or a licence holder shall not conduct or manage a lottery scheme, or introduce or modify a lottery scheme, without first having the technical integrity of the scheme approved under this Part.

Commission may prescribe requirements

27(2)       The Commission may prescribe requirements and standards for the purpose of assessing the technical integrity of lottery schemes or classes of schemes, including, but not limited to, requirements and standards respecting

(a) the design and concept of a scheme;

(b) the manufacture, supply, delivery, installation and maintenance of things used in the scheme;

(c) minimum requirements as to payouts of rewards; and

(d) measures to be performed to ensure that a scheme is fair, honest, secure, safe and capable of being audited, including the manner and form for reporting on the performance of those measures to the Commission.

Criteria — technical integrity

27(3)       The Executive Director may establish criteria, consistent with the regulations, to be used in determining the technical integrity of a lottery scheme.

Application re lottery scheme's technical integrity

28(1)       An application for approval of the technical integrity of a lottery scheme must be made in the form and at the time specified by the Commission.

Information re applicant

28(2)       Subsection 11(4) applies, with necessary changes, to an applicant for approval of the technical integrity of a lottery scheme under this Part.

Inquiry and investigation by Executive Director

28(3)       The Executive Director may make any inquiries or investigations that he or she considers appropriate to determine the technical integrity of a lottery scheme.

Costs

28(4)       The Commission may require the reasonable costs of conducting an inquiry or investigation under this section be remitted to it by the applicant.

Approval

29(1)       The Executive Director may

(a) approve the technical integrity of a lottery scheme, or a class of schemes, if satisfied with the technical integrity of the scheme; or

(b) refuse to approve the technical integrity of a lottery scheme.

Imposing terms and conditions

29(2)       The Executive Director may at any time impose terms and conditions on the approval of a lottery scheme's technical integrity. The Corporation or licence holder shall conduct and manage its lottery scheme in accordance with those terms and conditions.

Technical integrity — Corporation

29(3)       In considering whether to approve the technical integrity of a lottery scheme that the Corporation has selected to introduce or modify, the Executive Director shall not consider, or impose terms or conditions respecting,

(a) the hours of operation of the scheme;

(b) the number of schemes conducted and managed;

(c) the combination of schemes conducted and managed;

(d) the amount of consideration to be paid to secure a chance to win a reward in the lottery scheme;

(e) the ownership of gaming equipment and gaming supplies used in the scheme;

(f) layout of the lottery schemes within premises, other than in respect of a siteholder's premises;

(g) security and surveillance, except to the extent necessary to verify that the scheme is fair, honest, secure, safe and capable of being audited; or

(h) reward payouts, except to the extent necessary to ensure that the reward structure of the scheme conforms with prescribed minimum requirements for payouts.

11          Part 6 is replaced with the following:

PART 6

DISPUTE RESOLUTION AND APPEALS

RESOLUTION OF PATRON DISPUTES

Executive Director — authority re patron disputes

30(1)       If a dispute arises from an alleged irregularity in the operation of a lottery scheme which is conducted and managed by the Corporation or a licence holder, the Executive Director has authority, at first instance, to investigate it and to try to mediate its settlement.

Application

30(2)       A patron who wishes to have such a dispute determined must apply to the Executive Director.

Time limit for making application

30(3)       An application under subsection (2) must be filed within 30 days after the date the alleged irregularity occurred.

Expeditious procedure

30(4)       In exercising authority under this section, the Executive Director may determine and adopt the most expeditious method of investigating and mediating the matter.

Parties

30(5)       The parties to the dispute are the applicant and the Corporation or licence holder who conducted and managed the lottery scheme. If the alleged irregularity occurred in a premises owned or operated by a gaming operator, that gaming operator is also a party.

Mediation

31(1)       On receiving an application under subsection 30(2), the Executive Director shall investigate the matter and try to mediate its settlement.

Where dispute settled

31(2)       When a matter is settled by mediation, the Executive Director shall make a written record of the settlement. The settlement is binding on the parties and is not subject to appeal.

Executive Director not disqualified after mediation

32(1)       The Executive Director is not disqualified from making an order respecting a matter by reason of having investigated or tried to mediate it.

If mediation unsuccessful

32(2)       If, after investigating the matter, the Executive Director is of the opinion that it is unlikely to be settled by mediation in a timely manner, the Executive Director may make an order

(a) described in subsection (3), if he or she concludes that there has been an irregularity in the lottery scheme; or

(b) dismissing the application.

Content of order

32(3)       The Executive Director may by order require the Corporation, gaming operator or licence holder to remedy any irregularity that the Executive Director finds has occurred. The order may include a requirement to pay a sum of money to the applicant and to any other person found to have been adversely affected by the irregularity.

Order to be served

32(4)       The Executive Director shall serve a copy of an order made under subsection (3) on each of the parties.

APPEAL OF EXECUTIVE DIRECTOR'S DECISION

Decisions that can be appealed

33(1)       The following decisions of the Executive Director may be appealed to the Commission:

(a) the refusal to issue a licence or registration under Part 3 or 4, or the imposition of terms or conditions on such a licence or registration;

(b) the refusal to approve the technical integrity of a lottery scheme under Part 5, or the imposition of terms or conditions on the approval of such a scheme;

(c) the making of an order under section 32;

(d) the making of an order under Part 8.1 or 11.

Who can appeal

33(2)       The following persons may file a notice of appeal with the Commission:

(a) in the case of a decision referred to in clause (1)(a) or (b), the applicant for the licence, registration or approval;

(b) in the case of an order referred to in clause (1)(c) or (d), anyone who was required to be served with a copy of the order.

Notice of appeal must give reasons

33(3)       A notice of appeal must be in writing and must contain the appellant's name and address and the reasons for the appeal.

Time limit for filing

33(4)       A notice of appeal must be filed within 14 days after the appellant is served with the Executive Director's decision or order, but the Commission may extend that time either before or after the 14 days expires.

Parties

34          The parties to an appeal are the appellant, the Executive Director, and any other person the Commission adds as a party.

Stay pending appeal

35(1)       An order made under Part 8.1 or 11, other than an order under subsection 51.1(3) or 57.2(5) (order having immediate effect), is stayed pending the Commission's decision on the appeal

Patron disputes — appeal stays order

35(2)       When an order made under section 32 is appealed, the order is stayed pending the Commission's decision on the appeal.

GENERAL REQUIREMENTS

Notice to Executive Director

36(1)       The Commission must promptly give to the Executive Director a copy of any notice of appeal it receives under section 33.

Executive Director must forward documents

36(2)       The Executive Director must promptly give to the Commission

(a) all of the documentary evidence on which the Executive Director based the decision or order being appealed; and

(b) any other documents in his or her possession that the Executive Director thinks might be relevant.

Hearing within 14 days

37(1)       The hearing of an appeal or application under this Part must begin within 14 days after the Commission receives the notice of appeal or application, but, at the request of a party other than the Executive Director, the Commission may grant an extension.

Right to appear and be represented

37(2)       Each party may appear and be represented by counsel at a hearing, and the Commission may have counsel to assist it.

Parties may examine evidence

37(3)       The Commission must give each party a reasonable opportunity to examine and copy any information that has been submitted to the Commission for the purpose of the hearing.

No hearing in certain cases

37(4)       The Commission may dismiss an appeal or application under this Part without holding a hearing if the Commission is of the opinion that the matter

(a) is frivolous or vexatious;

(b) is beyond its jurisdiction; or

(c) does not comply with the requirements of this Part.

12          Section 39 is amended by striking out "to be conducted pursuant to Parts 3, 4, 5, and 6" and substituting "to be held under Part 6".

13(1)       Section 43 is amended by replacing everything before clause (a) with the following:

Powers on appeal from a decision of the Executive Director

43          Upon completing a hearing on an appeal from a decision of the Executive Director under section 33, the Commission shall make one or more of the following decisions:

13(2)       Clauses 43(a) and (c) to (g) are amended by striking out "licence or registration" and substituting "licence or registration, or the approval of a lottery scheme's technical integrity".

13(3)       Clause 43(b) is amended by striking out "on an application for a licence or registration being allowed" and substituting "on a licence or registration or on the approval of a lottery scheme's technical integrity".

13(4)       The following is added after clause 43(g):

(g.1) uphold, vary or cancel the order of the Executive Director made under section 32, or substitute a new order for it;

(g.2) uphold, vary or cancel the order of the Executive Director made under section 57.2 or 57.3, or substitute a new order for it;

14          Section 44 is repealed.

15          The following is added after subsection 45(2):

Application to be filed within 60 days

45(3)       The application under subsection (2) must be filed in the Court of Queen's Bench within 60 days after the determination or order sought to be reviewed is made.

16          The following is added before Part 8:

PART 7.1

RECORDS AND INFORMATION TO BE PROVIDED TO THE COMMISSION

Records and reporting

45.1(1)     Every licensing authority, gaming operator and licence holder must keep records and report to the Commission in accordance with the regulations.

Records to be made available

45.1(2)     Every licensing authority, gaming operator and licence holder must make its records that are relevant for the purposes of this Act available for inspection, examination and audit.

Direction — books and records

45.1(3)     If in the Executive Director's opinion the records of a licensing authority, gaming operator or licence holder are inadequate for the purposes of this Act, the Executive Director may, in writing, direct how the records are to be kept. The licensing authority, gaming operator or licence holder shall then begin keeping them as directed.

Information to be provided

45.2(1)     The Corporation and every licensing authority, registrant and licence holder shall, as soon as is reasonably practicable, provide the Executive Director with any information it possesses that may be material to

(a) the honesty and integrity of a licence holder or registrant, or of an applicant who seeks to become a registrant or licence holder; or

(b) ensuring the technical integrity of a lottery scheme.

Commission is to be notified

45.2(2)     If the Corporation or a licensing authority, registrant or licence holder considers that an offence has occurred under this Act or under a provision of the Criminal Code (Canada) that is relevant to a lottery scheme, it must notify the Commission immediately.

Financial and other information

45.3(1)     On request, a licensing authority, gaming operator or licence holder shall submit the following to the Executive Director, at the time and for the period specified by the Executive Director:

(a) a financial statement that is in the form and with the content required by the Executive Director, covering the activities of

(i) the licensing authority or gaming operator, or

(ii) the licence holder in relation to its licence;

(b) a financial statement, as described in clause (a), that has been audited by an auditor approved by the Executive Director;

(c) any other information that the Executive Director considers relevant.

Auditor's report

45.3(2      ) Upon completing the audit of a financial statement as required under clause (1)(b), the auditor must submit a report directly to the Executive Director

(a) identifying the financial statement audited; and

(b) expressing an opinion as to whether the financial statement presents fairly, for the period specified by the Executive Director, the financial position of the licensing authority or gaming operator, or of the licence holder in relation to its licence.

Auditor to submit supplement with report

45.3(3)     With the report, the auditor must submit a supplement containing the following statements about the licensing authority, gaming operator or licence holder:

(a) a statement of opinion as to whether its accounting procedures and systems of control are appropriate;

(b) a statement of opinion as to whether its procedures and systems of control are adequate to ensure that the net proceeds of the lottery scheme are used in a manner consistent with the intended use of those proceeds;

(c) a statement about any irregularity or discrepancy that came to the auditor's attention during the audit;

(d) a statement about any matter not referred to in clauses (a) to (c) that the auditor considers the Executive Director should be aware of.

The supplement must also contain any recommendation that the auditor considers necessary or advisable about the proper performance of duties or keeping of the records and books of account by the licensing authority, gaming operator or licence holder.

17          Subsection 46(1) is amended by striking out "Commission" and substituting "Executive Director".

18          Section 47 is replaced with the following:

Inspector's duties

47          An inspector is responsible for monitoring compliance with

(a) this Act and the regulations; and

(b) the terms and conditions of licences, registrations, and approvals of the technical integrity of lottery schemes.

19          Subsection 49(1) is amended by replacing the part before clause (a) with the following:

Entry and inspection

49(1)       For the purpose of carrying out his or her responsibilities under section 47, an inspector may, at any reasonable time,

20          The following is added before Part 9:

PART 8.1

ACTIONS RESPECTING LICENCES, REGISTRATIONS AND APPROVALS

Order of Executive Director

51.1(1)     If the Executive Director is satisfied that the Corporation, a registrant or a licence holder has contravened this Act or the regulations, its responsible gaming policy, or a term or condition of its licence or registration or of the approval of its lottery scheme's technical integrity, the Executive Director may, by order, require the contravention to be remedied within a specified time and shall serve the order on the contravener.

Content of order

51.1(2)     An order made under subsection (1) may

(a) direct the contravener to take an action or measure to remedy the contravention, including directing the contravener to stop doing something or to do it differently; and

(b) state that if the order is not complied with within the specified time, the Executive Director will suspend or cancel any licence, registration or approval that has been issued to the contravener.

Order having immediate effect

51.1(3)     The Executive Director may, having regard to the gravity or urgency of the circumstances, make an order suspending a licence, registration or approval immediately.

Actions of Executive Director

51.1(4)     When an order made under subsection (1) is not complied with within the specified time, the Executive Director may suspend or cancel any licence, registration or approval that has been issued to the contravener.

21          Part 9 is replaced with the following:

PART 9

OFFENCES

Prohibitions — licensing authority or licence holder

52(1)       A licensing authority or licence holder shall not purchase or receive gaming supplies or gaming services, or enter into an agreement to do so, from anyone other than a supplier who is registered under Part 4.

Prohibitions — supplier

52(2)       A supplier shall not supply gaming services or gaming supplies, or enter into an agreement to supply them, to anyone other than

(a) the Corporation;

(b) a gaming operator, siteholder or supplier who is registered under Part 4; or

(c) a licensing authority or licence holder.

Offences

53(1)       Every one commits an offence who

(a) contravenes subsection 12(2), 15(2) or 16(1) or (2), section 18, 19, 20 or 21, subsection 27(1), 29(2), or 48(1) or (2), clause 49(1)(b), or section 52; or

(b) knowingly furnishes false information in

(i) an application for a licence or registration, or for the approval of a lottery scheme's technical integrity, or

(ii) a record required to be filed under this Act.

Liability of principals

53(2)       When a business entity or an association of persons commits an offence under subsection (1), a principal of the business entity or association of persons who authorized, permitted or acquiesced in the commission of the offence is also guilty of the offence.

Penalty

53(3)       Every one who is guilty of an offence described in this section is liable, on summary conviction, to a fine of not more than $250,000.

22          Subsection 55(9) is amended by striking out "Minister" and substituting "Lieutenant Governor in Council".

23(1)       Subsection 57(1) is amended by striking out "or a body".

23(2)       Subsection 57(3) is replaced with the following:

Annual report — licensing authority

57(3)       In accordance with the regulations, a licensing authority must publish an annual report that sets out

(a) the number of licences it issued;

(b) the amount of money it received in licence fees; and

(c) any other prescribed information.

24          The following is added after section 57:

Obligations of licensing authority

57.1        A licensing authority must comply with the terms and conditions contained in

(a) the order in council specifying it as a licensing authority; and

(b) any agreement with the government respecting its having authority to regulate gaming activity referred to in clause 207(1)(b) of the Criminal Code (Canada) within a specified geographic area.

Orders — licensing authorities

57.2(1)     If the Executive Director is satisfied that a licensing authority has contravened this Act or the regulations, the Executive Director may, by order, require the contravention to be remedied within a specified time.

Content of order

57.2(2)     An order made under subsection (1) may direct the licensing authority to take an action or measure to remedy the contravention, including directing it to stop doing something or to do it differently.

Content of order where agreement entered into

57.2(3)     If the licensing authority is subject to an agreement under clause 57.1(b), the order made under subsection (1) may state that if it is not complied with within the specified time, the Executive Director will, by order, require

(a) the Corporation or a supplier, for a time period specified in the order, to stop supplying gaming supplies or gaming services to the licensing authority; or

(b) the Corporation to do one or more of the following within the geographic area in which the licensing authority regulates gaming activity:

(i) disable some or all of the video lottery terminals for a time period specified in the order,

(ii) terminate some or all of the siteholder agreements,

(iii) cease all video lottery gaming, and remove all of the video lottery terminals.

Actions of Executive Director

57.2(4)     When a licensing authority does not comply with an order made under subsection (1) within the specified time, the Executive Director may, by order, require the Corporation or a supplier to take one or more of the actions described in clause (3)(a) or (b).

Order having immediate effect

57.2(5)     An order under this section may be made effective immediately if the Executive Director considers it necessary to do so because of the gravity or urgency of the circumstances.

Service of order on supplier and Corporation

57.3        The Executive Director must serve an order made under section 57.2 on

(a) the licensing authority;

(b) the Corporation, if the order relates to it; and

(c) any supplier or siteholder that the order relates to.

Recommendation by Commission

57.4        The Commission may, having regard to the gravity or urgency of the non-compliance of the licensing authority, recommend to the Minister that the government rescind the order in council specifying it as a licensing authority.

No cause of action

57.5        No action or proceeding may be instituted or continued against the Crown, the Commission, the Corporation, a supplier, or any other person, business entity or association of persons, based on any cause of action, whether arising before or after this section comes into force, for compensation, loss or damages or injunctive or declaratory relief, arising out of an order made under section 57.2, or a recommendation made under section 57.4, that results in

(a) stopping the supply of gaming supplies or gaming services;

(b) disabling or removing a video lottery terminal;

(c) terminating a siteholder agreement by or under this Act; or

(d) rescinding an order in council that specifies a licensing authority.

Siteholder having entered into agreement

57.6(1)     If a siteholder has entered into an agreement with the government that specifies a licensing authority to regulate all gaming activity referred to in clause 207(1)(b) of the Criminal Code (Canada) within the specified geographic area that includes the siteholder's premises, that siteholder

(a) is subject to the same duties and obligations as a licensing authority under sections 45.1 and 45.3; and

(b) must publish an annual report that sets out any information that is prescribed.

Application of section 57.2 and 57.3

57.6(2)     Sections 57.2 and 57.3 apply, with necessary changes, to a siteholder that fails to comply with its duties and obligations under subsection (1).

25(1)       Clause 59(a) is replaced with the following:

(a) restricting persons under a specified age from participating in gaming activities or from being in premises in which gaming activity is taking place, including providing different age restrictions for different kinds of gaming activity;

25(2)       The following is added after clause 59(e):

(e.1) prescribing the fiscal year of the Commission;

(e.2) establishing responsible gaming guidelines, including prescribing initiatives that must be incorporated in the responsible gaming policy of the Corporation or a gaming operator;

25(3)       Clause 59(f) is repealed.

26(1)       Section 60 is amended by renumbering it as subsection 60(1) and by adding the following after clause (a):

(a.1) prescribing devices or classes of devices for the purpose of the definition "gaming device" in section 1;

(a.2) prescribing services or classes of services for the purpose of the definition "gaming service" in section 1;

(a.3) prescribing things or classes of things as gaming supplies for the purpose of the definition "gaming supplies" in section 1;

(a.4) excluding supplies, equipment, devices or things from the definition "gaming supplies" in section 1;

(a.5) excluding persons, business entities or associations of persons from the definition "gaming operator" in section 1;

26(2)       Subsection 60(1) is amended by adding the following after clause (b):

(b.1) prescribing requirements respecting applications for the approval of the technical integrity of a lottery scheme;

(b.2) subject to any regulation made under section 9 of The Manitoba Lotteries Corporation Act, prescribing requirements and standards for assessing the technical integrity of lottery schemes or classes of schemes;

26(3)       Clause 60(1)(c) is amended by striking out "licence or an applicant for registration" and substituting "licence or registration or for the approval of a lottery scheme's technical integrity".

26(4)       Subsection 60(1) is amended by adding the following after clause (d):

(d.1) prescribing when fees are to be remitted;

(d.2) prescribing, in respect to a licensing authority as provided for under subsection 57(3) or a siteholder as provided for under clause 57.6(1)(b),

(i) the information to be included in its annual report,

(ii) the period that the report is to cover, and

(iii) when and how the report is to be published;

(d.3) prescribing minimum requirements for payouts of rewards;

26(5)       Clauses 60(1)(g), (l), (m), (q) and (r) are repealed.

26(6)       Clause 60(1)(n) is replaced with the following:

(n) establishing recordkeeping and reporting requirements for gaming operators, licensing authorities and licence holders;

26(7)       The following is added after subsection 60(1):

Provisions re regulations

60(2)       A regulation made under subsection (1) may establish different classes of gaming operators, licensing authorities, registrants and licence holders, and may provide differently for different classes.

27          The following is added after section 66:

Service of decisions and orders

66.1        A decision or order made under this Act may be served on the Corporation, or a person, business entity or association of persons by

(a) delivering a copy personally; or

(b) sending a copy to the Corporation, person, business entity or association of persons by registered or certified mail or by another service that provides the sender with confirmation of delivery.

28          Sections 67 and 71 to 77 are repealed.

Time to comply — technical integrity

29          Despite the requirement in subsection 27(1), as enacted by section 10, that the technical integrity of a lottery scheme be approved, if, immediately before this Act comes into force, the Corporation or a licence holder was conducting or managing a scheme for which an approval was not required, they may continue to do so for two years after this Act comes into force. But before the two-year period expires, the Corporation or licence holder must either obtain the Executive Director's approval of the scheme, or discontinue it.

Transitional — siteholders

30(1)       Every business entity or association of persons which, on the coming into force of this Act, has contracted with the Corporation to be its agent in the conduct and management of a lottery scheme by the placement of video lottery terminals in its premises is deemed to be registered as a siteholder under Part 4.

Terms and conditions for deemed siteholders

30(2)       Subsections 15(2) and (3), as enacted by section 9, apply to a business entity or association of persons that is deemed to be registered as a siteholder under subsection (1).

Coming into force

31          This Act comes into force on a day fixed by proclamation.