GMEs must be purchased in blocks of two or three entitlements with one entitlement per block being forfeited to the Independent Liquor and Gaming Authority (subject to certain exemptions). The transfer, including the sale and purchase, of GMEs is regulated by the Gaming Machines Act 2001 (“the Act”). When a club is considering increasing the number of gaming machines it operates, it needs to consider a number of matters before entering into any agreement to purchase GMEs. However, as all club directors and CEOs are aware, the industry is heavily regulated and the transfer of GMEs is no exception. To ensure that clubs provide a competitive offering many clubs invest in new equipment, promotions and, if possible, the purchase of more gaming machine entitlements (GMEs). However, for many clubs a key driver of success is gaming. There are many factors that contribute to a good club, ranging from the board’s strategic planning to the employees’ customer service.
