Poker Machine Entitlements - How does it work

In 2002 The NSW Government created the tradable Poker Machine Entitlement (PME).

This is administered through the Gaming Machines Act 2001 http://www.austlii.edu.au/au/legis/nsw/consol_act/gma2001130/ .

This very complex Act together with the Regulation determines how Poker Machines can be traded between hotels.

Terms:                  Block = 3 PME's with one of the three forfeited to the government

For the seller:

Entitlements are divided into country and city.

Country Hoteliers are limited to selling 1 Block to a City Hotelier every 365 days. (Current value $360,000)

Country Hoteliers (with 8 or less PME's) are limited to sell 1 single country PME to another country hotel every 365 days with no forfeiture. (Current value $130,000)

Country Hoteliers are permitted to sell as many blocks to other Country Hoteliers at any time. (With forfeiture) (Current Value $260,000)

Hoteliers may combine "orphan" entitlements to comprise a block with other hoteliers.