116Secretary may limit or exclude operating costs of corporate society

1. The Secretary may, by notice,—

2. set limits on, or exclude, the operating costs that may be incurred by a corporate society that conducts class 4 gambling:
3. set the rates of depreciation for gambling assets acquired by a corporate society in respect of class 4 gambling.

4. A notice under subsection (1) may apply to specified licence holders or to classes of licence holder.

5. A limit may be expressed in any way that the Secretary considers appropriate, for example,—

6. as a specific amount:
7. as a percentage:
8. as an amount for each gaming machine.

9. A contract or other arrangement or obligation entered into by a corporate society, whether before or after the enactment of this Act, that does not comply with limits set under subsection (1) is an illegal contract for the purposes of subpart 5 of Part 2 of the Contract and Commercial Law Act 2017.

10. A notice under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

11. In this section, operating costs—

12. includes the following:
    1. costs of operating the corporate society, including fees, salary, expenses, or any other payments to a key person, to a management services provider, or to another person involved in operating the corporate society:
    2. costs associated with repairing and maintaining gambling equipment; but
13. does not include any payment made to a venue operator.