1. ------IND- 2018 0512 E-- EN- ------ 20181106 --- --- PROJET

DECREE XX/XXXX, OF XX XXXXX, ADOPTING THE REGULATION ON GAMING MACHINES, BUSINESSES AND ESTABLISHMENTS INTENDED FOR THEIR OPERATION AND OTHER PROVISIONS ON GAMING OF THE AUTONOMOUS COMMUNITY OF THE BALEARIC ISLANDS

Article 30.29 of the Statute of autonomy of the Balearic Islands, according to the wording provided in Organic Law 1/2007 of 28 February 2007 reforming the Statute, gives the Autonomous Community of the Balearic Islands exclusive competence over casinos, gambling and betting, with the exception of the Spanish pools (apuestas mutuas deportivo-benéficas, AMDB). Furthermore, Article 10.10 gives the Autonomous Community of the Balearic Islands powers relating to the promotion of sporting activity and the appropriate use of leisure time.

By virtue of Royal Decree 123/1995 of 27 January 1995, the central government functions and services relating to casinos, gambling and betting are transferred to the Autonomous Community of the Balearic Islands.

The scope of Directive 2006/123/EC of the European Parliament and of the Council of 12 December 2006 on services in the internal market excludes gambling activities which involve wagering a stake with pecuniary value in games of chance, including lotteries, gambling in casinos and betting transactions, in consideration of the specific nature of these activities, which entail implementation by the State of policies relating to public policy and collective consumer protection.

Law 20/2013 of 9 December 2013 guaranteeing market unity establishes a series of principles on the free access to and provision of services, which are to be applied to any economic activity undertaken within the country.

The licensing system contained in this Regulation may affect the principle of necessity and proportionality of the actions covered by Article 5 of Law 20/2013, even though said Article establishes the exceptional nature of such intervention where justified by any of the overriding reasons relating to the public interest provided for in Article 3.11 of Law 17/2009 of 23 November 2009 on the free access to and provision of services, such as public order, public safety, public health, collective consumer health and safety, protection of the environment and urban areas, and combating fraud.

Decree 24/2015 of 7 August 2015 of the Presidency of the Balearic Islands setting out the competencies and basic organic structure of the regional ministries of the government of the Autonomous Community of the Balearic Islands, grants the Directorate General of Trade and Enterprise of the Regional Ministry of Employment, Trade and Industry confidence over casinos, gambling and betting.

Law 8/2014 of 1 August 2014 on gambling and betting in the Balearic Islands was approved in accordance with statutory powers and entered into force on 8 August 2014, thereby filling a regulatory lacuna previously present in the sector.

Article 13 of Law 8/2014 of 1 August 2014, regulating gaming machines, classifies gaming machines into separate categories, B, C and D, which fall within its scope, and excludes A-type gaming machines, while also establishing a number of limitations in relation to the locations where the gaming machines of the types falling within its scope can be installed, in contrast with the applicable legislation.

Article 6 establishes that the General Gaming Register of the Balearic Islands, as a tool to advertise and control activities associated with gambling and betting, must collect a series of compulsory details, and that its organisation and operation must be regulated by Law. Registration is mandatory and is an essential requirement to carry out gaming or betting activities in the Balearic Islands.

Law 8/2014 makes no provisions in relation to type approvals and certificates issued by authorised laboratories concerning gaming and betting machines and material, which is why reference must be made to state legislation; however, the second additional provision establishes that type approvals and certificates issued by authorised laboratories and validated by the competent bodies of the State or other autonomous communities in relation to the granting of authorisations and permits within the autonomous regions can be applicable within the Balearic Islands autonomous community. In light of the above, it is essential to regulate the requirements and conditions applicable within the territory of the Balearic Islands autonomous community.

Thus, this Regulation aims to merge all the current scattered rules in this area into one regulatory instrument, to adapt them to the provisions contained in Law 8/2018 of 1 August 2018 and to regulate certain aspects which the Balearic Islands autonomous community, in spite of having exclusive jurisdiction on gaming, has yet to regulate, with the need to refer to State legislation, which remains obsolete and in many cases is in conflict with the current Law 8/2014.

Currently, the applicable Balearic legislation does not regulate the General Gaming Register of the Balearic Islands nor the conditions gaming organisations must comply with to be authorised, hence the need to refer to the Royal Decree 2110/1998 of 2 October 1998, approving the Recreational and Gambling Machines Regulation, in accordance with Decree 150/2002.

On the other hand, in relation to recreational machines, the current autonomous legislation does not provide for the commissioning and definitive decommissioning of gaming machines. As a consequence, reference must be made, once more, to the regulations set out in the State legislation, notably Ministerial Order of 25 July 1990 laying down the Recreational and Gambling Machines Regulations, approved by Royal Decree 593/1990, which, in its eighth paragraph, regulates the commissioning and definitive decommissioning of the machines; as well as Royal Decree 2110/1998 of 2 October, approving the Recreational and Gambling Machines Regulation.

Thus, from the entry into force of this Regulation, which provides for all these instances, it will no longer be necessary to refer to said State regulation.

The present Regulation also aims to regulate the notion of verified swap, which includes the commissioning and definitive decommissioning of a machine of the same type in order to avoid imposing additional restrictions on operators in the Autonomous Community of the Balearic Islands and the other autonomous communities, in compliance with Law 20/2013 of 9 December 2013, guaranteeing market unity.

The Regulation also aims to afford greater legal security to establishment owners and game operators by setting up a new administrative authorisation system for the installation and commissioning of gaming machines.

In addition to the Regulation approved in the single article, the content of which is described below, the Decree includes three transitional provisions, three additional provisions, one repealing provision and two final provisions. The Regulation comprises VII Titles and 66 articles.

Title I contains the general provisions (Articles 1 to 3, inclusive).

Title II lays down the rules governing the General Register of Gaming and Gaming Companies, as well as the securities (Articles 4 to 9, inclusive).

Title III regulates gaming machines, and comprises two chapters (Articles 10 to 32, inclusive).

Title IV regulates the approval of models, games and gaming material, and comprises two chapters (Articles 33 to 45, inclusive).

Title V relates to the identification, operation and installation of gaming machines, and comprises two chapters (Articles 46 to 55, inclusive).

Title VI regulates the installation procedure, and comprises two chapters (Articles 56 to 64, inclusive).

Lastly, Title VII regulates prohibitions, inspections and sanctions (Articles 65 to 67, inclusive).

This regulatory provision meets the principles for sound regulation set out in Article 139.1 of Law 39/2015 of 1 October 2015 on Common Administrative Procedures in Public Administration. In relation to the principles of necessity and effectiveness, the Regulation remedies faults in the current rules and provides comprehensive regulation of the administrative authorisation procedure for the installation of recreational machines. For the first time in this autonomous community, it regulates the General Gaming Register, accredited laboratories and the approval of gaming machines.

In relation to the proportionality principle, the Regulation is also proportionate to the complexity of the matter. In relation to the legal security principle, this Decree is in line with and builds on the foundations previously established in Law 8/2014 of 1 August 2014, on gaming and betting in the Balearic Islands, and makes it possible to consolidate into one text the scattered autonomous community rules regulating the subject matter.

The Decree also complies with the principle of transparency, given it was submitted to prior public consultation to allow the community to participate in drafting the Regulation; on 16 May 2018 it was presented to the Balearic Islands Gaming Commission, established by Decree 48/2014 of 28 November 2014, and was the object of the corresponding public disclosure and hearing procedures.

In addition, the Decree is also in line with the principle of efficiency, as it does not impose a greater administrative burden on industry operators.

The text has been subjected to the information procedure in the area of technical rules and regulations related to information society services provided in Directive 2015/1535/EC of the European Parliament and of the Council of 9 September 2015, establishing an information procedure in the area of technical rules and regulations with relation to information society services, and in Royal Decree 1337/1999 of 31 July, regulating the referral of information in the area of technical rules and regulations and regulations related to information society services.

On account of the foregoing, at the behest of the Regional Minister for Employment, Trade and Industry, in accordance with/having heard the opinion of the Advisory Committee of the Balearic Islands and following deliberation by the Governing Council at its sitting of ... 2019.

Decree:

8784301/17/9102/se/fdp/tnorfbiobe/se.biac.www//:ptth
No 71
28 May 2019
Fascicle 125 — Sec. I. — Page 24989
Section I. General provisions
GOVERNING COUNCIL
5031 Decree 43/2019 of 24 May 2019 adopting the Regulation of gaming machines, businesses and
establishments intended for their operation and other provisions on gaming of the autonomous
community of the Balearic Islands
Article 30.29 of the Statute of Autonomy of the Balearic Islands, according to the wording provided in Organic Law 1/2007 of
28 February 2007 reforming the Statute, gives the Autonomous Community of the Balearic Islands exclusive competence over casinos,
gaming and betting, with the exception of the Spanish pools (Apuestas Mutuas Deportivo-Benéficas, AMDB). Furthermore, Article 30.12
gives the Autonomous Community of the Balearic Islands powers relating to the promotion of sporting activity and the appropriate use of
leisure time.
By virtue of Royal Decree 123/1995 of 27 January 1995, the central government functions and services relating to casinos, gaming and
betting are transferred to the Autonomous Community of the Balearic Islands.
The scope of Directive 2006/123/EC of the European Parliament and of the Council of 12 December 2006 on services in the internal market
excludes gambling activities which involve wagering a stake with pecuniary value in games of chance, including lotteries, gambling in
casinos and betting transactions, in consideration of the specific nature of these activities, which entail implementation by the State of
policies relating to public policy and collective consumer protection.
Law 20/2013 of 9 December 2013 guaranteeing market unity establishes a series of principles on the free access to and provision of services,
which are to be applied to any economic activity undertaken within the country.
The licensing system contained in this Regulation may affect the principle of necessity and proportionality of the actions covered by Article 5
of Law 20/2013, even though said Article establishes the exceptional nature of such intervention where justified by any of the overriding
reasons relating to the public interest provided for in Article 3.11 of Law 17/2009 of 23 November 2009 on the free access to and provision
of services, such as public order, public safety, public health, collective consumer health and safety, protection of the environment and urban
areas, and combating fraud.
Decree 24/2015 of 7 August 2015 of the Presidency of the Balearic Islands setting out the competencies and basic organic structure of the
regional ministries of the government of the Autonomous Community of the Balearic Islands, grants the Directorate-General of Trade and
Enterprise of the Regional Ministry of Employment, Trade and Industry confidence over casinos, gaming and betting.
Law 8/2014 of 1 August 2014 on gaming and betting in the Balearic Islands was approved in accordance with statutory powers and entered
into force on 8 August 2014, thereby filling a regulatory lacuna previously present in the sector.
Article 13 of Law 8/2014 of 1 August 2014, regulating gaming machines, classifies gaming machines into separate categories, B, C and D,
which fall within its scope, and excludes A-type gaming machines, while also establishing a number of limitations in relation to the locations
where the gaming machines of the types falling within its scope can be installed, in contrast with the applicable legislation.
Article 6 establishes that the General Gaming Register of the Balearic Islands, as a tool to advertise and control activities associated with
gambling and betting, must collect a series of compulsory details, and that its organisation and operation must be regulated by Law.
Registration is mandatory and is an essential requirement to carry out gaming or betting activities in the Balearic Islands.
Law 8/2014 makes no provisions in relation to type approvals and certificates issued by authorised laboratories concerning gaming and
betting machines and material, which is why reference must be made to state legislation; however, the second additional provision establishes
that type approvals and certificates issued by authorised laboratories and validated by the competent bodies of the State or other autonomous
communities in relation to the granting of authorisations and permits within the autonomous regions can be applicable within the Balearic
Islands autonomous community. In light of the above, it is essential to regulate the requirements and conditions applicable within the territory
of the Balearic Islands autonomous community.
Thus, this Regulation aims to merge all the current scattered rules in this area into one regulatory instrument, to adapt them to the provisions
contained in Law 8/2018 of 1 August 2018 and to regulate certain aspects which the Balearic Islands Autonomous Community, in spite of
having exclusive jurisdiction on gaming, has yet to regulate, with the need to refer to State legislation, which remains completely obsolete
and in many cases is in conflict with the current Law 8/2014.
http://boib.caib.es D.L.: PM 469-1983 — ISSN: 2254-1233

8784301/17/9102/se/fdp/tnorfbiobe/se.biac.www//:ptth
No 71
28 May 2019
Fascicle 125 — Sec. I. — Page 24990
Currently, the applicable Balearic legislation does not regulate the General Gaming Register of the Balearic Islands nor the conditions
gaming organisations must comply with to be authorised, hence the need to refer to the Royal Decree 2110/1998 of 2 October 1998,
approving the Recreational and Gambling Machines Regulation, in accordance with Decree 150/2002.
On the other hand, in relation to recreational machines, the current autonomous legislation does not provide for the commissioning and
definitive decommissioning of gaming machines. As a consequence, reference must be made, once more, to the regulations set out in the
State legislation, notably Ministerial Order of 25 July 1990 laying down the Recreational and Gambling Machines Regulations, approved by
Royal Decree 593/1990, which, in its eighth paragraph, regulates the commissioning and definitive decommissioning of the machines; as
well as Royal Decree 2110/1998 of 2 October, approving the Recreational and Gambling Machines Regulation.
Thus, from the entry into force of this Regulation, which provides for all these instances, it will no longer be necessary to refer to said State
regulation.
The present Regulation also aims to regulate the notion of verified swap, which includes the commissioning and definitive decommissioning
of a machine of the same type in order to avoid imposing additional restrictions on operators in the Autonomous Community of the Balearic
Islands and the other autonomous communities, in compliance with Law 20/2013 of 9 December 2013, guaranteeing market unity.
The Regulation also aims to afford greater legal security to establishment owners and game operators by setting up a new administrative
authorisation system for the installation and commissioning of gaming machines.
In addition to the Regulation approved in the single article, the content of which is described below, the Decree includes three additional
provisions, three transitional provisions, one repealing provision and two final provisions. The Regulation comprises five titles and 67
articles.
Title I contains the general provisions (Articles 1 to 3, inclusive).
Title II lays down the rules governing the General Register of Gaming and Gaming Companies, as well as the securities (Articles 4 to 9,
inclusive).
Title III regulates gaming machines, and comprises two chapters (Articles 10 to 32, inclusive).
Title IV regulates the approval of models, games and gaming material, and comprises two chapters (Articles 33 to 45, inclusive).
Title V relates to the identification, operation and installation of gaming machines, and comprises two chapters (Articles 46 to 55, inclusive).
Title VI regulates the installation procedure, and comprises two chapters (Articles 56 to 64, inclusive).
Lastly, Title VII regulates prohibitions, inspections and sanctions (Articles 65 to 67, inclusive).
This regulatory provision meets the principles for sound regulation set out in Article 129.1 of Law 39/2015 of 1 October 2015 on Common
Administrative Procedures in Public Administration. In relation to the principles of necessity and effectiveness, the Regulation remedies
faults in the current rules and provides comprehensive regulation of the administrative authorisation procedure for the installation of
recreational machines. For the first time in this autonomous community, it regulates the General Gaming Register, accredited laboratories and
the approval of gaming machines.
In relation to the proportionality principle, the Regulation is also proportionate to the complexity of the matter. In relation to the legal
security principle, this Decree is in line with and develops the foundations previously established in Law 8/2014 of 1 August 2014, on
gaming and betting in the Balearic Islands, and makes it possible to consolidate into one text the scattered autonomous community rules
regulating the subject matter.
The Decree also complies with the principle of transparency, given it was submitted to prior public consultation to allow the community to
participate in drafting the Regulation; on 16 May 2018 this was presented to the Balearic Islands Gaming Commission, established by
Decree 48/2014 of 28 November 2014, and was the object of the corresponding public disclosure and hearing procedures.
In addition, the Decree is also in line with the principle of efficiency, as it does not impose a greater administrative burden on industry
operators.
The text has been subjected to the information procedure in the area of technical rules and regulations related to information society services
provided in Directive 2015/1535/EC of the European Parliament and of the Council of 9 September 2015, establishing an information
procedure in the area of technical rules and regulations with relation to information society services, and in Royal Decree 1337/1999 of
31 July, regulating the referral of information in the area of technical rules and regulations and regulations related to information society
services.
On 25 February 2019, the Economic and Social Council of the Balearic Islands delivered Opinion No 5/2019, on the draft Decree.
http://boib.caib.es D.L.: PM 469-1983 — ISSN: 2254-1233

8784301/17/9102/se/fdp/tnorfbiobe/se.biac.www//:ptth
No 71
28 May 2019
Fascicle 125 — Sec. I. — Page 24991
On account of the foregoing, at the behest of the Regional Minister for Employment, Trade and Industry, in accordance with the opinion of
the Advisory Committee of the Balearic Islands and following deliberation by the Governing Council at its sitting of 24 May 2019.
DECREE
Single Article

Approval of the Regulation of Gaming Machines, Companies and Establishments, and other rules on gaming.

The Regulations governing Gaming Machines, Companies and Establishments, and other rules on gaming, the text of which appears hereunder, are approved.

First additional provision. Recognition of testing laboratories authorised by other public administrations.

Laboratories testing recreational machines with programmed prizes and gambling machines, as well as betting machines and gaming and betting material authorised by other Public Administrations may be recognised by the Regional Ministry of Employment, Trade and Industry provided it is proven that the safety, compliance and suitability requirements are equivalent to those applicable in the Autonomous Community of the Balearic Islands in accordance with that set out in this Regulation.

Second additional provision. Other accreditations

The Regional Ministry of Employment, Trade and Industry may accept the accreditation of testing laboratories granted by other national or international accrediting bodies other than the National Accreditation Authority (ENAC), provided it is demonstrated that they guarantee safety, compliance and suitability requirements equivalent to those set out in this Regulation.

Third additional provision. Entities recognised as testing laboratories of recreational and betting machines and of gaming and betting material by the Autonomous Community of the Balearic Islands (CAIB) before entry into force of this Regulation.

The entities recognised as testing laboratories of recreational and gambling machines, betting machines, and gaming and betting material by the CAIB before the entry into force of this Regulation shall be deemed authorised for the purposes of this Regulation in respect of the gaming and betting material having been the object of verification.

Said authorisations shall be valid for a period of ten years from the date of entry into force of this Regulation. The renewal of the authorisation shall be subject to the provisions of Article 44 of this Regulation, as well as to any additional requirements set forth herein.

First transitional provision. Applications pending

Any applications pending before the Regional Ministry of Employment, Trade and Industry at the date of entry into force of the approved Regulation, shall comply with the requirements, conditions and procedures laid down herein.

The application procedure shall be put on hold for one month from the date of entry into force of this Regulation, so that existing applications can be adapted to fulfil the new requirements laid down herein.