Delivering the NSW gambling support and treatment systemOffice of Responsible Gambling

Pre-tender information session

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Today’s presenters

Natalie WrightDirector, Office of

Responsible Gambling

Eloise NigroManager, Service Delivery

& Transformation

Rabab HannanParalegal,

Legal Services

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Agenda• About the Office of Responsible Gambling• Gambling in NSW• Overview of the current gambling support & treatment model• Redesigning gambling support and treatment – the journey so far• Key recommendations• The future model• The client journey – present and future• Establishing Regional Service Providers• Information about contracting• Next steps • Q&A

Scope

What we will cover What we won’t cover

Information on the tender process

Some of the key features of the new model

Timeframes and next steps

Questions will be taken on notice and responded to via eTender

X Specifics on the funding model

X Details of the new service specifications

Information on the above will be shared closer to the release of the tender

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About the Office of Responsible Gambling

Develops responsible gaming strategy and public policy advice for the NSW Government

Supports and manages the Responsible

Gambling Fund

Manages a range of grants

programs

Funds the delivery of gambling support

and treatment services

Develops and delivers education

and awareness programs

Funds and commissions

research in the gambling harm minimisation

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Gambling in NSW

Gambling is more common in some regions of NSW.

Average gambling participation rate:

53%

Someone I care about has a gambling problem, how can I help them? What can I do?

Gambling in NSW

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Gambling in NSW

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Overview of current gambling support & treatment model

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The current model

Redesigning services –a client centered approach

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In the treatment and support systemClient journey

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Broad range of clients

Marcus 62,Newcastle.

“I want to take back control of my money

and time”

After I lost my wife, I’d spend every evening in the club on the pokies

and playing keno. I realised I had a problem

when I couldn’t afford a new fridge.

Abbas, 43,Bankstown.

“We’ve got a good life here as a family,

I don’t want to put my relationships

in danger”

I moved to Australia from Egypt and got a good job.

I go to the pub with my workmates, who would

drink and bet on races and sports. I started joining

them and kept it a secret from my wife and family.

I want to stop, but it’s hard.

Scott, 22,Bondi.

“If you’re smart and have enough nerve,

you can win anything”

I work in financial management and loads of the guys bet on anything –

who will get the next promotion at work, the

elections, whatever. Sometimes I have a bad

losing streak and I start to worry about how much

money I’m losing. My brother is threatening

to tell our parents.

Simone, 21,Sydney.

“I love my mum but I don’t want to give her

another cent. I feel like a human ATM”

My mum’s been into gambling for a long time,

pokies, keno, lotto. I never thought much of it until a

year ago when she started asking me for money. I felt bad and thought it was just

a temporary issue, so I gave her what I could.

But it didn’t stop.

Nelly, 46,Wagga Wagga.

“My family live in another state, and I got divorced a few

years ago”

I started spending more time at local club as I was

lonely after my divorce. I like playing the pokies,

it keeps me occupied, and I get to spend time around other people. I don’t tell

many people that I gamble because they might

judge me.

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Redesign key recommendations

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Establish contracts with integrated regional service providers, supported by specialist CALD and Aboriginal providers

Introduce a digital platform to connect clients, providers and the ORG

Expand digital self-service tools, and the use of video and telephone conferencing

Introduce peer support and client guide offerings

Establish a quality standards framework

Implement data-led stewardship and resource allocation across the network by the ORG

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The proposed model

Establishing Regional Service Providers

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Regional Service Providers to deliver:

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Integrated services for every region including delivery of therapeutic and financial counselling

Coordination of referral, scheduling and follow up using provided ICT platform

Promotion and support of expanded digital services and non-counsellinginterventions

Collaboration with specialised CALD and Aboriginal services and delivery of culturally appropriate services, improving the reach and integration of these services

Continuous improvement through data collection and reporting

Support for the ORG’s targeted educationand awareness initiatives

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Implementation of Regional Service Providers

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• Aiming for commencement of RSPs from 1 January 2021

• Will be a staged approach with main service delivery components included such as counselling and community engagement

• Some aspects of the model such as Client Guides and Peer Support workers will be developed in conjunction with the RSPs and launched in years 2-3

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Regional Service ProvidersProposed regions

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Regional Service ProvidersProposed regions:Metropolitan areas

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Who should apply?• Organisations with experience delivering high quality

gambling counselling services

• Organisations with experience delivering integrated gambling support services

• Organisations with strong local population knowledge

• Note: there’s no limit on the number of RSPs a provider can apply for

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The tender process

Stage 1:

Tender opens to market

via the government website eTender NSW

Winter 2020

Stage 2:

Evaluation of tender proposals

Winter 2020 – Spring 2020

Stage 3:

RSP commences from 1 Jan

2021

Summer 2021

New Model for Services –need to network and form a contracting coalition

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Disclaimer• This presentation does not:

• Constitute legal or any other professional advice

• Set a final position for how we may conduct our request for tender

• This presentation is provided for information purposes only to highlight issues and considerations for prospective tenderers

• No guarantee is provided that the information provided is accurate or correct.

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DCS Preference – contract with one legal entity• The new model for services reduces the number of

contracts that will be established

• Existing or new providers who wish to tender may need to network and form coalitions (consortia).

• If a coalition or consortium wishes to tender, DCS prefers to transact with one legal entity.

• The most likely scenario:

Source: https://www.austrade.gov.au/Australian/Education/Services/Working-in-a-consortium/Toolkit/step-5-formalise

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Different types of coalitionsThere are a number of legal constructs that can be established to support a coalition.

Providers must decide what works best for them.Some examples include:

• Prime contractor with subcontracted entities

• Partnerships• Joint ventures

• Incorporated joint ventures

• If there are government entities – lead agencies may choose to bid on behalf of others

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Prime contractor with subcontracted entities• The prime contractor will be the entity that enters

into the contract for the services and may subcontract part of the services to be performed by others.

• The prime contractor is legally liable for the performance of all subcontracted work and the acts and omissions of subcontractors.

• It is desirable for the subcontracts to mirror the primary agreement terms (related to the part of the work subcontracted) to ensure consistency across the contracts and that legal liability falls to the entity responsible for a breach. Source: https://www.austrade.gov.au/Australian/Education/Services/Working-

in-a-consortium/Toolkit/step-5-formalise

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Partnerships• Partnership is a relationship between two

or more parties who share income and losses between themselves.

• Each partner is legally and financially responsible for the actions of the other partners.

• Partners are equals in the arrangement and would be governed by a partnership agreement.

• DCS would transact with the partnership.

Partnership

Common view to profit

Profits divided among

partners

Each partner liable for the

actions of others

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Joint ventures / Incorporated joint venturesJoint venture• A joint venture is where several entities

participate in a single project rather than a continuing business.

• A lead entity will need to be appointed and would be responsible for the joint venture’s members’ performance of the agreement with DCS.

• The joint venture agreement should manage the relationship and legal liability for all members of the joint venture.

• Each party who enters into a joint venture agreement still maintains their separate business as a distinct legal entity.

Incorporated joint venture• Parties can decide to set up their joint venture

as a new company to undertake the joint venture project. This will create a separate legal body that can contract with DCS.

• The incorporation documents will set out how the relationship between the joint venture members and liabilities are managed.

• Being a company, an incorporated joint venture will be subject to the Corporations Act 2001.

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Types of agreements that may be neededPre-tendering

• Teaming or collaboration agreement that considers how the parties will jointly prepare a bid and what happens if they are:

• Members of rival consortia – non-compete

• Successful

• Unsuccessful

Post tender• Agreement to establish and manage

consortium vehicle and respective member responsibilities, benefits and liabilities e.g. Joint venture agreement, partnership agreement, syndicate agreement.

• Agreement prescribed by DCS for the performance of the services.

• Depending on the type of consortium, back to back agreements with consortia members that mirror to the extent relevant the agreement between DCS and the lead consortium entity.

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Government entities and universitiesNSW government agencies• If there are NSW government agencies that wish to join up and

jointly bid, they would need to determine who will lead the bid and what the respective roles of the other entities would be.

• Typically, these agencies would enter into memoranda of understanding to manage how they will govern the bid process as well as the performance of the contract if successful.

Universities• Universities are legal entities in their own right.• They can form consortia and adopt a contracting vehicle similar

to those that are options for other non-government entities.

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Issues to consider• Due diligence on consortium members

• Seek references – ask for these from previous consortium partners while also conducting online and ASIC searches

• Review latest audited accounts and relevant financial information• Check whether consortium members have the necessary insurances

and certifications

• Each member should obtain independent legal advice. Also seek legal advice on the:• Legal implications of forming a coalition and its structure• Governance arrangements• Development of agreements between members

• Seek financial advice on budget, expense management and accounting

• Seek tax advice on establishing a coalition and the relevant tax obligations

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Issues to consider (continued)• Consider the agreements that need to be drafted with consortium members to prepare a joint bid to

ensure it meets tender requirements. If successful, an agreement will need to be drafted to establish and manage the consortium arrangement. This would require you to consider the following:

• Roles, responsibilities and contributions (assign roles and identify gaps, recruitment plans)• Lead entity or managing entity – who and why?• Benefits accrual according to contributions• Governance:

• Decision making processes – quorum, unanimous, majority• Meetings and reviews• Issues resolution

• Process for communicating with funding agency• Timelines, reporting and key performance indicators• Intellectual Property management• Confidentiality and information sharing• Insurance • Withdrawal from consortium – admission of new members

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Recap• Consortium entities will need to work out what

vehicle works best for them – prime contractor with subcontracted entities, partnerships, joint ventures or incorporated joint ventures.

• Agreements for the consortium may be required for both pre-tendering and post tender stages.

• Consider the various issues when setting up a consortium such as governance, roles, expense management, tax and due diligence on members.

• Seek appropriate legal, tax and financial advice on establishing a contracting coalition.

What’s next?

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• Your questions

• Tender to be released mid-2020 via eTender

• Subject to successful tender process, transitional arrangements for the new model will commence in second half of 2020, with an aim of a date of commencement of early 2021

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corporateprocurement@customerservice.nsw.gov.auInclude reference number LG/687578

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Questions