Ryedale District Council

Gambling premises licence

The Gambling Act 2005 put in place an improved, more comprehensive structure of gambling regulation.

Gambling Act 2005

The Gambling Act 2005 (which took effect on 1 September 2007) replaced most of the existing law about gambling in Great Britain and put in place an improved, more comprehensive structure of gambling regulation.

The Act introduced a unified regulator for gambling in Great Britain, the Gambling Commission and a new licensing regime for commercial gambling (to be conducted by the Commission or by Licensing Authorities, depending on the matter to be licensed).

The Act removed all responsibility for granting gaming and betting permissions from licensing justices. Instead, the Commission and the Licensing Authorities will share responsibility for all those matters.

Premise and Permit Licence holders, the Council and other agencies must all work to promote the three Gambling Licensing objectives which are:

  • preventing gambling from being a source of crime or disorder, being associated with crime or disorder or being used to support crime;
  • ensuring that gambling is conducted in a fair and open way; and
  • protecting children and other vulnerable persons from being harmed or exploited by gambling. There will be a transitional changeover from existing legislation to the new regime and the Council was required to produce a Statement of Licensing Principles prior to taking the first applications in April 2007.

The Council undertakes various regulatory functions in relation to a number of gambling activities and is responsible for:

  • the issuing of Premise Licences for the provision of gambling activities;
  • the issuing of Permits for Unlicensed Family Entertainment Centres, Club Gaming, Club Machines, Licensed Premises Gaming Machines and Prize Gaming;
  • the issuing of Provisional Statements;
  • the receiving and endorsing of Temporary Use Notices;
  • the receiving of Occasional Use Notices; and
  • the registering of Small Lotteries.

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Premise Licences

A Premises Licence, issued under the Gambling Act 2005, is required for any premises where an individual or company proposes to offer premises based gambling and are issued in respect of specific premises.

The types of licence available are as follows:

  • Casino Premise Licence;
  • Bingo Premise Licence;
  • Adult Gaming Centre Premise Licence (enabling Category B gaming machines to be made available for use at the premises);
  • Family entertainment Centre Premise Licence (enabling Category C gaming machines to be made available for use at the premises);
  • Betting Premise Licence (enabling the provision of facilities for betting, by making or accepting bets or by acting as a betting intermediary).

An application for a Premise Licence may only be able to be made by persons (which includes companies or partnerships) who:

  • have the right to occupy the premises; and
  • have an Operating Licence which allows him/her to carry out the proposed activity, or have applied for an Operating Licence (the Premises Licence may only be issued once the Operating Licence has been issued by the Gambling Commission).

An applicant for a Premises Licence must be over the age of 18.

Except in the case of a racing track, a Premises Licence may not authorise the use of premises for activities of more than one of the types listed above. A Licence may not be issued in respect of premises if those premises already have a Premises Licence in effect.

In respect of the fees, the details of the maximum amounts payable have been outlined within Regulations made by the Department of Culture, Media and Sport (DCMS). Ryedale have set a level of fees to allow cost recovery.

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Permits

The types of Permit that are available are as follows:

  • Family Entertainment Centre Gaming Machine Permit;
  • Club Gaming Permit;
  • Club Machine Permit;
  • Licensed Premises Gaming Machine;
  • Prize Gaming Permit.

Family Entertainment Centre Gaming Permit

Family Entertainment Centres (FECs) are most commonly be located at seaside resorts, in airports and motorway service centres and will cater for families, including unaccompanied children and young persons.

Any FEC Permit granted will last for 10 years and will be subject to the payment of an annual fee.

Club Gaming and Club Machine Permit

These Permits relate to members' clubs and miners' welfare institutes (but not commercial clubs).

Either permit granted will last for 10 years and will be subject to the payment of an annual fee.

Licensed Premises Gaming Machine Permit

Section 282 of the Act provides an automatic entitlement to make available two gaming machines for use in alcohol licensed premises. To take advantage of this entitlement, the Licensing Act Premise Holder must give notice to the Authority of their intention to make gaming machines available for use and must pay the prescribed fee.

Any licensed premises gaming machine permit granted will have no expiry date but will be subject to the payment of an annual fee.

Prize Gaming Permit

A prize gaming permit is a permit that will be issued by the Authority to authorise the provision of facilities for gaming with prizes on specified premises.

An application for a Permit can only be made by a person who occupies or plans to occupy the relevant premises and if the applicant is an individual he/she must be aged 18 or over. An application for a Prize Gaming Permit cannot be made if a Premises Licence or Club Gaming Permit is in effect for the same premises.

Any permit granted will last for 10 years and will be subject to the payment of an annual fee.

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Provisional Statements

Section 204 of the Act provides for a person to make an application to the Authority for a Provisional Statement in respect of premises that he/she:

  • expects to be constructed;
  • expects to be altered; or
  • expects to acquire a right to occupy.

Developers may wish to apply for Provisional Statements before they enter into a contract to buy or lease property or land, to judge whether or not a development is worth taking forward in light of the need to obtain a Premise Licence.

Applicants for Premise Licences will have to fulfil the criteria of having an Operating Licence issued by the Gambling Commission in place, this restriction will not apply in relation to an application for a Provisional Statement.

Temporary Use Notices

These will allow the use of premises for gambling where there is no Premise Licence but where a gambling operator wishes to use the premises temporarily for providing facilities for gambling. Premises that might be suitable for a Temporary Use Notice ( TUN ) would include hotels, conference centres and sporting venues.

The same set of premises may not be the subject of a TUN for more than 21 days in any 12 month period, but may be the subject of several Notices provided that the total does not exceed 21 days.

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Occasional Use Notices

These notices provide that where there is betting on a track on 8 days or less in a calendar year, betting maybe permitted by way of an Occasional Use Notice without the need for a full Premises Licence.

Provided that the notice will not result in betting facilities being available for more than the 8 days permitted, then there is no provision for counter-notices or objections to be submitted.

For further information and advice contact the Licensing Team on 01653 600666.

Registers

The Council is required by law to maintain a register containing details of various licences issued. This register can be viewed at the Council Offices during normal office hours (please contact the Licensing Team to arrange an appointment); alternatively it is also available to view online.

Register of Gambling Permits and Licences January 2012(PDF, 29k).

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Gambling Act 2005

The background to the Gambling Act 2005

The Government department responsible for the Act is the Department for Culture, Media & Sport (DCMS). The Gambling Act 2005 was passed on 7 April 2005 and the Act is available via The Office of Public Sector Information.

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The purpose of the Gambling Act

The purpose of the Act was to modernise gambling legislation, consolidating the existing Betting, Gaming and Lotteries Act 1963; the Gaming Act 1968; and the Lotteries and Amusements Act 1976 into a single Act. These have all now been repealed.

The Gambling Commission, with statutory powers of entry, search and seizure took over the responsibilities of the Gaming Board for Great Britain and new responsibilities relating to betting, remote gambling, illegal gambling and the protection of children and the vulnerable.

Changes were particularly significant with regard to casinos. The existing restrictions of where casinos could be located in the country were abolished, as was the 'demand' test for their existence. The 24-hour membership rule for casinos (and bingo premises) was abolished. Regional Casinos are allowed to offer prize gaming machines with unlimited stakes and prizes, but with a total of 1,250 machines. Smaller premises ave more restrictions and are not allowed machines with unlimited stakes and prizes.

For the first time, 'remote gambling' (where persons are not face to face on the same premises) i.e. gambling via the Internet, interactive television and mobile telephones, was regulated in Great Britain. It was also the first time that betting had been subject to a national regulator.

The Government gave responsibility to the Gambling Commission to monitor the social impact of gambling reform and the Secretary of State has a reserve power to levy monies from industry to fund projects relating to gambling addiction or other harms/exploitation associated with gambling or any of the licensing objectives (Section 123).

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Gambling

Gambling is defined in the Act as gaming, betting or participating in a lottery. In turn, each of these are further defined as follows:

Gaming means playing a game of chance for a prize. A game of chance is a game, which includes both an element of chance and an element of skill; or where an element of chance can be eliminated by superlative skill; or where the game is presented as involving an element of chance. The game cannot, however, include a sport. A person plays a game of chance if s/he participates in the game; it is irrelevant whether or not there are other participants or whether there are computer-generated images of other participants. Playing for a prize means where the participant acquires a chance of winning a prize by playing, and prize means money or money's worth (defined in Section 6).

Betting means making or accepting a bet on the outcome of a race, competition or other event or process; on the outcome of anything occurring or not occurring; or on whether anything is or is not true. It is irrelevant whether that event has already taken place (or has failed to take place), or where one party knows the outcome. It should be noted that spread betting is regulated by the Financial Services Authority and does not come within this definition of betting (defined in Section 9).

A lottery  is either a simple lottery or a complex lottery. A simple lottery is one where persons are required to pay to participate and one or more prizes are allocated to one or more members of a class, and the prizes are allocated by a process, which relies wholly on chance. A complex lottery is where persons are required to pay to participate and one or more prizes are allocated to one or more members of a class, and the prizes are allocated by a series of processes where the first of those processes relies wholly on chance. Prize means money, articles or services provided by the members of the class among whom the prize is allocated. It should be noted that the National Lottery is not included in this definition of lottery and is regulated by the National Lottery Commission (defined in Section 14).

A definition of remote gambling is also provided.

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Licensing Authorities and their duties under the Gambling Act

Licensing Authorities are defined in the Gambling Act 2005 as District Councils or the County / Borough Council. Ryedale District Council is the Licensing Authority for any premises falling within the boundary of Ryedale.

Licensing authorities will:

  • Be responsible for the licensing of premises where gambling activities are to take place;
  • Regulate members' clubs and miners' welfare institutes* who wish to undertake certain gaming activities via issuing Club Gaming Permits and/or Club Machine Permits;
  • Grant permits for the use of certain lower stake gaming machines at unlicensed Family Entertainment Centres;
  • Grant Licensed Premises Gaming Machine Permits for premises licensed to sell/supply alcohol for consumption on the licensed premises, under the Licensing Act 2003 (but not licensed for gambling);
  • Register small society lotteries below prescribed thresholds;
  • Issue Prize Gaming Permits;
  • Issue Provisional Statements;
  • Acknowledge Temporary Use Notice;
  • Receive Occasional Use Notices; and
  • Provide information to the Gambling Commission regarding details of licences issued.

*Commercial clubs may also apply for a Club Machine Permit.

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Types of licences under the Gambling Act

The main licences are:

  • Personal Licences;
  • Operating Licences;and
  • Premises Licences.

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Operating Licences under the Gambling Act 2005

These licences are required by operators of gambling facilities and are issued by the Gambling Commission. The different types of Operating Licences are:

Casino Operating Licence - this enables the licence holder to operate a casino. This Casino Operating Licence also allows the licence holder to provide facilities for: betting on the outcome of a virtual game, race, competition or other event or process (subject to any condition attached by the Gambling Commission); and any game of chance other than bingo (note. that the operator would be able to apply for a separate Bingo Operating Licence though). This Casino Operating Licence also authorises the holder to make one or more gaming machines within Categories A to D available for use, as long as the Casino Operating Licence is not for remote gambling;

Bingo Operating Licence - this enables the licence holder to provide facilities for playing bingo. This Bingo Operating Licence also authorises the holder to make one or more gaming machines within Categories A to D available for use as long as the Bingo Operating Licence is not for remote gambling;

General Betting Operating Licence - this enables the licence holder to provide facilities for betting other than pool betting. As per Section 68 of the Gambling Act this General Betting Operating Licence also allows the licence holder to provide facilities for betting on the outcome of a virtual race, competition or other event or process other than a game of chance (subject to any condition attached by the Gambling Commission). This General Betting Operating Licence also authorises the holder to make one or more gaming machines within Categories A to D available for use as long as the General Betting Operating Licence is not for remote gambling;

Pool Betting Operating Licence - this enables the licence holder to provide facilities for pool betting. This Pool Betting Operating Licence will also authorise the holder to make one or more gaming machines within Categories A to D available for use as long as the Pool Betting Operating Licence is not for remote gambling. Pool betting on horse racing is limited to a single supplier via an exclusive licence for a period of 7 years from the implementation of the Act;

Betting Intermediary Operating Licence - this enables the licence holder to act as a betting intermediary ('betting intermediary' is defined in Section 13 as a person who provides a service designed to facilitate the making or acceptance of bets between others, commonly referred to as a 'betting exchange');

Gaming Machine General Operating Licence - this enables the licence holder to make gaming machines available for use in an Adult Gaming Centre or in a Family Entertainment Centre (the licence will need to state which);

Gaming Machines Technical Operating Licence - this enables the licence holder to manufacture, supply, install, adapt, maintain or repair gaming machines within Categories A-D;

Gambling Software Operating Licence - this enables the licence holder to manufacture, supply, install or adapt gambling software;

Lottery Operating Licence - this enables the licence holder to promote a lottery, subject to mandatory conditions;

Remote Operating Licence - this enables the licence holder to carry on activities in respect of remote gambling or by means of remote communication. The licence is not able to authorise any non-remote gambling or activities, which are not carried on by means of remote communication.

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Personal Licences under the Gambling Act 2005

These licences are required for certain persons involved with gambling operations in either management or operational functions, and build upon the certificate of approval system overseen by the Gaming Board for Great Britain. It is the responsibility of the Gambling Commission to decide which posts or persons will require a licence, (based upon the definitions of 'management office' and 'operational function'), which it will specify as part of the conditions of each relevant Operating Licence.

All Operating Licences will specify via conditions that at least one person occupying a specified management office holds a Personal Licence, although some small-scale gambling operators will be exempted from this requirement as well as Members' Clubs, Commercial Clubs or Miners' Welfare Institutes. The Gambling Commission will outline its approach to the consideration of application for licences in its 'Statement of Principles/Policy'.

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Premises Licences under the Gambling Act

These are the licences, listed below, which Ryedale District Council as the Licensing Authority is required to issue. The manner in which this is done is largely similar to the requirements of the Licensing Act 2003 and the same Licensing Committee will deal with licences under the Gambling Act 2005.

  • Casino Premises Licence;
  • Bingo Premises Licence;
  • Adult Gaming Centre Premises Licence (enabling Category B and C gaming machines to be made available for use at the premises);
  • Family Entertainment Centre Premises Licence (enabling Category C and D gaming machines to be made available for use at the premises); and
  • Betting Premises Licence (enabling the provision of facilities for betting, by making or accepting bets or by acting as a betting intermediary).

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The Gambling Commission

The Gambling Commission is a body formed out of the old Gaming Board for Great Britain. The existing Board members became Commissioners and the existing chairman of the Gaming Board became chairman of the Gambling Commission. The Chief Executive of the Commission is a Commissioner. The Commission carries out a number of functions including:

  • publishing a Statement setting out the principles upon which the Commission will apply in exercising its functions under the Gambling Act 2005. A number of bodies will be consulted on this Statement including persons who appear to the Commission to represent local authorities;
  • issuing Codes of Practice regarding the manner in which facilities for gambling are provided and may also include provisions about the advertising of gambling facilities. The Commission may consult with local authorities on these Codes if it sees this as appropriate;
  • issuing Guidance to Local Authorities as regards their functions under the Gambling Act 2005. The Commission is required to consult a number of bodies as regards this guidance including persons who appear to the Commission to represent local authorities;
  • advising the Secretary of State on the incidence of gambling; the manner in which gambling is carried-out, the effects of gambling, and the regulations of gambling. Such advice can be sought by the Secretary of State or proffered by the Commission without such a request if it sees this as appropriate; and
  • compliance, investigation and prosecution. The Commission will employ a number of Enforcement Officers to carry out such roles.

The Commission must carry out its functions, where appropriate, with regard to the Licensing Objectives contained within the Gambling Act 2005. It is also worth noting that the Gambling Commission is able to request information from Licensing Authorities; the Guidance for Local Authorities issued by the Gambling Commission contains reference to such matters.

Further information about the Gambling Commission is available at: The Gambling Commission.

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Other Permits and Registrations which the Licensing Authority is responsible for under the Gambling Act 2005

There are a number of other Permits and Registrations which the Licensing Authority will be responsible for under the Gambling Act 2005. These are detailed below.

  • Club Gaming Permits & Club Machine Permits

A Members' Club or a Miners' Welfare Institute wishing to provide facilities for gaming will need to apply to its local Licensing Authority for a Club Gaming Permit. A Club Gaming Permit will authorise making up to three gaming machines available for use (one each of Gaming Machine categories B, C, and D); providing facilities for gaming and providing facilities for games of chance.

A Members' Club or a Miners' Welfare Institute (which do not hold Club Gaming Permits), as well as a Commercial Club, wishing to make Gaming Machines available for use, will need to apply to their local Licensing Authority for a Club Gaming Machine Permit. This Permit will authorise making up to three gaming machines available for use (one each of Gaming Machine categories B, C, and D).

A copy of these applications must be sent to the Gambling Commission and the Chief Officer of Police, either of which may object to the application. Holders of Club Premises Certificates under the Licensing Act 2003 are able to apply for a fast-track procedure.

  • Gaming Machine Permits for unlicensed Family Entertainment Centres

Applications can be made to the Licensing Authority by occupiers (or proposed occupiers) of premises which are proposed to be used an unlicensed Family Entertainment Centre i.e. premises where there is no Gambling Premises Licence in force. The Permit will have effect for ten years and may then be renewed, although the Permit will lapse if the licence holder ceases occupying the premises (there are a number of other situations where the Permit will lapse). It should be noted that a Family Entertainment Centre is defined as being a premises wholly or mainly used for making gaming machines available for use (other than an Adult Entertainment Centre). A Family Entertainment Centre Gaming Permit authorises a person to make Category D gaming machines available for use, at the specified premises.

  • Licensed Premises Gaming Machine Permits (for Premises licensed to sell/supply alcohol for consumption on the premises under the Licensing Act 2003)

Where a Premises Licence under the Licensing Act 2003 authorises the sale or supply of alcohol for consumption on the premises then the licence holder may apply to the Licensing Authority for a Licensed Premises Gaming Machine Permit. Alcohol-licensed premises are provided with an automatic entitlement of to up to two gaming machines (Category C or Category D) for use at the premises as long as written notification and a fee is provided to the relevant Licensing Authority. However, the Licensing Authority can make an order to remove this automatic entitlement for reasons specified in the Act. (e.g. if would not be reasonable consistent with the Licensing Objectives or if an offence under the Gambling Act 2005 has been committed). If a licensed premise wishes to make more than two gaming machines available, an application must be made to the Licensing Authority for a Licensed Premises Gaming Machine Permit.

  • Prize Gaming Permits

Prize Gaming is defined as being where neither the nature nor the size of the prize played for is determined by reference to either the number of persons playing, or the amount paid for/raised by the gaming. To provide facilities for Prize Gaming a Prize Gaming Permit needs to be applied for to the Licensing Authority, although prize gaming can be provided for by virtue of a Family Entertainment or Adult Entertainment Premises Licence, or a Family Entertainment Centre Gaming Machine Permit, or a Bingo Premises Licence. Equal Chance Prize Gaming is also permitted without a Permit where the facilities are provided for at a travelling fair and the facilities for gambling provided amount to no more than an ancillary amusement at the fair. All Prize Gaming whether authorised by virtue of a Prize Gaming Permit or not, must also fulfil a number of conditions set-out in Section 293 covering items such as the participation fees, time of the game and place of the game.

  • Temporary Use Notices

A holder of an Operating Licence can serve a Licensing Authority with a notice informing it of an intention to use unlicensed premises (temporarily) for gambling e.g. poker tournament in a hotel. The Secretary of State may provide by Regulations which gambling activities can be specified under such a notice. The notice must be copied by the notice provider to the Gambling Commission, the Police and HM Revenue and Customs within seven days of the original notice being service upon the Licensing Authority. All these persons receiving copies of the notice can raise objections having regard to the Licensing Objectives, within 14 days of the original notice being served upon the Licensing Authority and are required to serve a notice of objection upon the persons who gave the original notice. The Licensing Authority can also issue a notice of objection. Premises may be 'covered' by a temporary use notice for up to 21 days in any 12-month period. Where this maximum permitted period is exceeded, the Licensing Authority is required to serve a Counter Notice to refuse permission for the temporary activities. Where notices of objection are raised then the Licensing Committee will decide if a Counter Notice should be issued and the Temporary Use Notice should not take effect, or whether a Counter Notice should be issued providing for the Temporary Use Notice to have effect but subject to certain restrictions such as type, time or place of the activity/ies). The Licensing Committee may also decide that the objection(s) is/are dismissed and that the Temporary Use Notice should have effect. It may also be agreed by the objector(s) and the Temporary Use Notice provider that a hearing is not required and modifications to the Temporary use Notice are made with mutual consent. In such a situation the objections would in effect, be withdrawn.

  • Occasional Use Notices

Tracks can be authorised for the provision of facilities for betting where the betting will be for no more than 8 days a year, in the form of an 'occasional use notice'. An 'occasional use notice' must be provided to the Licensing Authority and to the Chief Officer of Police and must specify the day on which it will have effect. A track is defined as a horse-race course, dog track or other premises on any part of which a race or other sporting event takes place, or is intended to take place.

  • Provisional Statements

A Provisional Statement may be applied for in respect of premises which the applicant expects to be constructed; that s/he expects to be altered; and/or expects to acquire the right to occupy. The process for making and determining the application are the same as for a Premises Licence except that the applicant does not need to hold, or have applied, for an Operating Licence. The Act sets out some specific provisions relating to an application for a Premises Licence where the applicant holds a Provisional Statement.

  • Small Society Lotteries Registration

A Lottery Operating Licence is not required for persons promoting 'exempt' lotteries. Exempt lotteries include small society lotteries. Such lotteries are required to be registered with the relevant Licensing Authority.

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Casinos

The definition is that a casino is an arrangement (whether on premises or via remote communication) where people can participate in casino games. These 'Casino games' are defined as being games of chance which are not equal chance games i.e. they involve playing or staking against a bank and the chances are not equally favourable to all the players (Section 8 'Equal Chance Gaming').

The Secretary of State is able to make Regulations to define whether any activity is or is not a 'casino game'.

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Betting

The Act introduces a statutory definition of betting. The definition means making or accepting a bet on the outcome of a race, competition or other event or process; on the outcome of anything occurring or not occurring, or whether anything is or is not true. It is irrelevant whether that event has already taken place (or has failed to take place) or where one party knows the outcome. It should be noted that spread betting is regulated by the Financial Services Authority and does not come within this definition.

Pool betting is defined as betting which is made on terms that all or part of the winnings are determined by references to the aggregate of stakes paid or agreed to be paid by persons betting and shall be divided among the winners, or shall be something other than money.

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Bingo clubs

Bingo clubs do not need to operate as private members clubs and the requirement to join the club 24 hours before play does not exist.

'Multiple / linked' bingo

The Act remove the limits on linked and multiple games requiring special licences and will also remove the need for a special licence; there is one standard Bingo Operating Licence. However, Regulations may be made by the Secretary of State limiting stakes, fees, prizes etc.

Rollovers

Bingo rollovers (i.e. taking the stakes from one bingo game to be added to the prize pool in another) are allowed in bingo premises and casinos but NOT in pubs, clubs, arcades or other venues.

Gaming machines at bingo premises

Types and numbers are restricted by reference to Regulations made by the Secretary of State.

Gambling activities at bingo premises

All activities where the relevant Premises Licence is in effect. A Bingo Premises Licence enables equal chance gaming, subject to a number of requirements and the Licence also permits the provision of facilities for prize gaming.

Children and young persons in bingo premises

Children and young persons are generally permitted onto the premises, although they are not be permitted to take part in the equal chance games.

Credit available at bingo premises

It is a condition of a Premises Licence that the licensee must not give credit in connection with the gambling or participate in, arrange, permit or knowingly facilitate the giving of credit in connection with the gambling. However, cash machines are allowed on bingo premises and credit can be provided via these as long as the licensee has no commercial connection with the credit provider, nor receives any payment/reward as a result of having the machine on the premises.

Bingo in casinos

Bingo is allowed in large and regional casinos; not in small casinos.

Bingo in pubs & clubs, and miners' welfare institutes

Pubs under the Act will be able to hold bingo without a licence, unless there are any 7 day periods in which the stakes or prizes are worth £2,000 or more. If such 'high turnover' does take place then the pub must notify the Gambling Commission and if another 'high turnover' 7 day period takes place in the next 12 months then the pub will require a Bingo Operating Licence from the Gambling Commission.

Where a Members' Club, Commercial Club, or Miners' Welfare Institute holds a Bingo Operating Licence it will not need a Personal Licence. This exemption is in place as the Government's view is that the management structure at clubs and such institutes would make Personal Licences inappropriate.

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The Gambling Act 2005 and pubs

Gaming machines allowed in pubs

Where a Premises Licence under the Licensing Act 2003 authorises the sale or supply of alcohol for consumption on the premises, then the licence holder may apply to the Licensing Authority for a Licensed Premises Gaming Machine Permit. It should be noted that the Act will provide such alcohol-licensed premises with an automatic entitlement for up to two gaming machines (Category C or Category D) for use at the premises, as long as written notification and a fee is provided to the relevant Licensing Authority and that the provisions of any relevant Commission Code of Practice are complied with.

However, the Licensing Authority can make an order to remove this automatic entitlement for reasons specified in the Act (e.g. if it would not be reasonably consistent with the Licensing Objectives or if an offence under the Gambling Act 2005 has been committed). If a licensed premises wishes to make more than two gaming machines available, then under the new Act an application must be made to the Licensing Authority for a Licensed Premises Gaming Machine Permit.

Types of gaming allowed in pubs under the Act

The Act allows alcohol on-licensed premises to provide equal chance gaming, subject to Regulations setting limits on stakes and winnings, and where the following conditions apply:

(a) no amount may be deducted or levied from stakes or winnings;

(b) no charge may be made for participation in the gaming;

(c) the games played may only take place on one set of premises i.e. there may not be any linking of games between premises, and

(d) children and young persons must be excluded from the gaming.

Bingo in pubs

Pubs under the Act are able to hold bingo without a licence, unless there are any 7 day periods in which the stakes or prizes are worth £2,000 or more. If such 'high turnover' does take place then the pub must notify the Gambling Commission and if another 'high turnover' 7 day period takes place in the next 12 months then the pub will require a Bingo Operating Licence from the Gambling Commission.

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The Gambling Act 2005 and Clubs

Clubs and gaming

These clubs will be able to provide facilities for equal chance gaming, subject to Regulations setting limits on stakes and winnings,

  • Members' clubs which are established for social, recreational purposes or other purposes not concerned solely for the provision of facilities for gambling;
  • Miners' welfare institutes;
  • Commercial clubs e.g. snooker clubs.

and where the following apply:

  • no amount may be deducted or levied from stakes or winnings;
  • any participation fee does not exceed that set down in;
  • the games played may only take place on one set premises i.e. there may not be any linking of games between premises; and
  • Any person who participates is a member of the club or institute who applied for membership at least 48 hours before s/he participates, or is a guest of a member of the club or institute where the member has applied for membership at least 48 hours before the guest participates.

Should the club wish to provide such gaming but wishes to deduct monies from the stakes or winnings then it must apply to its Licensing Authority for a Club Gaming Permit. A Club Gaming Permit authorises making up to three gaming machines available for use (one each of Gaming Machine categories B, C, and D) and providing facilities for games of chance as may be prescribed by Regulations.

The Act sets out the procedures for applying and processing the Permit and it should be noted that a copy of the application must be sent to the Gambling Commission and the Chief Officer of Police, either of which may object to the application. Holders of Club Premises Certificates under the Licensing Act 2003 are able to apply for a fast-track procedure.

Gaming machines in clubs

A Members' Club or a Miners' Welfare Institute (which do not hold Club Gaming Permits), as well as a Commercial Club, wishing to make Gaming Machines available for use, will need to apply to their local Licensing Authority for a Club Gaming Machine Permit. This Permit will authorise making up to three gaming machines available for use (Gaming Machine category B, C, or D).

The Act sets out the procedures for applying and processing the Permit and it should be noted that a copy of the application must be sent to the Gambling Commission and the Chief Officer of Police, either of which may object to the application. Holders of Club Premises Certificates under the Licensing Act 2003 are able to apply for a fast-track procedure.

A Licensing Authority, following a Licensing Committee hearing, can refuse to issue a permit on a number of grounds (including grounds on the basis of any objections raised). The need for a hearing can be dispensed with if all parties agree. No conditions can be attached to these permits.

Can a Licensing Authority refuse either a Club Machine Permit or a Club Gaming Permit?

A Licensing Authority must grant the Club Gaming or Machine Permit unless one or more specified grounds are present e.g. it has reasons to believe the club is used wholly or mainly by children and/or young persons, or the Gambling Commission or the police have objections on club conduct grounds. If the application is made via the 'fast-track' procedures, then the Licensing Authority can refuse the permit unless one of the grounds are met e.g. the club is established wholly or mainly for providing gaming.

Clubs and bingo

Under the Act, clubs are able to hold bingo without a licence unless there are any 7 day periods in which the stakes or prizes are worth £2,000 or more. If such 'high turnover' does take place then the pub must notify the Gambling Commission and if another 'high turnover' 7 day period takes place in the next 12 months then the pub will require a Bingo Operating Licence from the Gambling Commission.

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Gaming Machines

Permitted gaming machines

The Secretary of State is able to make regulations defining 4 categories of gaming machines (A, B, C and D). Category B will be divided into four subsections (B1, B2, B3 and B4). The definitions are as per the table below; the table also includes a summary of the locations where these machines can be sited:

Gaming Machine Categories

Category Maximum Stake (£) Maximum Prize (£) Location(s) Maximum number per premises
A Unlimited Unlimited Regional Casino 1,250
B1 £2 £4000 All casinos (i.e small, large and regional, plus casinos licensed under 1968 Gaming Act) 20 in 1968 Gaming Act casinos; 80 in small casinos; 150 in large
B2 £100 per game; £15 per chip £500 As above, plus premises licensed for betting 4
B3 £1 £500 As above, plus bingo halls and adult gaming centres 4
B4 £1 £250 As above, plus registered clubs and miners welfare institutions 3
C 50p £25 As above, plus premises licensed for alcohol and licensed family entertainment centres (FEC) 2, but may apply to licensing authority for more
D 10p (30p when non-monetary prize) £5 cash or £8 non-monetary prize As above, plus unlicensed FECs and travelling fairs No limit

Gaming machine arcades

There are 3 types of gaming machine arcades:

  • Adult Gaming Centres - Open only to adults i.e. those aged 18+ and require both an Adult Gaming Centre Premises Licence as well as a Gaming Machine General Operating licence. Gaming machines up to category B will be permitted.
  • Licensed Family Entertainment Centres - Open to any aged person but will have adult-only areas within. All areas can have category D machines, while the adult-only areas can have category C machines also. These centres require both a Family Entertainment Centre Premises Licence and a Gaming Machine General Operating licence.
  • Unlicensed Family Entertainment Centres - Do not have a Premises Licence but are able to have Category D machines, with the permission in the form of a permit from the relevant Local Authority.

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Lotteries under the Gambling Act 2005

Lotteries

The Act gives a statutory definition of a lottery. Lotteries can be either 'simple lotteries' or 'complex lotteries'. The requirement is that persons are required to pay in order to participate, that one or more prizes are allocated to one or more members of a class, and that the prizes are allocated by a process which relies wholly on chance (simple lottery) or that the prizes are allocated by a series of processes and the first of those processes relies wholly on chance (complex lottery).

A prize includes any money, articles or services:

  • whether or not described as a prize, and
  • whether or not consisting wholly or partly of money paid, or articles or services provided, by the members of the class among whom the prize is allocated.

Note that the National Lottery is not included in this definition.

Operating a lottery

An Operating Licence is required for those operating a lottery but will only be issued to a non-commercial society; a local authority; or a person proposing to act as an external lottery manager on behalf of a non-commercial society or local authority (this will be known as a 'Lottery Manager's Operating Licence'). A non-commercial society is defined as being one which is established and conducted for charitable purposes; or for the purpose of enabling participation in, or of supporting, sport, athletics or a cultural activity; or for any other non-commercial purpose other than that of private gain.

There are a number of mandatory conditions relating to Lottery Operating Licences, covering items such as maximum proceeds and application of those proceeds.

Types of lottery exempt from the requirement to be licensed

The Act provides a number of exemptions to the offence contained within the Act of 'invitation to participate in a lottery' (and also an exemption for the National Lottery). The following types of lottery are exempt from the requirement to have a Lottery Operating Licence:

  • Lotteries which are incidental to a non-commercial event (there are a number of additional provisions such as there being no rollover);
  • Private lotteries i.e. private society lottery, work lottery or a residents' lottery (there are a number of additional provisions such as there being no advertising outside the society/work/residential premises, and no rollover allowed);
  • Customer lotteries (Again, a number of provisions apply such as the requirements for no rollover);
  • Small Society lotteries i.e. is promoted wholly on behalf of a non-commercial society and is a small lottery. Other provisions apply such as rollovers being allowed as long as the rollovers are with other small society lotteries and none others. The promotion of small society lotteries must be registered with the Local Authority.

Commercial lotteries

Aside from the Customer Lotteries, commercial, for-profit lotteries are prohibited and will remain so with a distinction drawn between lotteries and prize competitions. Where the competition requires a payment for entry or the result depends on chance, then this will be a lottery and cannot be run for commercial purposes.

Will 'rollovers' be allowed?

Rollovers will not be allowed for small incidental, private, or customer lotteries but will be allowed for society (both small and large) or local authority lotteries.

Will any lotteries need to register with the Local Authority?

Small society lotteries will need to register with local authorities, who will in turn need to inform the Gambling Commission of the registration.

Can a Local Authority refuse an application for registration?

A local authority may refuse an application for registration on a number of grounds including:

If in the preceding 5 years an operating licence held by the applicant has been revoked by the Gambling Commission or an application for an Operating Licence has been refused;

  • If the applicant is not a non-commercial society;
  • If a person who will or may be connected with the promotion of the lottery has been convicted of a relevant offence;
  • If the information provided is false or misleading.

Revocation is also possible upon the same grounds.

There must be an opportunity provided for the applicant to make representations should the local authority be minded to refuse the licence.

The applicant may appeal to the Magistrates Court.

Will Local Authorities receive a fee?

A registration and on-going annual fee are payable.

 

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