GLA5 - March 2015 - Gambling Commission

GLA5 - March 2015 - Gambling Commission
Guidance to licensing authorities
5th edition
March 2015
Contents
This document comprises 36 parts with pages numbered relevant to their section.
Future updates will be provided by section without affecting other parts of the guidance
Guidance to licensing authorities
About this Guidance
Part 1: General guidance on the role and responsibilities of licensing authorities
in gambling regulation
1-1
Introduction
Partnership working between the Commission and Licensing Authorities –
shared regulation
Primary legislation
Licensing authority discretion (s.153 of the Act)
Part 2: The licensing framework
Operating licences
Personal licences
Premises licences
Part 3: The Gambling Commission
The Gambling Commission
Relationship between the Commission and licensing authorities
Further information about the Commission
Part 4: Licensing authorities
Statutory framework
Licensing authority decisions
Part 5: Principles to be applied by licensing authorities
Licensing objectives
S.153 principles
Codes of Practice
Good practice in regulation
Human Rights Act 1998
Other considerations
Part 6: Licensing authority policy statement
Introduction
Fundamental principles
Form and content
Other matters to be considered
Local risk assessments
Local area profile
Declaration by licensing authority
Consultation
Reviewing and updating the policy statement
Advertising and publication
Additional information to be made available
Part 7: Premises licences
Premises
Access to premises
Access to gambling by children and young people
Multiple activity premises – layout and access
Single and combined licences
1-1
1-4
1-14
1-24
2-1
2-4
2-12
2-15
3-1
3-1
3-6
3-11
4-1
4-4
4-9
5-1
5-1
5-19
5-25
5-27
5-30
5-31
6-1
6-1
6-7
6-11
6-33
6-41
6-47
6-54
6-56
6-62
6-67
6-69
7-1
7-3
7-19
7-24
7-29
7-34
Applications
Consideration of planning permission and building regulations
7-38
7-56
Part 8: Responsible authorities and interested parties – definitions
8-1
Responsible authorities
Interested parties
Part 9: Premises licence conditions
Conditions and authorisations by virtue of the Act
Conditions attached through regulations made by the Secretary of State
or Scottish Ministers – all premises
Default conditions
Conditions that may not be attached to premises licences by licensing
authorities
Part 10: Review of premises licence by licensing authority
Initiation of review by licensing authority
Application for a review
Carrying out a review
8-2
8-9
9-1
9-4
9-19
9-27
9-32
10-1
10-5
10-11
10-18
Part 11: Provisional statements
11-1
Part 12: Rights of appeal and judicial review
12-1
Giving reasons for decisions
Premises licences
Permits
Temporary use notices
Judicial review
Part 13: Information exchange
Underlying principles
Information licensing authorities provide to the Commission
Other licensing authority information requirements
Information the Commission makes available to licensing authorities
Part 14: Temporary use notices
Procedure
Appeals
Endorsement of the notice
Large events
Part 15: Occasional use notices
What constitutes a track
Use (and misuse) of OUNs
Procedure
Part 16: Gaming machines
Categories of gaming machines
Age restrictions
Maximum number of machines by premises type
Multiple Activity Sites
The meaning of ‘available for use’
Machines other than gaming machines in gambling premises
Part 17: Casinos
Casino premises
Casino games
12-2
12-4
12-14
12-31
12-34
13-1
13-1
13-3
13-13
13-17
14-1
14-6
14-22
14-23
14-28
15-1
15-2
15-4
15-8
16-1
16-10
16-11
16-12
16-13
16-16
16-23
17-1
17-1
17-6
Protection of children and young persons
The process for issuing casino premises licences
Resolutions not to issue casino licences
Converted casinos (with preserved rights under schedule 18 of the Act)
Casino premises licence conditions
Default conditions attaching to all casino premises licences
Appropriate licensing environment (previously known as primary gambling
activity)
Part 18: Bingo
Protection of children and young persons
Gaming machines
Bingo in clubs and alcohol-licensed premises
Bingo in casinos
Bingo premises licence conditions
Appropriate licensing environment (previously known as primary gambling
activity)
Part 19: Betting premises
Protection of children and young persons
Gaming machines
Self Service Betting Terminals
Betting premises licence conditions
Appropriate licensing environment (previously known as primary gambling
activity)
Industry codes
Part 20: Tracks
Definition of a track
Track premises licences – differences from other premises licences
Betting on tracks
Licences and other permissions for the provision of betting facilities
Betting on event and non-event days
Social responsibility considerations for tracks
Gaming machines
Self Service Betting Terminals
Applications
Licence Conditions and requirements
Part 21: Adult gaming centres
17-10
17-11
17-26
17-30
17-33
17-54
17-55
18-1
18-6
18-8
18-12
18-16
18-17
18-24
19-1
19-4
19-5
19-6
19-11
19-21
19-26
20-1
20-1
20-7
2016
20-22
20-26
20-32
20-36
20-42
20-46
20-71
21-1
Protection of children and young persons
Gaming machines
AGC premises licence conditions
21-2
21-4
21-7
Part 22: Licensed family entertainment centres
22-1
Protection of children and young persons
Meaning of premises
Licensed FEC premises licence conditions
22-2
22-5
22-8
Part 23: Introduction to permits
23-1
Part 24: Unlicensed family entertainment centres
24-1
Applying for a permit
Granting or refusing a permit
Lapse, surrender and forfeiture
Renewal
Maintenance
24-6
24-9
24-14
24-19
24-21
Part 25: Clubs
Defining clubs
Bingo in clubs
Betting in clubs
Exempt gaming
Protection of children and young persons
Permits
Appeals
Part 26: Premises licensed to sell alcohol
Automatic entitlement to two machines
Licensed premises gaming machine permits
Exempt gaming
Bingo
Betting
Commission codes of practice
Scotland
Protection of children and young persons
Prohibited gaming
Part 27: Prize gaming and prize gaming permits
Prize gaming
Application for a prize gaming permit
Part 28: Non-commercial and private gaming, betting and lotteries
Non-commercial gaming
Non-commercial prize gaming
Non-commercial equal chance gaming
Private gaming
Non-commercial and private betting
Non-commercial ‘casino nights’
Non-commercial ‘race nights’
Part 29: Poker
Introduction
Poker in casinos
Poker as exempt gaming in clubs and alcohol-licensed premises
Poker as non-commercial gaming
Poker as private gaming
Advertising
25-1
25-1
25-7
25-8
25-10
25-22
25-23
25-72
26-1
26-4
26-8
26-23
26-28
26-30
26-34
26-39
26-41
26-45
27-1
27-1
27-9
28-1
28-2
28-7
28-9
28-10
28-16
28-17
28-26
29-1
29-1
29-5
29-10
29-33
29-46
29-52
Part 30: Travelling fairs
30-1
Part 31: Crown immunity and excluded premises
31-1
Part 32: Territorial application of the Gambling Act 2005
32-1
Part 33: Door supervision
33-1
Part 34: Small society lotteries
34-1
The status of lotteries under the Act
Licensing authority guidance
Social responsibility
External lottery managers’ licence status
Lottery tickets
Prizes
34-2
34-10
34-11
34-15
34-19
34-23
Specific offences in relation to lotteries
Application and registration process for small society lotteries
Administration and returns
Part 35: Chain gift schemes
Street collectors selling gamecards
Part 36: Compliance and enforcement
Fees
Enforcement officers and authorised persons
Powers of entry – England and Wales
Powers of entry – Scotland
Illegal gambling
Test purchasing and age verification
Primary authority
Prosecutions
Other powers
34-25
34-28
34-48
35-1
35-5
36-1
36-1
36-6
36-13
36-18
36-23
36-28
36-36
36-40
36-44
Appendix A: Summary of machine provisions by premises
Appendix B: Summary of gaming machine categories and entitlements
Appendix C: Summary of gaming entitlements for clubs and alcohol-licensed
premises
Appendix D: Summary of offences under the Gambling Act 2005
Appendix E: Summary of statutory application forms and notices
Appendix F: Sample of premises licence conditions
Appendix G: Inspection powers
Appendix H: Licensing authority delegations
Appendix I: Poker games and prizes
Appendix J: Glossary of terms
Guidance to licensing authorities
About this Guidance
This Guidance is the Gambling Commission’s statutory Guidance to Licensing Authorities
issued under s.25 of the Gambling Act 2005 (the Act), which requires the Commission to issue
guidance on the manner in which local authorities are to exercise their functions under the Act.
This Guidance has a particular role and significance in the context of the principles that must be
applied by licensing authorities when exercising their functions in relation to Part 8 of the Act,
including premises licensing. That is because s.153 of the Act provides that licensing
authorities shall aim to permit the use of premises for gambling in so far as they think it:
a. in accordance with any relevant code of practice under s. 24
b. in accordance with any relevant guidance issued by the Commission under s. 25
c. reasonably consistent with the licensing objectives (subject to a. and b. above), and
d. in accordance with the statement published by the authority under s. 349 (licensing
authority policy statement) (subject to paragraphs a. to c. above).
So, in carrying out its functions under the Act, a licensing authority must have regard to this
Guidance (s.153(b)).
To avoid duplication, the Guidance should be read in conjunction with the Act and explanatory
notes, relevant secondary legislation and the Gambling Commission’s Licence Conditions and
Codes of Practice (LCCP). The Commission’s website provides links to relevant legislation and
regulations.
The aim of this Guidance is to ensure that every licensing authority has the information it needs
to make effective decisions. It does not seek to impose a ‘one size fits all’ model across all
licensing authorities. We recognise that every licensing authority is different and will have
different views about how it wishes to manage gambling locally. Indeed, the Act establishes a
high degree of local accountability for gambling regulation.
This Guidance does not, therefore, attempt to fetter the discretion that licensing authorities
have under the Act and it is not intended to replace their judgement in individual cases.
Moreover, this Guidance cannot anticipate every set of circumstances that may arise and, as
long as it has been understood and taken into account, licensing authorities may depart from it
where they consider it would be right to do so. There should, however, be strong reasons for
departing from this Guidance and these need to be clearly expressed and explained if a
licensing authority is to avoid judicial review or challenge on appeal for failing to take this
Guidance into account.
In the interests of conciseness, this Guidance attempts to focus on issues relating specifically
to gambling regulation and to avoid replicating advice on issues that apply more widely to local
authorities, for example managing conflicts of interest.
Licensing authorities should note that interpretation of the Act is ultimately a matter for the
Courts. This Guidance is not a substitute for licensing authorities’ own legal advice on the
application and interpretation of the Act.
Part 1: General guidance on the role and responsibilities of licensing
authorities in gambling regulation
Introduction
1.1
When the Gambling Act 2005 (the Act) came into force in late 2007, it brought in a new,
comprehensive system for gambling regulation in Great Britain. For the first time, the
vast majority of commercial gambling was brought together into a single regulatory
framework. The Act established a dedicated regulator, at a national level, in the form of
the Gambling Commission (the Commission). But it also recognised the potential local
impact and importance of gambling. So it created many local regulators, whose job it is
to manage gambling locally, in line with local circumstances. Those regulators are the
380 licensing authorities of England, Wales and Scotland. In doing so, the Act
established a strong element of local decision-making and accountability in gambling
regulation.
1.2
The Act gives local regulators very broad discretion to manage local gambling provision,
including discretion as to the level of fees set to cover the cost of administering the local
system of regulation. It sets out some boundaries to that discretion, consistent with the
recognition of gambling as a mainstream leisure activity.
1.3
The Act also provides scope for the Commission to act to set an overall direction at
national level, while leaving licensing authorities in the lead locally, with appropriate
support from the Commission. This Guidance, to which licensing authorities must have
regard, is an important part of those arrangements.
Partnership working between the Commission and licensing
authorities – shared regulation
1.4
The Commission works in partnership with licensing authorities to regulate gambling. In
doing so, the Commission will tend to focus on operators and issues of national or
regional significance, and licensing authorities will take the lead on regulating gambling
locally. The Commission and licensing authorities may work directly together on
particular issues, for example where it may establish a precedent or help build capacity
and learning to be rolled out more widely.
1.5
The Commission draws on, and shares, the intelligence and insights of its regulatory
partners, in particular licensing authorities, who may well be better positioned to identify
emerging risks to the licensing objectives or instances of illegality which can start at a
local level. By working closely together we are able to prevent such risks growing into a
more widespread problem and to ensure that both Commission and licensing authority
resources are used efficiently.
1.6
In the Commission’s view, the statutory duty to aim to permit gambling, subject to
reasonable consistency with the licensing objectives, is best delivered through
partnership working between industry and regulator, including licensing authorities.
Licensing authorities should aim to work with local businesses to reduce the risk to the
licensing objectives to acceptable levels. The Act does not envisage regulation by either
the Commission or licensing authorities being aimed at preventing legitimate gambling.
1.7
Further, the Commission was not established, and is not resourced, to lead on local
gambling regulation. Licensing authorities have the power to collect fees, subject to
statutory maxima, to cover the costs of local gambling regulation. In addition, local
regulation is more cost effective and licensing authorities are better placed to
understand and manage local issues. So, while the Commission aims to adopt a
position of support and assistance for licensing authorities in carrying out their functions,
that is in the context of licensing authorities taking the lead on local regulation of
gambling.
1.8
This is reflected in the Commission’s approach to representations on premises licence
applications. Neither licensing authorities nor operators should take the absence of a
specific representation on particular application as indicating the Commission’s approval
of that application. However, exceptionally, where an application for a premises licence,
or the operation of a current premises licence, raises matters of wider or national
significance, the Commission will consider making representations or requesting a
licence review. The Commission may also comment on an application if it has particular
observations about an operator. The Commission will aim to work with the relevant
licensing authority in formulating any representation it wishes to make.
1.9
In many instances, effective outcomes will depend on close co-operation and
communication between the Commission and licensing authorities. Ultimately, however,
the responsibility for every licensing decision rests with the licensing authority itself, in
line with the principle of local accountability.
Co-ordination and contact
1.10
To facilitate co-operation, the Commission has established a Local Authority Liaison
Unit. The Unit is available to advise licensing authorities on matters relating to gambling
regulation. It coordinates a series of activities designed to promote more effective
gambling regulation, for example workshops and training sessions for licensing
authorities, regular up-to-date advice and support such as a series of ‘Quick Guides’ on
specific subjects. The Commission also publishes a monthly ‘LA Bulletin’, which aims to
provide licensing authorities with up-to-date information on gambling and its regulation,
and to share good practice. The unit can be contacted using the general contact email
[email protected]
1.11
The Commission also has in place a small network of field-based staff. An important
part of their role is to facilitate effective working relationships between the Commission
and licensing authorities.
1.12
As well as working directly with individual licensing authorities, the Commission seeks to
engage frequently with representative bodies such as the Local Government
Association (LGA), the Convention of Scottish Local Authorities (COSLA), the Welsh
Local Government Association (WLGA), the Society of Local Authority Lawyers and
Administrators (SOLAR), and the Institute of Licensing (IoL). These meetings provide
opportunities to review regulatory policy and to discuss emerging trends and issues of
concern.
1.13
Since the Act was introduced a great deal of collective experience and insight has been
developed, enabling licensing authorities and the Commission to fulfil their roles within
the shared regulatory system more effectively and efficiently. Case studies available on
the Commission’s website provide examples of successful multi-agency initiatives
undertaken by the Commission and its regulatory partners.
Primary legislation
1.14
The primary legislation governing gambling in Great Britain is the Gambling Act 2005. It
covers England, Wales and Scotland, but not Northern Ireland, which has its own
arrangements.
1.15
The overall approach of the Act is to state that gambling is unlawful in Great Britain,
unless permitted by:
• the measures contained in the Act, in relation to most commercial gambling
•
•
the measures contained in the National Lottery etc Act 1993, in the case of the
National Lottery
the measures contained in the Financial Services and Markets Act 2000, in the
case of spread betting.
This approach should be considered in the context of the statutory aim to permit
gambling, as set out at paragraph 1.19 below.
1.16
The Act establishes two comprehensive offences: providing facilities for gambling or
using premises for gambling without the appropriate permission. Such permission may
come from a licence, permit, or registration granted in accordance with the Act or from
an exemption given by the Act. Where authority to provide facilities for gambling is
granted, it is subject to varying degrees of regulation, depending on the type of
gambling, the means by which it is conducted, and the people by whom and to whom it
is offered.
1.17
The Act is designed, as far as possible, to be flexible and future-proof. In practice, this
means that in many areas the Act sets a framework, with more detailed rules set out in
regulations made under the Act. A comprehensive list of regulations can be found on
the Commission’s website.
1.18
In addition, the Gambling (Licensing and Advertising) Act 2014 came into force on 1
November 2014 and amends the Act. It requires gambling operators that transact with
or advertise to British consumers to obtain a licence from the Commission. The Act (as
amended) has implications for remote operators and does not impact the powers or
authority of licensing authorities. For further information, please refer to the Commission
guidance on implementing the Gambling (Licensing and Advertising) Act.
Statutory aim to permit gambling
1.19
The Act places a legal duty on both the Commission and licensing authorities to aim to
permit gambling, in so far as it is considered to be reasonably consistent with the pursuit
of the licensing objectives. The effect of this duty is that both the Commission and
licensing authorities must approach their functions in a way that seeks to regulate
gambling by using their powers, for example, powers to attach conditions to licences, to
moderate its impact on the licensing objectives rather than by starting out to prevent it
altogether.
The licensing objectives
1.20
The three licensing objectives (s.1 of the Act) which guide the way that the Commission
and licensing authorities perform their functions and the way that gambling businesses
carry on their activities, 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
• protecting children and other vulnerable persons from being harmed or exploited
by gambling.
1.21
The Commission and licensing authorities have a duty to pursue the licensing
objectives, and we expect gambling business to deliver them.
Codes of practice
1.22
The Commission has the power to issue two types of code of practice. The first is a
social responsibility (SR) code. A SR code must be followed and has the force of a
licence condition. The Commission may also issue ordinary codes (OC) which are
intended to set out best industry practice. They are not mandatory but operators are
expected to follow them unless they have alternative arrangements in place that they
can demonstrate are equally effective.
1.23
S.153 of the Act requires licensing authorities, in exercising their functions, to have
regard to any code of practice issued by the Commission. A full version of the
Commission’s Licence Conditions and Codes of Practice (LCCP) is available on the
Commission’s website.
Licensing authority discretion (s.153 of the Act)
1.24
Licensing authorities have a broad discretion to regulate local provision of gambling and
the Act gives wide-ranging powers to do so. Those include the power:
• to issue a statement of licensing policy, setting expectations about how gambling
will be regulated in a particular area
• to grant, refuse and attach conditions to premises licences
• to review premises licences and attach conditions or revoke them as a result.
1.25
In exercising its functions under the Act, s.153 states that the licensing authority shall
aim to permit the use of premises for gambling in so far as it thinks it:
a. in accordance with any relevant code of practice under s.24
b. in accordance with any relevant guidance issued by the Commission under s.25
c. reasonably consistent with the licensing objectives (subject to a. and b. above),
and
d. in accordance with the Licensing Authority’s statement of licensing policy (policy
statement) (subject to a. to c. above).
1.26
The ‘aim to permit’ framework provides wide scope for licensing authorities to impose
conditions on a premises licence, reject, review or revoke premises licences where
there is an inherent conflict with the relevant codes of practice, relevant Guidance
issued by the Commission, the licensing objectives or the licensing authorities own
policy statement.
1.27
Licence conditions are one method by which it is possible to mitigate risks associated
with a particular premises. The imposition of licence conditions might be prompted by
locality specific concerns, for example the proximity of gambling premises to a school.
1.28
However, licensing authorities may also wish to have proactive engagement with local
operators to mitigate risks to the licensing objectives. Such engagement can facilitate
an open and constructive partnership which, in turn, can improve compliance and
reduce regulatory costs. Engagement with operators should be prompted by justifiable
concerns or in pursuit of the principles set out under s.153.
1.29
To reflect the breadth of licensing authority discretion, they are entitled to request such
information from operators as they may require to make effective licensing decisions.
The Act requires that an application must be accompanied by a minimum level of
information (detailed in Part 7 of this Guidance). In the Commission’s view, however,
this does not preclude reasonable requests from licensing authorities for additional
information to satisfy themselves that their licensing decision is reasonably consistent
with the licensing objectives and the Commission’s codes. That information may
include, for example, a suitable business plan or the operator’s own assessment of risk
to the licensing objectives locally.
Local risk assessments
1.30
To improve the exchange of information between licensing authorities and operators,
the Commission has introduced SR code provisions that require operators of premisesbased businesses to conduct local risk assessments (SR 10.1.1), and an ordinary code
provision that says licensees should share their risk assessments with licensing
authorities in certain circumstances (OC 10.1.2).
Licensing authority policy statement
1.31
The statement of licensing policy is a very important part of the architecture of local
gambling regulation and it is expected that licensing authorities will use it to set out the
local issues, priorities and risks that inform and underpin its approach to local
regulation.
1.32
It provides the opportunity for licensing authorities to agree and set out how gambling is
to be managed in different parts of the local authority area to deal with local concerns
and issues. It provides clarity of expectation for licensees and prospective licensees
about how their businesses are likely to be treated in different localities. The existence
of a clear and agreed policy statement will provide greater scope for licensing
authorities to work in partnership with local businesses, communities, and responsible
authorities to identify and mitigate local risks to the licensing objectives.
1.33
The policy statement is the primary vehicle for setting out the licensing authority’s
approach to regulation having taken into account local circumstances. It ensures that
operators have sufficient awareness and understanding of the relevant licensing
authority’s requirements and approach, including its’ view on local risks, to help them
comply with local gambling regulation.
1.34
More detail on licensing authorities’ statement of licensing policy is set out at Part 6 of
this Guidance.
Limits on licensing authority discretion
1.35
Licensing authorities are subject to some specific constraints in exercising their
functions. As set out at paragraph 1.25, s.153 of the Act provides that licensing
authorities shall aim to permit the use of premises for gambling in so far as they think it
in accordance with the principles set out in s.153(a) to (d).
1.36
Therefore a licensing authority has no discretion to grant a premises licence where that
would mean taking a course which it did not think accorded with the Guidance
contained in this document, any relevant Commission code of practice, the licensing
objectives or the licensing authority’s own policy statement.
1.37
In addition, the Act makes specific reference to factors that must not be considered by a
licensing authority in exercising its functions under s.153:
• the expected demand for facilities (s.153(2))
• whether the application is to be permitted in accordance with law relating to
planning or building (s.153(1)).
Other powers
1.38
As stated, licensing authorities have a broad discretion to regulate local provision of
gambling and they have similar regulatory powers to the Commission with respect to
their licensees, including the power to impose conditions and to review licences. They
are not able to impose financial penalties but can impose fees relating to the costs of
local regulation. They also have wider powers under legislation such as the Licensing
Act 2003.
1.39
The Act gives licensing authorities a number of other important regulatory functions in
relation to gambling. Their main functions are to:
• licence premises for gambling activities
• consider notices given for the temporary use of premises for gambling
•
•
•
•
•
•
grant permits for gaming and gaming machines in clubs and miners’ welfare
institutes
regulate gaming and gaming machines in alcohol-licensed premises
grant permits to family entertainment centres (FECs) for the use of certain lower
stake gaming machines
grant permits for prize gaming
consider occasional use notices for betting at tracks
register small societies’ lotteries.
Part 2: The licensing framework
2.1
The Act creates three types of licence:
• operating licences, which are required by businesses in order to provide
gambling facilities lawfully
• personal licences, which are required by some people working in the gambling
industry
• premises licences, which are required to authorise premises to provide gambling
facilities.
2.2
The Commission has responsibility for granting operating and personal licences for
commercial gambling operators and personnel working in the industry.
2.3
Licensing authorities have responsibility for licensing gambling premises within their
area, as well as undertaking functions in relation to lower stake gaming machines in
clubs and miners’ welfare institutes. In England and Wales, local authorities have these
responsibilities; in Scotland they have been given to licensing boards. The Act also
provides a system of temporary and occasional use notices. These enable licensing
authorities to authorise premises that are not licensed generally for gambling purposes,
to be used for certain types of gambling for limited periods. Parts 14 and 15 provide
more information on temporary and occasional use notices.
Operating licences
Types of operating licence
2.4
There are various types of operating licence, linked to different types of gambling
activity. S.65 of the Act sets out the types of operating licence that may be issued.
Some types of gambling activity may be provided remotely, for example over the
internet (‘online’ gambling) or telephone, or non-remotely such as in land based
premises. Some types of licence provide additional permissions, for example to make
particular numbers and types of gaming machine available.
2.5
Different activities may be authorised by a single operating licence (a ‘combined’
operating licence) but a single licence cannot authorise both remote and non-remote
activity. The different types of licence and their associated permissions are summarised
in the table below:
Type of licence
Casino operating licence
Bingo operating licence
General betting operating licence
Pool betting operating licence
Betting intermediary operating licence
Gaming machine general operating licence for
an adult gaming centre
Gaming machine general operating licence for a
family entertainment centre
Gaming machine technical operating licence
Gambling software operating licence
Lottery operating licence
* by means of remote communication
Non-remote
gambling
authorised
X
X
X
X
X
X
Remote gambling
authorised
X
X
X
X
X
X
X
X
X
X*
X*
X
2.6
Operating licences are not transferable. However, there are provisions in the Act which
deal with circumstances in which control of a company changes hands.
How operating licences are granted
2.7
The Commission, like licensing authorities, has a statutory duty to permit gambling
insofar as it thinks reasonably consistent with the licensing objectives. In considering
whether to grant an operating licence, and any conditions that may be attached, the
Commission has regard to the licensing objectives, and to the suitability of the applicant,
in terms of integrity, competence and finances (including source of finance). The
Commission also takes into account the business model proposed and its likely
compatibility with the law and the licensing objectives. Putting forward a business model
that is incompatible with the licensing objectives is likely to lead to questions of the
operator’s suitability.
2.8
More detail is available in the Commission’s Policy Statement for Licensing, Compliance
and Enforcement.
Operating licence conditions and codes
2.9
Conditions covering a range of matters may be attached to operating licences. Some
conditions are set out on the face of the Act, such as the mandatory conditions relating
to society lotteries at s.99. The Secretary of State has powers under s.78 of the Act to
apply conditions to a class of operating licence – for example, the condition that
regulates the number of playing positions at wholly automated roulette tables in casinos.
The Commission also has powers to attach conditions either to a class of operating
licences, or an individual licence.
2.10
Breaching a licence condition is a criminal offence, although the Commission will default
to its regulatory rather than criminal powers when considering such a breach. Those
powers include warnings, unlimited fines and suspension or revocation of the licence.
2.11
The Commission also has the power to issue two type of code. The first is a social
responsibility (SR) code. An SR code must be followed and has the force of a licence
condition. The Commission may also issue ordinary codes (OC), which are intended to
set out best industry practice. They are not mandatory but operators are expected to
follow them unless they have alternative arrangements in place that they can
demonstrate are at least equally effective.
Personal licences
2.12
The purpose of the personal licence is to ensure that individuals who control facilities for
gambling or are able to influence the outcome of gambling, are directly accountable to
the Commission. The Commission can impose licence conditions that are specific to
personal licences. Such conditions include requirements that the holder takes
reasonable steps to avoid causing a breach of an operating licence, keeps up to date
with developments in gambling legislation or guidance, and informs the Commission of
certain specified key events.
2.13
Outside the casino industry, personal licences are usually held by people in key
management positions like strategy, marketing, finance and compliance. In the casino
industry, people providing the day to day gambling such as croupiers, also currently
need a personal licence.
2.14
Some licences are subject to a requirement that at least one member of management
holds a personal licence. This does not apply to small-scale operators, as defined in
regulations made by the Secretary of State1, who are exempt from the obligation.
Premises licences
2.15
Where an individual or company uses premises, or causes or permits premises to be
used, to offer gambling, they will also need to apply for a premises licence. Detailed
information concerning premises licences can be found in Parts 7, 9 and 10 of this
Guidance.
2.16
Premises licences, and the regulatory tools associated with them, are a key means by
which licensing authorities can ensure that risks to the licensing objectives are mitigated
effectively.
2.17
Premises licences can be granted without conditions or subject to conditions, and can
be reviewed or revoked by the licensing authority. Part 9 of this Guidance provides
some illustrations of how licence conditions have been used by licensing authorities in a
range of circumstances and a non-exhaustive list of premises licence conditions is
provided at Appendix F of this Guidance.
2.18
Premises licences are issued by the licensing authority with responsibility for the area in
which the premises are situated and may authorise the provision of facilities on:
• casino premises
• bingo premises
• betting premises, including tracks
• adult gaming centres
• family entertainment centres.
2.19
Except in the case of tracks (where the occupier of the track who holds the premises
licence may not be the person who actually offers the gambling), premises licences may
only be issued to those who hold a relevant operating licence, or who have applied for
one. Premises licences may be transferred to someone else holding a valid operating
licence.
2.20
In addition to licences, there are other forms of authorisation that a licensing authority
may grant, for example, authorisations for the temporary use of premises, occasional
use notices and different permits for unlicensed family entertainment centres, prize
gaming, gaming machines on alcohol-licensed premises and club gaming and club
machine permits.
1
SI2006/3266 – Reg 2 of the Gambling Act 2005 (Definition of Small-scale Operator) Regulations 2006
Part 3: The Gambling Commission
The Gambling Commission
3.1
The Commission is a Non-Departmental Public Body sponsored by the Department for
Culture, Media and Sport. It is governed by a board of Commissioners appointed by the
Secretary of State. The Commission is publicly funded, although its funding is derived in
the main from licence fees that holders of operating and personal licences are required
to pay, rather than coming from the Exchequer.
3.2
In common with licensing authorities, the Commission has a statutory duty to pursue
and have regard to the licensing objectives as set out in s.1 of the Act, and to permit
gambling so far as it thinks is reasonably consistent with them.
3.3
The Commission is required to publish and consult on a Statement of Principles for
Licensing and Regulation which sets out how the Commission approaches its regulatory
and other functions under the Act. This can be found at Statement of Principles for
Licensing and Regulation.
Main functions of the Commission
3.4
For the purposes of this Guidance, the Commission has the following principle statutory
functions:
• issuing operating and personal licences to gambling businesses and individuals
occupying certain positions in the gambling industry, with appropriate conditions,
and ensuring that holders of licences adhere to their terms
• publishing codes of practice
• publishing statutory guidance to licensing authorities
3.5
The Commission also has a duty to advise the Secretary of State on gambling and its
regulation. To ensure that the Commission is well placed to provide such advice, it
monitors developments in gambling in Great Britain and in other jurisdictions. It works
closely with a range of regulatory partners, including licensing authorities, and with
stakeholders including the industry itself, faith and community groups, and others with
concerns about gambling, Government Departments and bodies working in the field of
gambling research and problem gambling.
Relationship between the Commission and licensing authorities
3.6
The Commission works jointly with its regulatory partners to pursue the licensing
objectives. The Commission’s approach is one of partnership building and collaboration
through proactive engagement, regular up to date advice and support such as Quick
Guides and the LA Bulletin as well as intelligence sharing.
3.7
The Commission draws on the intelligence and insights of its regulatory partners, in
particular licensing authorities, who may well be better positioned to identify emerging
risks to the licensing objectives, or instances of illegality which can start at a local level.
By working closely together we are able to prevent such risks growing into a more
widespread problem and to ensure that both Commission and licensing authority
resources are used efficiently.
3.8
Since the Act was introduced a great deal of collective experience and insight has been
developed, enabling licensing authorities and the Commission to discharge their
separate, but sometimes overlapping, functions both more effectively and more
efficiently. This ongoing collaboration is vital in ensuring that compliant operators
understand the requirements of the regulatory framework and that where noncompliance and illegality occur, appropriate sanctions are applied to deter others and
uphold the licensing objectives. Case studies available on the Commission’s website
provide examples of successful multi-agency initiatives undertaken by the Commission
and its regulatory partners.
3.9
In addition to the Commission’s monthly bulletin that provides a summary of the key
issues affecting licensing authorities, we also provide support and guidance on specific
issues at forums and training events. We have a number of field based staff and have
set up the Local Authority Liaison Unit who able to assist licensing authorities with a
range of queries.
3.10
In addition to individual licensing authority liaison, the Commission aims to meet
regularly with representatives of licensing authorities such as the Local Government
Association (LGA), the Convention of Scottish Local Authorities (COSLA), the Welsh
Local Government Association (WLGA), the Society of Local Authority Lawyers and
Administrators (SOLAR), and the Institute of Licensing (IoL). These meetings provide
opportunities to discuss issues of concern, emerging trends and this Guidance.
Further information about the Commission
3.11
Further information about the Commission can be found on our website. This includes
Who we are and what we do – An introduction to the Commission. Documentation from
the Commission’s website which is particularly pertinent to licensing authorities is
identified through links within this Guidance.
Part 4: Licensing authorities
4.1
Licensing authorities (as defined in s.2 of the Act) are responsible for local gambling
regulation and the Act gives them responsibility for a number of regulatory functions in
relation to gambling activities. These include:
• issuing a statement of licensing policy (policy statement) setting expectations
about how gambling will be regulated in the area
• responsibility for licensing gambling premises
• the issue of permits to family entertainment centres (FEC) for the use of certain
lower stake gaming machines
• granting permits for prize gaming
• registering society lotteries that fall below certain thresholds
• regulating members’ clubs and miners’ welfare institutes which undertake certain
gaming activities
• setting and collecting fees.
4.2
The Act also provides a system of temporary and occasional use notices. These
authorise premises that are not licensed generally for gambling purposes to be used for
certain types of gambling, for limited periods. Parts 14 and 15 of this Guidance provide
more information on temporary and occasional use notices.
4.3
In exercising their statutory functions, licensing authorities have a broad discretion in
regulating the local provision of gambling through the wide ranging powers at their
disposal, including:
• issuing a statement of licensing policy, setting expectations about how gambling
will be regulated in a particular area
• granting, refusing and attaching conditions to premises licences
• reviewing premises licences and attaching conditions or revoking them as a
result.
Statutory framework
4.4
In addition to the Act, there is other legislation which licensing authorities should be
aware of.
Licensing Act 2003
4.5
Licensing authorities in England and Wales have responsibilities under the Licensing
Act 2003. There are some inter-dependencies between the Licensing Act 2003 and the
Act, in terms of the framework for decision making and the procedures that must be
followed. However, licensing authorities must take care to ensure that they follow the
procedures and only take into account issues that are relevant to the Act, when dealing
with applications under the Act. Particular care should be taken to distinguish
considerations made under the Act from those relevant to alcohol licensing, public
entertainment or late night refreshments.
Licensing (Scotland) Act 2005 2
4.6
2
The position in Scotland is similar, with procedures and decision making requirements
under both the Licensing (Scotland) Act 2005 and the Act. The same care must be
taken by licensing authorities in Scotland to consider only those issues which are
relevant to matters under the Act in their decision making, and to ensure that they follow
the prescribed procedures under the Act.
The Air Weapons and Licensing (Scotland) Bill is currently being considered by the Scottish Parliament. This may have
implications for the powers of licensing standards officers in Scotland.
Other provisions and legislation
4.7
Conditions on premises licences should relate only to gambling, as considered
appropriate in light of the principles to be applied by licensing authorities under s.153 of
the Act. Accordingly, if the Commission’s Licence Conditions and Codes of Practice
(LCCP) or other legislation places particular responsibilities or restrictions on an
employer or the operator of premises, it is not necessary or appropriate to impose
similar conditions on a premises licence issued in accordance with the Act.
4.8
Similarly, where other legislation confers powers on inspection and enforcement
agencies in relation to separate activities or concerns, the Act does not affect the
continued use of such powers, for example, the powers of an environmental health
officer in respect of statutory nuisance under the Environmental Protection Act 1990.
Licensing authority decisions
4.9
S.153 provides that licensing authorities shall aim to permit the use of premises for
gambling in so far as they think it is:
a. in accordance with any relevant code of practice under s.24
b. in accordance with any relevant guidance issued by the Commission under s.25
c. reasonably consistent with the licensing objectives (subject to a. and b. above),
and
d. in accordance with the Licensing Authority’s statement of licensing policy (policy
statement) (subject to a. to c. above).
4.10
Therefore, a licensing authority has no discretion in exercising its functions under Part 8
of the Act, to grant a premises licence where that would mean taking a course which it
did not think accorded with the Guidance contained in this document, any relevant
Commission code of practice, the licensing objectives or the licensing authority’s own
policy statement.
Delegations
4.11
The decision making powers of licensing authorities may be delegated, as set out in
s.154 of the Act for England and Wales and s.155 for Scotland. Decisions that are
delegated to a licensing committee, may be further delegated to a sub-committee, which
may then arrange for the decision to be taken by an officer of the authority.
4.12
It is open to licensing committees to choose not to delegate decisions. An important
consideration in determining whether any particular decision should be delegated will be
whether delegation might give rise to a risk of judicial review challenge, particularly on
the basis of appearance of bias.
4.13
The tables at Appendix H set out a summary of licensing authority delegations permitted
under the Act for England and Wales, and for Scotland.
Part 5: Principles to be applied by licensing authorities
Licensing objectives
5.1
In exercising their functions under the Act, particularly in relation to premises licences,
temporary use notices and some permits, licensing authorities must have regard to the
licensing objectives set out in s.1 of the Act, namely:
• 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
• protecting children and other vulnerable persons from being harmed or exploited
by gambling.
5.2
It is expected that the licensing authority will have set out their approach to regulation in
their policy statement, having taken into account local circumstances. This is dealt with
in more detail at Part 6.
Objective 1 : Preventing gambling from being a source of crime or
disorder, being associated with crime or disorder or being used to support
crime
5.3
Among other matters, licensing authorities may need to consider the location of
premises in the context of this licensing objective. For example, in considering an
application for a premises licence or permit that is in an area noted for particular
problems with disorder, organised criminal activity etc, the licensing authority should
think about what, if any, controls might be appropriate to prevent those premises being
associated with or used to support crime. That might include conditions on the premises
licence, such as a requirement for door supervisors. The requirement for conditions
might be determined by the operator’s own risk assessment or the local area profile
carried out by the licensing authority, as detailed in Part 6. A non-exhaustive list of
licence conditions is provided at Appendix F.
5.4
A licensing authority will need to consider questions raised by the location of gambling
premises when:
• formulating its statement of licensing policy
• receiving relevant representations to an application
• dealing with applications as a responsible authority in its own right
• considering applications before it.
5.5
In the context of gambling premises licences, licensing authorities should generally
consider disorder as activity that is more serious and disruptive than mere nuisance.
Factors to consider in determining whether a disturbance was serious enough to
constitute disorder would include whether police assistance was required and how
threatening the behaviour was to those who could see or hear it. There is not a clear
line between nuisance and disorder and the licensing authority should take the views of
its lawyers before determining what action to take in circumstances in which disorder
may be a factor.
5.6
Regulatory issues arising from the prevention of disorder are likely to focus almost
exclusively on premises licensing, rather than on operating licences. However, if there
are persistent or serious disorder problems that an operator could or should do more to
prevent, the licensing authority should bring this to the attention of the Commission so
that it can consider the continuing suitability of the operator to hold an operating licence.
5.7
Of course, licensing authorities are experienced in making judgements in relation to the
suitability of premises, particularly those for which they have responsibilities under the
Licensing Act 2003 / Licensing (Scotland) Act 2005, in which context they have wider
powers to also take into account measures to prevent nuisance.
5.8
In relation to preventing disorder, licensing authorities have the ability under s.169 of the
Act to attach additional conditions to premises licences, and are entitled to include a
requirement for door supervision, as provided for in s.178 of the Act. If a person
employed on door supervision would be required to hold a licence issued by the
Security Industry Authority (SIA), that requirement will have force as though it were a
condition on the premises licence. Further information on conditions on premises
licences can be found in Part 9 of this Guidance.
5.9
There are a number of voluntary initiatives that the gambling industry participates in to
address issues such as underage access, staff safety and security. These change from
time to time and licensing authorities are advised to check with local operators, for
example when conducting inspections, as to which (if any) scheme the operator is a
part of. Further information can often be found on the website of industry trade
associations 3.
5.10
Licensing authorities do not need to investigate the suitability of an applicant for a
premises licence, including in relation to crime. The issue of suitability will already have
been considered by the Commission, because any applicant (except occupiers of tracks
who do not propose to offer gambling themselves) will have to hold an operating licence
from the Commission before the premises licence can be issued. However, if the
licensing authority receives information during the course of considering a premises
licence application or at any other time, that causes it to question the suitability of the
applicant to hold an operating licence, these concerns should be brought to the
attention of the Commission without delay.
Objective 2 : Ensuring that gambling is conducted in a fair and open way
5.11
Generally the Commission would not expect licensing authorities to find themselves
dealing with issues of fairness and openness frequently. Fairness and openness is likely
to be a matter for either the way specific gambling products are provided and therefore
subject to the operating licence, or will be in relation to the suitability and actions of an
individual and therefore subject to the personal licence. However, if licensing authorities
suspect that gambling is not being conducted in a fair and open way this should be
brought to the attention of the Commission so that it can consider the continuing
suitability of the operator to hold an operating licence or of an individual to hold a
personal licence.
5.12
In relation to the licensing of tracks, the licensing authority’s role will be different from
other premises in that track owners will not necessarily have an operating licence. In
those circumstances the premises licence may need to contain conditions to ensure that
the environment in which betting takes place is suitable. Further information can be
found in Part 20 of this Guidance.
Objective 3 : Protecting children and other vulnerable persons from being
harmed or exploited by gambling
5.13
3
In exercising their powers under s.153, licensing authorities should consider whether
staff will be able to adequately supervise the gambling premises, as adequate staffing
levels is a factor to consider regarding the prevention of underage gambling. The
Commission would expect the operator and the licensing authority to work together to
consider how any impediments to the supervision of premises might be most
appropriately remedied. Supervision also applies to premises that are themselves not
For example, The Safe Bet Alliance’s Voluntary Code of Safety and Security National Standards for Bookmakers
age-restricted (eg bingo and family entertainment centre (FEC) premises) but which
make gambling products and facilities available.
5.14
Where a licensing authority considers the structure or layout of premises to be an
inhibition or potential inhibition to satisfying this licensing objective, the licensee should
consider what changes are required to ensure the risk is mitigated. Such changes might
include the positioning of staff or CCTV, the use of floor-walkers and the relocation of
the staff counter to enable direct line of sight. Licensing authorities will need to consider
the proportionality of changes to the physical layout in relation to other measures that
could be put in place.
5.15
If the operator fails to satisfy the licensing authority that the risks are sufficiently
mitigated, it may be appropriate to conduct a review of the premises licence.
5.16
In relation to casinos, the Commission has issued a code of practice on access to
casino premises by children and young persons, as provided for by s.176 of the Act.
The code of practice is available as part of the Licence Conditions and Codes of
Practice (LCCP) or as Gambling codes of practice - consolidated for all forms of
gambling. In accordance with s.176 of the Act, adherence to the code will be a condition
of the premises licence. Further information can be found in Parts 9 and 17 of this
Guidance.
5.17
The Act does not seek to prohibit particular groups of adults from gambling in the same
way that it prohibits children. The Commission does not seek to define ‘vulnerable
persons’ but it does, for regulatory purposes, assume that this group includes people
who gamble more than they want to, people who gamble beyond their means and
people who may not be able to make informed or balanced decisions about gambling
due to, for example, mental health, a learning disability or substance misuse relating to
alcohol or drugs.
5.18
Licensing authorities need to consider, in relation to particular premises, whether any
special considerations apply in relation to the protection of vulnerable persons. This
could be a local risk that is reflected in the licensing authority’s policy statement. Any
such considerations need to be balanced against the authority’s objective to aim to
permit the use of premises for gambling.
S.153 principles
5.19
S.153 of the Act provides that, in exercising its functions under Part 8 of the Act, a
licensing authority shall aim to permit the use of premises for gambling in so far as it
thinks it is:
a. in accordance with any relevant code of practice under s.24 (ie the LCCP)
b. in accordance with any relevant guidance issued by the Commission under s.25
(ie this Guidance)
c. reasonably consistent with the licensing objectives (subject to a. and b. above),
and
d. in accordance with the licensing authority’s statement of licensing policy (policy
statement) (subject to a. to c. above).
5.20
Whilst there is a presumption in favour of permitting the relevant premises to be used
for gambling, the licensing authority may not do so unless satisfied that such use would
be in accordance with this Guidance, any relevant Commission code of practice, its own
statement of licensing policy, and the licensing objectives.
5.21
In the unlikely event that a licensing authority perceives a conflict between a provision of
a Commission code of practice or this Guidance, and its own policy statement or view
as to the application of the licensing objectives, the structure of s.153 makes it clear that
the Commission’s codes and this Guidance take precedence.
5.22
In determining applications for premises licences, the Act explicitly sets out two
principles that licensing authorities should not have regard to :
• s.153 makes it clear that in deciding whether or not to grant a licence, a
licensing authority must not have regard to the expected demand for gambling
premises that are the subject of the application
• s.210 (1) of the Act states that ‘in making a decision in respect of an
application...a licensing authority should not have regard to whether or not a
proposal by the applicant is likely to be permitted in accordance with law relating
to planning or building’.
5.23
A licensing authority is therefore afforded significant scope to exercise its powers under
s.153 on the grounds that it does not encroach on the two principles set out above.
5.24
The requirements in s.153 are subject to the licensing authority’s power under s.166 to
resolve not to issue casino premises licences. This means that a resolution not to issue
a casino premises licence applies regardless of the matters set out in s.153.
Codes of Practice
5.25
The LCCP sets out the Commission’s general licence conditions and associated codes
of practice provisions under the Act. The codes of practice are set out within Part II of
the LCCP.
5.26
To assist licensing authorities in determining premises applications and inspecting
premises, all the codes of practice are also available as a single document. The codes
specify a number of requirements, many of which relate to social responsibility issues
and these may be of particular interest where a licensing authority has concern about
matters such as protection of the young and vulnerable. It should be noted that the
codes also apply to situations in which the gambling being offered is not normally the
responsibility of an operating licence holder. Examples include the code of practice for
equal chance gaming and the code for gaming machines in clubs and premises with an
alcohol licence.
Good practice in regulation
5.27
Under the Legislative and Regulatory Reform Act 2006, any person exercising a
specified regulatory function has a legal duty to have regard to the statutory principles of
good regulation 4 in the exercise of the function. These provide that regulatory activities
should be carried out in a way which is transparent, accountable, proportionate, and
consistent and should be targeted only at cases in which action is needed. The
Commission has regard to these principles in relation to its responsibilities and also has
regard to the requirements of the Regulators’ Code 5 (‘the Code’). The purpose of the
Code is to promote efficient and effective approaches to regulatory inspection and
enforcement which improve regulatory outcomes without imposing unnecessary
burdens on business.
5.28
The statutory principles of good regulation and the Code also apply to local authorities,
who are under a statutory duty to have regard to them when fulfilling their regulatory
functions under the Act 6.
5.29
Guidance produced by the Better Regulation Delivery Office seeks to assist local
authorities in interpreting the requirements of the Code, for example in developing their
4
Legislative and Regulatory Reform Act 2006, section 21
Regulators’ Code (previously the Regulators’ Compliance Code), Department of Business, Innovation and Skills, 2014, issued
under section 23 of the Legislative and Regulatory Reform Act 2006.
6
The Legislative and Regulatory Reform (Regulatory Functions) Order 2007, was amended by the Legislative and Regulatory
Reform (Regulatory Functions) (Amendment) Order 2009, which, amongst other things, extended the application of the 2007
Order to local authorities in Wales and Scotland exercising regulatory functions under the Gambling Act 2005 - see Parts 3 and 7.
5
Compliance and Enforcement Policy 7, and in delivering risk-based regulation in relation
to age restrictions 8.
Human Rights Act 1998
5.30
The Secretary of State has certified that the Act is compatible with the European
Convention on Human Rights. In considering applications, and taking enforcement
action under the Act, licensing authorities should bear in mind that they are subject to
the Human Rights Act 1998 and in particular:
• Article 1, Protocol 1 – peaceful enjoyment of possessions. A licence is
considered a possession in law and people should not be deprived of their
possessions except in the public interest
• Article 6 – right to a fair hearing
• Article 8 – respect for private and family life. In particular, removal or restriction
of a licence may affect a person’s private life
• Article 10 – right to freedom of expression.
Other considerations
5.31
Licensing authorities should not turn down applications for premises licences where
relevant objections can be dealt with through the use of conditions. In determining
applications for premises licences and permits, a licensing authority may request as
much information as it requires to satisfy itself that all the requirements set out at s.153
of the Act are met.
5.32
Licensing authorities must ensure that the application is in accordance with the relevant
code(s) of practice, this Guidance, the licensing objectives and the licensing authority’s
own policy statement. There is, therefore, significant scope for licensing authorities to
request additional information from the applicant where they have concerns about both
new applications and variations.
5.33
Where concerns remain, licensing authorities may choose to attach conditions to the
premises licence. Further details are provided in Part 9 and a non-exhaustive list of
licence conditions is included at Appendix F of this Guidance.
5.34
Licensing authorities should be aware that other considerations such as moral or ethical
objections to gambling are not a valid reason to reject applications for premises
licences. In deciding to reject an application, a licensing authority should rely on
reasons that demonstrate that the licensing objectives are not being, or are unlikely to
be, met, and such objections do not relate to the licensing objectives. An authority’s
decision cannot be based on dislike of gambling, or a general notion that it is
undesirable to allow gambling premises in an area (with the exception of the casino
resolution powers).
7
8
Template: Compliance and Enforcement Policy, Better Regulation Delivery Office. This template policy was developed by the
Local Better Regulation Office, with local authorities, to assist local authorities in developing a policy that is in line with the
requirements of the Regulators’ Compliance Code, or to review their existing policy. It is available on the BRDO website at
http://www.bis.gov.uk/brdo/resources/risk-based-regulation/compliance-policy
Age restricted products and services framework / updated April 2014 sets out an agreed set of shared responsibilities and
reasonable expectations for young people, their parents and carers, businesses, employees and regulators with regards to access
to age restricted products and services. The document forms the foundations of the Age restricted products and services: a code of
practice for regulatory delivery / updated April 2014
Part 6: Licensing authority policy statement
Introduction
6.1
S.349 of the Act requires all licensing authorities to prepare and publish a statement of
licensing principles that they propose to apply in exercising their functions under the
Act, commonly known as a policy statement. The policy statement forms the licensing
authority’s mandate for managing local gambling provision and sets out how the
licensing authority views the local risk environment and therefore its expectations in
relation to operators with premises in the locality.
6.2
The policy statement acts as the primary vehicle for setting out the licensing authority’s
approach to regulation having taken into account local circumstances. For example, a
licensing authority might identify the safeguarding of children as a key priority, in which
case its statement would set out those policies, procedures and control measures it
would expect licensees to follow to mitigate any risks relating to underage gambling.
6.3
Policy statements are likely to reflect differences in approach between different licensing
authorities. The statement made by a seaside town licensing authority, which may see
gambling businesses as an important part of its plans for growth and regeneration
based on regular influx of visitors, may well be significantly different from that of an
inner city authority, which may be more concerned with impact on the vulnerable. In this
respect, licensing authorities may find it helpful to make an assessment of the pattern of
gambling and associated risks to the licensing objectives in their own areas.
6.4
The Commission encourages licensing authorities to have a policy statement that is
genuinely reflective of local issues, local data, local risk and the expectations that a
licensing authority has of operators who either currently offer gambling facilities or wish
to do so in the future. The existence of a clear and robust policy statement provides
greater scope for licensing authorities to work in partnership with operators, other local
businesses, communities, and responsible authorities to identify and to proactively
mitigate local risks to the licensing objectives.
6.5
The policy statement can be reviewed and revised by the licensing authority at any time,
but must be produced following consultation with those bodies and persons set out in
s.349(3) of the Act. Regulations made by the Secretary of State, or Scottish Ministers in
Scotland, prescribe the form of statements, and the procedure to be followed in relation
to them and their publication, as detailed in paragraph 6.11 onwards.
6.6
Licensing authorities should ensure that the policy statement balances the need for a
degree of certainty on the part of gambling businesses with the need to remain
responsive to emerging risks. It should be evidence led, based on the principles outlined
below and reviewed at least every three years.
Fundamental principles
6.7
Licensing authorities have a duty to pursue the licensing objectives and all policy
statements should begin by stating the three licensing objectives (s.1 of the Act), which
the policy will promote:
• 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
• protecting children and other vulnerable persons from being harmed or exploited
by gambling.
6.8
The statement should also state that the licensing authority shall aim to permit the use
of premises for gambling as set out in s.153 of the Act.
6.9
It is expected that licensing authorities will regulate gambling in the public interest which
will be reflected in the policy statement.
6.10
While the policy statement may set out a general approach to the exercise of functions
under the Act, it should not override the right of any person to make an application and
to have that application considered on its merits. The exception to this is where the
licensing authority has passed a ‘no casino’ resolution under s.166(1) of the Act,
detailed in Part 17 of this Guidance. Additionally, the policy statement must not
undermine the right of any person to make representations on an application or to seek
a review of a licence where provision has been made for them to do so.
Form and content
6.11
The Gambling Act 2005 (Licensing Authority Policy Statement) (England and Wales)
Regulations 2006 (The Gambling Act 2005 (Licensing Authority Policy Statement)
(England and Wales) Regulations 2006) and The Gambling Act 2005 (Licensing
Authority Policy Statement) (Scotland) Regulations 2006 (The Gambling Act 2005
(Licensing Authority Policy Statement) (Scotland) Regulations 2006), (the regulations),
set out requirements as to the form and publication of licensing authority policy
statements and subsequent revisions of statements. In addition to those requirements,
this Guidance sets out certain information that the Commission considers should be
included in all licensing authority policy statements.
6.12
The regulations provide that the form of the statement can be determined by the
licensing authority itself, subject to the requirement that the policy statement must
contain an introductory section summarising the matters contained within the statement.
The introductory section must include:
• a description of the geographical area to which the policy statement applies,
which can be satisfied by including a plan of the area
• a list of the persons consulted in preparing the statement.
6.13
The policy statement should set out the activities that the licensing authority is able to
license.
6.14
The regulations also require the policy statement to set out specific matters in separate
sections relating to the principles to be applied by the licensing authority in exercising:
i.
its powers under s.157(h) of the Act to designate, in writing, a body which is
competent to advise it about the protection of children from harm
ii.
its powers under s.158 of the Act to determine whether a person is an interested
party in relation to a premises licence, or an application for or in respect of a
premises licence
iii.
the functions under s.29 and s.30 of the Act with respect to the exchanges of
information between it and the Commission, and the functions under s.350 of the
Act with respect to the exchange of information between it and the other persons
listed in Schedule 6 to the Act
iv.
the functions under Part 15 of the Act with respect to the inspection of premises
and the power under s.346 of the Act to institute criminal proceedings in respect
of the offences specified in that section
Each of these is set out in further detail below.
i. Competent authority for protection of children from harm
6.15
Under s.349 of the Act, the policy statement must set out the principles that the
licensing authority proposes to apply in exercising their functions. One of those
functions is to determine who will be competent to advise them about the protection of
children from harm and so the policy statement must contain a section that sets out the
principles the licensing authority will apply in designating a competent body.
6.16
In many licensing authority areas, the recognised competent body will be the local
Safeguarding Children Board in England and Wales, or the Child Protection Committee
in Scotland. However, the licensing authority has discretion to determine the most
appropriate competent body to advise it, and must consider which body best fulfils this
function. The policy statement should set out this consideration, or the criteria the
authority intends to use, in order to designate that body and confirm that designation in
writing.
6.17
A designated body is a responsible authority under s.157(h) of the Act. Licensing
authorities should engage fully with the designated body and provide sufficient
opportunity for them to be consulted on the development of the policy statement, as
they can offer valuable insight into the impact of gambling on children in the local area.
Licensing authorities might also opt to consult such groups as part of its own local area
profile, discussed at paragraph 6.47 onwards.
ii. Interested parties
6.18
Licensing authority policy statements must contain a section that sets out the principles
to be applied by the licensing authority to determine whether a person is an interested
party in relation to a premises licence, or in relation to an application for or in respect of
a premises licence.
6.19
S.158 of the Act defines interested parties as persons who, in the opinion of the
licensing authority:
a) live sufficiently close to the premises to be likely to be affected by the authorised
activities
b) have business interests that might be affected by the authorised activities
c) represent persons who satisfy paragraph a) or b).
6.20
It is a matter for the licensing authority to decide whether a person is an interested party
with regard to particular premises and that should be decided on a case by case basis.
However, the licensing authority should set out the principles it will apply in determining
whether a person is an interested party in its policy statement, and that may include
relevant factors it will take into account. For example, this could be the size of the
premises and the nature of the activities taking place as larger premises may be
considered to affect people over a broader geographical area compared with smaller
premises offering similar facilities.
6.21
Licensing authority policy statements should include guidance as to whom they consider
comes within the category of those who living sufficiently close to premises to be
affected by it or have business interests, that may be affected by it. For example, this
could include trade associations, trade unions, residents’ and tenants’ associations. It is
expected that the types of organisations that may be considered to have business
interests will be interpreted broadly to include, for example, partnerships, charities, faith
groups and medical practices.
iii. Exchange of information
6.22
Licensing authority policy statements must contain a section that sets out the principles
to be applied by the licensing authority in relation to the exchange of information with
the Commission (s.29 and s.30 of the Act) and other persons (s.350 of the Act).
6.23
S.29 of the Act enables the Commission to require information from licensing
authorities, including the manner in which the information is compiled, collated and the
form in which it is provided, providing that it:
• forms part of a register maintained under the Act
• is in the possession of the licensing authority in connection with a provision of
the Act.
6.24
S.350 of the Act allows licensing authorities to exchange information with other persons
or bodies for use in the exercise of functions under the Act. Those persons or bodies
are listed in Schedule 6(1) as:
• a constable or police force
• an enforcement officer
• a licensing authority
• HMRC
• the First Tier Tribunal
• the Secretary of State
• Scottish Ministers.
6.25
The licensing authority policy statement must set out how it will approach information
exchange with other persons or bodies under the Act, and whether it intends to
establish any protocols in this regard. The policy statement should also include the
authority’s approach to data protection and freedom of information, in particular, how
information will be protected, whether the confidentiality of those making
representations will be maintained, what information will be shared with other agencies
or persons and how information can be accessed by data subjects.
6.26
Further information regarding the exchange of information can be found in Part 13 of
this Guidance.
6.27
For the purposes of their policy statement, licensing authorities should confirm that they
will act in accordance with the relevant legislation and Guidance from the Commission
and will adopt the principles of better regulation (detailed at paragraph 5.27).
iv. Inspection and criminal proceedings
6.28
Licensing authority policy statements must contain a section that sets out the principles
to be applied by the licensing authority in exercising their inspection function (part 15 of
the Act) and in instigating criminal proceedings (s.346 of the Act).
6.29
The statutory principles of good regulation and the Regulators’ Code (paragraph 5.27)
apply to licensing authorities. This means that inspection and enforcement activities
must be carried out in a way which is transparent, accountable, proportionate,
consistent and targeted, and promotes efficient and effective regulatory approaches
which improve outcomes without imposing unnecessary burdens on business.
6.30
The policy statement should set out the principles to be applied by the licensing
authority in relation to inspections. It is recommended that licensing authorities adopt a
risk-based approach to inspection programmes and the policy statement should outline
the criteria the licensing authority will use to determine the level of risk in respect of
premises. Such an approach could include targeting high-risk premises which require
greater attention, whilst operating a lighter touch in respect of low-risk premises, so that
resources are more effectively concentrated on potential problem premises. If the
licensing authority has a local area profile, as outlined at paragraph 6.47 onwards
below, their inspection approach is likely to informed by it.
6.31
Many licensing authorities in England and Wales will have general enforcement policies
which are in accordance with the codes of practice developed with the Crown
Prosecution Service. Such licensing authorities may wish to refer to these codes in their
policy statement, in relation to the management of criminal cases.
6.32
Further guidance on licensing authorities’ compliance and enforcement responsibilities
is available in Part 36 of this Guidance. This has been developed following discussions
between the Commission, the police, licensing authorities and other law-enforcement
and regulatory agencies to agree respective roles in relation to particular types of
gambling and licensed premises.
Other matters to be considered
Relevant factors when considering applications and reviews
6.33
The policy statement should set out what factors it is likely to take into account when
considering applications for premises licences, permits and other permissions, and
when determining whether to review a licence. This may be informed by the licensing
authority’s local area profile and will include considerations such as the proximity of
gambling premises to schools and vulnerable adult centres, or to residential areas
where there may be a high concentration of families with children.
6.34
Although the policy statement should identify the factors to be considered, it should be
clear that each application or review will be decided on its merits. Importantly, if an
applicant for a premises licence can show how licensing objective concerns can be
overcome, the licensing authority will need to take that into account in its decision
making.
Statement regarding casino resolution
6.35
The policy statement should include details about how the licensing authority has taken
or will take a decision in relation to a casino resolution. A licensing authority may
resolve not to issue casino premises licences within its area. If it does so, the resolution
must be published in its policy statement (s.166(5) of the Act).
Other regulatory regimes
6.36
The policy statement should include a firm commitment to avoid duplication with other
regulatory regimes, so far as possible. For example, a range of general duties are
imposed on the self-employed, employers and operators of gambling premises, both in
respect of employees and of the general public, by legislation governing health and
safety at work and fire safety. Therefore such requirements do not need to be included
in the policy statement.
Demand for gaming premises
6.37
Previous legislation required that the grant of certain gambling permissions should take
account of whether there was unfulfilled demand for the facilities. This is no longer the
case and each application must be considered on its merits without regard to demand.
The policy statement should reflect the ‘aim to permit’ principle (s.153 of the Act) and
should not comment on whether there is demand for gambling premises.
6.38
However, the policy statement may comment on the location of premises and the
general principles it will apply in considering the location so far as it relates to the
licensing objectives. For example, a policy statement may set out that the licensing
authority will carefully consider applications for premises licences and whether there is a
need for condition(s) to mitigate risks, in respect of certain kinds of gambling located
very close to a school or a centre for gambling addicts, in light of the third licensing
objective. The policy statement must be clear that each case will be decided on its
merits and will depend to a large extent on the type of gambling that is proposed for the
premises.
Other information
6.39
Licensing authorities may wish to include other information in their policy statement to
ensure clarity on their approach to local regulation, particularly the factors that will not
be relevant to the exercise of their functions under the Act. This will ensure that
applicants or persons who wish to make representations have all the necessary
information to be able to do so, including what representations may not be relevant.
6.40
For example, licensing authorities may wish to explain in their policy statements that
any objections to new premises or requests for a review should be based on the
licensing objectives of the Act. The policy statement could make it clear that – unlike the
Licensing Act 2003 and the Licensing (Scotland) Act 2005 – the Act does not include
the prevention of public nuisance and anti-social behaviour as a specific licensing
objective.
Local risk assessments
6.41
The Commission’s Licence Conditions and Codes of Practice (LCCP) which were
revised and published in February 2015, formalise the need for operators to consider
local risks.
6.42
Social responsibility (SR) code 10.1.1 requires licensees to assess the local risks to the
licensing objectives posed by the provision of gambling facilities at each of their
premises, and have policies, procedures and control measures to mitigate those risks.
In undertaking their risk assessments, they must take into account relevant matters
identified in the licensing authority’s policy statement.
6.43
Licensees are required to undertake a local risk assessment when applying for a new
premises licence. Their risk assessment must also be updated:
• when applying for a variation of a premises licence
• to take account of significant changes in local circumstances, including those
identified in a licensing authority’s policy statement
• when there are significant changes at a licensee’s premises that may affect their
mitigation of local risks.
6.44
The new SR provision is supplemented by an ordinary code provision that requires
licensees to share their risk assessment with licensing authorities when applying for a
premises licence or applying for a variation to existing licensed premises, or otherwise
at the request of the licensing authority. Both provisions take effect from 8 May 2015.
6.45
Where concerns do exist, perhaps prompted by new or existing risks, a licensing
authority might request that the licensee share a copy of its own risk assessment which
will set out the measures the licensee has in place to address specific concerns. This
practice should reduce the occasions on which a premises review and the imposition of
license conditions is required.
6.46
Where a licensing authority’s policy statement sets out its approach to regulation with
clear reference to local risks, it will facilitate operators being able to better understand
the local environment and therefore proactively mitigate risks to the licensing objectives.
In some circumstances, it might be appropriate to offer the licensee the opportunity to
volunteer specific conditions that could be attached to the premises licence.
Local area profile
6.47
Licensing authorities will find it useful to complete their own assessment of the local
environment as a means of ‘mapping out’ local areas of concern, which can be
reviewed and updated to reflect changes to the local landscape. For the purpose of this
Guidance, we refer to such assessments as local area profiles. Completion of a local
area profile is not a requirement on licensing authorities but there are significant
benefits for both the licensing authority and operators, in having a better awareness of
the local area and risks. Importantly, risk in this context includes potential and actual
risks, thereby taking into account possible future emerging risks, rather than reflecting
current risks only.
6.48
An effective local area profile is likely to take account of a wide range of factors, data
and information held by the licensing authority and its partners. An important element of
preparing the local area profile will be proactive engagement with responsible
authorities as well as other organisations in the area that can give input to ‘map’ local
risks in their area. These are likely to include public health, mental health, housing,
education, community welfare groups and safety partnerships, and organisations such
as Gamcare or equivalent local organisations.
6.49
Good local area profiles will increase awareness of local risks and improved information
sharing, to facilitate constructive engagement with licensees and a more coordinated
response to local risks. The local area profile will help to inform specific risks that
operators will need to address in their risk assessment, discussed at paragraph 6.41
above, which will form a part of any new licence application, or an application to vary a
licence.
6.50
For example, an area might be identified as high risk on the basis that it is located within
close proximity to a youth centre, rehabilitation centre, or school. The licensing authority
might indicate, for example, that they would expect licensees to take appropriate steps
to ensure that advertising relating to their premises, or relating to events at their
premises, is not displayed at a time when children are likely to be near the premises.
The licensee would be reasonably expected to have sufficient controls in place to
mitigate associated risks in such areas and, if not, the licensing authority would consider
other controls themselves.
6.51
It is for licensing authorities to determine whether to include a local area profile within
the body of their policy statement or separately. If included in the policy statement, the
licensing authority’s view of local risks would be a consideration for local gambling
regulation in the context of s.153 of the Act. Licensing authorities may consider this is
best achieved by making reference to the local area profile, so that it can be reviewed
and updated without the need for full consultation.
6.52
There is no prescriptive template for a local area profile, as each assessment will be
influenced by local circumstances. However it is expected that that it will draw upon the
knowledge and expertise of responsible authorities and be updated on a regular basis
to reflect changes to the local environment.
6.53
As stated, there is no mandatory requirement to have a local area profile, but there are
a number of benefits:
• it enables licensing authorities to better serve their local community, by better
reflecting the community and the risks within it
• greater clarity for operators as to the relevant factors in licensing authority
decision making, will lead to improved premises licence applications, with the
operator already incorporating controls and measures to mitigate risk in their
application
• it enables licensing authorities to make robust but fair decisions, based on a
clear, published set of factors and risks, which are therefore less susceptible to
challenge
• it encourages a proactive approach to risk that is likely to result in reduced
compliance and enforcement action.
Declaration by licensing authority
6.54
Licensing authorities may wish to include a declaration in their policy statement which
sets out that, in producing the final policy statement, it has had regard to:
• the licensing objectives in the Act
• this Guidance issued by the Commission
• any responses from those consulted on its policy statement.
6.55
Licensing authorities should note that the regulations and this Guidance do not prevent
them from including any additional information that they consider necessary or helpful.
Consultation
6.56
In determining its policy statement, the licensing authority must give appropriate weight
to the views of those it has consulted. In deciding what weight to give, the factors to be
taken into account include:
• who is making the representations, the nature of their interest and their expertise
• relevance of the factors to the licensing objectives
• how many other people have expressed the same or similar views
• how far the representations relate to matters that the licensing authority should
be including in its policy statement.
6.57
A licensing authority should always be able to give reasons for the decisions it has
made following consultation. Having regard to this Guidance will be important for
consistency.
Consultation process
6.58
S.349(3) of the Act requires licensing authorities to consult with the following on their
policy statement or any subsequent revision:
• in England and Wales, the chief officer of police for the authority’s area
• in Scotland, the Chief Constable of the police force maintained for the police
area comprising that area
• one or more persons who appear to the authority to represent the interests of
persons carrying on gambling businesses in the authority’s area
• one or more persons who appear to the authority to represent the interests of
persons who are likely to be affected by the exercise of the authority’s functions
under the Act.
6.59
The list of persons to be consulted is deliberately wide. This enables licensing
authorities to undertake a comprehensive consultation exercise with anyone who may
be affected by or otherwise have an interest in their policy statement.
6.60
It is a matter for licensing authorities to develop their own consultation practices,
including the methods for consultation and who they consider it necessary to consult
with, which might include consultation with relevant local groups, business and
responsible authorities.
6.61
Any written consultation should follow best practice as set out by the Department for
Business, Innovation and Skills. Consultation responses should usually be published
within 12 weeks of the consultation closing. Where licensing authorities do not publish a
response within 12 weeks, they should provide a brief statement on why they have not
done so. Consultation documents could be provided on the licensing authority’s
website.
Reviewing and updating the policy statement
6.62
The licensing authority’s policy statement will have effect for a maximum of three years
and must be reviewed thereafter, but the licensing authority may review and alter the
policy at any time during the three year period. For example, licensing authorities will
need to consider if their policy statement should be reviewed in the event of a change of
policy, such as a change in local planning policy.
6.63
Where the policy statement is reviewed and changes proposed, licensing authorities
must consult on any revision.
Authorities should note that where a statement is revised, it is only the revision that
needs to be published and consulted on. So, for example, an authority may consult
6.64
separately on whether to pass a casino resolution and then subsequently publish the
resolution as part of the statement. This can be done without any need to review and
reopen consultation on the main body of the statement. The same would apply if the
licensing authority was updating its local area profile to take account of changing local
risks. Any revisions must be published and advertised in the same way as a new
statement.
6.65
The regulations referred to at paragraph 6.11 confirm that the form and content of
revisions to the policy statement can be determined by the licensing authority, subject to
the requirement that the revisions must include an introductory section at or near the
beginning, summarising the matters dealt with in the statement and listing the persons
consulted in preparing the revision.
6.66
Where the revision deals with any of the matters below, these must be presented in
separate sections:
1) the principles to be applied in exercising the powers under s.157(h) of the Act to
designate, in writing, a body which is competent to advise the authority about the
protection of children from harm
2) the principles to be applied by in exercising the powers under s.158 of the Act, to
determine whether a person is an interested party in relation to a premises
licence, or an application for or in respect of a premises licence
3) the principles to be applied in exercising functions under s.29 and 30 of the Act
with respect to the exchange of information between it and the Commission, and
the functions under s.350 of the Act with respect to the exchange of information
between it and the other persons listed in Schedule 6 to the Act
4) the principles to be applied in exercising the functions under Part 15 of the Act
with respect to the inspection of premises; and the powers under s.346 of the Act
to institute criminal proceedings in respect of the offences specified in that
section.
Advertisement and publication
Advertising the policy statement or revisions
6.67
Before a statement or revision comes into effect, the regulations referred to at
paragraph 6.11 require licensing authorities to publish a notice of their intention to
publish a statement or revision. The notice must:
• specify the date on which the statement or revision is to be published
• specify the date on which the statement or revision will come into effect
• specify the internet address where the statement or revision will be published
and the address of the premises at which it may be inspected
• be published on the authority’s website and in/on one or more of the following
places for at least four weeks before it comes into effect:
o a local newspaper circulating in the area covered by the statement
o a local newsletter, circular, or similar document circulating in the area
covered by the statement
o a public notice board in or near the principal office of the authority
o a public notice board on the premises of public libraries in the area
covered by the statement.
Publishing the policy statement or revisions
6.68
The regulations at paragraph 6.11 stipulate that the policy statement or any subsequent
revision, must be published on the licensing authority’s website and be made available
at reasonable times for inspection by members of the public at one or more public
libraries in the area covered by the statement or in other premises situated in that area.
The statement or revision must be published at least four weeks before it takes effect.
Additional information to be made available
6.69
In order to ensure that applicants and persons who wish to make representations have
the necessary information to be able to do so, the information set out below should be
made available by licensing authorities are part of their communication strategy.
6.70
It is open to licensing authorities to include any of this information in their policy
statement. However, they might think it more appropriate to make it available in another
form, such as on their website.
Registers
6.71
S.156 of the Act requires licensing authorities to maintain a register of the premises
licences that it has issued. The register must be made available, at any reasonable
time, to the public who may request copies of the entries. Authorities should ensure that
information regarding the location of the registers (ie on the website, in the council
offices etc), when they can be viewed, and the cost of obtaining copies is made
available to the public.
6.72
A database of premises licences is available on the Commission’s website (Database of
premises licences) and consists of information submitted by licensing authorities. The
register is published with the caveat that the Commission cannot provide any assurance
on the completeness and accuracy of this data. The Commission recommends that
licensing authorities should be contacted directly for accurate and up-to-date premises
information.
Fees
6.73
Under s.212(2)(d) of the Act, local authorities shall ‘aim to ensure that the income from
fees… as nearly as possible equates to the costs of providing the service to which the
fees relates’. Further information on fees setting in England, Wales and Scotland in
available in Part 36.
Applications
6.74
Licensing authorities should ensure that information is available on how to make
applications for licences and other permissions under the Act. In particular, it would be
helpful if licensing authorities ensure that a full list of responsible authorities and their
appropriate contact details is readily available. Application forms, where appropriate,
should also be made available. Licensing authorities should note that there are no
prescribed application forms for family entertainment centre, prize gaming or licensed
premises gaming machine permits. As such, the licensing authority will need to make
clear how applications for these permits should be made and in what form. Additionally,
licensing authorities will need to ensure that information regarding making
representations, and applying for a review of a premises licence, is also made available.
Statutory application forms and notices
6.75
There are a range of statutory application forms and notices that licensing authorities
are required to use as part of their gambling licensing responsibilities. A summary list of
these can be found in Appendix E. The forms and notices can be downloaded from the
Commission’s website www.gamblingcommission.gov.uk
Delegation
6.76
Information should be provided as to how functions are delegated under the Act (ie
whether decisions are to be taken by a licensing officer, licensing sub-committee or full
committee etc). A table setting out the scheme of delegation required by the Act may be
the most appropriate method for this and is located in Part 4 of this Guidance.
Part 7: Premises licences
7.1
Considering applications for premises licences is the main business of the licensing
authority in terms of local gambling regulation. Where an individual or company uses
premises, or causes or permits premises to be used to offer gambling, a premises
licence is required.
7.2
Premises licences are issued by the licensing authority with responsibility for the area in
which the premises are situated. Guidance on dealing with premises which are situated
in more than one licensing authority can be found at paragraph 7.10.
Premises
7.3
In accordance with s.150 of the Act, premises licences can authorise the provision of
facilities on:
a) casino premises
b) bingo premises
c) betting premises, including tracks and premises used by betting intermediaries
d) adult gaming centre (AGC) premises (for category B3, B4, C and D machines)
e) family entertainment centre (FEC) premises (for category C and D machines) –
the licensing authority may issue a FEC gaming machine permit, which
authorises the use of category D machines only.
7.4
By distinguishing between premises types, the Act makes it clear that the gambling
activity of the premises should be linked to the premises described. Thus, in a bingo
premises, the gambling activity should be bingo, with gaming machines as an ancillary
offer on the premises. This principle also applies to existing casino licences (but not to
licences granted under the Gambling Act 2005) and betting premises licences. The
Licence Conditions and Codes of Practice (LCCP) sets out in full the requirements on
operators. Subject to the gaming machine entitlements which various types of licence
bring with them (and except in the case of tracks), the Act does not permit premises to
be licensed for more than one of the above activities.
Meaning of premises
7.5
In the Act, ‘premises’ is defined as including ‘any place’. S.152 therefore prevents more
than one premises licence applying to any place. But, there is no reason in principle
why a single building could not be subject to more than one premises licence, provided
they are for different parts of the building, and the different parts of the building can
reasonably be regarded as being different premises. This approach has been taken to
allow large, multiple unit premises such as pleasure parks, tracks, or shopping malls to
obtain discrete premises licences, where appropriate safeguards are in place. However,
licensing authorities should pay particular attention if there are issues about sub-division
of a single building or plot and should ensure that mandatory conditions relating to
access between premises are observed.
7.6
In most cases the expectation is that a single building/plot will be the subject of an
application for a licence, for example, 32 High Street. But that does not mean that 32
High Street cannot be the subject of separate premises licences for the basement and
ground floor, if they are configured acceptably. Whether different parts of a building can
properly be regarded as being separate premises will depend on the circumstances.
The location of the premises will clearly be an important consideration and the suitability
of the division is likely to be a matter for discussion between the operator and the
licensing authority.
7.7
The Commission does not consider that areas of a building that are artificially or
temporarily separated, for example by ropes or moveable partitions, can properly be
regarded as different premises. If a premises is located within a wider venue, a licensing
authority should request a plan of the venue on which the premises should be identified
as a separate unit.
7.8
The Commission recognises that different configurations may be appropriate under
different circumstances but the crux of the matter is whether the proposed premises are
genuinely separate premises that merit their own licence – with the machine
entitlements that brings – and are not an artificially created part of what is readily
identifiable as a single premises.
7.9
The Act sets out that the type and number of higher stake gaming machines allowable
in premises is restricted according to the type of premises licence or permit granted. For
example, a converted casino licence allows for 20 gaming machines in categories B, C
or D. With the exception of AGCs and FECs, premises are not permitted to be used
exclusively for making gaming machines available, but rather to provide the gaming
facilities corresponding to the premises licence type. Further detail on gaming machines
is set out in Part 16 of this Guidance.
7.10
The Act states that an application must be made to a licensing authority in whose area
the premises are wholly or partly situated. In circumstances where the premises lie in
more than one licensing authority’s area, the operator should make their application to
just one of those authorities. As both licensing authorities are ‘responsible authorities’
under s.157 of the Act, the other licensing authority must be notified of the application
and is entitled to make representations. As a responsible authority, it has an opportunity
to pass relevant information about the premises to the licensing authority determining
the application. Further detail on responsible authorities is set out at Part 8 of this
Guidance.
7.11
Casino premises are subject to separate regulations, involving a two-stage application
process. Details of the two stage process can be found in Part 17 of this Guidance.
Vessels
7.12
The Act permits premises licences to be granted for passenger vessels. Separate
application forms are prescribed for vessels under the Premises Licences and
Provisional Statements Regulations. The definition of a vessel in s.353(1) of the Act is:
• anything (other than a seaplane or amphibious vehicle) designed or adapted for
use on water
• a hovercraft
• anything, or part of any place, situated on or in water.
7.13
This last part of the definition should be given a normal and sensible interpretation.
Structures which are an extension of the land are not vessels, even if they arch over
water. Thus, neither a pier nor a bridge is to be considered a vessel and they remain
premises under the Act. This is important because not all forms of permit are available
to vessels.
7.14
The Act allows pleasure boats to apply for premises licences. As with multi-purpose
buildings, the part of the vessel where gambling takes place will be licensed and the
usual restrictions on access for children will apply. The Act applies in relation to a vessel
that is not permanently moored or berthed, as if it were premises situated in a place
where it is usually moored or berthed. The relevant licensing authority for considering
an application for a premises licence in respect of a vessel is the authority for the area
in which it is usually moored or berthed.
7.15
Where a premises licence is sought in connection with a vessel which will be navigated
while licensable activities take place, the licensing authority should be concerned with
the promotion of the licensing objectives on board the vessel. It should not focus on
matters relating to safe navigation or operation of the vessel, the general safety of
passengers or emergency provision, all of which are subject to regulations which must
be met before the vessel is issued with its Passenger Certificate and Safety
Management Certificate.
7.16
Licences are not required for gambling if it takes place aboard a vessel engaged on an
international journey. Such gambling is exempted from the offences under the Act if the
vessel is on a journey which has taken it, or is intended to take it, into international
waters (so this includes cross-channel ferries). In the case of aircraft, no offence takes
place if the gambling takes place in international airspace.
7.17
This means that licensing authorities will have jurisdiction over gambling conducted on
vessels on all inland waterways, at permanent moorings, and on all aircraft on the
ground or in domestic airspace. If an ocean-going vessel is involved, authorities will
need to establish where the vessel has been, or is intending to go.
Vehicles
7.18
Vehicles (trains, road vehicles, aircraft, sea planes and amphibious vehicles, other than
a hovercraft) may not be the subject of a premises licence and therefore all forms of
commercial betting and gaming will be unlawful in a vehicle in Great Britain. Certain
allowances are made for private and non-commercial gaming or betting to take place in
a vehicle, but these are subject to a number of stringent requirements. These ensure
that, at no point, can the gambling become a commercial activity.
Access to premises
7.19
An issue that may arise when division of a premises is being considered is the nature of
the unlicensed area from which a customer may access a licensed gambling premises.
The precise nature of this public area will depend on the location and nature of the
premises. Licensing authorities will need to consider whether the effect of any division is
to create a machine shed-type environment with very large banks of machines, which is
not the intention of the access conditions, or whether it creates a public environment
with gambling facilities being made available.
7.20
The Gambling Act 2005 (Mandatory and Default Conditions) Regulations 9 set out the
access provisions for each type of premises. The broad principle is that there can be no
access from one licensed gambling premises to another, except between premises
which allow access to those under the age of 18 and with the further exception that
licensed betting premises may be accessed from other licensed betting premises.
Under-18s can go into FECs, tracks, pubs and some bingo clubs, so access is allowed
between these types of premises.
7.21
These Regulations define street as ‘including any bridge, road, lane, footway, subway,
square, court, alley or passage (including passages through enclosed premises such as
shopping malls) whether a thoroughfare or not’. This is to allow access through areas
which the public might enter for purposes other than gambling, for example, access to
casinos from hotel foyers.
7.22
There is no definition of ‘direct access’ in the Act or regulations, but licensing authorities
may consider that there should be an area separating the premises concerned, for
example a street or cafe, which the public go to for purposes other than gambling, for
there to be no direct access.
9
SI no 1409: The Gambling Act 2005 (Mandatory and Default Conditions) (England and Wales) Regulations 2007
SSI no 266: The Gambling Act 2005 (Mandatory and Default Conditions) (Scotland) Regulations 2007
7.23
The relevant access provisions for each premises type is as follows:
Type of premises
Casinos
AGCs
Betting shops
Tracks
Bingo premises
FECs
Access provisions
• the principal entrance to the premises must be from a
‘street’
• no entrance to a casino must be from premises that are
used wholly or mainly by children and/or young persons
• no customer must be able to enter a casino directly from
any other premises which holds a gambling premises
licence.
• no customer must be able to access the premises
directly from any other licensed gambling premises.
• access must be from a ‘street’ or from other premises
with a betting premises licence
• no direct access from a betting shop to another premises
used for the retail sale of merchandise or services. In
effect there cannot be an entrance to a betting shop from
a shop of any kind unless that shop is itself a licensed
betting premises.
• no customer must be able to access the premises
directly from a casino or AGC
• no customer must be able to access the premises
directly from a casino, an AGC or a betting premises,
other than a track
• no customer must be able to access the premises
directly from a casino, an AGC or a betting premises,
other than a track.
Access to gambling by children and young people
7.24
The Act contains the objective of ‘protecting children and other vulnerable persons from
being harmed or exploited by gambling’ and sets outs offences at s.46 and s.47 of
inviting, causing or permitting a child or young person to gamble, or to enter certain
gambling premises. Children are defined in the Act as under-16s and young persons as
16-17 year olds. An adult is defined as 18 and over.
7.25
Children and young persons may take part in private and non-commercial betting and
gaming, but the Act restricts the circumstances in which they may participate in
gambling or be on premises where gambling is taking place as follows:
• casinos are not permitted to admit anyone under 18
• betting shops are not permitted to admit anyone under 18
• bingo clubs may admit those under 18 but must have policies to ensure that they
do not play bingo, or play category B or C machines that are restricted to those
over 18
• AGCs are not permitted to admit those under 18
• FECs and premises with a liquor licence (for example pubs) can admit under18s, but they must not play category C machines which are restricted to those
over 18
• clubs with a club premises certificate can admit under-18s, but they must have
policies to ensure those under 18 do not play machines other than category D
machines
• all tracks can admit under-18s, but they may only have access to gambling
areas on days where races or other sporting events are taking place, or are
expected to take place. This was extended to other sporting venues under the
Gambling Act 2005 (Exclusion of Children from Track Areas) Order 2007. Tracks
will be required to have policies to ensure that under-18s do not participate in
gambling other than on category D machines.
7.26
Licensing authorities should take particular care in considering applications for multiple
licences for a building and those relating to a discrete part of a building used for other
(non-gambling) purposes. In particular, they should be aware that entrances and exits
from parts of a building covered by one or more licences should be separate and
identifiable so that the separation of different premises is not compromised and that
people do not ‘drift’ into a gambling area. The plan of the premises should clearly
denote entrances and exits.
7.27
It is a mandatory condition that under-18s should not have access to areas where
category B and C gaming machines are located and this is achieved through default
conditions that require the area to be:
• separated from the rest of the premises by a physical barrier which is effective to
prevent access other than by an entrance designed for that purpose
• supervised at all times to ensure that under-18s do not enter the area, and
supervised by either:
o one or more persons whose responsibilities include ensuring that under18s do not enter the areas
o CCTV monitored by one or more persons whose responsibilities include
ensuring that under-18s do not enter the areas
• arranged in a way that ensures that all parts of the area can be observed.
A notice must be displayed in a prominent place at the entrance to the area stating that
no person under the age of 18 is permitted to enter the area.
7.28
There are a range of other conditions which attach to each type of premises which are
set out in Part 9 of this Guidance and other Parts relating to each type of premises.
Multiple activity premises – layout and access
7.29
With the exception of bingo clubs, tracks on race-days and licensed FECs, children will
not be permitted to enter licensed gambling premises. Therefore businesses will need to
consider carefully how they wish to configure their buildings if they are seeking to
develop multi-purpose sites.
7.30
Licensing authorities should take particular care in considering applications for multiple
premises licences for a building and those relating to a discrete part of a building used
for other (non-gambling) purposes. In particular, they should be aware of the following:
• the third licensing objective seeks to protect children from being harmed or
exploited by gambling and premises should be configured so that children are
prohibited from participating in gambling, such that they are not invited to
participate in, have accidental access to, or closely observe gambling
• entrances to and exits from parts of a building covered by one or more premises
licences should be separate and identifiable so that the separation of different
premises is not compromised and people do not ‘drift’ into a gambling area. In
this context it should normally be possible to access the premises without going
through another licensed premises or premises with a permit
• customers should be able to participate in the activity named on the premises
licence.
7.31
In determining whether two or more proposed premises are truly separate, the licensing
authority should consider factors which could assist them in making their decision,
including:
• Is a separate registration for business rates in place for the premises?
• Is the premises' neighbouring premises owned by the same person or someone
else?
• Can each of the premises be accessed from the street or a public passageway?
• Can the premises only be accessed from any other gambling premises?
The Commission has published guidance to assist licensing authority officers when
considering applications for, and conducting inspections of, multi-activity premises 10.
7.32
Where a building consists of a number of areas which hold separate premises licences,
each individual licence must not exceed its permitted gaming machine entitlement. The
position is different for tracks, as detailed in Part 20.
7.33
The proper application of s.152 means that different premises licences cannot apply in
respect of single premises at different times. There is no temporal element to a
premises licence. Therefore, premises could not, for example, be licensed as a bingo
club on week days and a betting shop at weekends.
Single and combined licences
7.34
Only one premises licence may be issued for any particular premises at any time
although, in some circumstances, the licence may authorise more than one type of
gambling. For example, a bingo licence will also authorise the provision of gaming
machines. Details of the gambling permissible under each type of licence are set out in
the Act and in the premises specific parts of this Guidance.
7.35
The exception to this relates to tracks, that is a horse racing course, dog track or other
premises where races or sporting events take place, which may be subject to more than
one premises licence, provided each licence relates to a specified area of the track.
7.36
The Act sets out that there will be a main (betting premises) licence for the track, and, in
addition, subsidiary premises licences for other gambling activities may be issued. The
normal limitations in respect of access by children and young persons will apply,
although in relation to a premises licence for a track, children and young persons will be
permitted to enter track areas where facilities for betting are provided on days when dog
racing and/or horse racing takes place. This is subject to the rule that children and
young persons may not enter any area where gaming machines (other than category D
machines) are provided.
7.37
In principle there is no reason why multiple types of gambling should not co-exist on a
track (with the exception of a casino or AGC 11), but licensing authorities will want to
think about how the third licensing objective is delivered by the co-location of premises.
As with the granting of multiple licences in a single building, licensing authorities will
need to ensure that entrances to each type of premises are distinct and that under-18s
are excluded from gambling areas where they are not permitted to enter.
Applications
7.38
A summary of the application forms and statutory notices is provided at Appendix E
and the forms can be downloaded from the Commission’s website
www.gamblingcommission.gov.uk
7.39
An application for a premises licence may only be made by persons (which includes
companies or partnerships):
• who are aged 18 or over and
• who have the right to occupy the premises and
• who have an operating licence which allows them to carry out the proposed
activity. Details of operators that hold an operation licence are available on the
Commission’s website or
10 Multi-activity premises- a quick guide for licensing authorities, www.gamblingcommission.gov.uk
11
This is because of the access restrictions placed on tracks by Schedule 6, Part 1 of the Gambling Act 2005 (Mandatory and
Default Conditions) Regulations.
•
who have applied for an operating licence to allow them to carry out the
proposed activity. The premises licence cannot be determined until an operating
licence has been issued.
7.40
The exception to this is an applicant for a premises licence to allow a track to be used
for betting, as these applicants are not required to hold an operating licence if they are
merely providing space for other people to provide betting (and those other people hold
valid betting operating licences). However, if a track owner is also acting as a betting
operator, for example, running pool betting, they will have to have the relevant type of
operating licence.
7.41
An application must be made to the relevant licensing authority in the form prescribed in
regulations laid down by the Secretary of State or Scottish Ministers, and must be
accompanied by:
• the prescribed fee
• the prescribed documents namely a plan of the premises – the plan needs to be
to scale, however, a specific scale has not been prescribed.
Plans of premises
7.42
The licensing of premises is primarily a matter for local determination and is something
which the Commission is unlikely to comment on, unless it raises matters of wider or
national significance. However, there have been a limited number of occasions in which
an operator has applied for a variation to a premises licence in which the accompanying
plan of the premises has only contained an outline of the licensed premises and the exit
points without, for example, the location of the gaming machines and counter. We
therefore consider it beneficial, for both licensing authorities and operators, for us to set
out the issues involved and our understanding of the options available.
7.43
The Gambling Act 2005 (Premises Licences and Provisional Statements) Regulation
2007 (as amended) states that a plan must show:
• the extent of the boundary or perimeter of the premises
• where the premises include, or consist of, one or more buildings, the location of
any external or internal walls of each such building
• where the premises form part of a building, the location of any external or
internal walls of the building which are included in the premises
• where the premises are a vessel or a part of a vessel, the location of any part of
the sides of the vessel, and of any internal walls of the vessel, which are
included in the premises
• the location of each point of entry to and exit from the premises, including in
each case a description of the place from which entry is made or to which the
exit leads.
7.44
The Regulation states (other than in respect of a track) ‘...the plan must show the
location and extent of any part of the premises which will be used to provide facilities for
gambling in reliance on the licence’. However licensing authorities may consider that
this minimum requirement is not sufficient to satisfy them when determining if the
application is in accordance with s.153 principles, namely the licensing objectives, this
Guidance and the Commissions’ codes of practice – in particular the social
responsibility codes – and the licensing authorities’ own policy statement. If the
application and accompanying plan are insufficient, the licensing authority should ask
for more information from the applicant.
7.45
The premises plan itself is only one means by which the licensing authority may seek
reassurance that the requirements will be met. It may be that conditions attached to the
premises licence regarding lines of sight between the counter and the gaming
machines, staffing arrangements or security devices are a more effective method of
doing so. Local circumstances and concerns, and the layout of a particular premises,
will determine what is most appropriate for an individual application.
Notice of Application
7.46
The Secretary of State and Scottish Ministers have made regulations 12 requiring the
applicant to publish notice of their application and to notify responsible authorities and
other persons about the application. These also apply, with one or two modifications, in
relation to applications for provisional statements and some ancillary applications that
can be made in relation to a premises licence.
7.47
Notice must be given in three ways:
•
a notice placed outside the premises for 28 consecutive days in a place where it
can be read conveniently
•
in a newspaper or newsletter of local relevance, on at least one occasion within
ten days of the application being made
•
to all responsible authorities, which includes the Commission, within seven days
of the application being made.
7.48
A licence application, and any licence subsequently issued, is not valid if the relevant
notifications have not been made.
Application for Premises Variation (s.182(b)): ‘material change’
7.49
Previous guidance from the DCMS and the Commission has been that an application
for a variation will only be required where there are material changes to the layout of the
premises. What constitutes a material change will be a matter for local determination
but it is expected that a common sense approach will be adopted. When considering an
application for variations, the licensing authority will have regard to the principles to be
applied as set out in s.153 of the Act.
Representations
7.50
In dealing with an application, licensing authorities are obliged to consider
representations from two categories of person, referred to in the Act as ‘responsible
authorities’ and ‘interested parties’. Representations from other parties are inadmissible.
Further information on these categories can be found in Part 8 of this Guidance.
7.51
Having determined that the representation is admissible, the licensing authority must
consider its relevance. Only representations that relate to the licensing objectives, or
that raise issues under the licensing authority’s policy statement, or the Commission’s
Guidance or Codes of Practice, are likely to be relevant.
7.52
The licensing authority will also need to consider if representations are ‘frivolous’ or
‘vexatious’. This is a question of fact and licensing authorities are advised to seek help
from their legal advisers in interpreting these phrases although relevant considerations
may include:
• who is making the representation, and whether there is a history of making
representations that are not relevant
• whether it raises a ‘relevant’ issue
• whether it raises issues specifically to do with the premises that are the subject
of the application.
7.53
The Commission does not routinely make representations on premises licence
applications. However, the fact that the Commission has not made a representation on
12
SI No. 459: The Gambling Act 2005 (Premises Licences and Provisional Statements) Regulations 2007
SSI No. 196: The Gambling Act 2005 (Premises Licences and Provisional Statements)(Scotland) Regulations 2007
a particular premises licence application should not be taken as indicating the
Commission’s approval of that application. Exceptionally, where an application for a
premises licence, or the operation of a current premises licence, raises matters of wider
or national significance, the Commission will consider making representations or
requesting a review.
Making a decision
7.54
As explained earlier, the licensing authority’s primary obligation under s.153(1) is to
permit the use of premises in so far as it thinks that to do so is:
a. in accordance with any relevant code of practice issued by the Commission
b. in accordance with any relevant guidance issued by the Commission
c. reasonably consistent with the licensing objectives (subject to a. and b. above),
and
d. in accordance with the licensing authority’s statement of licensing policy (policy
statement) (subject to a. to c. above).
7.55
Further information and guidance as to the meaning and effect of s.153 is set out at
paragraph 5.19 above.
Consideration of planning permission and building regulations
7.56
In determining applications, the licensing authority should not take into consideration
matters that are not related to gambling and the licensing objectives. One example
would be the likelihood of the applicant obtaining planning permission or building
regulations approval for their proposal. Licensing authorities should bear in mind that a
premises licence, once it comes into effect, authorises premises to be used for
gambling. Accordingly, a licence to use premises for gambling should only be issued in
relation to premises that the licensing authority can be satisfied are going to be ready to
be used for gambling in the reasonably near future, consistent with the scale of building
or alterations required before the premises are brought into use. (Equally, licences
should only be issued where they are expected to be used for the gambling activity
named on the licence). This is why the Act allows a potential operator to apply for a
provisional statement if construction of the premises is not yet complete, or they need
alteration, or he does not yet have a right to occupy them. Part 11 of this Guidance
gives more information about provisional statements.
7.57
As the Court has held in a 2008 case 13, operators can apply for a premises licence in
respect of premises which have still to be constructed or altered, and licensing
authorities are required to determine any such applications on their merits. Such cases
should be considered in a two stage process; first, licensing authorities must decide
whether, as a matter of substance after applying the principles in s.153 of the Act, the
premises ought to be permitted to be used for gambling; second, in deciding whether or
not to grant the application a licensing authority will need to consider if appropriate
conditions can be put in place to cater for the situation that the premises are not yet in
the state in which they ought to be before gambling takes place.
7.58
For example, where the operator has still to undertake final fitting out of the premises
but can give a reasonably accurate statement as to when the necessary works will be
completed, it may be sufficient to simply issue the licence with a future effective date, as
is possible under the Regulations 14. The application form allows the applicant to
suggest a commencement date and the notice of grant allows the licensing authority to
insert a date indicating when the premises licence comes into effect. In other cases, it
may be appropriate to issue the licence subject to a condition that trading in reliance on
13
The Queen (on the application of) Betting Shop Services Limited –v- Southend-on-Sea Borough Council [2008] EWHC 105
(Admin)
SI 2007/459 Premises Licensing and Provisional Statements Regulations
SSI No 196: The Gambling Act 2005 (Premises Licences and Provisional Statements)(Scotland) Regulations 2007
14
it shall not commence until the premises have been completed in all respects in
accordance with the scale plans that accompanied the licence application. If changes to
the pre-grant plans are made, then parties who have made representations should be
able to comment on the changes made. Part 9 of this Guidance gives more information
about licence conditions.
7.59
If the plans submitted at the time of the application for a premises licence are changed
in any material respect during the fitting out of the premises after the grant of the
licence, then the applicant will be in breach of the licence. If the applicant wishes to
change the proposed plans after grant then, in order to avoid breaching the licence, it
will be necessary for the applicant to either make a fresh application under s.159 or
seek an amendment to a detail of the licence under s.187 of the Act. If there are
substantive changes to the plans then this may render the premises different to those
for which the licence was granted. In such a case, variation of the licence under s.187 is
not possible. For this reason, and while this is a matter of judgement for the licensing
authority, the Commission considers it would be more appropriate in the case of any
material post grant change, for the applicant to make a fresh application under s.159 to
preserve the rights of interested parties and responsible authorities to make
representations in respect of the application.
7.60
The local authority will need to be satisfied in any individual case that the completed
works comply with the original, or changed, plan attached to the premises licence.
Depending upon circumstances, this could be achieved either through physical
inspection of the premises or written confirmation from the applicant or surveyor that the
condition has been satisfied.
7.61
Requiring the building to be complete before trading commences would ensure that the
authority could, if considered necessary, inspect it fully, as could other responsible
authorities with inspection rights under Part 15 of the Act. Inspection will allow
authorities to check that gambling facilities comply with all necessary legal
requirements. For example, category C and D machines in a licensed family
entertainment centre must be situated so that people under 18 do not have access to
the category C machines. The physical location of higher stake gaming machines in
premises to which children have access will be an important part of this, and inspection
will allow the authority to check that the layout complies with the operator’s proposals
and the legal requirements.
7.62
If faced with an application in respect of uncompleted premises which it appears are not
going to be ready to be used for gambling for a considerable period of time, a licensing
authority ought to consider whether – applying the two stage approach advocated
above – it should grant a licence or whether the circumstances are more appropriate to
a provisional statement application. For example, the latter would be the case if there
was significant potential for circumstances to change before the premises opens for
business. In such cases, the provisional statement route would ensure that the limited
rights of responsible authorities and interested parties to make representations about
matters arising from such changes of circumstance are protected. Licensing authorities
may choose to discuss with individual applicants which route is appropriate, to avoid
them having to pay a fee for an application that the licensing authority did not think was
grantable.
7.63
When dealing with a premises licence application for finished buildings, the licensing
authority should not take into account whether those buildings have to comply with the
necessary planning or building consents. Nor should fire or health and safety risks be
taken into account. Those matters should be dealt with under relevant planning control,
building and other regulations, and must not form part of the consideration for the
premises licence. S.210 of the Act prevents licensing authorities taking into account the
likelihood of the proposal by the applicant obtaining planning or building consent when
considering a premises licence application. Equally, the grant of a gambling premises
licence does not prejudice or prevent any action that may be appropriate under the law
relating to planning or building.
Part 8: Responsible authorities and interested parties –
definitions
8.1
The Act sets out two categories of organisations and individuals that may feature in
applications for and reviews of premises licences, responsible authorities and interested
parties.
Responsible authorities
8.2
Responsible authorities are public bodies that must be notified of applications and that
are entitled to make representations to the licensing authority in relation to applications
for, and in relation to, premises licences.
8.3
S.157 of the Act identifies the bodies that are to be treated as responsible authorities.
They are:
(a) a licensing authority in England and Wales in whose area the premises is wholly
or partly situated
(b) the Gambling Commission
(c) the chief officer of police or chief constable for the area in which the premises is
wholly or partially situated
(d) the fire and rescue authority for the same area
(e) in England and Wales, the local planning authority, or in Scotland, the planning
authority
(f) the relevant authority as defined in s.6 of the Fire (Scotland) Act 2005
(g) an authority which has functions in relation to pollution to the environment or
harm to human health
(h) anybody, designated in writing by the licensing authority, as competent to advise
about the protection of children from harm
(i) HM Revenue & Customs
(j) any other person prescribed in regulations by the Secretary of State.
8.4
S.211(4) of the Act provides that in relation to a vessel, but no other premises,
responsible authorities also include navigation authorities, within the meaning of
s.221(1) of the Water Resources Act 1991, that have statutory functions in relation to
the waters where the vessel is usually moored or berthed, or any waters where it is
proposed to be navigated at a time when it is used for licensable activities. This would
include:
(a) the Environment Agency in England and Wales or the Scottish Environment
Protection Agency in Scotland
(b) the British Waterways Board
(c) the Secretary of State. In practice, this would be the Secretary of State for
Transport who acts through the Maritime and Coastguard Agency.
8.5
The Act includes a wide range of responsible authorities to ensure that all relevant
regulatory bodies and organisations are made aware of applications for gambling
premises licences or other permissions. Equally, a policy of wide dissemination of
applications allows responsible authorities to take action under their own legislation and
enforcement powers, even if there is no direct role for them in the premises licensing
process for gambling.
8.6
The Act contains no obligation on responsible authorities to respond to applications for
premises licences. For example, the Commission does not routinely make
representations on premises licence applications, although this should not be taken as
indicating the Commission’s approval of a particular application. Exceptionally, where
an application for a premises licence or the operation of a current premises licence
raises matters of wider or national significance, the Commission will consider making
representations or requesting a review. The Commission may also comment on an
application if it has particular observations about an operator.
8.7
Licensing authorities are required to set out their approach to their functions under the
Act in their policy statement. One of those functions is to determine who will be
competent to advise them about the protection of children from harm and the principles
for determining this must be set out in a separate section in their policy statement.
Licensing authorities should engage fully with the relevant designated body and consult
with them on the development of the policy statement. Further detail can be found in
Part 6 at paragraph 6.15 onwards.
8.8
The Secretary of State and Scottish Ministers may prescribe other responsible
authorities by means of regulations. For example, Scottish Ministers have prescribed
that a responsible authority under the Act includes an enforcing authority under the Fire
(Scotland) Act 2005.
Interested parties
8.9
S.158 of the Act defines interested parties. To accept a representation from an
interested party, the licensing authority must take the view that the person:
• lives sufficiently close to the premises to be likely to be affected by the
authorised activities
• has business interests that might be affected by the authorised activities
• represents persons in either of these two groups.
Licensing authorities will need to have regard to anything an interested party says about
their status to make representations.
8.10
The approach taken by licensing authorities in determining who is an interested party
should be dealt with in their policy statement. As with responsible authorities,
regulations require this information to be in a separate section of the policy statement,
as outlined in Part 6 at paragraph 6.18 onwards.
8.11
The following gives further advice on how licensing authorities can determine whether
someone is an interested party.
People living close to the premises
8.12
There are a number of factors that licensing authorities should take into account when
determining whether a person ‘lives sufficiently close to the premises’. These might
include:
• the size of the premises
• the nature of the premises
• the distance of the premises from the location of the person making the
representation
• the potential impact of the premises such as the number of customers, routes
likely to be taken by those visiting the establishment
• the circumstances of the person who lives close to the premises. This is not their
personal characteristics, but their interests which may be relevant to the
distance from the premises.
8.13
Relevant factors will depend on the particular application. For example, it is reasonable
for a licensing authority to consider that living sufficiently close to premises to likely be
affected could have a different meaning for (a) a private resident, (b) a residential
school for children with truanting problems and (c) a residential hostel for vulnerable
adults.
The nature and scope of business interests that could be affected
8.14
It could be argued that any gambling business could be affected by another gambling
business expanding into any part of Great Britain. But that is unlikely to be enough to
satisfy the test of being ‘a person with business interests that might be affected by the
premises’ under consideration. For example, an operator in a particular sector be it
casino, bingo, betting etc, should not be able to lodge representations on every
application put in by a rival operator anywhere in the country, simply because they are
in competition within the same gambling sector. Specifically, licensing authorities are
reminded that the ‘demand test’ from previous gambling legislation does not apply
under the Act.
8.15
The licensing authority should be satisfied that the relevant business is likely to be
affected. Factors that are likely to be relevant include:
• the size of the premises
• the ‘catchment’ area of the premises, that is, how far people travel to visit the
premises
• whether the person making the representation has business interests in that
catchment area that might be affected.
People representing those in the above categories
8.16
Interested parties can be people who are democratically elected such as councillors and
MPs, as persons representing individuals in the other categories. This would include
county, parish and town councillors. Other representatives might include bodies such as
trade associations and trade unions, and residents’ and tenants’ associations. A school
head or governor might act in representing the interests of pupils or parents and a
community group might represent vulnerable people living near to the proposed
premises.
8.17
Save for democratically elected persons, licensing authorities should satisfy themselves
on a case by case basis that a person does represent interested parties, and request
written evidence where necessary. A letter from the interested person(s) they are
representing would be sufficient.
Part 9: Premises licence conditions
9.1
The Act provides that licences may be subject to conditions in a number of ways:
• they may attach automatically, having been set out on the face of the Act
• they may attach through regulations made by the Secretary of State or Scottish
Ministers
• they may be attached to operating and personal licences by the Commission
• they may be attached to premises licences by licensing authorities.
9.2
Conditions may sometimes be general in nature attaching to all licences or all licences
of a particular class, or they may be specific to a particular licence.
9.3
Conditions on premises licences should relate only to gambling, as considered
appropriate in the light of the principles to be applied by licensing authorities under
s.153. Accordingly, if the Commission’s Licence Conditions and Codes of Practice
(LCCP) or other legislation places particular responsibilities or restrictions on an
employer or the operator of premises, it is not appropriate to impose the same through
conditions on a premises licence.
Conditions and authorisations by virtue of the Act
9.4
The following paragraphs set out specific sections of the Act that provide for conditions
to be attached automatically to premises licences, or for authorisations to be granted
automatically. The Secretary of State / Scottish Ministers may make regulations
requiring these conditions to be set out on the premises licence, and there is no
discretion to decide not to include them or to modify them. The table after paragraph
9.18 summarises which sections of the Act apply to which types of premises licences.
S.172 – number of gaming machines
9.5
S.172 provides for premises licences to permit a specified number of gaming machines
of particular categories in each type of gambling premises. These permissions are set
out in detail in Part 16 of this Guidance.
S.173 – betting on virtual events
9.6
S.173 authorises the holder of a casino premises licence or a betting premises licence
to make facilities available for betting on virtual events. This is separate from betting on
virtual events by means of a gaming machine. It is intended to cover facilities such as
virtual horse and greyhound racing which are person-to-person transactions, involving
virtual images that are not displayed on a machine.
S.174 – gambling in addition to casino games
9.7
S.174 authorises the holder of a casino premises licence for a small or large casino to
make available the following types of gambling in addition to casino games:
• equal chance games
• betting – but not in pre-2005 Act casinos with grandfather rights and only with a
betting operating licence
• bingo – but only in large casinos and only with a bingo operating licence.
9.8
For the purposes of the Act, equal chance games are ones which do not involve playing
or staking against a bank and in which the chances are equally favourable to all players.
Licensing authorities must not restrict the equal chance gaming available nor prohibit
casino games that have not been prohibited by the Commission. Part 17 of this
Guidance provides details of the casino games authorised by the Commission.
S.176 – access by children and young persons
9.9
S.176 requires the Commission to issue at least one code of practice about access to
casino premises for children and young persons. In particular, the code must:
• specify steps that the premises licence holder must take to ensure that under18s do not enter casino premises, including ensuring that each entrance to the
casino is supervised by at least one person who is responsible for compliance
with the code of practice
• require that, unless the supervisor is certain that a person seeking admittance is
an adult, evidence of age must be provided by those seeking to enter the casino
or gambling area.
9.10
S.176 makes it a condition of the premises licence that the licensee must comply with
the code of practice issued by the Commission. Licensing authorities should note that
the requirement under s.176 for supervision at each entrance is separate to any other
condition that may be attached relating to ‘door supervision’ more generally.
S.177 – giving of credit
9.11
S.177 attaches a condition to casino premises licences and bingo premises licences
that prohibits the licensee from:
• giving credit in connection with the gambling taking place on the premises
• participating in, arranging, permitting or knowingly facilitating the giving of credit
in connection with the gambling on the premises.
9.12
However, s.177 does not prevent the licensee from contracting a third party to install
cash dispensers (ATMs) on their premises, which may accept both credit and debit
cards. Such an arrangement is subject to requirements that the premises licence holder
has no other commercial connection in relation to gambling with the provider of the
ATMs (aside from the agreement to site the machines), does not profit from the
arrangement, and does not make any payment in connection with the machines. All
premises licences also include a mandatory condition which requires that any ATM
made available for use on the premises must be located in a place that requires any
customer who wishes to use it to cease gambling in order to do so 15.
9.13
S.177 deals with the prohibition of credit in respect of casino and bingo premises
licences. However equivalent prohibitions are placed on bingo and casino operating
licences, as set out in s.81 of the Act, credit and inducements.
S.178 – door supervision
9.14
If a licensing authority attaches a condition relating to door supervision, and the person
carrying out those duties are required by the Private Security Industry Act 2001 (PSIA)
to hold a licence, s. 178 of the Gambling Act 2005 prescribes that the requirement
under PSIA will be treated as if it were a condition of the premises licence. There is,
however, an exemption from the PSIA licensing requirement for in-house employees
working as door supervisors at casino and bingo premises, details of which can be
found in Part 33 of this Guidance.
9.15
S.178 defines door supervision as requiring someone to be responsible for ‘guarding
the premises against unauthorised access or occupation, against outbreaks of disorder
or against damage’.
15
Part 1(5) of The Gambling Act 2005 (Mandatory and Default Conditions) Regulations
S.179 – pool betting
9.16
S.179 provides that a betting premises licence in respect of a track may not authorise
pool betting to take place, other than in respect of dog or horse racing and only where
the acceptance of bets is by the holder of the betting premises licence, or in accordance
with arrangements made by them. In the case of dog racing, this preserves the existing
arrangements at dog tracks where the totalisator is operated by or on behalf of the
occupier of the track. In the case of horse racing, pool betting can only be made
available at racetracks by Betfred following their purchase of the Tote. As part of the
sale process Betfred received an exclusive seven year licence (until July 2018) to
operate pool betting operations on UK racecourses.
S.182 – access by children and young persons
9.17
S.182 applies only to a betting premises licences in respect of tracks. It requires the
licensee to ensure that children and young persons are excluded from any area in which
facilities for betting are provided and from any area where a gaming machine (other
than a category D gaming machine) is situated. The exception to this, for betting areas
only, is on race days at dog and horse racing tracks, that is on those days when racing
occurs or is expected to take place. In those cases, under-18s may have access to
betting areas but licensing authorities should note that this exception does not affect the
prohibition on betting by children and young persons.
S.183 – Christmas day
9.18
S.183 applies a condition to all premises licences that facilities for gambling must not be
provided on Christmas Day, namely the period of 00.01 hours on 25 December until
00.00 hours on 26 December.
Type of premises
licence
All premises licences
Bingo premises licence
Casino premises licence
Small casinos
Large casinos
Betting premises licence
Betting premises licence
in respect of a track
s.172
X
s.173
s.174
X
Section of the Act
s.176 s.177 s.178
X
X
X
X
s.179
s.182
X
X
s.183
X
X
X
X
Conditions attached through regulations made by the Secretary
of State or Scottish Ministers – all premises
9.19
The Secretary of State and Scottish Ministers have set out conditions to be attached to
all premises licences in the Gambling Act 2005 (Mandatory and Default Conditions)
(England and Wales) Regulations 2007 and the Gambling Act 2005 (Mandatory and
Default Conditions) (Scotland) Regulations 2007.
9.20
Conditions under these regulations fall into two categories:
• mandatory conditions made under s.167 of the Act that must be attached to
premises licences
• default conditions made under s.168 of the Act, that attach to the premises
licence unless the licensing authority decides to exclude them, using its powers
under s.169.
9.21
Licensing authorities should note that mandatory conditions made under these
regulations are set with the intention that no further regulation in relation to that matter is
required. Therefore, it is extremely unlikely that licensing authorities will need to impose
individual conditions in relation to matters that are already dealt with by mandatory
conditions. Licensing authorities should only consider doing so where there are
regulatory concerns of an exceptional nature, and any additional licence conditions
must relate to the licensing objectives.
9.22
Mandatory conditions applying to all premises licences are set out at paragraph 9.25
onwards. In addition, there are mandatory conditions that relate to particular category of
premises licences. Details of these can be found in Parts 17-22 of this Guidance.
9.23
Licensing authorities have more flexibility in relation to default conditions and may
exclude a default condition and substitute it with one that is either more or less
restrictive. Licensing authorities should note, however, that default conditions are
intended to reflect normal industry operating practices. In circumstances where default
conditions are excluded, the Commission would generally expect them to be replaced
by other conditions, given the requirements of s.153. Where the condition is more
restrictive, the licensing authority should ensure that they have clear regulatory reasons
doing so.
9.24
Default conditions under the regulations set out above relate to particular categories of
premises licence and details can be found in Parts 17-22 of this Guidance.
Mandatory conditions
9.25
The following mandatory conditions apply to all premises licences:
• the summary of the terms and conditions of the premises licence issued by the
licensing authority must be displayed in a prominent place on the premises
• the layout of the premises must be maintained in accordance with the plan that
forms part of the premises licence
• neither National Lottery products nor tickets in a private or customer lottery may
be sold on the premises.
9.26
There are also mandatory conditions attaching to each type of premises licence
controlling access between premises. There can be no direct access between one
premises licensed under the Act and another premises licensed under the Act, with the
following exceptions:
• between licensed betting premises
• between bingo premises and alcohol-licensed premises/clubs with a club gaming
or club machine permit/family entertainment centres (FECs) and tracks
• between tracks and alcohol-licensed premises/clubs with a club gaming or club
machine permit/FECs/betting premises and bingo premises
• between FECs and alcohol-licensed premises/bingo halls/clubs with club gaming
or club machine permit and tracks.
Default conditions
9.27
S.169 of the Act gives licensing authorities:
• the ability to exclude from premises licences any default conditions that have
been imposed under s.168
• the power to impose conditions on premises licences that they issue.
9.28
Licensing authorities should make decisions on conditions on a case-by-case basis, and
in the context of the principles of s.153. They must aim to permit the use of premises for
gambling and so should not attach conditions that limit their use except where it is
necessary in accordance with the licensing objectives, the Commission’s codes of
practice and this Guidance, or their own policy statement. Conversely, licensing
authorities should not turn down applications for premises licences where relevant
objections can be dealt with through the use of conditions.
9.29
Licensing authority policy statements will need to consider the local circumstances
which might give rise to the need for conditions. Where there are specific risks
associated with a particular locality, the licensing authority might decide to attach
conditions to the premises licence to mitigate those risks. For example, local issues
associated with a high crime rate may put a premises at risk of not being consistent with
the licensing objectives, and specific conditions may be necessary to address the risk.
9.30
Where there are risks associated with a specific premises or class or premises, the
licensing authority may consider it necessary to attach conditions to the licence to
address those risks, taking account of the local circumstances.
9.31
Conditions imposed by the licensing authority must be proportionate to the
circumstances which they are seeking to address. In particular, licensing authorities
should ensure that the premises licence conditions are:
• relevant to the need to make the proposed building suitable as a gambling
facility
• directly related to the premises (including the locality and any identified local
risks) and the type of licence applied for
• fairly and reasonably related to the scale and type of premises
• reasonable in all other respects.
Conditions that may not be attached to premises licences by
licensing authorities
9.32
The Act sets out certain matters that may not be the subject of conditions:
• s.169(4) prohibits a licensing authority from imposing a condition on a premises
licence which makes it impossible to comply with an operating licence condition
• s.172(10) provides that conditions may not relate to gaming machine categories,
numbers, or method of operation
• s.170 provides that membership of a club or body cannot be required by
attaching a condition to a premises licence (the Act specifically removed the
membership requirement for casino and bingo clubs and this provision prevents
it being reinstated)
• s.171 prevents a licensing authority imposing conditions in relation to stakes,
fees, winnings or prizes.
Part 10: Review of premises licence by licensing authority
10.1
A premises licence may be reviewed by the licensing authority of its own volition or
following the receipt of an application requesting a review from a responsible authority
or an interested party (as defined in s.157 and s.158 of the Act). Licensing authorities
should note that reviews cannot be delegated to an officer of the licensing authority –
the lowest level of delegation permitted is to a licensing sub-committee.
10.2
The ‘aim to permit’ framework provides wide scope for licensing authorities to review
premises licences where there is an inherent conflict with the Commission’s codes of
practice and this Guidance, the licensing objectives or the licensing authorities own
policy statement. Whilst the Act does not provide a pre-defined list of issues that might
prompt a licence review, it is expected that the licensing authority will have set out its
view on local issues and priorities that underpin its approach to regulation in its policy
statement in any event, which might then prompt a review.
10.3
Licensing authorities are expected to act in a manner that is in accordance with the
powers set out under the Act. This means that licensing authority actions, including
reviews, should be in pursuit of the principles set out in s.153 of the Act or underpinned
by reasonable concerns, such as changes to the local environment or resident
complaints.
10.4
Licensing authorities might consider it prudent to have constructive discussions with
operators about any such concerns, prior to discharging its powers. To this end, the
operator might be asked to provide the licensing authority with its own local risk
assessment (as provided for under ordinary code 10.1.2 of the Licence Conditions and
Codes of Practice (LCCP)) which sets out the controls it has put in place to mitigate
risks, or to offer suggestions as to the nature of conditions that could be placed on the
premises licence. The licensing authority has the right to exercise its powers under the
Act, if the operator does not offer reasonable or practical suggestions for mitigating
risks.
Initiation of review by licensing authority
10.5
S.200 of the Act provides that licensing authorities may initiate a review in relation to a
particular premises licence or a particular class of premises licence. Licensing
authorities may wish to consider in their scheme of delegations who initiates reviews,
and any checking system of that to prevent unwarranted reviews from being conducted.
10.6
In relation to a class of premises, the licensing authority may review the use made of
premises and, in particular, the arrangements that premises licence holders have made
to comply with licence conditions. In relation to these general reviews, it is likely that the
licensing authority will be acting as a result of concerns or complaints about particular
types of premises, which may result in them looking at, for example, default conditions
that apply to that category of licence.
10.7
In relation to particular premises, the licensing authority may review any matter
connected with the use made of the premises if:
• it has reason to suspect that premises licence conditions are not being observed
• the premises is operating outside of the principles set out in the licensing
authority’s policy statement
• there is evidence to suggest that compliance with the licensing objectives is at
risk
• for any other reason which gives them cause to believe that a review may be
appropriate, such as a complaint from a third party.
10.8
A formal review would normally be at the end of a process of ensuring compliance by
the operator(s) which might include an initial investigation by a licensing authority
officer, informal mediation or dispute resolution. If the concerns are not resolved then,
after a formal review, the licensing authority may impose additional conditions or revoke
the licence.
10.9
The licensing authority must give written notice to the licence holder and responsible
authorities that it intends to undertake a review and must also publish notice of its
intention to carry out the review. The Gambling Act 2005 (Premises Licences)(Review)
Regulations 2007 and the Gambling Act 2005 (Review of Premises Licences)(Scotland)
Regulations 2007 (the review regulations) require the licensing authority to display
notice at a place which is as near as reasonably practicable to the relevant premises or
where it can be conveniently read by members of the public. The notice must be
displayed for no less than 28 consecutive days, starting on the day that the licensing
authority gives notice to the holder of the premises licence.
10.10 In addition, the notice must be published either:
• in a local newspaper or, if there is none, a local newsletter, circular or similar
document within the licensing authority’s area, at least once during the period of
ten working days from the day on which the licensing authority gives notice to
the holder of the premises licence, or
• on the licensing authority’s internet website for no less than 28 consecutive days,
starting on the day that the licensing authority gives notice to the holder of the
premises licence.
Application for a review
10.11 S.197 of the Act provides that an application for review may be made by a responsible
authority or an interested party, detailed in Part 8 of this Guidance. Such applications
must be submitted to the licensing authority in the prescribed form and state the
reasons why a review is being requested, together with any supporting information and
documents.
10.12 The review regulations require the applicant to provide written notice of their application
to the premises licence holder and to all responsible authorities, within seven days of
making their application. Failure to do so will halt the application process until notice is
received by all parties.
10.13 Representations must be made within 28 days, commencing seven days after the date
on which the application was received. During these seven days the licensing authority
is required to publish notice of the application, as per the process set out in the review
regulations referred to in paragraph 10.9.
Decision whether to grant an application for a review
10.14 S.199 provides that a licensing authority must grant an application for a review, unless it
decides to reject the application under s.198 of the Act. By virtue of s.198, an
application may, but need not, be rejected if the licensing authority thinks that the
grounds on which the review is sought:
a) are not relevant to the principles that must be applied by the licensing authority
in accordance with s.153, namely the licensing objectives, the Commission’s
codes of practice and this Guidance, or the licensing authority’s policy statement
b) are frivolous
c) are vexatious
d) ‘will certainly not’ cause the licensing authority to revoke or suspend a licence or
to remove, amend or attach conditions on the premises licence
e) are substantially the same as the grounds cited in a previous application relating
to the same premises
f) are substantially the same as representations made at the time the application
for a premises licence was considered.
10.15 In the case of e) and f), the licensing authority shall take into account the period of time
that has passed since the previous application or representations were made, in
deciding whether this is a reasonable basis for not reviewing the licence.
10.16 As licensing authorities are required to permit the use of premises for gambling, insofar
as it is in accordance with the s.153 principles, applications that raise general objections
to gambling as an activity, that relate to demand for gambling premises, or raise issues
relating to planning, public safety, and traffic congestion are unlikely to be considered
an appropriate basis for review, leading to rejection under a) above.
10.17 The decision to grant a review must not amount to pre-judging the outcome of a review.
Carrying out a review
10.18 Having given notice of their intention to initiate a review or having decided to grant a
review following an application, s.201 of the Act requires the licensing authority to carry
out the review as soon as possible after the 28 day period for making representations
has passed.
10.19 The purpose of the review will be to determine whether the licensing authority should
take any action in relation to the licence, namely:
• add, remove or amend a licence condition imposed by the licensing authority
• exclude a default condition imposed by the Secretary of State or Scottish
Ministers (for example, relating to opening hours) or remove or amend such an
exclusion
• suspend the premises licence for a period not exceeding three months
• revoke the premises licence.
10.20 In particular, the licensing authority may take the above action on the grounds that a
premises licence holder has not provided facilities for gambling at the premises. This is
to prevent people from applying for licences in a speculative manner without intending
to use them. Equally, the premises licence holder must only offer the type of gambling
that they are permitted to.
10.21 The licensing authority must hold a hearing, unless the applicant and any person who
has made representations consent to the review being conducted without one. The
licensing authority must have regard to any relevant representations when reviewing the
matter, and must have regard to the principles in s.153 of the Act.
10.22 Once the review has been completed the licensing authority must notify its decision as
soon as possible to:
• the licence holder
• the applicant for review (if any)
• the Commission
• any person who made representations
• the chief officer of police or chief constable
• HM Revenue and Customs.
10.23 Rights of appeal are set out in Part 12 of this Guidance.
Part 11: Provisional statements
11.1
S.204 of the Act provides for a person to make an application to the licensing authority
for a provisional statement in respect of premises that he or she:
• expects to be constructed
• expects to be altered
• expects to acquire a right to occupy.
11.2
Developers may wish to apply for provisional statements before they enter into a
contract to buy or lease property or land, to judge whether a development is worth
taking forward in light of the need to obtain a premises licence. It is also possible for an
application for a provisional statement to be made for premises that already have a
premises licence, either for a different type of gambling or the same type.
11.3
Whilst applicants for premises licences must hold or have applied for an operating
licence from the Commission (except in the case of a track), and they must have the
right to occupy the premises in respect of which their premises licence application is
made, these restrictions do not apply in relation to an application for a provisional
statement.
11.4
In circumstances where an applicant has also applied to the Commission for an
operating licence, the Commission will not be able to comment on whether the
application is likely to be granted. The licensing authority should not speculate on or
otherwise take into account the likelihood of an operating licence being granted in its
consideration of the application for a provisional statement.
11.5
An application for a provisional statement must be accompanied by plans and the
prescribed fee. Licensing authorities in England and Wales set their own provisional
statement fees up to a pre-determined maximum, whereas licensing authorities in
Scotland must use the provisional statement fees set by Scottish ministers 16.
11.6
Subject to any necessary modifications, the process for considering an application for a
provisional statement is the same as that for a premises licence application. The
applicant is obliged to give notice of the application in the same way as applying for a
premises licence. Responsible authorities and interested parties may make
representations and there are rights of appeal.
11.7
Once the premises are constructed, altered, or acquired the holder of a provisional
statement can put in an application for the necessary premises licence. A premises
licence application for a premises where the applicant already holds a provisional
statement for that premises attracts a lower application fee. S.205 of the Act sets out
rules on how the authority must treat this application. Licensing authorities should note
that, in the absence of a requirement that an applicant for a provisional licence must
have the right to occupy the premises, there may be more than one valid provisional
statement in respect of the same premises.
11.8
If a provisional statement has been granted, the licensing authority is constrained in the
matters it can consider when an application for a premises licence is made
subsequently in relation to the same premises.
11.9
No further representations from relevant authorities or interested parties can be taken
into account unless they concern matters which could not have been addressed at the
provisional statement stage, or they reflect a change in the applicant’s circumstances.
11.10 In addition the licensing authority may refuse the premises licence, or grant it on terms
different to those attached to the provisional statement, only by reference to matters:
16
SI no. 479: The Gambling (Premises Licence Fees) (England and Wales) Regulations 2005
SSI no. 197: The Gambling (Premises Licence Fees) (Scotland) Regulations 2005
•
•
•
which could not have been raised by way of representations at the provisional
licence stage
which, in the authority’s opinion, reflect a change in the operator’s circumstances
where the premises has not been constructed in accordance with the plan and
information submitted with the provisional statement application. This must be a
substantial change to the plan and licensing authorities should discuss any
concerns they have with the applicant before making a decision.
11.11 S.210 of the Act, which applies to both premises licences and provisional statements,
makes it clear that a licensing authority must not have regard to whether or not a
proposal by the applicant is likely to be permitted in accordance with planning or
building law.
Part 12: Rights of appeal and judicial review
12.1
This Part deals with appeals relating to premises licensing and other decisions by
licensing authorities. Information about appeals against decisions made by the
Commission can be found on the website www.gamblingcommission.gov.uk. Licensing
authority decisions may also be subject to judicial review.
Giving reasons for decisions
12.2
It is a requirement of the Act that a licensing authority gives reasons for a rejection of an
application 17 but it is good practice for reasons to be given in relation to all decisions.
12.3
A failure to give reasons may result in an appeal of the decision or the suggestion that
the licensing authority did not have regard to all the relevant information when making
its decision, in line with its obligation under s.153 of the Act. It is particularly important
that reasons should reflect the extent to which the decision has been made with regard
to the licensing authority’s policy statement and this Guidance. Reasons for decisions
should be made available to all of the parties of any process.
Premises licences
12.4
Details relating to appeals against decisions by a licensing authority are set out in
s.206-209 of the Act. These relate to decisions made under Part 8 of the Act, namely:
• applications for a premises licence,
• applications to vary or transfer a premises licence,
• applications for provisional statements,
• reviews of premises licences, either at the licensing authority’s instigation or
following an application.
Who can appeal
12.5
The table below identifies who can appeal different types of premises licence decisions.
Type of decision
Decision to reject an application for a
premises licence or to vary a
premises licence, or an application
for a provisional statement
Decision to grant an application for a
premises licence or to vary a
premises licence, or an application
for a provisional statement
Decision to take action or to take no
action following a review
Section of Act
s.165, s.187
and s.188
Who may appeal
– The applicant
s.164, s.187
and s.188
– The applicant*
– Any person who made
representations on the application
s.202
– The applicant
– Any person who made
representations on the application
– The person, if any, who applied
for the review
– The Commission
– The licensee
– The applicant for transfer
A decision to take action or make a
s.188(4) or (5)
determination in relation to a transfer
application
* The applicant may appeal, even though the application was granted, for example because they
consider that conditions attached to the licence are too onerous.
17
For example, Schedule 8 of The Gambling Act 2005 (Premises Licences and Provisional Statements) Regulations 2007
prescribes the form of notice that must be given when an application is rejected, which includes the reasons for rejection.
Who to appeal to
12.6
An appeal against a decision of a licensing authority in England and Wales has to be
made to the Magistrates’ Court for the local justice area in which the premises
concerned are situated. In Scotland, the appeal is made to the local Sheriff court in the
Sheriffdom in which the premises are situated.
12.7
There is a further right of appeal from the Magistrates’ Court to the High Court in
England and Wales and from the Sheriff to the Court of Session in Scotland.
How to appeal
12.8
To begin an appeal, the appellant must give notice of their appeal within 21 days of their
having received notice of the relevant decision. During that period, and until any appeal
that has been brought has been finally determined, a determination or other action by
the licensing authority will not have effect unless the licensing authority so directs.
12.9
If the licence holder or the person who made the application appeals, the licensing
authority will be the respondent. If the appeal is made by someone else, then the
licence holder / applicant will be a respondent to the appeal along with the licensing
authority.
Determination and outcome of appeals
12.10 In considering an appeal, the Magistrates’ Court or Sheriff may review the merits of the
decision on the facts and consider points of law, in conjunction with the evidence. In
making their decision they will have regard to the licensing authority’s policy statement,
this Guidance and relevant codes of practice issues by the Commission and the
licensing objectives.
12.11 In deciding the appeal, they may:
• dismiss the appeal
• substitute the decision with any other decision that could have been made by the
licensing authority
• remit the case back to the licensing authority to deal with the appeal in
accordance with the direction of the Court/Sheriff.
12.12 The Court or Sheriff may also make such order for costs, but will consider guidance and
legislation about the awarding of costs against a public body.
Implementing the appeal decision
12.13 As soon as the appeal decision has been notified to all parties, licensing authorities
should not delay its implementation. Standing orders should, therefore, be put in place
that necessary action is taken immediately on receipt of the decision, unless ordered by
the Court/Sheriff or a higher court to suspend such action, for example as a result of a
judicial review.
Permits
12.14 The process for appealing a decision in relation to a permit is set out in the relevant
Schedules of the Act, as detailed below. In each case, the appeal should be made to
the local Magistrates’ court in England and Wales or to the Sheriff court in Scotland, and
must be made within 21 days of receipt of notice of the decision.
12.15 In considering the appeal, the court or Sheriff will take into account whether the
licensing authority had regard to its policy statement, this Guidance and codes of
practice published by the Commission, and the licensing objectives.
Schedule 10 – family entertainment centre (FEC) gaming machine permits
12.16 Schedule 10, paragraph 22 sets out the processes for appeals for FEC gaming machine
permits. The applicant or holder of a permit may appeal if the licensing authority has:
• rejected an application for a permit or renewal of a permit
• given notice that the premises are not being used as an FEC
• stated that the holder is incapable of carrying out an FEC business by reason of
mental or physical incapacity.
12.17 The Magistrates’ court or Sheriff may dismiss the appeal, substitute any decision that
the licensing authority could have made or restore a permit. They may also remit the
matter back to the licensing authority to decide in accordance with any determination
they make, in which case the same rights of appeal will apply, as for the original
decision. The court or Sherriff may also make an order for costs.
Schedule 11 (Parts 4 and 5) – small society lotteries
12.18 Schedule 11, paragraph 51 sets out the processes for appeals for small society
lotteries. In England and Wales, the Act states that local authorities register societies to
run lotteries rather than licensing authorities, and in Scotland such decisions are made
by the licensing board. A society may appeal if their application for registration is
refused or their registered status is revoked.
12.19 In considering an appeal, the Magistrates’ court or Sheriff may uphold the licensing
authority’s decision, reverse it, or make any other order. If remitting the decision back to
the authority, the same rights of appeal will apply as for the original decision.
Schedule 12 – club gaming permits and club machine permits
12.20 Schedule 12, paragraph 25 sets out the process of appeal for club gaming permits and
club machine permits. If the authority rejects an application for the issue or renewal of a
permit, the applicant may appeal. If the authority cancels a permit, the holder of the
permit may appeal. A person who made an objection to the grant of the permit, or made
representations in relation to the cancellation of a permit, may appeal against a grant or
refusal to cancel respectively.
12.21 The authority may only refuse an application on one or more of the following grounds:
(a) (i) for a club gaming permit: the applicant is not a members’ club or miners’
welfare institute
(ii) for a club machine permit: the applicant is not a members’ club, miners’
welfare institute or commercial club
(b) the premises are used by children or young persons
(c) an offence or a breach of a condition of the permit has been committed by an
applicant
(d) a permit held by an applicant has been cancelled during the last ten years
(e) an objection has been made by the Commission or local chief officer of police.
12.22 The authority may only cancel a permit on one of the following grounds:
(a) the premises are used wholly or mainly by children or young persons
(b) an offence or breach of condition of the permit has been committed in the course
of gaming activities.
12.23 In considering an appeal, the court will determine whether any of these statutory
grounds applied in the circumstances. In addition, the court will take into account any
objections made by the Commission or local police chief and the considerations at
paragraph 12.15.
12.24 In England and Wales only, there is a fast track application procedure (set out in
Schedule 12(10)) for holders of a club premises certificate that is issued under s.72 of
the Licensing Act 2003. In these circumstances, the Commission and police do not have
to be consulted and therefore the authority will not receive any objections. The permit
must be granted unless:
• the applicant is established or conducted wholly or mainly for the purposes of the
provision of facilities for gaming, other than gaming of a prescribed kind
• the applicant is established or conducted wholly or mainly for the purposes of the
provision of facilities for gaming of a prescribed kind and also provides facilities
for gaming of another kind
• a club gaming permit or club machine permit issued to the applicant has been
cancelled during the period of ten years ending with the date of the application.
There is no equivalent provision for clubs in Scotland under the Licensing (Scotland) Act
2005.
12.25 The Commission is aware that this fast track procedure has been used inappropriately
by applicants to avoid full scrutiny of applications and licensing authorities should pay
particular attention to such applications.
12.26 On an appeal, the court or Sheriff may dismiss the appeal, substitute any decision that
the licensing authority could have made, restore a permit, or remit it back to the
authority to decide in accordance with a determination of the court, where the same
rights of appeal will apply as for the original decision. They can also make an order for
costs.
Schedule 13 – licensed premises gaming machine permits
12.27 Schedule 13, paragraph 21 sets out the appeal process for licensed premises gaming
machine permits, which only apply to England and Wales. The Scottish Government
has set regulations 18 on permits for alcohol-licensed premises in Scotland. An applicant
for a permit may appeal if the application is rejected. The holder of a permit may appeal
if he is permitted fewer or a different category of machines than applied for, or if the
licensing authority gives a notice which cancels or varies the entitlements of the permit.
12.28 On an appeal, the Magistrates’ court can dismiss the appeal, substitute any decision
that the licensing authority could have made, restore a permit, or remit it back to the
authority to decide in accordance with a decision of the court, where the same rights of
appeal will apply as for the original decision. An order for costs can be made.
Schedule 14 – prize gaming permits
12.29 Schedule 14, paragraph 22 sets out the appeal process for prize gaming permits. If the
licensing authority rejects an application for the issue or renewal of a permit, the
applicant may appeal.
12.30 On an appeal, the Magistrates’ court or Sheriff may dismiss the appeal, substitute any
decision that the licensing authority could have made, or remit it back to the authority to
decide in accordance with a determination of the court, where the same rights of appeal
will apply as for the original decision. They can also make an order for costs.
Temporary use notices
12.31 Appeals in relation to temporary use notices are dealt with in s.226 of the Act, which
gives both the applicant and any person entitled to receive a copy of the notice (that is
the Commission, local chief of police and HM Revenue & Customs), the right of appeal
18
SSI no. 505: The Licensed Premises Gaming Machine Permits (Scotland) Regulations 2007
to the Magistrates’ court or Sheriff. Appeals must be made within 21 days of receiving
notice of the licensing authority’s decision. If the appeal is against the decision of the
authority not to issue a counter-notice, then the person giving notice must be joined with
the licensing authority as a respondent in the case.
12.32 The Magistrates’ court or Sheriff may dismiss the appeal, direct the authority to take
specified action, remit it back to the authority to decide in accordance with a decision of
the court, with the same rights of appeal as applied to the original decision, and may
make an order for costs.
12.33 There is no stay of proceedings in relation to temporary use notices, as there is in
relation to applications under Part 8 of the Act. However, the Commission would expect
an appeal to be heard before the temporary use notice would otherwise take effect.
Judicial review
12.34 Any party to a decision may apply for judicial review if they believe that the decision
taken by the licensing authority is:
• illegal – that is beyond the powers available to the licensing authority
• subject to procedural impropriety or unfairness – which is a failure in the process
of reaching the decision, such as not observing the rules of natural justice
• irrational – where a decision is so unreasonable that no sensible person could
have reached it (in effect, ‘perverse’ or ‘Wednesbury’ unreasonable).
12.35 For an application to succeed, the application must show that:
• the applicant has sufficient standing to make that claim
• the actions of the reviewed licensing authority give grounds for review.
However the remedy is a discretionary one and the Court may decline judicial review if,
for example, it considers that the applicant has an alternative remedy which is more
appropriate to pursue, such as a right of appeal, or has a private law claim against the
defendant.
12.36 The applicant can ask the Court to grant a number of orders. A mandatory order
compels the reviewed body to do something; a prohibitory order compels it to refrain
from doing something; a ‘declaration’ sets out the court’s view on the legality of a
particular course of action; and a quashing order nullifies a decision and remits it for
reconsideration. In addition, the applicant can seek an injunction (interdict in Scotland)
which is, in practice, similar to a mandatory or a prohibitory order.
Part 13: Information exchange between the Commission and
licensing authorities
Underlying principles
13.1
Shared regulation depends on effective partnerships and collaboration. The exchange
of information between the Commission and licensing authorities is an important aspect
of that and to the benefit of both. Licensing authorities play a particular role in sharing
information about gambling activity at a local level, which is important for the
Commission’s overarching view of gambling activity, not least because that enables the
Commission to identify risks and feed information and intelligence back to licensing
authorities. It also enables the Commission to fulfil its duty to advise the Secretary of
State about the incidence of gambling and the manner in which it is conducted.
13.2
The Commission has access to a wide pool of intelligence which it is able to make
available to licensing authorities upon request, to support them in carrying out their
regulatory responsibilities under the Act. We understand the importance of this in
avoiding the risk of duplication or over-regulation and in maximising the efficient use of
resources. In a similar manner, the Commission will draw upon the intelligence and
insights of its regulatory partners to resolve specific issues. There have been a number
of instances where there has been successful joint working to address concerns linked
to a particular operator.
Information licensing authorities provide to the Commission
13.3
S.29 of the Act entitles the Commission to seek information from licensing authorities,
and places an obligation on authorities to comply with its information requests, providing
the information is:
• part of a register maintained by the licensing authority
• in the licensing authority’s possession in connection with a provision of the Act.
Premises data
13.4
The Act requires licensing authorities to maintain data on premises licences. As part of
the application process for a premises licence, applicants will forward notice of the
application to the Commission, and licensing authorities should subsequently notify the
Commission of the outcome of each application, whether it is granted or refused. The
Act also requires licensing authorities to notify the Commission of other matters such as
when a licence has lapsed or been surrendered, and the cancellation of certain permits
and registrations. Under s.29 of the Act, the Commission has identified further
information requirements that it is necessary for licensing authorities to provide, which
form part of the licensing authority Return in the Single Data List.
13.5
It is important that the Commission’s national data set for premises licences is accurate,
as it is used for conducting national compliance work. Accuracy also reduces the need
for the Commission to request ad hoc information on particular premises from the
licensing authorities, which is time consuming and resource intensive. The Commission
will ask licensing authorities to periodically review the premises register to ensure it is
up-to-date.
13.6
The Commission may make observations and representations on the suitability of the
applicant for a premises licence or any other aspect of the application. In such cases,
the Commission and licensing authority will discuss matters pertaining to the application
and the appropriate action to take. More information on the Commission’s role as a
responsible authority and its involvement in individual premises licence applications is
given in Part 8 of this guidance.
13.7
If, during the course of considering a premises licence application, or at any other time,
the licensing authority receives information that causes it to question the suitability of
the applicant to hold an operating licence, these concerns should be brought to the
attention of the Commission without delay.
Returns
13.8
All licensing authorities are required to submit returns to the Commission on an annual
basis, providing information on licensed gambling activity and details of compliance and
regulatory work undertaken. This includes details of permits and notices issued,
premises inspections conducted, and reasons for and outcome of licence reviews. The
fees that are charged by licensing authorities are intended to cover the costs of
administration which includes the costs of collecting, maintaining and providing data.
13.9
The Annual Return is included in the Single Data List that has been issued by DCLG.
The List is a catalogue of all the datasets that local government must submit in any
given year to central government and such organisations as the Commission.
13.10 The returns are an important source of information and can assist both the Commission
and the licensing authorities in improving their work as risk based regulators. The
returns provide the Commission with details of licensing authority compliance and
regulatory work. The Commission analyses and publishes a licensing authority statistics
report each year which helps identify risks and prioritise work.
13.11 The Commission will minimise the burden imposed on licensing authorities by keeping
its data requests to an absolute minimum. The data requirements will be kept under
review to ensure that any data requests have a clear and valid regulatory purpose.
13.12 It is essential that licensing authorities ensure that all returns are completed and
submitted to the Commission in a timely manner. The Commission would expect the
licensing authority to notify it in the event that it is unable to meet a submission
deadline. Failure on behalf of a licensing authority to submit the required information
could lead to the escalation of the matter with senior personnel in the licensing authority
including the Head of Service and Chief Executive.
Summary of information requirements
Licensing function
Premises licences
and provisional
statements
Event requiring information to be sent to Commission
Licensing authority has granted / rejected an application for a
premises licence or provisional statement
A premises licence has lapsed
Licensing authority has granted or rejected an application to
reinstate a premises licence
Licensing authority has granted or rejected an application to
transfer or vary a premises licence
A review of a premises licence has been completed and a
decision made
A hearing is to be held where the Commission has made a
representation
A premises licence has been surrendered / revoked
Club permits
A club permit application has been granted / rejected
Small society lottery
registration
Licensing authority registers a society to operate small lotteries
Licensing authority cancels a society's registration to operate
small lotteries
Where a society has exceeded the permitted proceeds for small
lotteries
Issue of permits and
temporary
permissions
Inspections and
reviews
Licensing authority Returns
Licensing authority Returns
Other licensing authority information requirements
13.13 Licensing authorities are also required to maintain the following information 19:
• small society lotteries: licensing authorities are required to record details of the
lottery on a register and to notify both the applicant and the Commission of this
registration
• club gaming permits: when they either grants or rejects an application for a club
gaming permit they are required to inform both the applicant and the
Commission.
13.14 There is a range of statutory application forms and notices that licensing authorities are
required to use as part of their gambling licensing responsibilities. A summary list of
these can be found in Appendix E. The forms and notices can be downloaded from the
Commission’s website.
13.15 Licensing authorities provide advice to those who make enquiries to them, about the
legal responsibilities involved in providing premises or holding permits for gambling,
whether or not they currently hold a licence or a permit.
13.16 Licensing authorities should feel free to signpost enquiries relating to operating or
personal licences to the Commission.
Information the Commission makes available to licensing
authorities
13.17 The Commission is required under s.106 of the Act to maintain a register of operating
licence holders and make this publicly available. Where a licensing authority needs to
check if an applicant for a premises licence holds an operating licence, verification can
be found on the edited register on the Commission’s website.
13.18 The Commission will inform the relevant licensing authorities of any changes to
operating licences that may have an impact on the status of related premises licences.
Licensing authorities will be periodically advised where an operator is no longer
licensed.
Local Authority Compliance Events (LACE)
13.19 In order to make the system of shared regulation as effective and efficient as
possible, the Commission notifies licensing authorities of complaints and
intelligence received regarding non-compliance and illegality in their geographical
area which is primarily of a localised nature. These are referred to as Local
Authority Compliance Events (LACE). The responsibility for the LACE referral is
19
Schedule 11, Part 5, para 44 of the Gambling Act 2005
then discharged from the Commission to the licensing authority. Licensing
authorities are requested to advise the Commission of what, if any action is taken.
13.20 The complaints that instigate the LACE referrals come from a variety of sources
including licensed operators and members of the public. A number of them are
received anonymously via the Commission’s intelligence line.
Other information
13.21 The Commission makes other information available to licensing authorities through
a range of sources including the LA Bulletin, training events and forums. Further
details are set out in Part 3 at paragraphs 3.6 onwards.
Part 14: Temporary use notices
14.1
It is an offence to provide facilities for gambling unless either the required permissions
are in place, or an exemption applies. One such exemption is for the holder of an
operating licence to notify a Temporary Use Notice (TUN) to the relevant licensing
authority. This is not a permanent arrangement, but allows premises such as hotels,
conference centres or sporting venues to be used temporarily for providing facilities for
gambling. A TUN may also apply to a vessel, whether moored or moving. TUNs are
often, but not exclusively, used to run poker tournaments.
14.2
The primary legislation in respect of TUNs can be found in Part 9 of the Act, at s.214234. This sets out the nature and form of the notice to be given by the operator; other
bodies to be informed (including the Commission); objections and appeals; and
instructions to the licensing authority concerned.
14.3 Secondary legislation – Gambling Act 2005 (Temporary Use Notices) Regulations 2007
– sets out the restrictions on the type of gambling to be offered under a TUN. These
restrictions are:
• it can only be used to offer gambling of a form authorised by the operator’s
operating licence, and consideration should therefore be given as to whether the
form of gambling being offered on the premises will be remote, non-remote, or
both
• gambling under a TUN may only be made available on a maximum of 21 days in
any 12 month period for any or all of a named set of premises
• it can only be used to permit the provision of facilities for equal chance gaming,
and where the gaming in each tournament is intended to produce a single overall
winner
• gaming machines may not be made available under a TUN.
14.4
In relation to tournaments, the requirement that the gaming is ‘intended to produce a
single overall winner’ does not restrict the gaming to only one winner through the course
of the tournament, although there will ultimately be one final tournament winner. It is
considered acceptable for each qualifying round of the tournament; (for example
comprising several hands/games of poker) to produce a single overall winner of that
qualifying round, whose prize may be the right to progress to the next stage in the
tournament. There can also be additional competitions run alongside or leading up to
the main event, provided that each of these also only provides one winner. Further
information on Poker is set out in Part 29.
14.5
Cash games are games where each hand provides a winner and are not permitted
under a TUN.
Procedure
14.6
The holder of an operating licence must give notice to the licensing authority in whose
area the premises are situated. The Secretary of State has prescribed the form of the
notice which must specify information including:
• the type of gaming to be carried on
• the premises where it will take place
• the dates and times the gaming will take place
• any periods during the previous 12 months that a TUN has had effect for the
same premises
• the date on which the notice is given
• the nature of the event itself.
14.7
A TUN must be lodged with the licensing authority not less than three months and one
day before the day on which the gambling event will begin. A fee is payable to the
licensing authority to whom the notification is sent. The application must be copied to:
• the Commission
• the police
• HM Commissioners for Revenue and Customs
• if applicable, any other licensing authority in whose area the premises are also
situated.
14.8
The person who is giving the TUN must ensure that the notice and copies are with the
recipients within seven days of the date of the notice. If these requirements are not met,
then the event will be unlawful. Where the premises are situated in an area covered by
more than one authority, the person giving notice must send the notice to one authority
and copy to the other(s). Licensing authorities will have to work closely together in such
circumstances to ensure that the 21-day maximum period for TUN is not breached.
14.9
When the licensing authority receives a notice, it must send a written acknowledgement
as soon as is reasonably practicable.
Meaning of premises
14.10 S.218 of the Act refers to a ‘set of premises’ and provides that a set of premises is the
subject of a TUN if ‘any part’ of the premises is the subject of a notice. The reference to
‘a set of premises’ prevents one large premises from having a TUN in effect for more
than 21 days in a year by giving notification in relation to different parts of the premises
and re-setting the clock. Note that this definition of a ‘set of premises’ differs to
‘premises’ in Part 8 of the Act (see Part 7 of this Guidance).
14.11 The definition of ‘a set of premises’ will be a question of fact in the particular
circumstances of each notice that is given. In considering whether a place falls within
the definition, licensing authorities will need to look at, amongst other things, the
ownership/occupation and control of the premises. For example, a large exhibition
centre with a number of exhibition halls may come within the definition of ‘premises’. A
TUN should not then be granted for 21 days in respect of each of its exhibition halls. In
relation to other covered areas, such as shopping centres, the licensing authority will
need to consider whether different units are in fact different ‘sets of premises’, given that
they may be occupied and controlled by different people.
14.12 A notice may be given in respect of a vessel, but only if it is a passenger vessel or a
vessel that is situated at a fixed place. A vessel at a fixed place would include a
structure on water that is not intended to be able to move (such as an oil rig, or an
artificially constructed island in the middle of a lake). S.231 lists responsible authorities
who must be notified in relation to giving notice in respect of a vessel.
14.13 A TUN may not be given in respect of a vehicle.
Objections to TUNs
14.14 The licensing authority and the other bodies to which the notice is copied should
consider whether they wish to give a notice of objection. In considering whether to do
so, they must have regard to the licensing objectives and if they consider that the
gambling should not take place, or only with modifications, they must give a notice of
objection to the person who gave the TUN. Such a notice must be copied to the
licensing authority. The notice of objection and the copy to the licensing authority must
be given within 14 days, beginning with the date on which the TUN is given. An
objection may be withdrawn by giving written notice to those to whom the notice of
objection was sent and copied.
14.15 Licensing authorities should have procedures in place to ensure that such notices are
considered without delay so that, where appropriate, the opportunity to lodge an
objection is not missed.
14.16 If objections are received, the licensing authority must hold a hearing to listen to
representations from the person who gave the TUN, all the objectors and any person
who was entitled to receive a copy of the notice. If all the participants agree that a
hearing is unnecessary, it may be dispensed with.
14.17 Those who raise objections may propose modifications to the notice that will alleviate
their concerns. Remedies may include a reduction in the number of days when
gambling occurs or a restriction on the type of gambling permitted. If the modifications
are accepted by the applicant, a new TUN must be given, incorporating the
modifications, and the original notice will be treated as withdrawn. This withdrawal will
be without prejudice to the right of any other person other than the objector to give
notice of objection in relation to the new notice. The three-month time limit and fee will
not apply to the new notice. The person who made the original objection and proposed
the modification may not object to the new notice, but others to whom it is copied may
object. If there are no new objections, there will be no need for a hearing.
14.18 If the licensing authority considers that the TUN should not have effect – after a hearing
has taken place or has been dispensed with – it must issue a counter-notice which may
provide for the TUN:
• not to have effect
• to have effect only in respect of a specified activity
• to have effect only in respect of activity carried on during a specified period of
time or at specified times of day
• to have effect subject to compliance with a specified condition.
14.19 The principles that the authority must apply in issuing a counter-notice are the same as
those in determining premises licence applications. In particular, the licensing authority
should aim to permit the provision of facilities for gambling under a TUN subject to its
view as to whether to do so accords with the Commission Code, this Guidance and the
licensing authority’s policy statement, and is reasonably consistent with the licensing
objectives.
14.20 If the licensing authority gives a counter-notice, it must give reasons for doing so and
must copy the counter-notice to all those who received copies of the TUN.
14.21 If the licensing authority decides not to issue a counter-notice, the TUN will take effect.
The licensing authority must give notice of its decision to the person who gave the TUN
and to others to whom it was copied.
Appeals
14.22 An appeal against the licensing authority’s decision may be made by the applicant, or
any person entitled to receive a copy of the TUN, to the Magistrates’ court or Sheriff
court within 14 days of receiving notice of the authority’s decision. There is a further
right of appeal to the High Court or Court of Session on a point of law.
Endorsement of the notice
14.23 If no objections are made within 14 days of the date of the notice, the licensing authority
must endorse the notice as valid and return it to the person who gave it. If the endorsed
copy of the notice is lost, stolen or damaged, the person who gave the notice may
request a new endorsed copy from the licensing authority, subject to the payment of a
fee.
14.24 S.228 of the Act sets a time limit for the completion of all proceedings on TUN of six
weeks beginning with the date on which the TUN is received. This includes considering
whether to give a notice of objection; holding a hearing if necessary, giving a counternotice, or giving a notice of determination.
14.25 The person who gives a TUN may notify the licensing authority that it is withdrawn at
any time up to and during the time it has effect. In those circumstances the notice will
have no effect, and any unlapsed period of time will not count towards the 21-day
maximum for a TUN having effect on the premises.
Displaying the notice
14.26 While the gambling is taking place, a copy of the TUN must be displayed prominently on
the premises. It is an offence not to produce the notice endorsed by the licensing
authority when requested to do so by a constable, an officer of HM Revenue and
Customs, an enforcement officer, or an authorised local authority officer.
Maximum period
14.27 If the premises have been the subject of one or more TUN for more than a total of 21
days in the past 12 months, the licensing authority must issue a counter-notice that has
the effect of stopping the TUN coming into effect. The format of counter notices are
prescribed by either the Secretary of State or Scottish Ministers 20. Failure to comply
with the counter-notice will be an offence. A licensing authority may issue a counternotice which limits the number of days that the TUN comes into effect, bringing it within
the 21-day limit. Such counter-notices require consultation with the applicant to ensure
that the restrictions they impose do not result in an unworkable event.
Large Events
14.28 Licensing authorities may receive TUNs from a high profile operator such as a casino,
to hold an event in a larger venue (eg a stadium or an arena). In these circumstances
operators may seek to use technology, such as tablet devices, to the meet demands of
hosting an event at such a venue. It is possible that operators will need to hold a remote
operating licence to operate certain devices and licensing authorities are encouraged to
contact the Commission for further advice and guidance.
20
As set out in regulations SI 2007/3157 or SSI 2007/461
Part 15: Occasional use notices
15.1
S.39 of the Act provides that where there is betting on a track on eight days or fewer in
a calendar year, betting may be permitted by an occasional use notice (OUN) without
the need for a full premises licence 21. The following should be noted in relation to an
OUN:
• OUNs can only be relied upon for eight days or fewer in a calendar year and
therefore licensing authorities should keep a record of the number of notices
served in relation to each track. The period of 8 days applies to the venue and
not the individual who has submitted the notice
• an OUN must be submitted for each day that betting activity will be conducted on
the premises. If betting activity is to be held over a period of 8 consecutive days,
the operator will be required to submit 8 separate notices
• the notice must specify the day on which it has effect. An event running past
midnight and ending on the following day accounts for two occasional use days,
even though in practice it is one event
• no objection or counter notice (refusal) is possible unless the maximum number
will be exceeded
• notice must be given to the licensing authority and the police, in writing, before
the event starts
• no premises licence can exist for the place which is the subject of the notice
• land can be used temporarily as a track, for example for a point-to-point race,
provided that sporting events or races take place there. There is no need for a
track to be permanently established.
What constitutes a track
15.2
While tracks are normally thought of as permanent racecourses, authorities should note
that the meaning of ‘track’ in the Act covers not just horse racecourses or dog tracks,
but also any other premises on any part of which a race or other sporting event takes
place, or is intended to take place (s.353(1)). The Commission’s Guidance relating to
tracks is contained in Part 20 of this document.
15.3
This means that land which has a number of uses, one of which fulfils the definition of
track, can qualify for the occasional use notice provisions, for example agricultural land
upon which a point-to-point meeting takes place. Land used temporarily as a track can
qualify, provided races or sporting events take place or will take place there. The track
need not be a permanent fixture.
Use (and misuse) of OUNs
15.4
The intention behind OUNs is to permit licensed betting operators with appropriate
permission from the Commission, to use tracks for short periods for conducting betting,
where the event upon which the betting is to take place is of a temporary, infrequent
nature. The OUN dispenses with the need for a betting premises licence for the track in
these circumstances.
15.5
The Commission is aware of some instances of the apparent misuse of OUNs, by the
arrangement of a contrived sporting event at a premises solely in order to apply for an
OUN and to permit betting on premises where it would not normally be allowed. Whilst
the Commission has not introduced a new licence condition limiting the betting to bets
on the outcomes of a race, competition or other sporting event taking place at the track
in question whilst the OUN is in force, the situation will be kept under review.
21
The Secretary of State has the power to increase or decrease the number of occasional use notices that an operating licence
holder could apply for each calendar year. ‘Day’ is defined as midnight to midnight, so an event that starts on one calendar day
and ends on the following day would count as two days.
15.6
OUNs may not be relied upon for more than eight days in a calendar year, which relates
to a calendar year starting 1 January and not to any period of 12 months. The Secretary
of State has the power to increase or decrease the number of OUNs that are permitted,
but there are currently no plans to use this power.
15.7
Non-commercial, fund raising race nights can be run as betting events at sporting
venues under the authority of an OUN, whether or not the sporting event on which the
bets are taken is held at that venue. The sporting event on which the bets are or will be
taken also need not be taking place at the same time as the betting under the OUN.
Procedure
15.8
Licensing authorities and track operators and occupiers should note that the processes
set out in the Act for applying for an OUN are different to those for Temporary Use
Notices (TUNs).
15.9
An OUN must be served by a person who is responsible for the administration of events
on the track or by an occupier of the track. The notice must be served on the licensing
authority and copied to the chief officer of police for the area in which the track is wholly
or partly located. The notice must specify the day on which it has effect. Notices may be
given in relation to consecutive days, so long as the overall limit of eight days is not
exceeded in the calendar year.
15.10 Provided that the notice will not result in betting facilities being available for more than
eight days in a calendar year, there is no provision for counter-notices or objections to
be submitted.
15.11 The Act does not require the applicant or the licensing authority to notify the
Commission that an occasional use notice has been given. However the Commission
does require licensing authorities to submit returns showing how many OUNs were
received during each year (see also Part 13).
15.12 It should be noted that betting operators cannot provide gaming machines at tracks by
virtue of an OUN.
Part 16: Gaming machines
16.1
This part of the Guidance describes the categories of gaming machine and the number
of such machines that may be permitted in each type of gambling premises as set out in
the Act. Licensing authorities should note that the term ‘gaming machine’ now covers all
machines on which people can gamble – subject to the exceptions below – and the term
has been preserved in the Act, because it is one that is readily understood.
16.2
S.235(1) of the Act sets out the definition of a gaming machine. The definition is wider
than those included in previous gambling legislation and covers all types of gambling
activity that can take place on a machine, including betting on virtual events. However,
the following should be noted:
• there remains a distinction between skill machines and gaming machines, in that
skill machines are unregulated
• S.235(2) contains important exemptions for equipment that is not to be
considered a gaming machine, even when gambling can be performed on it – for
example, a home PC is not classed as a gaming machine, even though
someone could access remote gambling facilities on a home PC.
16.3
Specific guidance on machines that are exempt is set out later in this part of the
Guidance, although licensing authorities should take legal advice or contact the
Commission directly if they have concerns about the precise legal status of equipment
being used on premises.
16.4
The Commission is responsible for licensing manufacturers and suppliers of gaming
machines and advises operators to obtain machines from Commission-licensed
suppliers. Similarly, permit holders and those applying for permits for clubs, alcohollicensed premises or family entertainment centres will also be advised through
Commission guidance to obtain gaming machines from Commission-licensed suppliers.
16.5
The Commission has set Gaming Machine Technical Standards relating to the way in
which each category of machine will operate 22. The Commission has also set out a
testing strategy that details the testing arrangements for each category of machine 23.
The Commission has the power to test gaming machines, both before they are supplied
and when in operation in premises, to ensure that they are operating as advertised.
16.6
In order for a premise to site gaming machines some form of authorisation is normally
required. Typically this is:
• an operating licence from the Commission and a gambling premises licence from
a licensing authority or
• an alcohol premises licence from a licensing authority or
• a gaming machine permit from a licensing authority.
16.7
Depending on the authorisation, there are limits placed on the category of machines
that can be sited and, in some cases, on the number of machines that can be made
available for use.
16.8
If a licensing authority has concerns relating to the manufacture, supply, installation,
maintenance or repair of gaming machines, or the manner in which they are operating,
it should contact the Commission Please email
[email protected],
S.172 of the Act prescribes the number and category of gaming machines that are
permitted in each type of gambling premises licensed by authorities. Neither the
Commission nor licensing authorities have the power to set different limits or further
expand or restrict the categories of machine that are permitted. The exception to this is
16.9
22
23
The Gaming Machine Technical Standards is available from www.gamblingcommission.gov.uk
The Gaming Machine testing strategy is available from www.gamblingcommission.gov.uk
alcohol-licensed premises that hold gaming machine permits, where licensing
authorities have discretion to specify the number of permitted gaming machines. In
addition, limits are set separately in the Act for certain types of permit issued by
licensing authorities. Machine limits are summarised at Appendix A of this Guidance.
Categories of gaming machine
16.10 Regulations define four categories of gaming machine (as per s.236 of the Act):
categories A, B, C and D, with category B divided into a further five subcategories. The
categories and sub-categories have been defined according to the maximum amount
that can be paid for playing the machine and the maximum prize it can deliver.
Appendix B provides a breakdown of machine categories and entitlements.
Age restrictions
16.11 There is a minimum age of 18 for all players for all category A, B and C machines,
including category B3A gaming machines offering lottery style games. However there is
no minimum age for players of category D machines. The holder of any permit or
premises licence has to comply with the codes of practice issued by the Commission on
the location of and access to gaming machines by children and young persons, and the
separation from category C and B machines where those are also located on the same
premises.
Maximum number of machines by premises type
16.12 The maximum number of machines permitted, and in the case of casinos the ratios
between tables and machines, is set out by premises type in Appendix A, and includes
premises with permit entitlements, as well as licensed premises. Further detail about
machine entitlement is also provided in this Guidance in the parts relating to each of the
individual type of premises.
Multiple activity premises
16.13 It is not unusual for different licensed activities to take place within an area, such as a
track or holiday park, with those licensed activities attracting different machine
entitlements. For example, an area could include family entertainment centres (FECs),
adult gaming centres (AGCs) and bingo, whilst also having an alcohol licence.
16.14 It is worth checking, from the plans and a site visit, that the gaming machine
entitlements are not being exceeded, and that appropriate signage to prevent unlawful
entry is in place where applicable.
16.15 It may be necessary to determine, if an area shown in the plan as part of the ‘club’
premises is separated from another with an alcohol premises licence, that the machines
intended to be made available in each part are within the respective, allowable limits.
Part 25 of this Guidance provides greater detail on the requirements for clubs and
Appendix A provides details of the machine entitlements and gaming activities for clubs.
The meaning of ‘available for use’
16.16 S.242 of the Act makes it an offence to a person to make a gaming machine available
for use, where they do not hold an operating licence or other permission covering
gaming machines and where no other exemption applies.
16.17 The Act does not define what ‘available for use’ means, but the Commission considers
that a gaming machine is ‘available for use’ if a person can play it. It follows that more
than the permitted number of machines may be physically located on a premises,
provided the operator has a system in place that ensures no more than the permitted
number are ‘available for use’ at any one time. The operator must control this system. If
a customer is able to put a machine into use – for example, by switching it on at the
mains or simply removing a notice on the screen – it will be considered as available for
use.
16.18 If there is more than one player position – that is two or more people can play a gaming
machine simultaneously – then the machine counts as two or more machines 24. An
appropriate system may be operator control of the power supply for machines of a
certain category, which is not accessible to players, so that only one machine can be
played.
16.19 If an operator does wish to put more than the permitted number of machines in a public
area, the onus will be on the operator to demonstrate that no more than the permitted
number of machines are ‘available for use’ at any one time.
16.20 A machine that can operate at more than one category, which is operating at a lower
category, does not contribute to the number of machines ‘available for use’ at a higher
category until it switches to that category. However, the operator must also have a
system in place for these machines which ensures no more than the permitted number
are ‘available for use’ at any one time.
16.21 The Commission permits systems in which a number of machines are networked so that
the player can select which game and category they play at, but which adhere to any
restrictions on the number of machines at a certain category.
16.22 The Commission has published a separate advice note on ‘available use’ – Advice
regarding when a gaming machine is 'available for use'.
Machines other than gaming machines in gambling premises
Automated roulette
16.23 There are two types of automated casino equipment that are excluded from the
definition of a gaming machine in the Act. The first type is those linked to a live game of
chance, for example, roulette. These enable the player to gamble on a live game as it
happens, without actually being seated at the table, sometimes referred to as ‘electronic
roulette’. These are not regulated as gaming machines but as live gaming and there is
no limit on the number of items of such equipment.
16.24 The second type is a machine that plays a live game but is fully automated, that is, it
operates without any human intervention. For example, a roulette wheel that is
electrically or mechanically operated with an air blower to propel the ball around the
wheel. Again, these are not regulated as gaming machines, although casinos are bound
by controls on the specification and number of player positions using such equipment.
This is only the case where the machine is operated in accordance with a casino
24
SI No. 2289: The Gaming Machine (Single Apparatus) Regulations 2007
operating licence – if operated outside of a casino, the exclusion does not apply and it
would be considered a gaming machine. The Act requires that equipment used to play a
game of chance, for example, cards, dice and roulette wheels is ‘real’ and not ‘virtual’ if
it is not to be classed as a gaming machine. Additionally the game outcome must not be
determined by computer as this would normally be considered virtual.
Self Service Betting Terminals (SSBTs)
16.25 S.235(2)(c) provides that a machine is not a gaming machine by reason only of the fact
that it is designed or adapted for use to bet on future real events. Some betting
premises may make available for use machines that accept bets on live events, such as
a sporting event, as a substitute for placing a bet over the counter. These SSBTs are
not gaming machines and therefore neither count towards the maximum permitted
number of gaming machines, nor have to comply with any stake or prize limits. Such
betting machines merely replicate and automate the process that can be conducted in
person, and therefore do not require regulation as gaming machines. S.181 of the Act
contains an express power for licensing authorities to restrict the number of SSBTs,
their nature and the circumstances in which they are made available, by attaching a
licence condition to a betting premises licence or to a casino premises licence (where
betting is permitted in the casino). Part 19 of this Guidance provides further details.
Skill games
16.26 The Act does not cover machines that give prizes as a result of the application of skill by
players. A skill with prizes machine (SWP) is one in which the winning of a prize is
determined only by the player’s skill – any element of chance imparted by the action of
the machine would cause it to be a gaming machine. An example of a skill game would
be trivia game machines, popular in pubs and clubs, which require the player to answer
general knowledge questions to win cash prizes. Many family entertainment centres
have games that give prizes by redemption of tickets accumulated. Providing these
machines give prizes according to the skill of the player, for example getting a high
score shooting basketball, they will be exempt.
16.27 Genuine SWPs can be sited without permissions. However, the Commission considers
that the higher the payout offered by this type of machine, the less likely the machine
will be viable as a genuine skill machine simply because of the risk that very skilful
players will win the top prize too frequently, making the machine commercially unviable.
Further information on skill with prizes machines, and advice on how to distinguish
between these machines and gaming machines, can be found on the Commission’s
website 25.
Lottery ticket vending machines
16.28 Lottery ticket vending machines are generally used to dispense ‘instant win’ lottery
tickets, usually scratch cards or ‘pull tab’ tickets in society lotteries and they are mostly
prevalent in private society lotteries. The Act defines a private society as ‘any group or
society established for a purpose not connected with gambling’. Typically a private
society, such as a sports or social club, will promote a lottery and make lottery tickets
available to members of the society or those on the premises of the society as part of a
‘private society lottery’. Some societies buy or rent vending machines to dispense their
lottery tickets.
16.29 Such machines are often supplied by licensed gaming machine suppliers but the
operation and/or design of the machine must not constitute a gaming machine. Advice
25
Is a prize machine a gaming machine? and illegal gaming machines: A quick guide for licensing officers available on
gamblingcommission.gov.uk The quick guide does not form part of the Guidance to Licensing Authorities
Comparing lottery ticket dispensers and category B3A gaming machines’ a quick guide for licensing officers. The quick guide does
not form part of the Guidance to Licensing Authorities
on the distinction between lottery ticket vending machines and gaming machines is
available in the Commission’s Comparing lottery ticket dispensers and category B3A
gaming machines’ a quick guide for licensing officers .
16.30 Those who supply, manufacture and/or site lottery ticket vending machines are not
required to hold an operating or premises licence or any other permission. Where a
lottery ticket vending machine is used to dispense society or private society lottery
tickets it is the responsibility of the promoter of the lottery to ensure that it is operated
lawfully and the required information displayed on the dispensed tickets.
Other exclusions
16.31 S.235(2) of the Act sets out a number of exclusions, covering machines that are not
considered gaming machines, even though gambling may take place on them, as
follows:
• a domestic or dual use computer is not a gaming machine just because it can be
used to take part in remote gambling. Regulations define a ‘domestic computer’
as one capable of being used for a purpose not related to gambling that is
located in a private dwelling and used only on domestic occasions. A ‘dual use
computer’ is also defined as having to be capable of being used for a purpose
not related to gambling, but in addition must not be knowingly adapted or
presented in such a way as to facilitate or draw attention to the possibility of its
use for gambling 26
• a telephone or other ‘machine facilitating communication’ that could be used for
gambling purposes, for example, a mobile phone via which text message based
lotteries can be entered, is not considered to be a gaming machine unless that is
its primary purpose. Ordinary mobile phones are therefore exempt from the
definition, but telephones designed or adapted for the purpose of enabling
gambling would not be
• some machines that allow the purchase of lottery tickets are not gaming
machines. However, this is intended as an exemption for the sale of tickets in a
real lottery with other participants (for example a lottery vending machine), and
not a virtual scratch card lottery conducted only by means of the machine. This
means, first, that if the results of the lottery are determined by the machine, the
machine is not exempt; and, second, if the machine announces the results of the
lottery (determined otherwise than by the machine) by display or communication
then the interval between the sale of the ticket and the announcement of the
result must comply with the minimum period of time specified by regulations 27.
B3A machines are defined as a lottery style gaming machine and permitted
under regulations within members’ clubs and miners’ welfare institutes in limited
numbers
• a machine operated by virtue of a bingo operating licence for the purpose of
playing bingo will be exempt provided it complies with any conditions set by the
Commission. This covers what are known as mechanised cash bingo and
electronic bingo ticket minders
• also exempted are machines used for the playing of bingo by way of prize
gaming in AGCs and FECs, however, the prize gaming regulations must be
complied with.
26
27
The regulations defining these terms are SI No. 2082: The Gambling Act 2005 (Gaming Machines)(Definitions) Regulations 2007
SI No. 2495: The Gambling (Lottery Machine Interval) Order 2007
Part 17: Casinos
Casino premises
17.1
Under the Act, licensing authorities in England and Wales have the role of issuing
premises licences for casinos and monitoring those licences. In Scotland the licensing
boards are licensing authorities and continue to have responsibilities for granting
permissions for casinos in the form of premises licences.
17.2
New casino premises licences issued under the Act will fall into one of two categories
namely large casino premises licence or small casino premises licence. These are
subject to separate regulations, involving a two-stage application process, detailed
below.
17.3
In addition, there is a third category of casino that is permitted through transitional
arrangements under Schedule 18 of the Act, which may be referred to as ‘1968 Act
converted casinos’. Most of these casinos fall below the size thresholds of the other two
categories. Such casinos may operate as card clubs without offering casino games.
17.4
The gaming machines permitted to be made available in new casinos are related to the
number of gaming tables available for use 28.
• no more than eight large casino premises licences will be permitted. Large
casinos will have a minimum total customer area of 1,500m2. This category of
casino will be able to offer casino games, bingo and/or betting and up to 150
gaming machines in any combination of categories B1 to D (except B3A lottery
machines) provided that a maximum ratio of 5:1 gaming machines to gaming
tables is met. Large casinos therefore need 30 gaming tables available for use to
qualify for the maximum 150 machines. These facilities can be provided under a
single licence 29
• large casino premises licences may be issued by the following licensing
authorities: Great Yarmouth Borough Council; Kingston upon Hull City Council;
Leeds City Council; Middlesbrough Borough Council; Milton Keynes Borough
Council; Newham London Borough Council; Solihull Metropolitan Borough
Council, and Southampton City Council
• no more than eight small casino premises licences will be permitted. Small
casinos will have a minimum total customer area of 750m2. A small casino will be
able to offer casino games, betting and up to 80 gaming machines in any
combination of categories B1 to D (except B3A lottery machines) provided that a
maximum ratio of 2:1 gaming machines to gaming tables is met. Small casinos
therefore need 40 gaming tables available for use to qualify for the maximum 80
machines
• small casino premises licences may be issued by Bath and North East Somerset
District Council; East Lindsey District Council; Luton Borough Council;
Scarborough Borough Council; Swansea City and County Council; Torbay
Borough Council; Wigtown Divisional Licensing Board in the area of Dumfries
and Galloway Council; and Wolverhampton City Council.
17.5
The Commission has become aware that in some instances, operators who hold a
combined non-remote casino licence and betting operating licence, have looked into
converting part of their casino premises to betting premises. Licensing authorities are
reminded that when considering such applications they must be satisfied that, if
granted, the premises in question meets the relevant mandatory and default conditions
for the relevant premises licence.
28
29
SI No.1970 The Gambling Act 2005 (Gaming Tables in Casinos) (Definitions) Regulations 2009
There are two new casinos are operational, in Newham and Milton Keynes
Casino games
17.6
S.7(1) of the Act states that ‘a casino is an arrangement whereby people are given an
opportunity to participate in one or more casino games’. Casino games are defined by
the Act to mean a game of chance which is not equal chance gaming. Equal chance
gaming is gaming which does not involve playing or staking against a bank, and where
the chances are equally favourable to all participants. The Act gives the Commission
power through conditions attached to operating licences to restrict the types of casino
games that may be made available.
17.7
The Commission prescribes a list of games that may not be played (none at present).
17.8
The Commission has published a document, Rules of core casino games in Great
Britain - June 2011, which outlines the basic rules of the most popular casino games:
roulette, blackjack, punto banco, three card poker and dice. Player information on the
specific rules and odds applied to these and any other table games by individual
operators are displayed in each casino, as required by code of practice 4 of the LCCP.
17.9
Operators who are interested in running a trial of a new game, side bet or variation
should contact the industry-led Casino Games Review Group which has been set up to
co-ordinate and monitor new games and determine their suitability for the market place.
They will ensure that core rules and information is added to a dedicated web site
(www.ukcasinotablegames.info) for the information of other operators, the public and
regulators
Protection of children and young persons
17.10 No-one under the age of 18 is permitted to enter a casino and operators are required to
display notices to this effect at all entrances to a casino. Social Responsibility (SR) code
3.2.1(2) states that ‘licensees must ensure that their policies and procedures take
account of the structure and layout of their gambling premises’ in order to prevent
underage gambling. There must also be a door supervisor at every entrance to a casino
to ensure that this restriction is enforced (SR 3.2.1(3)). Children and young persons are
not allowed to be employed at premises with a casino premises licence. Licensing
authorities are able to find information about the restrictions that apply in the Licence
Conditions and Codes of Practice (LCCP)
The process for issuing casino premises licences
17.11 Licensing authorities whose areas have been chosen for the new casinos should set out
the principles they intend to apply when determining the ‘winner’ of a premises licence
competition, in their policy statement so that it is available to potential applicants before
the authority invites applications for the available casino premises licence(s). The
unsuccessful applicants must be informed of the result of the competition.
17.12 The Secretary of State has issued a code of practice 30 about the procedure to be
followed by licensing authorities in making determinations at both stage one and stage
two, and also about the matters authorities are to take into account in making such
determinations. The Act requires licensing authorities to comply with any code of
practice issued by the Secretary of State.
17.13 Where an authority invites applications, those applications may be in the form of an
application for a provisional statement as well as in the form of an application for the
grant of a full casino premises licence. Where an application is made in the form of a
30
The Code of Practice for Determinations under Paragraphs 4 and 5 of the Schedule 9 to the Gambling Act 2005 relating to
Large and Small Casinos (“Competition Code of Practice”)
provisional statement it is to be treated in the same way as an application for a casino
premises licence and included in any two-stage determination process that the authority
is required to carry out. If an application for a provisional statement is successful in that
process, then it is not necessary for a further two-stage licensing process to be held
when a casino premises licence application is eventually made by the operator to whom
the statement has been issued.
17.14 As a first step in licensing a casino, the licensing authority will have to invite applications
for any casino premises licences that it may issue. Regulations set out how the process
of inviting applications is to be done. 31
17.15 It is possible that the number of applications that the relevant licensing authorities will
receive will exceed the number of licences available. The Act lays down a framework for
a two-stage process for considering applications in these circumstances.
17.16 As with all deliberations in premises licences, the authority should not confuse planning
and building regulation considerations with the matter before it.
17.17
Authorities should think carefully before entering into any agreements or arrangements
with potential casino operators which might be perceived to affect their ability to
exercise their stage two functions objectively and without having prejudged any of the
issues. If any such agreements or arrangements are entered into, it will be important
that authorities are able to demonstrate (for example, through having obtained
independent and impartial advice on the competing applications) that any decision they
reach is objectively based and is not affected by the arrangements.
Stage one
17.18 If more applications are received than the number of available licences, the authority
must determine whether each application would be granted a licence if there were no
limit on the number of licences that the authority could grant. Each application must be
considered separately and no reference made to the other applications received.
17.19 During this process each of the other applicants will be considered an ‘interested party’
and may make representations. The consideration of representations should be the
same as that for normal applications for premises licences, detailed in Part 7 of this
Guidance.
17.20 This process will result in one or more provisional decisions to grant a premises licence,
which will be disclosed to the applicant and any party that made representations.
17.21 The provisional decision of the licensing authority at stage one may be appealed. Until
any appeal has been determined, the licensing authority may not proceed to stage two.
Stage two
17.22 The second stage of the process only applies where the number of applications which
the licensing authority would provisionally grant under the stage one process exceeds
the number of available casino premises licences.
17.23 Under the second stage of the process the authority has to decide between the
competing applications and grant any available licences to those applications which in
their opinion will result in the greatest benefit to its area.
17.24 There is no right of appeal against the grant or refusal at stage two although an
applicant may seek judicial review of a licensing authority’s decision.
31
SI No. 469; The Gambling (Inviting Competing Applications for Large and Small Casino Premises Licences) Regulations 2008
17.25 Where a licensing authority issues a provisional statement following a two-stage
determination process, they may limit the period of time for which the statement has
effect. This is so that the authority can control the period within which the full casino
premises licence application has to be made. Under Schedule 9 to the Act the authority
is allowed to extend the period for which the provisional statement has effect if the
person to whom it is issued applies to have it extended.
Resolutions not to issue casino licences
17.26 S.166(1) of the Act states that a licensing authority may resolve not to issue casino
premises licences.
17.27 The decision to pass such a resolution may only be taken by the authority as a whole
and cannot be delegated to the licensing committee. In passing such a resolution the
authority may take into account any principle or matter, not just the licensing objectives.
Where a resolution is passed, it must be published by the authority in its policy
statement.
17.28 The resolution must apply to casino premises generally, so that the authority cannot
limit its effect to geographic areas or categories of casinos. The resolution must specify
the date it comes into effect. The authority may revoke the resolution by passing a
counter-resolution (again the whole authority must pass that resolution). The resolution
will lapse after three years so, should the licensing authority wish to keep the policy in
place, they should pass a resolution every three years.
17.29 A resolution not to issue casino premises licences will only affect new casinos. It will not
have any effect on casino premises licences issued before the resolution takes effect or
on provisional statements issued before that date. Similarly a resolution will not affect
the ability of existing casinos with preserved entitlements from the Gaming Act 1968
from continuing to operate as casinos.
Converted casinos (with preserved rights under Schedule 18 of
the Act)
17.30 Casino operators with licences granted under the Gaming Act 1968 were eligible to be
granted a casino premises licence under ‘grandfathering’ arrangements. Additionally,
special provisions apply to enable these operators to relocate premises by way of a
variation to a converted casino premises licence providing those premises are wholly or
partly situated in the area of the licensing authority which issued the licence. 32
17.31 These casinos will retain the rights to gaming machines equivalent to their entitlements
under previous legislation. That means they are permitted no more than 20 machines of
category B to D (except B3A machines), or they may elect to have any number of
category C or D machines instead (as was previously the case under s. 32 of the
Gaming Act 1968 33).There is no table-to-machine ratio in these casinos.
17.32 These premises licences are subject to the normal system of review as outlined in Part
10 of this Guidance. Where a licensing authority has passed a ‘no casino’ resolution,
this may not be taken into account in considering whether to review a premises licence.
Casino premises licence conditions
17.33 Part 9 of this Guidance discusses the mandatory and default conditions that attach to
premises licences.
32
SI No. 3272; The Gambling Act 2005 (Commencement No. 6 and Transitional Provisions) Order 2006;schedule 4, paragraph
65(12,13)
Commencement No 6 and Transitional Provisions Order SI 2006/3272 Schedule 4 paragraph 65(6)
33
Mandatory conditions – all casino premises licences
17.34 Access to premises is regulated to add additional safeguards for both the public and
industry. The principal entrance to the casino should be from a street. A street is defined
as including any bridge, road, lane, footway, subway, square, court, alley or passage
(including passages through enclosed premises such as shopping centres), whether it is
a thoroughfare or not.
17.35 No customer must be able to enter the casino from any other premises holding a
casino, bingo, AGC, FEC or betting premises licence, or from premises where a FEC,
club gaming and club machine, or licensed premises gaming machine permit, has
effect.
17.36 There should be no access to a casino from premises wholly or mainly used by children
and young persons.
17.37 No other gambling equipment may be situated within two metres of any ordinary gaming
table. For the purposes of these conditions an ordinary gaming table means one which
is not wholly or partially automated.
17.38 A maximum of 40 separate player positions may be made available for use in relation to
wholly automated gaming tables at any time.
17.39 All casinos must display the rules of each type of casino game that can be played on
the premises in a prominent place within both the table gaming area and other gambling
areas to which customers have unrestricted access. Licensees may do this either by
displaying clear and legible signs or by making available to customers leaflets or other
written material setting out the rules.
17.40 ATMs must be positioned so that customers must cease to gamble at tables or gaming
machines in order to use them.
Mandatory conditions – large casino premises licences
17.41 A notice shall be displayed at all entrances to the casino stating that no person under
the age of 18 will be admitted.
17.42 Large casinos must provide a minimum table gaming area of 1000m2. In determining
the floor area of the table gaming area, any number of separate areas within the casino
may be taken into account. However, no area counting towards the minimum table
gaming area may comprise less than 12.5% of the total minimum table gaming area. No
gambling shall be permitted in the table gaming area of the premises other than
gambling by way of table gaming.
17.43 Large casinos must offer a non-gambling area of a minimum of 500m2. The nongambling area may consist of one or more areas within the casino. These areas must
be readily available to customers (ie offices, kitchen areas, employee areas will not
count). They may include but should not consist exclusively of, lavatories and lobby
areas. The area must also include recreational facilities for casino customers that are
available for use when the casino is open; where there is more than one area each area
must contain recreational facilities. No gambling facilities may be offered in the nongambling areas.
17.44 Clear and accessible information about the terms on which a bet may be placed should
be displayed in a prominent position on the premises.
17.45 Any admission charges, the charges for playing bingo games and the rules of bingo
must be displayed in a prominent position on the premises. Rules can be displayed on a
sign, by making available leaflets or other written materials containing the rules, or
running an audio-visual guide to the rules prior to any bingo game being commenced.
17.46 No more than 40 separate betting positions may be made available for use if betting is
provided by means of terminals rather than an over the counter service.
Mandatory conditions – small casino premises licences
17.47 A notice shall be displayed at all entrances to the casino stating that no person under
the age of 18 will be admitted.
17.48 Small casinos must provide a minimum table gaming area of 500m2. In determining the
floor area of the table gaming area, any number of separate areas within the casino
may be taken into account. However, no area counting towards the minimum table
gaming area may comprise less than 12.5% of the total minimum table gaming area. No
gambling shall be permitted in the table gaming area of the casino other than gambling
by way of table gaming.
17.49 Small casinos must offer a non-gambling area of a minimum of 250m2. The nongambling area may consist of one or more areas within the premises. These areas must
be readily available to customers (ie offices, kitchen areas, employee areas will not
count). They may include, but should not consist exclusively of, lavatories and lobby
areas. The area must also include recreational facilities for casino customers that are
available for use when the casino is open; where there is more than one area each area
must contain recreational facilities. No gambling facilities may be offered in the nongambling areas.
17.50 Clear and accessible information about the terms on which a bet may be placed should
be displayed in a prominent position on the premises.
17.51 No more than 40 separate betting positions may be made available for use if betting is
provided by means of terminals rather than an over the counter service.
Mandatory conditions – converted casino premises licences
17.52 A notice shall be displayed at all entrances to the casino stating that no person under
the age of 18 will be admitted.
17.53 Casinos with converted licences, and that have a gambling area of over 200m2, must
offer a minimum non-gambling area equivalent to at least 10% of its total gambling area.
In determining the floor area of the gambling area, all areas in which facilities for
gambling are provided should be taken into account. The non-gambling area may
consist of one or more areas within the casino. These areas must be readily available to
customers (ie offices, kitchen areas, employee areas will not count). They may include,
but should not consist exclusively of, lavatories and lobby areas. The area must also
include recreational facilities for casino customers that are available for use when the
casino is open; where there is more than one area each area must contain recreational
facilities. No gambling facilities may be offered in the non-gambling areas.
Default conditions attaching to all casino premises licences
17.54 The default opening hours of all casinos are noon to 6am.
Appropriate licensing environment (previously known as
primary gambling activity) 34
17.55 An operating licence condition provides that gaming machines may be made available
for use in casinos only on those days when sufficient facilities for playing casino games
or games of equal chance are also available for use.
17.56 In this respect, when a casino exclusively offers fully automated casino games, there
must be more individual player positions made available for these games than there are
gaming machines made available for use.
17.57 The LCCP sets out in full the requirements on operators which are found in licence
condition 16 and in associated code of practice provision 9.
34
This part of the LCCP will be the subject of a consultation in 2015. Amendments to this part of the Guidance, if required, will be
made when the LCCP changes are in place
Part 18: Bingo
18.1
Bingo is not given a statutory definition in the Act although two types of bingo are
commonly understood:
• cash bingo, where the stakes paid make up the cash prizes that are won
• prize bingo, where various forms of prizes are won, not directly related to the
stakes paid.
18.2
The game and rules of bingo have evolved to the point where, despite the absence of
any formal industry standard, the way in which bingo is played is broadly similar
throughout Great Britain. Bingo is equal chance gaming. The Commission has
published its view of what bingo is and how it differs from other forms of gambling. This
can be found in the advice note What Constitutes Bingo. This advice was developed
with the support of key stakeholders from the Bingo industry.
18.3
Cash bingo is the main type of bingo played in commercial bingo premises. They also
offer prize bingo, largely as games played in the intervals between main stage games.
This means that only premises with a bingo premises licence, or a large casino
premises licence issued under the Act (where the operator holds a bingo as well as a
casino operating licence), will be able to offer bingo in all its forms.
18.4
As well as commercial bingo premises, bingo can be found in other gambling premises.
Prize bingo is traditionally a game played in arcades, especially seaside amusement
arcades, or at travelling funfairs. For these operators, prize bingo is subject to the
allowances for prize gaming in the Act. This means that, subject to limits on participation
fees and prizes, adult gaming centres, licensed and unlicensed family entertainment
centres, and travelling fairs, (or any premises with a prize gaming permit) are able to
offer prize gaming, which includes prize bingo. In this form of gaming, the nature of the
prize must not be determined by reference to the number of people playing the game,
and the nature or the size of the prize must not be determined by reference to the
amount paid for or raised by the gaming. See Part 27 of this Guidance for a fuller
discussion of prize gaming.
18.5
Licensing authorities need to satisfy themselves that bingo can be played in any bingo
premises for which they issue a premises licence. An operator may choose to vary their
licence to exclude a previously licensed area of that premises, and then apply for a new
premises licence, or multiple new premises licences, with the aim of creating separate
premises in that area. Essentially providing multiple licensed premises within a single
building or site. Before issuing additional bingo premises licences, licensing authorities
need to consider whether bingo can be played at each of those new premises.
Protection of children and young persons
18.6
Under the Act, children and young persons (anyone up to the age of 18) cannot be
employed in providing any facilities for gambling on bingo premises, and children (under
16) cannot be employed, in any capacity, at a time when facilities for playing bingo are
being offered. However, young persons, aged 16 and 17, may be employed in bingo
premises (while bingo is being played), provided the activities on which they are
employed are not connected with the gaming or gaming machines. Licensing authorities
are able to find information about the restrictions that apply in Licence Conditions and
Codes of Practice (LCCP).
18.7
Children and young people are allowed into bingo premises; however they are not
permitted to participate in the bingo and if category B or C machines are made available
for use these must be separated from areas where children and young people are
allowed. Social Responsibility (SR) code 3.2.5(3) states that ‘licensees must ensure that
their policies and procedures take account of the structure and layout of their gambling
premises’ in order to prevent underage gambling.
Gaming machines
18.8
S.172(7), as amended, provides that the holder of a bingo premises licence may make
available for use a number of category B gaming machines not exceeding 20% of the
total number of gaming machines on the premise. For example, a premises with a total
of 25 gaming machines available for use can make five or fewer category B3 gaming
machines available on that premises. Premises that were licensed before 13 July 2011
are entitled to make available eight category B gaming machines, or 20% of the total
number of gaming machines, whichever is the greater. There are no restrictions on the
number of category C or D machines that can be made available. Regulations state that
category B machines at bingo premises are restricted to sub-category B3 (but not B3A)
and B4 machines.
18.9
The gaming machines must remain within the licensed area covered by the premises
licence. In the unusual circumstance that an existing bingo premises covered by one
premises licence applies to vary the licence and acquire additional bingo premises
licences (so that the area that was the subject of a single licence will become divided
between a number of separate licensed premises) it is not permissible for all of the
gaming machines to which each of the licences brings an entitlement to be grouped
together within one of the licensed premises.
18.10 Equipment operated by a bingo operating licence for the purpose of playing bingo, for
example what are currently known as mechanised cash bingo, electronic bingo terminal
(EBTs) and video bingo terminals (VBTs), will be exempt from controls on gaming
machines provided they comply with any conditions set by the Commission and, in the
case of EBTs, do not hold gaming machine content.
18.11 An EBT that offers gaming machine content in addition to bingo content is considered to
be a gaming machine and would count towards the total number of gaming machines or
towards the offering of bingo. Any EBTs that do not offer gaming machine content would
not count towards the number of gaming machines.
Bingo in clubs and alcohol-licensed premises
18.12 Bingo is a class of equal chance gaming permitted on alcohol-licensed premises, and in
clubs and miners’ welfare institutes, under the allowances for exempt gaming in Part 12
of the Act. There are regulations setting controls on this form of gaming, to ensure that it
remains a low stakes and prizes activity. 35
18.13 In addition, new rules are laid down in the Act about the playing of bingo specifically in
alcohol-licensed premises, clubs and miners’ welfare institutes. Where the level of bingo
played in these premises reaches a certain threshold, it will no longer be authorised by
these rules and a bingo operating licence will have to be obtained from the Commission
for future bingo games. Even in this circumstance, bingo can still only be offered under
the rules for exempt gaming. The aim of these provisions is to prevent bingo becoming
a predominant commercial activity on such non-gambling premises.
18.14 The threshold is reached if the bingo played during any seven-day period exceeds
£2,000 (either in money taken or prizes awarded) once in a year, referred to as ‘high
turnover bingo’. There is a legal duty on the licensee or club to inform the Commission if
they offer high turnover bingo in any seven day period. That allows the Commission to
monitor the bingo activity on the premises, and discuss with the relevant licensee or
club the point at which a bingo operating licence may be needed. A ‘high turnover
period’ begins with the first day of the seven day period in which the threshold was
exceeded and lasts for a year. If a second period of high turnover bingo occurs within
35
SI No. 1940; The Gambling Act 2005 (Exempt Gaming in Alcohol-Licensed Premises) Regulations 2007
SI No. 1944; The Gambling Act 2005 (Exempt Gaming in Clubs) Regulations 2007
that year, a bingo operating licence will be required. Where bingo is played in a
members club under a bingo operating licence no premises licence will be required.
18.15 If it comes to the attention of licensing authorities that alcohol-licensed premises or
clubs or institutes are playing bingo during the course of a week which involves
significant stakes and prizes, that makes it possible that the £2,000 in seven days is
being exceeded, authorities should inform the Commission. To help clubs and institutes
to comply with the full range of statutory requirements for gaming, the Commission has
developed a statutory code of practice The Code of Practice for gaming in clubs and
premises with an alcohol licence.
Bingo in casinos
18.16 The eight large casinos will be able to offer bingo. Bingo will be permitted as part of their
casino premises licence and they will not require a separate bingo premises licence,
though they will need to obtain a bingo operating licence (which may be combined with
their casino licence) in order to offer facilities for bingo at a casino. The standards in this
respect will be no lower than for operators seeking only to provide facilities for bingo
alone.
Bingo premises licence conditions
18.17 Part 9 of this Guidance discusses the mandatory and default conditions that attach to
premises licences.
Mandatory conditions
18.18 A notice stating that no person under the age of 18 years is permitted to play bingo on
the premises shall be displayed in a prominent place at every entrance to the premises.
18.19 No customer shall be able to enter bingo premises directly from a casino, an adult
gaming centre or betting premises (other than a track).
18.20 Over 18 areas within bingo halls that admit under-18s must be separated by a barrier
with prominently displayed notices stating that under-18s are not allowed in that area
and with adequate supervision in place to ensure that children and young people are
not able to access these areas or the category B or C machines. Supervision may be
done either by placing the terminals within the line of sight of an official of the operator
or via monitored CCTV.
18.21 Any admission charges, the charges for playing bingo games and the rules of bingo
must be displayed in a prominent position on the premises. Rules can be displayed on a
sign, by making available leaflets or other written material containing the rules, or
running an audio-visual guide to the rules prior to any bingo game being commenced.
18.22 Any ATM made available for use on the premises shall be located in a place that
requires any customer who wishes to use it to cease gambling in order to do so.
Default conditions
18.23 Bingo facilities in bingo premises may not be offered between the hours of midnight and
9am. However, there are no restrictions on access to gaming machines in bingo
premises.
Appropriate licensing environment (previously known as
primary gambling activity) 36
18.24 An operating licence condition provides that gaming machines may be made available
for use in licensed bingo premises only on those days when sufficient facilities for
playing bingo are also available for use.
18.25 In this respect, in cases where bingo is exclusively offered by means of electronic bingo
terminals or bingo machines, there must be more individual player positions made
available for bingo than there are gaming machines made available for use.
18.26 The LCCP set out in full the requirements on operators.
36
This part of the LCCP will be the subject of a consultation in 2015. Amendments to this part of the Guidance, if required, will be
made when the LCCP changes are in place
Part 19: Betting premises
19.1
The Act contains a single class of licence for betting premises although within this, there
are different types of premises which require licensing. This part of the Guidance
discusses off-course betting which is betting that takes place other than at a track in
what was previously known as a licensed betting office. Tracks are discussed in Part 20
of this Guidance. Please note that there are also betting offices on tracks, that have a
separate premises licence from the track licence, which are also discussed in Part 20.
19.2
The Act also permits betting intermediaries to operate from premises. S.13 of the Act
defines a betting intermediary as a person who provides a service designed to facilitate
the making or acceptance of bets between others. Although betting intermediaries
usually offer their services via remote communication, such as the internet, a betting
intermediary can apply for a betting premises licence to offer intermediary services upon
the premises, such as a premises based trading room.
19.3
Licensing authorities are responsible for issuing and monitoring premises licences for all
betting premises. The issuing of premises licences is discussed in Part 7 of this
Guidance.
Protection of children and young persons
19.4
Children and young persons are not permitted to enter premises with a betting premises
licence, although exemptions apply to tracks, as explained in Part 20 of this Guidance,
and s.46 and s.47 of the Act set out offences of inviting, causing or permitting a child or
young person to gamble, or to enter certain gambling premises. Social Responsibility
(SR) code 3.2.7(3) states that ‘licensees must ensure that their policies and procedures
take account of the structure and layout of their gambling premises’ in order to prevent
underage gambling. Children and young persons are not allowed to be employed at
premises with a betting premises licence.
Gaming machines
19.5
S.172(8) provides that the holder of a betting premises licence may make available for
use up to four gaming machines of category B, C or D. Regulations state that category
B machines at betting premises are restricted to sub-category B2, B3 and B4
machines 37.
Self Service Betting Terminals (SSBTs)
19.6
S.235(2)(c) provides that a machine is not a gaming machine if it is designed or adapted
for use to bet on future real events. Some betting premises may make available
machines that accept bets on live events, such as horse racing, as a substitute for
placing a bet over the counter. These SSBTs are not gaming machines and therefore
neither count towards the maximum permitted number of gaming machines, nor have to
comply with any stake or prize limits. SSBTs merely automate the process that can be
conducted in person and the Act exempts them from regulation as a gaming machine.
19.7
However, where a machine is made available to take bets on virtual races (that is,
results and / or images generated by computer to resemble races or other events) that
machine is a gaming machine and counts towards the maximum permitted number of
gaming machines, and must meet the relevant category limitations for the premises.
19.8
It is the Commission’s view that the use of SSBTs is a form of remote communication
and that a remote licence will be required if SSBTs are used to facilitate the making or
37
The terminals commonly in use are able to provide both B2 and B3 content.
accepting of bets by others. The Betting: advice for remote, non-remote and betting
intermediaries advice note sets out the framework which the Commission applies when
deciding whether it considers that a particular operator is offering betting or is acting as
a betting intermediary and whether gambling is remote gambling or non-remote
gambling.
19.9
S.181 contains an express power for licensing authorities to restrict the number of
SSBTs, their nature and the circumstances in which they are made available by
attaching a licence condition to a betting premises licence or to a casino premises
licence (where betting is permitted in the casino). When considering whether to impose
a condition to restrict the number of SSBTs in particular premises, the licensing
authority, amongst other things, should take into account the ability of employees to
monitor the use of the machines by children and young persons or by vulnerable
people.
19.10 Where SSBTs include the functionality to be marketed or presented in foreign
languages, licensing authorities may seek to ensure that the operator has considered
the ordinary code provision about making the following information also available in
those languages: 38
• the information on how to gamble responsibly and access to help referred to in
the LCCP
• the players’ guides to any game, bet or lottery required to be made available to
customers under provisions in LCCP
• the summary of the contractual terms on which gambling is offered, which is
required to be provided to customers as a condition of the licensee’s operating
licence.
Betting premises licence conditions
19.11 Part 9 of this Guidance discusses the mandatory and default conditions that attach to
premises licences.
Mandatory conditions
19.12 A notice shall be displayed at all entrances to the betting premises stating that no
person under the age of 18 will be admitted. The notice should be clearly visible to
people entering the premises.
19.13 There must be no access to betting premises from other premises that undertake a
commercial activity (except from other premises with a betting premises licence
including tracks). Except where it is from other licensed betting premises, the entrance
to a betting shop should be from a street (defined as including any bridge, road, lane,
footway, subway, square, court, alley or passage – including passages through
enclosed premises such as shopping centres – whether a thoroughfare or not).
19.14 Any ATM made available for use on the premises shall be located in a place that
requires any customer who wishes to use it to leave any gaming machine or self-service
betting terminal (SSBT) in order to do so.
19.15 No apparatus for making information or any other material available in the form of
sounds or visual images may be used on the licensed premises, except where used to
communicate:
• information about or coverage of sporting events, including information relating
to betting on such events (and incidental information including advertisements)
• information relating to betting (including results) on any event in connection with
which bets may have been affected on the premises.
38
Ordinary code provision 3.3.2
Betting operator-owned TV channels are permitted.
19.16 No music, dancing or other entertainment is permitted on betting premises. This
includes any form of entertainment such as apparatus producing sound or visual images
which do not fall within paragraph 19.15 or machines which do not come within the
categories of machine explicitly allowed in betting premises under s.172(8) of the Act.
19.17 The consumption of alcohol on the premises is prohibited during any time which
facilities for gambling are being provided on the premises.
19.18 The only publications that may be sold or made available on the premises are racing
periodicals or specialist betting publications.
19.19 A notice setting out the terms on which a bet may be placed must be displayed in a
prominent position on the premises.
Default conditions
19.20 Gambling facilities may not be offered in betting premises between the hours of 10pm
on one day and 7am on the next day, on any day.
Appropriate licensing environment (previously known as
primary gambling activity) 39
19.21 It is not permissible for an operator to offer gaming machines on a premises which is
licensed for non-remote betting but not to offer sufficient facilities for non-remote betting.
A non-remote betting operating licence authorises its holder to ‘provide facilities for
betting’ (s.65(2)(c) of the Act). Likewise, a betting premises licence authorises premises
to be used for ‘the provision of facilities for betting…’ (s.150(1)(e) of the Act). The ability
to make up to four gaming machines, within categories B2 – D, available is an additional
authorisation conferred upon the holder of a betting premises licence (s.172(8) of the
Act); it is not a free standing right to make gaming machines available for use. It follows
that unless a betting premises operator offers sufficient facilities for betting it should not
be making gaming machines available on the premises in question.
19.22 In the Commission’s view it is also important, in relation to the licensing objective of
protecting vulnerable persons from being harmed or exploited by gambling, that
customers should be offered a balanced mix of betting and gaming machines in
licensed betting premises.
19.23 Accordingly, an operating licence condition provides that gaming machines may be
made available for use in licensed betting premises only at times when there are also
sufficient facilities for betting available. In this respect, such facilities must include
information that enables customers to access details of events on which bets can be
made, make such bets, learn of the outcome and collect any winnings.
19.24 The LCCP set out the full requirements on operators in licence condition 16 and code of
practice provision 9.
19.25 Should a licensing authority receive an application to vary a premises licence for betting
in order to extend the opening hours, the authority should satisfy itself that the reason
for the application is in line with the requirements of the operating licence conditions.
39
This part of the LCCP will be the subject of a consultation in 2015. Amendments to this part of the Guidance, if required, will be
made when the LCCP changes are in place
Industry codes
19.26 The betting industry, in common with other sectors of the gambling industry, has
developed a variety of codes, for example through their trade association. Their main
focus has been on matters related to social responsibility. Such codes, whilst not having
the force of a licence condition or code, can assist officers when conducting premises
inspections. Updates are provided in the LA Bulletin and on trade association websites.
Part 20: Tracks
Definition of a track
20.1
S.353 of the Act defines a track as a horse racecourse, greyhound track or other
premises on any part of which a race or other sporting event takes place or is intended
to take place.
20.2
The Act does not give a list of premises that are officially recognised as ‘tracks’ but
there are a number of venues where sporting events do or could take place, and
accordingly could accommodate the provision of betting facilities. Examples of tracks
include:
• a horse racecourse (referred to in this guidance as ‘racecourses’)
• a greyhound track
• a point-to-point horserace meeting
• football, cricket and rugby grounds
• an athletics stadium
• a golf course
• venues hosting darts, bowls, or snooker tournaments
• a premises staging boxing matches
• a section of river hosting a fishing competition
• a motor racing event.
20.3
This list is not exhaustive as, in theory, betting could take place at any venue where a
sporting or competitive event is occurring. While many of these venues are not
commonly understood to be ‘tracks’, they fall within the definition of ‘track’ in the Act.
Licensing authorities may be of the view that they have few tracks in their area, but the
definition in the Act means that most licensing authorities are likely to have venues that
could be classified as a track for betting purposes.
20.4
The Act also provides for tracks which do not currently offer betting facilities, but may
elect to do so at some stage in the future. This means that land which has a number of
uses, one of which fulfils the definition of a track, could qualify for a premises licence.
Examples could include agricultural land upon which a point-to-point meeting takes
place or a theatre, arena or exhibition centre where sporting events such as darts or
snooker competitions are held. Under the Act, these may all be classified as tracks.
20.5
The Act does not define what constitutes a sporting event or race and licensing
authorities will need to decide this on a case by case basis. The Commission is aware
of some instances of the apparent misuse of occasional use notices (OUNs), by the
arrangement of a contrived sporting event at a premises solely in order to apply for an
OUN and to permit betting on premises where it would not normally be allowed. Further
details can be found in Part 15.
20.6
If an individual or company wants to offer betting facilities on a sporting event then
different forms of ‘approval’ are available, one of which must be obtained if betting is to
be provided, irrespective of whether the betting is generally incidental to the main
sporting activity. The different types of approval for the provision of betting facilities at
premises are:
• a premises licence
• an occasional use notice.
Track premises licences – differences from other premises
licences
20.7
There are differences between track premises licences and most other premises
licences. In essence, tracks admit third-party operators to provide betting facilities,
whereas other premises licence holders – betting shops, bingo clubs and casinos for
instance – provide the gambling facilities themselves and are subject to the conditions
of the operating licence as well as the premises licence.
20.8
The Act recognises that tracks are primarily premises intended for entertainment other
than gambling and therefore places no restrictions on offering ancillary entertainment
including allowing music, dancing or other entertainment on the premises and the sale
of alcohol.
20.9
Tracks are also recognised as multi-purpose venues having a wide range of facilities
that enable them to host various other activities, often on non-event days, including:
• private dinners and parties
• weddings
• retail events (auctions, car boot sales etc)
• concerts
• conferences
• exhibitions.
20.10 While there is no special class of betting premises licence for a track, the Act does
contain rules which apply specifically to premises licences granted in respect of a track.
20.11 Premises licences in relation to tracks differ from other types of premises licence in a
number of ways. Most importantly, the applicant for the licence need not hold an
operating licence from the Commission 40.
20.12 Tracks may be subject to more than one premises licence, provided each licence
relates to a specified area of the track. For example, a limited number of track premises
licences will be held by operators of pool betting licences, who may also have an
alcohol licence for the premises. The Act sets out that there can be a primary premises
licence for the track and, in addition, subsidiary premises licences for other parts of the
track 41. This allows track venues to develop leisure facilities such as a casino and apply
for a premises licence for that part of the track.
20.13 The offence of inviting or permitting a child or young person to enter gambling premises
under s.47 of the Act, does not apply to tracks (s.47(4). Children and young persons are
allowed to be present on the track while a sporting event is taking place on those
licensed premises. Paragraph 20.28 details the position for non-event days.
20.14 There are also a number of track premises licence holders who have an operating
licence because they provide facilities for pool betting, These operators, such as
greyhound track owners, in addition to admitting 3rd party betting operators, run their
own pool betting facilities as permitted by s.179, and are subject to licence conditions
applicable to their status as both betting operators and track premises licence holders.
20.15 On a limited number of occasions it has been suggested that areas on a track such as a
hospitality box has been used as a trading room. Were this to be the case a betting
premises licence would be required separate to the overall track premises licence. The
Commission’s approach to the subject is detailed in an advice note ‘Is a trading room
licence required?’ 42 and can be found on our website. If a licensing authority is in any
doubt as to the status of such an operation they should contact the Commission.
Betting on tracks
20.16 There are various types of betting which take place in relation to tracks, often divided
into ‘on-course’ and ‘off-course’.
40
Section 159 (3) (4) of the Act
Section 152 (3) of the Act
Is a trading room licence required?
41
42
On-course betting
20.17 The on-course betting operator is one who comes onto the track, temporarily, while
races or sporting events are taking place. On-course betting operators tend to offer
betting only on the events taking place on the track, that day. For example, betting
operators attending horserace and greyhound racing meetings will only attend on race
days. Similarly, betting operators at cricket and football grounds are only likely to attend
on days when matches are taking place.
20.18 Betting on tracks is organised in different ways and can take place in different parts of
the track in many different forms. These include the following:
• ‘Betting rings’
The ring can be dispersed throughout the track, and can include ‘temporary’
rings at large meetings, but all different locations form part of the betting area.
On-course betting operators will be located in the betting ring according to a
position (‘pitch’) allocated to them under the commercial arrangement they have
with the track owner.
• Betting counters or kiosks
A betting counter or booth may be a permanent or temporary outlet from which a
bookmaker provides betting facilities. Examples include manned stands or
portacabins located at football grounds on match days, and the temporary kiosks
used by bookmakers at cricket grounds during test matches.
• Mobile betting
Mobile betting machines (often hand held) operated by employees of betting
operators allow customers to place a bet or receive payouts away from betting
kiosks or the betting ring, most commonly in hospitality areas.
• Self-service betting terminals (SBBTs)
SSBT, described in paragraph 19.6, lack the direct human intervention of a
betting counter staffed by a cashier, and can be located at different parts of
tracks. See below more details on SSBTs at tracks.
• Pool betting (also known as totalisator betting or the ‘Tote’)
This involves the pooling of stakes on a given event, and the splitting of the total
pool, less a commission for the operator amongst the winners. This form of
betting at racetracks is currently only provided by the ‘Tote’. In 2011 the Tote
was purchased by Betfred. As part of the sale process Betfred received an
exclusive seven year licence to offer pool betting on UK horseracing, which
expires in 2018. Pool betting is also offered at greyhound tracks, usually by the
owner of the track under a pool betting operating licence or a person authorised
to act on their behalf. Tracks may also conduct inter-track pool betting when
other tracks are holding races.
Off-course betting
20.19 Off-course betting operators are those who provide betting facilities other than at a track
in betting premises such as those found on the high street. In addition to premises away
from the track, betting operators may operate self-contained betting premises or
designated areas such as a row of betting kiosks within the track premises. Selfcontained premises provide facilities for off-course betting (in effect, the opportunity to
bet on other events not just those taking place on the track), although they normally
operate only on race days.
20.20 The provision of off-course betting facilities as described above is generally conducted
in reliance on the track premises licence held by the occupier of the track and
consequently the off-course operator is prohibited from making any gaming machines
available for use unless they hold a separate premises licence in relation to part of the
track, ie a ‘subsidiary licence’. In order for a subsidiary licence to be secured, the track
premises licence holder will need to vary their existing premises licence so that it does
not have effect in relation to the area where the operator intends their subsidiary licence
to have effect, and a separate betting premises licence would need to be secured by the
off-course operator. Such a premises would then be subject to the conditions outlined in
Part 19.
20.21 Licensing authorities are advised to familiarise themselves with the different types of
licences that may be available on tracks.
Licences and other permissions for the provision of betting
facilities
20.22 A track premises licence permits the premises to be used for the provision of facilities
for betting, but does not permit the licence holder to provide casino, bingo or other types
of gambling on tracks, as these activities must be the subject of separate premises
licences.
20.23 Sporting events and races take place at many different venues including hotels,
conference centres, on agricultural land, and at designated sporting venues such as
football grounds. In many cases such venues do not hold sporting events all year round
and the number of ‘event’ days may be limited. The Act provides that if certain
conditions are met, a premises licence is not always required to permit betting facilities
at such events.
20.24 S.39 of the Act provides that where there is betting on a track on eight days or fewer in
a calendar year, betting may be permitted by an OUN, as described at part 15 of this
guidance. This permits licensed betting operators to provide facilities for betting on
tracks for short periods. An OUN may be suitable for a point-to-point track which holds
race meetings eight times a year or less. No conditions are attached to an OUN.
However, only licensed betting operators may offer betting facilities at such tracks,
otherwise an offence would be committed under s.33 of the Act.
Betting on event and non-event days
20.25 All track premises licences are subject to a default condition that gambling facilities can
only be provided at the track during the hours of 7am and 10pm 43. Gambling facilities
can be provided during this time, regardless of whether or not a sporting event is taking
place. The default condition does not apply however on days when a sporting event is
taking place on the premises.
Hours of betting on non-event days
20.26 On days when no sporting event is taking place, a track premises licence is subject to
the default condition on times.
20.27 Some tracks have traditionally offered, and will wish to continue to offer, facilities for
gambling outside the proposed gambling hours on non-event days. For example, to
screen live televised events from other time-zones (which may take place after 10pm or
before 7am) and provide betting facilities during those events. Tracks can apply for the
default condition to be amended or removed to address this.
20.28 Where tracks plan to open and allow provision for betting facilities on non-event days,
betting operators will need to either exclude children from the premises on these days
or demonstrate that they are able to exclude children and young persons from betting
areas 44. In simple terms, on non-event days, tracks become similar to licensed betting
offices on the high street. Tracks may achieve this requirement by:
43
SI no 1409: The Gambling Act 2005 (Mandatory and Default Conditions) (England and Wales) Regulations 2007 & SSI no 266:
The Gambling Act 2005 (Mandatory and Default Conditions) (Scotland) Regulations 2007
Section 182 (2) of the Act (as amended by SI 2007 – 1410)
44
•
•
•
locating all betting areas inside an area of the premises that is separated from
the remainder of the premises by a physical barrier, thereby preventing access
other than through a designated entrance
only admitting adults to the part of the track where betting areas are located, by
establishing procedures for verifying customer ages and refusing entry to adultonly areas for those unable to produce an acceptable form of identification (and
taking action where there are unlawful attempts to enter adult-only areas)
placing prominent notices in front of and inside each entrance stating that
access to the area is prohibited to persons under 18.
20.29 Licensing authorities may choose to reduce the default gambling hours, providing any
reduction is in line with the principles set out in s.153 of the Act.
Social responsibility considerations for tracks
20.30 The achievement of the licensing objectives requires betting operators to adopt socially
responsible gambling policies and procedures designed both to ensure that gambling is
open and fair and that children and other vulnerable people are not harmed or exploited
by gambling.
20.31 While betting operators must put into effect policies and procedures to promote socially
responsible gambling, there is no equivalent requirement on track premises licence
holders. However, s.182(1)(a) of the Act places a condition on the track premises
licence that the licensee shall ensure that children and young persons are excluded
from any area where facilities for betting are provided.
20.32 As with other aspects of regulation licensing authorities may wish to make clear in their
policy statement any particular concerns or expectations that they have in relation to
track premises licence holders and betting operators who provide facilities from the
track.
Gaming machines
20.33 A track premises licence does not of itself entitle the holder to provide gaming
machines, as this type of premises licence can be held without any corresponding
operating licence. However, by virtue of s.172(9) of the Act, track owners holding both a
track premises licence and a pool betting operating licence issued by the Commission
(currently only greyhound tracks), may site up to four gaming machines within
categories B2 to D on the track.
20.34 Some tracks will also hold a alcohol licence and as such they will be automatically
entitled under s.282 of the Act to two gaming machines of category C or D. This
permission is activated by notifying the licensing authority and paying the required fee. If
a track premises licence holder has both an alcohol licence and a pool betting operating
licence, then they will be entitled to a total of six gaming machines (two via the alcohol
licence and four via the operating licence).
20.35 Applications for licensed premises gaming machine permits to allow more than two
gaming machines are not permitted where the premises are, or are part of, premises
already covered by a premises licence including a betting premises licence in respect of
a track 45.
However, there is a special saving for any alcohol-licensed premises within tracks in
England and Wales which already had permission for more than two gaming machines
pursuant to permits issued under s.34 of the Gaming Act 1968 and made an application
45
Schedule 13(1)(2), of the Act
for licensed premises gaming machine permits in accordance with transitional
provisions 46.
20.36 Children and young persons can play category D gaming machines on a track, but are
not allowed to play other categories of machine.
20.37 Alcohol premises licence holders who wish to make one or two gaming machines
available for use in reliance on s.282 of the Act are required to send the licensing
authority written notice of their intention and to pay the prescribed fee of £50.00 47. It is
also a requirement that any relevant provision of a code of practice under s.24 about the
location and operation of a gaming machine is complied with. This includes The gaming
machine permits code of practice.
20.38 The Commission has attached a condition to all pool betting operating licences that the
operator must:
• have and put into effect policies and procedures designed to prevent underage
gambling
• monitor the effectiveness of these.
Self Service Betting Terminals (SSBTs)
20.39 S.235(2)(c) of the Act provides that a machine is not a gaming machine by reason only
of the fact that it is designed or adapted for use to bet on future real events. Betting
operators may make available machines that accept bets on live events, such as
horseracing, as a substitute for placing a bet with a member of staff. These self-service
betting terminals are not gaming machines; they merely automate the process that can
be conducted in person and therefore are not regulated as gaming machines.
20.40 Licensed operators may install SSBTs on tracks. There is no restriction on the number
of SSBTs that may be in use but operators must, by virtue of their operating licence
conditions, supervise such terminals to prevent them being used by those under 18
years of age.
20.41 There is no formal requirement on track premises licence holders to involve themselves
in the procedures used by betting operators to supervise their SSBTs (unless specific
local conditions specifying supervisory arrangements are added to the track premises
licence by the licensing authority). Some betting operators may agree supervisory
assistance to be provided by employees of the track premises licence holders, but this
is a commercial matter between the track owner and betting operators.
20.42 While track premises licence holders have no formal responsibilities in this regard, the
Commission has advised them to inform it of instances where they are aware that
betting operators are persistently failing to ensure the adequate supervision of their
SSBTs.
Applications
Defining the premises
20.43 S.151 of the Act requires applicants for premises licences to submit plans of the
premises with their application. This ensures that licensing authorities have the
necessary information to make an informed judgement about whether the premises are
fit for gambling. The plan also informs future premises inspection activity.
46
SI 2006/3272 - The Gambling Act 2005 (Commencement No. 6 and Transitional Provisions) Order 2006 - Schedule 4,
paragraphs 27 and 30
SI 2007/1832 - Gaming Machines in Alcohol Licensed Premises (Notification Fee) (England and Wales) Regulations 2007,
Regulation 3
47
20.44 Plans for tracks need not be in a particular scale, but should be drawn to scale and
should be sufficiently detailed to include the information required by regulations.
20.45 In the majority of cases, such as greyhound tracks, racecourses, football stadia and
cricket grounds, defining the extent of boundaries may be assisted by reference to
existing plans already submitted to obtain other permissions. These could include:
• the obtaining of a safety certificate under ‘Safety at Sports Ground’ legislation
(this applies in respect of sports grounds with capacity to accommodate more
than 10,000 spectators)
• the historic boundaries under previous legislation such as, the approval of tracks
under Schedule 3 of the Betting, Gaming and Lotteries Act 1963.
20.46 It is sometimes difficult to define the precise location of betting areas on tracks. The
precise location of where betting facilities are provided is not required to be shown on
track plans, both by virtue of the fact that betting is permitted anywhere on the premises
and because of the difficulties associated with pinpointing exact locations for some
types of track. Licensing authorities should satisfy themselves that the plan provides
sufficient information to enable them to assess an application.
20.47 As the plan forms part of the licence document, it also needs to be sufficiently flexible to
ensure that a relatively small change in the premises layout would not require an
operator to submit an application to vary the track premises licence. Only a significant
change to the track layout would require a licence variation. For example, moving a
category C gaming machine from one end of a bar that had been marked on the plan as
a gaming machine area to another may not necessitate a full variation to a tracks
premises licence, nor would the establishment of a new betting area at a racetrack, as
neither of these events have any impact on the purpose of the licence or the conditions
attached to it. However, relocating category C machines to entirely different parts of a
track would generally need to be the subject of an application to vary the premises
licence.
Ensuring that premises are fit for the provision of gambling facilities
20.48 Licensing authorities are required to ensure that premises are fit for a specific type of
gambling. Premises which meet the conditions required to operate as, for example, a
casino may not meet the requirements for offering track betting facilities.
Access to premises and other parts of the track
20.49 S.152 of the Act provides that premises may not have more than one premises licence
authorising a type of activity, with the exception of track premises, whereby a track may
be the subject of multiple premises licences.
20.50 Access between premises licensed for gambling and non-gambling areas is an
important local licensing consideration, for reasons such as the following:
• to prevent operators from seeking to circumvent the Act by artificially subdividing
a premises and securing separate premises licences for its composite parts
• to ensure that operators do not circumvent regulations governing the maximum
number of gaming machines applicable to specific premises
• to ensure that people who have entered a premises for one type of gambling are
not exposed to another, potentially harder, form of gambling
• to ensure that there is no direct access between gambling premises to which
children have access and those which they are prohibited from entering
• to ensure that all gambling premises have publicly accessible entrances
• to ensure that gambling premises are not developed in the backrooms of other
commercial premises.
20.51 As tracks may be the subject of multiple premises licences, regulations 48 have been laid
to stipulate the access requirements between gambling premises, and when entering or
leaving gambling premises. By virtue of the regulations no direct access is allowed from
a track to a casino or adult gaming centre. Therefore if, for example, a casino is built on
a track premises that is the subject of a track premises licence, clearly defined public
thoroughfares should be in place to ensure that customers have to leave one gambling
premises, and be aware they have done so, before entering another.
Access by children – special dispensation for tracks
20.52 Persons under 18 years old are not permitted to enter premises when betting facilities
are being provided, other than at tracks. This dispensation allows families to attend
premises such as greyhound tracks or racecourses on event days, and children to be
permitted into areas where betting facilities are provided, such as the ‘betting ring’,
where betting takes place.
20.53 Licensing authorities should note however that the exemption allowing children access
to betting areas on tracks does not extend to areas within a track where category C or
above machines are provided, or other premises to which under 18 year olds are
specifically not permitted access. For example, where betting facilities are provided
through a self-contained betting office on a track which has a separate betting premises
licence, the betting operator of the self-contained premises is required to exclude under18s from their premises.
20.54 The Act creates offences relating to gambling by children and young people and the
operating licence conditions require operators to have policies and procedures in place
to prevent betting from persons who are under 18 years old. As under-18s are permitted
to enter betting areas on tracks on event days, this needs to include policies and
procedures to mitigate the likelihood of underage betting occurring. The track premises
licence holder is also required to display a notice in a prominent place at every public
entrance stating that no person under the age of 18 is permitted to bet on the premises.
20.55 Licensing authorities should be aware that there is an anomaly in the Act, wholly
prohibiting the employment of children and young people on tracks.
Multiple licences
20.56 S.152(3) of the Act permits the issuance of more than one premises licence for a track
provided that each licence relates to a distinct specified area of the track. There cannot
be more than one premises licence covering the same area of the track.
20.57 This enables track owners to extend existing facilities to provide other gambling
facilities, such as a casino, on their existing tracks. In such a case, the licensing
authority will need to consider access issues as direct access between a track and other
betting premises (other than a track betting shop) is not permitted. Access for casino
and bingo is dealt with in Parts 17 and 18.
20.58 Where a particular area of a track is already subject to a premises licence, and a person
wishes to apply for a licence to offer another type of activity in that area, an application
must be made to the issuing licensing authority to vary the original premises licence,
under s.187 of the Act. The new track premises licence can only be granted at the same
time as, or after, the original licence has been varied.
20.59 Licensing authorities may receive applications indicating separate betting areas that
may not necessarily have clear physical boundaries, such as walls or fencing. Such
48
SI 2007/1409: The Gambling Act 2005 (Mandatory and Default Conditions) (England and Wales) Regulations 2007
SSI no 266: The Gambling Act 2005 (Mandatory and Default Conditions) (Scotland) Regulations 2007
areas could still be the subject of a separate betting premises licence provided the area
is clearly delineated, both in terms of making it clear to the public that they are entering
a ‘betting office’, and to keep out persons aged under 18. Customers should be aware
that they are entering separate betting premises subject to its own licence conditions in
respect of underage access and alcohol for example. The delineation of such an area is
best achieved through a physical barrier. A licensing authority concerned that such an
area cannot be satisfactorily delineated may wish to refuse an application for a separate
betting premises licence.
20.60 Conditions applicable to off-track betting premises also apply to self-contained betting
premises on tracks that are the subject of their own betting premises licence, which
entitles the self-contained premises to offer up to four gaming machines (from
categories B2 to D).
20.61 Track owners should decide in conjunction with the betting operators offering facilities at
their track which premises licensing arrangement best suits the specific nature and
circumstances of their track.
Licence conditions and requirements
The role of track premises licence holders
20.62 Track premises licence holders act effectively as landlords, letting out parts of their
premises to licensed betting operators. The responsibilities of track premises licence
holders are established by the mandatory and default licence conditions attaching to
their premises licence. The licensed betting operators authorised by track owners to
provide betting facilities at tracks must comply with their operating licence conditions
and codes of practice issued by the Commission.
Acceptance of bets
20.63 Under s.33(2) of the Act, only licensed betting operators may accept bets or provide
facilities for gambling. The Commission is responsible for issuing betting operating
licences, and each betting operator must comply with the conditions of their operating
licence. The Commission can invoke penalties or revoke licences if they fail to do so.
Pool betting
20.64 By virtue of s.179 of the Act, a track premises licence may only authorise the
acceptance of bets by way of pool betting on horse racing or dog racing, and if the bets
are accepted by the holder of the track premises licence or in accordance with
arrangements made by him. In practice, though, this only applies to dog racing because
of the exclusive licence for the Tote. In all cases a relevant operating licence will be
required to license this activity 49. A totalisator 50 on a licensed greyhound track will only
be permitted while the public are admitted to the track for the purpose of attending
greyhound races, and no other sporting events are taking place. A mandatory condition
is attached to the premises licence to this effect 51.
Admission of betting operators
20.65 It is a mandatory premises licence condition of track premises licences that the licence
holder makes arrangements to ensure that the betting operators they admit to their track
operate under valid operating licences.
20.66 Track premises licence holders, or their appointees, are therefore responsible for
identifying and admitting those providing facilities for betting to operate on-course. This
49
50
51
Betfred’s purchase of Great Leighs means that it holds the operating licence.
A system of pool betting
SI 2007/1409: Gambling Act 2005 (Mandatory and Default Conditions) (England and Wales) Regulations 2007, Schedule 6(3)(1)
means both betting operating licence holders themselves and persons ‘employed by the
licensee under a written contract of employment’ 52.
20.67 Track premises licence holders are responsible for determining their own arrangements
for the verification of betting operators. As part of this process, the track premises
licence holder should make arrangements for ensuring that the betting operator holds
an operating licence.
20.68 There are special regulatory arrangements in place which mean that not all employees
need to be listed on the licence, referred to as Schedule Y arrangements 53. This means
that bookmakers’ assistants – such as computer operators and floormen – do not need
to appear on the operator’s licence. This light touch regulatory position allows for
existing arrangements for supervision. .
20.69 In instances where an operator holds more than one pitch at a track they can staff their
subsequent positions with non-licensed employees as long as those pitches are
networked to the first pitch and the operator or a Schedule Y representative is in
attendance at the track and operating the primary pitch 54. In this situation the licensee
or Schedule Y representative is responsible for all actions carried out by employees on
the pitches that he is not physically standing on.
20.70 Licensing authorities should be aware that, as track premises licence holders are
required through mandatory licence conditions to make arrangements for identifying and
admitting only valid betting operating licence holders to offer betting on-track, different
arrangements may be in place at different tracks to achieve this. Licensing authorities
are advised to make themselves aware of the processes used by tracks that they
licence in their localities.
Removal of illegal betting operators
20.71 Track premises licence holders are required by a mandatory licence condition to take
reasonable steps to remove from the racecourse anybody found to be providing
facilities for gambling without authorisation – in effect illegal bookmakers. This could
include someone claiming to be a representative of a licensed betting operator who has
been unable to prove their identity to the track premises licensee. Failure to uphold this
requirement could result in action being taken against the premises licence holder.
20.72 Track premises licence holders should have policies and procedures for identifying
illegal gambling in addition to the mandatory requirement to verify that betting operators
offering betting facilities on their track hold suitable operating licences.
20.73 The Commission informs licensing authorities and track premises licence holders where
a betting operating licence is revoked.
Display of rules
20.74 It is a mandatory condition of premises licences that clear and accessible information
about the terms on which a bet may be placed must be displayed at betting premises,
including tracks. The terms or rules of betting is a consideration of the Commission in
respect of the licensing of betting operators.
20.75 There are often multiple locations of betting on a track. For instance, on a large
racecourse there may be a number of betting rings and Tote outlets and at least one
52
Section 92 of the Act
A Schedule Y operator is an employee whose details have been provided to the Commission as authorised by the licensee to
accept bets on their behalf otherwise than under the supervision of a qualified person on the same track
53
54
betting shop, while at a football ground there could be several betting booths located
throughout the various stadium concourses.
20.76 It may be considered disproportionate and unnecessary to insist that betting rules are
displayed at each distinct betting location; rather, the rules should be made available at
suitable central locations. The track premises licence holder should make the necessary
arrangements to ensure that betting rules are accessible to all customers, regardless of
which area of the track they are in. If certain areas are restricted to certain customers
(such as different stands within a football ground) then rules could be displayed at
various parts of the track. Other measures could be taken to ensure that they are made
available to the public, such as printing them in the race-card or programme. The
requirement could also be met by making a copy of the rules available in leaflet form
from the main track office, and customers could be given a copy if they request one.
20.77 As track premises licence holders do not necessarily provide betting facilities
themselves (unless they hold a pool betting licence), they do not have their own set of
betting rules to apply. In such cases, the licence holder should make it clear that the
operator’s betting rules will apply. At horserace meetings, for example, betting operators
generally abide by Tattersall’s ‘Rules on Betting’, and as such the premises licence
holder should make this clear to customers. At a sports stadium where betting facilities
are provided by a high street operator, the track licence holder may choose to state on
the centrally provided notice that the rules followed by the betting operator will apply
throughout the track.
20.78 Betting operators offering betting facilities on racecourses and at greyhound tracks are
required through the conditions of their operating licence to clearly display any of their
own rules that differ from those that the track premises licence holder elects to display,
and their rules concerning voids, late bets, and maximum payouts. Track premises
licence holders are expected to refer customers to the rules of individual on-course
betting operators who are required to display this information on their stands (often
referred to as ‘bookmaker joints’).
Part 21: Adult gaming centres
21.1
Persons operating an Adult Gaming Centre (AGC) must hold a ‘gaming machines
general operating licence (Adult Gaming Centre)’ from the Commission and a premises
licence from the relevant licensing authority. They are able to make category B, C and D
gaming machines available.
Protection of children and young persons
21.2
No-one under the age of 18 is permitted to enter an AGC. The Act sets outs offences at
s.46 and s.47 of inviting, causing or permitting a child or young person to gamble, or to
enter certain gambling premises. In addition, Social Responsibility (SR) code 3.2.3(3)
states that ‘licensees must ensure that their policies and procedures take account of the
structure and layout of their gambling premises’ in order to prevent underage gambling.
21.3
Licensing authorities will wish to have particular regard to the location of and entry to
AGCs to minimise the opportunities for under-18s to gain access. This may be of
particular importance in areas where young people may be unsupervised for example,
where an AGC is in a complex, such as a shopping centre or airport. Licensing
authorities should consider whether their policy statement can be used to reflect such
locally based considerations.
Gaming machines
21.4
Gaming machine provisions by premises are set out at Appendix A. S.172(1) of the Act,
as amended, provides that the holder of an AGC premises licence may make available
for use a number of category B gaming machines not exceeding 20% of the total
number of gaming machines which are available for use on the premises and any
number of category C or D machines. For example, a premises with a total of 25
gaming machines available for use can make five or fewer category B3 gaming
machines available on those premises.
21.5
Premises subject to a licence granted before 13 July 2011 are entitled to make available
four category B3/B4 gaming machines, or 20% of the total number of gaming machines,
whichever is the greater. AGC premises licences granted on or after 13 July 2011 are
entitled to 20% of the total number of gaming machines only. Regulations specify that
the category B machines should be restricted to sub-category B3 and B4 machines, but
not B3A machines.
21.6
Where the operator of an existing AGC premises licence applies to vary the licence and
acquire additional AGC premises licences – so that the area that was the subject of a
single licence will become divided between a number of separate licensed premises –
each separate licensed premises must only contain the permitted machine entitlement.
For example, where two separate AGC premises have been created adjacent to each
other by splitting a pre-existing premises, it is not permissible to locate eight category
B3 gaming machines in one of the resulting premises and none in the other, as the
gaming machine entitlement for that premises would be exceeded. Part 7 explains in
greater detail what constitutes premises.
AGC premises licence conditions
21.7
Part 9 of this guidance discusses the mandatory and default conditions that attach to
premises licences. Currently there are no default conditions specific to AGCs.
Mandatory conditions
21.8
A notice must be displayed at all entrances to AGCs stating that no person under the
age of 18 years will be admitted to the premises.
21.9
There can be no direct access between an AGC and any other premises licensed under
the Act or premises with a family entertainment centre (FEC), club gaming, club
machine or alcohol licensed premises gaming machine permit. There is no definition of
‘direct access’ in the Act or regulations, although licensing authorities may consider that
there should be an area separating the premises concerned, such as a street or cafe,
which the public go to for purposes other than gambling, for there to be no direct
access.
21.10 Any ATM made available for use on the premises shall be located in a place that
requires any customer who wishes to use it to cease gambling at any gaming machine
in order to do so.
21.11 The consumption of alcohol in AGCs is prohibited at any time during which facilities for
gambling are being provided on the premises. A notice stating this should be displayed
in a prominent place at every entrance to the premises.
Part 22: Licensed family entertainment centres
22.1
The Act creates two classes of family entertainment centre (FEC). This part of the
guidance concerns licensed FECs. Unlicensed FECs are dealt with in Part 24. Persons
operating a licensed FEC must hold a ‘gaming machine general operating licence
(Family Entertainment Centre)’ from the Commission and a premises licence from the
relevant licensing authority. They will be able to make category C and D gaming
machines available.
Protection of children and young persons
22.2
FECs are commonly located at seaside resorts, in airports and at motorway service
stations, and cater for families, including unaccompanied children and young persons.
Licensing authorities should take into account this specific risk when considering
applications and when inspecting such premises, and will likely reflect the risks in their
policy statement.
22.3
Children and young persons are permitted to enter an FEC and may use category D
machines. They are not permitted to use category C machines and it is a requirement
that there must be clear segregation between the two types of machine, so that under18s do not have access to them. Social Responsibility (SR) code 3.2.5(3) states that
‘licensees must ensure that their policies and procedures take account of the structure
and layout of their gambling premises’ in order to prevent underage gambling.
Mandatory conditions apply to FEC premises licences regarding the way in which the
area containing the category C machines should be set out, detailed below at paragraph
22.9.
22.4
SR 3.2.5(2) requires operators to ensure that employees prevent access and challenge
children or young persons who attempt use category C machines. It is strongly
recommended that licensing authorities ensure that staffing and supervision
arrangements are in place to meet this requirement, both at the application stage and
during subsequent inspections.
Meaning of premises
22.5
A licensed FEC is classified as ‘premises’ and only premises that are wholly or mainly
used for making gaming machines available may hold an FEC premises licence (s.238
of the Act). As a result, it is generally not permissible for such premises to correspond to
an entire shopping centre, airport, motorway service station or similar. Typically, the
machines would be in a designated, enclosed area.
22.6
The Commission considers that it is not permissible for gaming machines which should
be contained within the FEC premises, to be located in corridors and walkways which
form part of the larger building. Machines have been found in such venues without the
requisite FEC premises licence and as such the machines are being made available
unlawfully and are not subject to the controls necessary to minimise gambling-related
harm and to protect children and vulnerable people. This exposes young people to
ambient gambling that the Act was designed to prevent (through the removal of
machines from take aways, taxi offices etc).
22.7
In the event that a licensing authority may have granted an FEC premises licence to
premises that should not have qualified for one, the procedure for review will apply as
set out in part 10 of this guidance. Depending on circumstances this might include
sharing concerns with the premises licence holder (exploring the possibility of them
applying to vary the premises licence to render it compliant), seeking a review of the
premises licence and/or imposing conditions.
Licensed FEC premises licence conditions
22.8
Part 9 of this guidance discusses the mandatory and default conditions that attach to
premises licences. Currently there are no default conditions specific to FECs.
Mandatory conditions
22.9
The summary of the terms and conditions of the premises licence issued by the
licensing authority under s.164(1)(c) of the Act must be displayed in a prominent place
within the premises.
22.10 The layout of the premises must be maintained in accordance with the plan.
22.11 The premises must not be used for the sale of tickets in a private lottery or customer
lottery, or the National Lottery.
22.12 No customer shall be able to enter the premises directly from a casino, an adult gaming
centre or betting premises (other than a track). There is no definition of ‘direct access’ in
the Act or regulations, but licensing authorities may consider that there should be an
area separating the premises concerned, such as a street or cafe, which the public go
to for purposes other than gambling, for there to be no direct access.
22.13 Any ATM made available for use on the premises must be located in a place that
requires any customer who wishes to use it to cease gambling at any gaming machine
in order to do so.
22.14 Over-18 areas within FECs that admit under-18s, must be separated by a barrier with
prominently displayed notices at the entrance stating that under-18s are not allowed in
that area and with adequate supervision in place to ensure that children and young
persons are not able to access these areas or the category C machines. Supervision
may be done either by placing the terminals within the line of sight of an official of the
operator or via monitored CCTV.
22.15 The consumption of alcohol in licensed FECs is prohibited at any time during which
facilities for gambling are being provided. A notice stating this should be displayed in a
prominent position on the premises.
Part 23: Introduction to permits
23.1
The Act introduces a range of permits for gambling which are granted by licensing
authorities. Permits are designed as a light-touch approach to low level ancillary
gambling – they are used in circumstances where stakes and prizes are subject to very
lot limits and / or gambling is not the main function of the premises. The permits
regulate gambling and the use of gaming machines in specific premises.
23.2
Holders of alcohol-licensed premises gaming machine permits and club permits are
required to comply with codes of practice drawn up by the Commission, on the location
and operation of machines, namely The gaming machine permits code of practice.
23.3
The following parts of this guidance discuss, amongst other things, the various permits
that licensing authorities are responsible for issuing:
• part 24 – family entertainment centre gaming machine permits, Schedule 10
• part 25 – club gaming permits and club machine permits, Schedule 12
• part 26 – alcohol-licensed premises gaming machine permits, Schedule 13
• part 27 – prize gaming permits, Schedule 14.
23.4
Licensing authorities may only grant or reject an application for a permit. No conditions
may be attached to a permit.
23.5
There are different factors to be taken into account by licensing authorities when
considering the different types of permit applications and further information is provided
in the relevant parts of this guidance identified above.
23.6
In addition, licensing authorities are responsible for receiving notifications from holders
of alcohol licences under the Licensing Act 2003 or the Licensing (Scotland) Act 2005,
that they intend to exercise their automatic entitlement to two gaming machines in their
premises under s.282 of the Act.
Part 24: Unlicensed family entertainment centres
24.1
Unlicensed family entertainment centres (uFEC) are able to offer only category D
machines in reliance on a gaming machine permit. Any number of category D machines
can be made available with such a permit, although there may be other considerations,
such as fire regulations and health and safety, to take into account. Permits cannot be
issued in respect of vessels or vehicles.
24.2
UFECs are premises which are ‘wholly or mainly’ used for making gaming machines
available 55. The permit cannot therefore be granted for an entire shopping centre,
airport or bowling alley, for example.
24.3
A permit lapses if the licensing authority informs the permit holder that the premises are
not being used as an FEC. 56 Further guidance is set out at paragraph 22.5.
24.4
If the operator wishes to make category C machines available in addition to category D
machines, the operator will need to apply for a ‘gaming machine general operating
licence (Family Entertainment Centre)’ from the Commission and a premises licence
from the licensing authority.
24.5
Schedule 10 of the Act sets out the application process and regulatory regime for FEC
gaming machine permits.
Applying for a permit
24.6
The application for a permit can only be made by a person who occupies or plans to
occupy the premises to be used as an uFEC and, if the applicant is an individual, he or
she must be aged 18 or over. Applications for a permit cannot be made if a premises
licence is in effect for the same premises. The application must be made to the licensing
authority in whose area the premises are wholly or partly situated.
24.7
The licensing authority must specify the form and manner in which the application
should be made, and specify what other information and documents (such as insurance
certificates, plans of building, and so on) they require to accompany the application.
Applications must be accompanied by a fee, as prescribed in regulations 57 set by the
Secretary of State for England and Wales and Scottish Ministers for Scotland.
24.8
In its policy statement, a licensing authority may include a statement of principles that it
proposes to apply when exercising its functions in considering applications for permits.
In particular it may want to set out the matters that it will take into account in
determining the suitability of the applicant. Given that the premises is likely to appeal
particularly to children and young persons, licensing authorities may wish to give weight
to matters relating to protection of children from being harmed or exploited by gambling
and to ensure that staff supervision adequately reflects the level of risk to this group.
Licensing authorities are also encouraged to also specify in their policy statement that a
plan for the uFEC must be submitted.
Granting or refusing a permit
24.9
55
The licensing authority can grant or refuse an application for a permit, but cannot add
conditions. An application for a permit may be granted only if the licensing authority is
satisfied that the premises will be used as an uFEC, and if the chief officer of police has
been consulted on the application.
S238 Gambling Act 2005
Schedule 10 (14) Gambling Act 2005
SI No 454/2007: The Gambling Act 2005 (Family Entertainment Centre Gaming Machine)(Permits) Regulations 2007
SSI No 309/2007: The Gambling Act 2005 (Fees)(Scotland) Regulations 2007
56
57
In considering the application, the licensing authority shall have regard to this guidance
and may have regard to the licensing objectives (Schedule 10, paragraph 7 of the Act).
The licensing authority may also consider asking applicants to demonstrate:
• a full understanding of the maximum stakes and prizes of the gambling that is
permissible in uFECs
• that the applicant has no relevant convictions (those that are set out in Schedule
7 of the Act)
• that employees are trained to have a full understanding of the maximum stakes
and prizes.
24.10 The licensing authority may not refuse an application unless it has notified the applicant
of the intention to refuse and the reasons for it, and given them an opportunity to make
representations orally or in writing or both. The rights of appeal in relation to permits are
discussed in part 12 of this guidance.
24.11 If a permit is granted, the licensing authority must issue it as soon as is reasonably
practicable. The Secretary of State has set out the form of the permit in regulations 58.
The permit must specify the person to whom it is issued, the premises it relates to, the
date on which it takes effect, the date on which it expires and the name and address of
the licensing authority issuing it.
24.12 The permit will have effect for ten years, unless it ceases to have effect because it is
surrendered or lapses or is renewed. There is no annual fee for FEC gaming machine
permits. Permits that were first granted under the Act will expire in 2017.
24.13 If the person to whom the permit is issued changes their name, or wants to be known by
another name, they may send the permit to the issuing authority for amendment,
together with the appropriate fee. The authority must comply with the request and return
the permit to the holder.
Lapse, surrender and forfeiture
24.14 The permit may lapse for a number of reasons, namely:
• if the holder ceases to occupy the premises
• if the licensing authority notifies the holder that the premises are not being used
as a uFEC
• if an individual permit holder dies, becomes incapable by reason of mental or
physical incapacity, becomes bankrupt, or sequestration of his estate is ordered
• if the company holding the permit ceases to exist, or goes into liquidation.
24.15 The purpose of the second reason listed above is to ensure that there is no erosion of
the principle that an uFEC permit should be obtained for premises that are wholly or
mainly used for gaming machines. Licensing authorities would need to use this power in
circumstances in which, since the grant of the permit, other activities have been
introduced in the premises that mean the gaming machines have become ancillary.
24.16 In the last two circumstances listed above, the Act provides that the personal
representative (in the case of death), trustee of the bankrupt estate or liquidator of the
company may rely on the permit for a period of six months as though it had effect and
was issued to them.
24.17 The permit may also cease to have effect if the holder surrenders it to the licensing
authority. Notice of such surrender must be accompanied by the permit, or by an
explanation of why the permit cannot be produced.
58
SI No 454/2007: The Gambling Act 2005 (Family Entertainment Centre Gaming Machine) (Permits) Regulations 2007
24.18 If the permit holder is convicted of a relevant offence the court may order the forfeiture
of the permit. The court may order the holder to deliver the permit to the licensing
authority and it must, in any case, notify the licensing authority that it has made a
forfeiture order as soon as is reasonably practicable after making the order. Such an
order may be suspended by a higher court, pending appeal.
Renewal
24.19 In accordance with paragraph 18 of Schedule 10 of the Act, an application for renewal
of a permit must be made during the period beginning six months before the permit
expires and ending two months before it expires. The procedure for renewal is the same
as for an application. The licensing authority may only refuse to renew a permit on the
grounds that:
• an authorised local authority officer has been refused access to the premises
without reasonable excuse
• renewal would not be reasonably consistent with the licensing objectives. In this
respect, the licensing authority will have the benefit of having consulted the chief
officer of police and will be aware of any concerns that have arisen about the
use of the premises during the life of the permit.
24.20 The duration of the permit will not be curtailed while a renewal application is pending,
including an appeal against a decision not to renew.
Maintenance
24.21 The permit must be kept on the premises and it is an offence not to produce it when
requested to do so by a constable, an enforcement officer, or an authorised local
authority officer.
24.22 If a permit is lost, stolen or damaged, the holder may apply for a replacement, subject to
paying a fee that has been set by the Secretary of State or Scottish Ministers in
regulations. The licensing authority must grant the application if it is satisfied that the
permit has been lost, stolen or damaged and a report has been made to the police. The
licensing authority should issue a copy and certify it as a true copy of the original permit.
Part 25: Clubs
Defining clubs
25.1
The Act creates a separate regime for gaming in clubs from that in other relevant
alcohol licensed premises. It defines two types of club for the purposes of gaming:
• members’ clubs (including miners’ welfare institutes) and
• commercial clubs.
This is an important distinction in respect of the gaming that may take place.
Members’ club
25.2
A members’ club is a club that is not established as a commercial enterprise and is
conducted for the benefit of its members. Examples include working men’s’ clubs,
miners’ welfare institutes, branches of the Royal British Legion and clubs with political
affiliations. Members’ clubs may apply to their local licensing authority for club gaming
permits and club machine permits. Particular care should be taken when assessing
applications for gaming permits, which have been used for illegal poker clubs under the
guise of members’ clubs. Experience very strongly indicates that taking care at the
application stage in robustly checking the credentials of the applicant will save a great
deal of time and effort afterwards. If a licensing authority is in any doubt as to the
suitability of an applicant they should contact the Commission who will offer the
appropriate support, advice and any intelligence that may be available.
24.3
In short, the statutory definition of a members’ club requires that:
• it must be established and conducted wholly or mainly for purposes other than
the provision of facilities for gaming
• the club satisfies the conditions attached to a club gaming permit
• they are not commercial clubs that would then be offering gambling illegally.
25.4
The Act states that members’ clubs must have at least 25 members and be established
and conducted ‘wholly or mainly’ for purposes other than gaming, unless the gaming is
restricted to that of a prescribed kind (currently bridge and whist). Members’ clubs must
be permanent in nature but there is no need for a club to have an alcohol licence.
Miners’ welfare institute
25.5
Miners’ welfare institutes are associations established for recreational or social
purposes. They are managed by representatives of miners or use premises regulated
by a charitable trust which has received funds from one of a number of mining
organisations. Miners’ welfare institutes may also apply for club gaming permits and
club machine permits.
Commercial club
25.6
A commercial club is a club established for commercial gain, whether or not they are
actually making a commercial gain. Examples include commercial snooker clubs, clubs
established as private companies and clubs established for personal profit. Commercial
clubs may only apply for club machine permits. There are established tests to determine
a club’s status (see paragraphs 25.46 to 25.48) but if in doubt, legal advice should be
sought.
Bingo in clubs
25.7
Clubs and miners’ welfare institutes are able to provide facilities for playing bingo under
s.275 of the Act or in accordance with a permit under s.271, provided that the
restrictions in s.275 are complied with. These include that in any seven day period the
aggregate stakes or prizes for bingo must not exceed £2,000 59. If that limit is breached
the club must hold a bingo operator’s licence and the relevant operating, personal and
premises licences must be sought. The bingo must comply with any code issued by the
Commission under s.24 of the Act 60. Further information about bingo in clubs can be
found in paragraphs 18.12 to 18.15.
Betting in clubs
25.8
Commercial betting, regardless of the level of stakes, is not allowed in clubs. Those who
facilitate such betting – whether designated premises supervisors or club officials – are
providing illegal facilities for gambling and are breaking the law. Even where designated
premises supervisors or club officials accept bets on behalf of licensed bookmakers, or
just facilitate betting through their own telephone accounts, they are acting as betting
intermediaries and could be prosecuted.
25.9
Licensed bookmakers with a full or ancillary remote licence may accept telephone bets
from a customer watching an event in a club, as long as that customer has an individual
account with them. It is illegal for bookmakers to sit in the club taking bets themselves.
Similarly, it is also illegal for operators to put their agent in clubs, for example, in a
working men’s club on a Saturday, to take bets.
Exempt gaming
25.10 Exempt gaming is generally permissible in any club. Such gaming must be equal
chance gaming and be ancillary to the purposes of the club. This provision is
automatically available to all such premises, but is subject to statutory stakes and prize
limits determined by the Secretary of State.
25.11 Equal chance gaming is gaming that does not involve staking against a bank and the
chances of winning are equally favourable to all participants. It includes games such as
backgammon, mah-jong, rummy, kalooki, dominoes, cribbage, bingo and poker.
25.12 The Secretary of State has set both daily and weekly prize limits for exempt gaming.
Different higher stakes and prizes are allowed for exempt gaming in clubs than are
allowed in alcohol-licensed premises 61. These limits are set out in Appendix C to this
guidance.
25.13 Exempt gaming should comply with any code of practice issued by the Commission
under s.24 of the Act.
25.14 Clubs may levy a charge for participation in equal chance gaming under the exempt
gaming rules. The amount they may charge is as prescribed in regulations 62. See
Appendix C for further details.
25.15 In order to qualify as exempt gaming, clubs may not charge a rake on games (a
commission or fee deducted from the prize fund), or levy or deduct an amount from
stakes or winnings.
25.16 Members’ clubs may only be established wholly or mainly for the purposes of the
provision of facilities for gaming, if the gaming is of a prescribed kind. Currently, bridge
and whist are the only prescribed kinds of gaming 63. So long as it does not provide
facilities for other types of gaming, a club established wholly or mainly for the purposes
59
Code of practice for equal chance gaming in clubs and premises with an alcohol licence
Code of practice for gaming in clubs and premises with an alcohol licence
61
SI No 1944/2007: The Gambling Act 2005 (Exempt Gaming in Clubs) Regulations 2007
62
SI No1944/2007: The Gambling Act 2005 (Exempt Gaming in Clubs) Regulations 2007
63
SI No 1942/2007: The Gambling Act 2005 (Gaming in Clubs) Regulations 2007
60
of the provision of facilities for gaming (currently bridge and whist) may apply for a club
gaming permit. In any other case, if gaming is the main purpose of the club, that gaming
cannot be treated as exempt gaming under s.269 of the Act. For example, if poker was
the main purpose of the club, it could not be provided as exempt gaming.
25.17 The gaming offered must not be linked to gaming in other premises and no person
under 18 may participate in the gaming.
25.18 Gaming which meets these conditions needs no permission from the licensing authority.
However, if an authority believes that these conditions are being breached, it has a
power to remove the exemption and ban gaming in a specific pub or club. Examples of
potential breaches include:
• poker prize limits being exceeded on a regular basis
• a rake being applied to a poker game
• the siting of illegal gaming machines
• failure to adhere to other exemptions and codes.
25.19 The Commission has issued a code of practice under s.24 of the Act in respect of
exempt equal chance gaming, which can be found on the Commission’s website 64.
25.20 The code of practice requires owners/licensees to adopt good practice measures for the
provision of gaming in general and poker in particular. The code also sets out the stakes
and prizes limits and the limits on participation fees laid out in regulations.
25.21 The emphasis of the regulations and the code of practice is on self-regulation by the
management of the premises and licensing authorities should take a strong line in
cases where breaches are detected. There are a number of powers available to
licensing authorities In circumstances where breaches have been committed including:
•
attaching additional conditions to the premises licence
•
withdrawal of the permit
•
removal of automatic machine entitlement, attached to alcohol licence
•
review of the alcohol licence
Protection of children and young persons
25.22 S.273 sets out the conditions that will apply to the club machine permit, including that in
respect of gaming machines no child or young person uses a category B or C machine
on the premises and that the holder complies with any relevant provision of a code of
practice about the location and operation of gaming machines. It should be noted that
clubs do not have to have permanent premises or an alcohol licence.
Permits
Club gaming permits
25.23 Schedule 12 of the Act sets out the application process and regulatory regime for club
gaming permits and club machine permits. Scottish Ministers may, with the consent of
the Secretary of State, make separate regulations in relation to club gaming or club
machine permits in place of Schedule 12, if the applicant or the holder of the permit is
the holder of a relevant Scottish licence. Scottish Ministers have made regulations in
this regard 65. In exercising a function under Schedule 12, the licensing authority must
have regard to this guidance and, subject to the guidance, the licensing objectives.
25.24 A club gaming permit or club machine permit may not be issued in respect of a vessel
or vehicle.
25.25 Under s.271 of the Act, the licensing authority may grant members’ clubs and miners’
welfare institutes (but not commercial clubs) club gaming permits which authorise the
64
65
Code of practice for equal chance gaming in clubs and premises with an alcohol licence
SSI No 504/2007: The Club Gaming and Club Machine Permits (Scotland) Regulations 2007
establishments to provide gaming machines, equal chance gaming (without having to
abide by the stake and prize limits which would apply to exempt gaming in the absence
of a permit) and games of chance as prescribed in regulations 66, namely pontoon and
chemin de fer. This is in addition to the exempt gaming authorisation under s.269 of the
Act.
25.26 Club gaming permits allow the provision of no more than three gaming machines. These
may be from categories B3A, B4, C or D but only one B3A machine can be sited as part
of this entitlement. See Part 16 of this guidance for information on machine categories.
25.27 Where a club has gaming machines, it is required to comply with the code of practice
issued by the Commission on the location and operation of machines, which can be
found on the Commission’s website.
25.28 The gaming which a club gaming permit allows is subject to conditions:
(a) in respect of equal chance gaming:
• the club must not deduct money from sums staked or won
• the participation fee must not exceed the amount prescribed in regulations
• the game takes place on the premises and must not be linked with a game on
another set of premises.
Two games are linked if:
• the result of one game is, or may be, wholly or partly determined by reference to
the result of the other game or
• the amount of winnings available in one game is wholly or partly determined by
reference to the amount of participation in the other game, and a game which is
split so that part is played on one site and another part is played elsewhere is
treated as two linked games
• only club members and their genuine guests participate.
(b) in respect of other games of chance:
• the games must be pontoon and chemin de fer only
• no participation fee may be charged otherwise than in accordance with the
regulations
• no amount may be deducted from sums staked or won otherwise than in
accordance with the regulations.
25.29 There are limits on stakes and prizes for poker played in those clubs and institutes that
do not hold a club gaming permit issued by their local licensing authority. The
introduction of these limits reflects significant recent growth in the popularity of poker,
and the need to address the particular risks associated with such gaming. The
regulations 67 impose a stakes limit of £10 per person per game, within a premises limit
of up to £250 in stakes per day and £1,000 per week. The maximum fees that clubs
may charge their members for participating in gaming has been set at £1 per day (or £3
if they hold a club gaming permit). Clubs and institutes holding a club gaming permit are
also able to provide facilities for specified banker’s games.
25.30 To help clubs and institutes to comply with the full range of statutory requirements for
gaming, the Commission has issued a statutory code of practice on equal chance
gaming in consultation with interested parties.
The Code of Practice for equal chance gaming in clubs and premises with an alcohol
licence is available from the Commission’s website 68. The provisions of the code (which
also applies to alcohol-licensed premises) include:
66
67
68
SI No 1945/2007: The Gambling Act 2005 (Club Gaming Permits) (Authorised Gaming) Regulations 2007
SI No 1944/2007: The Gambling Act 2005 (Exempt Gaming in Clubs) Regulations 2007
Code of practice for equal chance gaming in clubs and premises with an alcohol licence
•
•
ensuring that young people and children are protected by excluding them from
gaming (even if they are permitted on the premises)
ensuring that gaming is fair and open by requiring close supervision of the
games, record keeping (as appropriate), the need for standard rules and the
display of stakes and prizes limits and the rules during play.
25.31 A 48 hour rule applies in respect of all three types of gaming, so that the games may
only be played by people who have been members of the club for at least 48 hours, or
have applied or been nominated for membership or are genuine guests of a member.
Club machine permits
25.32 If a members’ club or a miners’ welfare institute does not wish to have the full range of
facilities permitted by a club gaming permit, they may apply to the licensing authority for
a club machine permit under s.273 of the Act. This authorises the holder to have up to
three gaming machines of categories B3A, B4, C and D. Commercial clubs are not
permitted to provide non-machine gaming other than exempt gaming under s.269 of the
Act, so they should apply for a club machine permit (although such a permit does not
allow the siting of category B3A gaming machines).
25.33 In England and Wales, premises which operate membership-based social clubs (often
work premises) are able to apply for a club machine permit. Before granting the permit
the licensing authority will need to satisfy itself that the premises meet the requirements
of a members’ club and may grant the permit if the majority of members are over 18
years of age. The permit will allow up to three machines of category B3A, B4, C or D. If
under-18s use the club, for example they are apprentices, they may play the category
D, but not the B4 or C, machines. This does not apply in Scotland because only a club
with a premises licence under the Licensing (Scotland) Act 2005 may apply for a club
machine permit 69.
25.34 Holders of licensed premises club machine permits are required to comply with the code
of practice, which has been issued by the Commission on the location and operation of
machines. Information about this code can be found on the Commission’s website 70.
Applications for club gaming permits and club machine permits
25.35 The Secretary of State has made regulations in relation to applications for these
permits, and Scottish Ministers have made separate regulations setting out the fees and
applications requirements that apply in Scotland.
25.36 Applications must be made to the licensing authority in whose area the premises are
located, and must be accompanied by the fee and documents prescribed in
regulations 71. Within a time prescribed in the regulations, the applicant must also copy
the application to the Commission and to the chief officer of police. The Commission
and the police may object to the permit being granted.
The period within which such objections must be lodged and the grounds on which they
may be made are set out in regulations. If any objections are made, the authority must
hold a hearing (unless consent has been given to dispense with it), otherwise no
hearing is necessary.
25.37 A licensing authority may grant or refuse a permit, but it may not attach any conditions
to a permit. The authority has to inform the applicant, the Commission and the police of
the outcome of the application and of any objections made.
69
See SSI No 504/2007: The Club Gaming and Club Machine Permits (Scotland) Regulations 2007 and SSI No 150/2011: The
Licensing (Scotland) Act 2005 (Consequential Provisions) Order 2011
70
Code of practice for gaming machines in clubs and premises with an alcohol licence
71
SI No 1834/2007: The Gambling Act 2005 (Club Gaming and Club Machine Permits) Regulations 2007, and
SI No 2689/2007: The Gambling Act 2005 (Club Gaming and Club Machine Permits)(Amendments) Regulations 2007
SSI No 504/2007: The Club Gaming and Club Machine Permits (Scotland) Regulations 2007
25.38 Licensing authorities may only refuse an application on the grounds that:
a) the applicant does not fulfil the requirements for a members’ or commercial club
or miners’ welfare institute and therefore is not entitled to receive the type of
permit for which it has applied
b) the applicant’s premises are used wholly or mainly by children and/or young
persons
c) an offence under the Act or a breach of a permit has been committed by the
applicant while providing gaming facilities
d) a permit held by the applicant has been cancelled in the previous ten years
e) an objection has been lodged by the Commission or the police.
25.39 If the authority is satisfied that (a) or (b) is the case, it must refuse the application.
Licensing authorities shall have regard to relevant guidance issued by the Commission
and (subject to that guidance), the licensing objectives.
25.40 In cases where an objection has been lodged by the Commission or the police, the
licensing authority is obliged to determine whether the objection is valid.
Fast-track procedure
25.41 There is a fast-track procedure for clubs in England and Wales which hold a club
premises certificate under s.72 of the Licensing Act 2003. Under the fast-track
procedure there is no opportunity for objections to be made by the Commission or the
police, and the grounds upon which an authority can refuse a permit are reduced. This
is because the club or institute will already have been through a licensing process in
relation to its club premises certificate under the 2003 Act, and it is therefore
unnecessary to impose the full requirements of Schedule 12. Commercial clubs cannot
hold club premises certificates under the Licensing Act 2003 and so cannot use the fasttrack procedure. The fast-track procedure also does not apply in Scotland.
25.42 Those clubs applying for permits by way of conversion of their pre-existing 1968 Act
Part II or Part III club registrations do not have the fast track procedure available to
them, even if they hold club premises certificates. In these instances, the club must still
send a copy of the application to the Commission and chief officer of police. However,
the Commission (and the police) may not object to the application and the licensing
authority is, in fact, obliged to grant the application. However, care should be taken that
the emphasis of the club is not being changed, to become a dedicated poker club for
example.
25.43 The grounds on which an application under this process may be refused are that:
a) the club is established primarily for gaming, other than gaming prescribed by
regulations under s.266 of the Act
b) in addition to the prescribed gaming, the applicant provides facilities for other
gaming
c) a club gaming permit or club machine permit issued to the applicant in the last
ten years has been cancelled.
Factors to consider when granting a club gaming permit
25.44 The licensing authority has to satisfy itself that the club meets the requirements of the
Act to obtain a club gaming permit. It is suggested that applicants for permits should be
asked to supply sufficient information and documents to enable the licensing authority to
take account of the matters discussed in paragraphs 25.46 to 25.46, at the time they
submit their applications to the licensing authority. Licensing authorities should be
particularly aware that club gaming permits may be misused for illegal poker clubs.
25.45 In determining whether a club is a genuine members’ club, the licensing authority
should take account of a number of matters, such as:
•
•
•
•
•
•
•
•
•
•
•
•
•
Is the primary purpose of the club’s activities something other than the provision
of gaming to its members? This is an indicator that it’s a genuine members’ club.
Are the profits retained in the club for the benefit of the members? This is the
key difference between a members’ club and a commercial club.
Are there 25 or more members? This is the amount of members a club has to
have to qualify.
Are there genuine domestic addresses on the register of members? Are
domestic addresses listed for every member? Are members local to the club?
These are all indicators that the member lists are bona fide and are made up of
genuine members.
Do members participate in the activities of the club via the internet? It is less
likely to be a genuine members’ club if this is the case.
Do guest arrangements link a member to every guest? Is there evidence of a
signing-in register for guests? Guests must be genuine guests of members and
not members of the general public.
Is the 48 hour rule between applying for membership and participating in any
gaming properly applied? This is an indication that the club has a proper
membership scheme.
Are there annual accounts for more than one year? This would indicate that the
club is permanent in nature, rather than temporary.
How is the club advertised and listed in directories, including on the internet? If
the club is categorised under ‘gaming’ or ‘poker’, it is less likely to be genuine
members’ club.
What information is provided on the club’s website? This can be a useful source
of information about the club.
Are children permitted into the club? Appropriate access to the premises by
children may indicate that it is less likely that the club is primarily for gambling
activities.
Does the club have a constitution and can it provide evidence that the
constitution was approved by the members of the club? This provides further
evidence that it is a properly constituted members’ club.
Is there a list of committee members and evidence of their election by the
members of the club? Can the club provide minutes of committee and other
meetings? These are further evidence that the club is a properly constituted
members’ club.
25.46 The constitution of the club could also indicate whether it is a legitimate members’ club.
Amongst the things to consider when examining the constitution are the following:
• Who makes commercial decisions on behalf of the club and what are the
governance arrangements? Clubs are normally run by a committee made up of
members of the club, rather than individuals or managers, who make decisions
on behalf of the members. There will normally be a system (consultation, voting,
paper ballots, annual general meetings, special meetings, etc) which allows
members to be involved in major decisions concerning the management and
running of the club. Such arrangements would normally be spelt out in the
constitution.
• Are the aims of the club set out in the constitution? A lack of aims or aims which
involve gaming could indicate that it is not a genuine members' club.
• Are there shareholders or members? Shareholders would indicate a business
enterprise linked to a commercial club.
• Is the members’ club permanently established? Clubs can’t be temporary and
must be permanent in nature
• Can people join with annual or quarterly membership? This would indicate that
the club is permanent in nature.
• Are there long term membership benefits? This would also indicate that the club
is permanent in nature and that it is a genuine members' club. The benefits of
membership would normally be set out in the rules of membership.
25.47 Other than bridge and whist clubs, which are separately catered for in regulations, a
club cannot be established wholly or mainly for purposes of gaming. In applying for a
club gaming permit, a club must therefore provide substantial evidence of activities
other than gaming. Useful questions which a licensing authority should consider include:
• How many nights is gaming made available? If gaming is available for all or
most nights with little other activity, then it is likely that the club is established
wholly or mainly for gaming.
• Is the gaming advertised? If gaming is advertised with little or no reference to the
other activities of the club, then it is likely that gaming is the main activity of the
club and that the gaming is run commercially.
• What are the stakes and prizes offered? The stakes and prizes limits must be
complied with. Unlimited stakes and prizes are only available to genuine
members’ clubs once a club gaming permit has been granted. If high stakes and
prizes are offered, this is also likely to indicate that gaming is one of the main
activities of the club.
• Is there evidence of leagues with weekly/monthly/annual winners? This could
indicate that the club’s main activity is gaming.
• Is there evidence of non-playing members? If members participate in gaming
exclusively, this is an indication that the main or only activity of the club is
gaming.
• Are there teaching sessions to promote gaming, such as poker? This could be
evidence that the club’s main activity is gaming.
• Is there tie-in with other clubs offering gaming, such as poker, through
tournaments or leagues? This is also an indication that gaming is possibly one of
the main activities of the club.
• Is there sponsorship by gaming organisations, for example on-line poker
providers? Similarly, this could indicate that poker is one of the main activities of
the club.
• Are participation fees within limits? The licensing authority could consider club
records and adverts for gaming, etc. Fees that exceed the limits could indicate
that the gaming is run commercially.
25.48 A visit to the premises before granting of the permit may assist the licensing authority to
understand how the club will operate.
Factors to consider for gaming under a club machine permit
25.49 The licensing authority should satisfy itself that the gaming on offer meets the conditions
set out in the Act and relevant regulations. To do this, the licensing authority may wish
to ask questions of the applicant or ensure that the exempt gaming complies with these
conditions. The conditions are:
• there must be no rake from the pot (that is, the organiser cannot take any money
from the prize fund, or deduct money from the stakes or winnings). Licensing
authorities should examine the records for gaming or, if possible, observe or get
statements about the pot
• there must be no side bets. This is probably only going to be possible to verify
through observation
• participation fees must be within the limits prescribed in the regulations. Is there
evidence of excess participation fees in club records, adverts for gaming in or
outside of the club or from complaints? Participation fees must not be disguised
as charges for dealers, mandatory tipping of dealers, table charges or hire
charges. Again, observation of the gaming may be necessary
• prizes must be within the limits prescribed in the regulations. Is there evidence
that they are excessive from records at the club, in adverts for gaming, etc?
Note that daily and weekly limits must be monitored by the operator and that
‘money or money’s worth’ (for example, goods) counts towards the prize limits
•
where the games are poker tournaments or leagues, the licensing authority may
find it useful to consult part 29 which sets out how the law applies to poker. This
should help the licensing authority to determine whether the gaming is within the
law from evidence such as records in the club and adverts for gaming.
Factors to consider when monitoring club gaming permits
25.50 Once the licensing authority has issued a club gaming permit, various aspects need to
be considered by licensing authorities in monitoring the club gaming permit. In addition
to monitoring whether the club continues to meet the requirements of the Act for a club
gaming permit (that is, whether it remains a genuine members’ club) and whether the
gaming meets the conditions set out in the Act and the relevant regulations.
25.51 Where clubs have computers available for use by members, licensing authorities should
be aware that these computers may be taken to be gaming machines in certain
circumstances. Generally, a computer is not a gaming machine merely because there is
a possibility of accessing a gambling website via the internet. However, a computer will
be taken to be a gaming machine if it is knowingly adapted or presented to facilitate or
draw attention to the possibility of it being used for gambling.
25.52 Each case will need to be looked at individually and ultimately the decision regarding
whether a machine is a gaming machine is one for the courts to make.
25.53 The precise circumstances in which the facilities are offered – including the environment
in which they are offered and the relationship with other gambling facilities provided –
will need to be taken into account when assessing the status of those facilities. The
following indicators may help in making decisions about whether a computer is
knowingly adapted or presented to facilitate or draw attention to the possibility of it being
used for gambling. This list is not exhaustive, and the presence or absence of any
single factor is not necessarily conclusive:
• icons for gambling websites displayed on the desktop screen
• links to gambling websites available via the start menu
• screensavers, desktop wallpapers referring to gambling websites
• internet browsing history or favourites menu containing gambling websites
• promotional material (posters, flyers) indicating the use of computers for
gambling
• gambling software downloaded onto a computer
• staff informing customers of the existence of the computer for access to
gambling websites
• email messages or other promotional material sent to customers/individuals
referring to the availability of computers on premises for gambling purposes.
25.54 Licensing authorities should note that, as a consequence of the Gambling (Licensing
and Advertising) Act 2014, gambling operators who advertise to consumers in Great
Britain are required to hold an operating licence.
25.55 Any of the factors mentioned in the preceding paragraphs in this section may give rise
to the need to review the club gaming permit or take appropriate enforcement action.
25.56 The Commission provides advice and guidance to licensing authorities on permits and
related matters and, on a case-by-case basis, will undertake targeted collaborations
with licensing authorities in order to establish principle and precedent, and a clear
understanding of the legal requirements.
25.57 An agency that may also be able to assist licensing authority enquiries is HM Revenue
and Customs. If a club is trading under the auspices of a club gaming permit (as a
members’ club) but is in fact a commercial club with, for example, their main activity
being poker, they would be liable for gaming duty. Licensing authorities should bear in
mind that clubs of this nature have premises to maintain, as well as staff and other
costs, so the sums involved may be significant.
25.58 Under the Act, a private club with a club gaming permit cannot run the premises wholly
or mainly for the purposes of gaming, nor can the club make a profit as all funds must
be applied for the benefit of the member.
25.59 There have been occasions where club gaming permits have been misused by
individuals seeking personal financial gain. One case led to the successful prosecution
of a private member’s club owner under the Proceeds of Crime Act 2002. The club
owner had been granted a club gaming permit but was later charged with money
laundering in relation to the running of an illegal poker club. Full details of the case and
other good practice examples in this area are available on the Commission website
www.gamblingcommission.gov.uk.
Maintenance of permits
25.60 The permit will have effect for ten years, unless it ceases to have effect because it is
surrendered or lapses or is renewed. However, a permit granted under the fast-track
procedure does not expire, unless it ceases to have effect because it is surrendered,
cancelled or forfeited, or it lapses.
25.61 The holder of the permit must pay to the licensing authority the first annual fee, and an
annual fee before each anniversary of the issue of the permit, in accordance with
regulations.
25.62 Permits may be amended to meet changing circumstances. Licensing authorities may
only refuse a variation if on consideration of a completely new application they would
refuse the permit.
25.63 The permit, which is to be kept on the premises it relates to, must be in a form specified
by the regulations and, if obtained through the fast-track procedure, must identify the
appropriate club premises certificate it relates to. It is an offence not to produce the
permit when requested to do so by a constable or an enforcement officer.
25.64 If a permit is lost, stolen or damaged, the holder may apply for a replacement, subject to
payment of a prescribed fee. The licensing authority must grant the application if it is
satisfied that the permit has been lost, stolen or damaged and, where the permit is lost
or stolen, a report has been made to the police. It should issue a copy and certify it as a
true copy.
25.65 A permit will lapse if the holder of the permit stops being a club or miners’ welfare
institute, or if it no longer qualifies under the fast-track system for a permit. In addition, a
permit will cease to have effect upon being surrendered to the authority. A notice to
surrender must be accompanied by the permit or a statement explaining why it cannot
be produced. The authority must inform the police and the Commission when a permit
has been surrendered or lapsed.
Cancellation and forfeiture of permits
25.66 The licensing authority may cancel the permit if:
• the premises are used wholly by children and/or young persons
• an offence or breach of a permit condition has been committed in the course of
gaming activities by the permit holder.
25.67 Reference here to ‘a permit condition’ means a condition in the Act or in regulations that
the permit is operating under.
25.68 Before cancelling a permit, the licensing authority must give the permit holder at least
21 days’ notice of the intention to cancel and consider any representations that they
may make. The authority must hold a hearing if the permit holder so requests and must
comply with any other procedural requirements set out in regulations. If there is no
appeal, the cancellation will take effect 21 days after notice of the intention to cancel
was given. The authority must notify the permit holder, the Commission and the police
that the permit has been cancelled and the reasons for the cancellation.
Renewal of permits
25.69 In England and Wales, in accordance with paragraph 24 of Schedule 12 of the Act, an
application for renewal of a permit must be made during the period beginning three
months before the licence expires and ending six weeks before it expires. The
procedure for renewal is the same as for an application. In Scotland, the Licensed
Premises Gaming Machine Permits (Scotland) Regulations 2007 apply. Permits granted
in terms of these Regulations do not expire, although they can cease to have effect in
certain circumstances, can be cancelled and can be varied.
25.70 The duration of the permit will not be curtailed while a renewal application is pending,
including an appeal against a decision not to renew.
25.71 If, at the time a permit is renewed, the applicant holds a club premises certificate, the
fast track procedure will apply as it does when application is first made for the permit.
This does not apply in Scotland.
Appeals
25.72 The rights of appeal in relation to permits are discussed in part 12 of this guidance.
Part 26: Premises licensed to sell alcohol
26.1
It is important to remember that gambling must remain ancillary to the main purpose of
the premises and the exemptions and permits are reliant on the premises holding a
valid alcohol licence. Experience indicates that, in circumstances where breaches of
gambling regulations occur, licensing authorities have a powerful lever in securing
compliance, due to their ability to review the alcohol licence.
26.2
S.279-284 of the Act only apply to premises in respect of which an on-premises alcohol
licence (in England and Wales) or a premises licence under the Licensing (Scotland)
Act 2005 has been issued – provided that, in the case of Scotland, it is not a licence
authorising the sale of alcohol for consumption off the premises only – and that have a
bar at which alcohol is served, without a requirement that alcohol is served only with
food. So any hotel, restaurant or pub that has a bar can offer gambling under Part 12 of
the Act, but hotels and restaurants that serve alcohol only with food cannot.
26.3
Licensing authorities might seek to reassure themselves that a premises has not
applied for an alcohol licence under the Licensing Act 2003 / Licensing (Scotland) Act
2005 with the sole aim of benefiting from the associated machine and exempt gaming
entitlements. It is expected that all gambling made available on the premises will remain
ancillary to the premises main activity. Where concerns exist that this might not be the
case, and the premises is primarily used to make gambling available, the licensing
authority might choose to exercise its powers under s.284 of the Act and remove the
exemption. Further details are provided below.
Automatic entitlement to two machines
26.4
S.282 of the Act provides an automatic entitlement to alcohol licence holders to make
available two gaming machines (of category C or D) for use in alcohol-licensed
premises. To take advantage of this entitlement, the person who holds the on-premises
alcohol licence or relevant Scottish licence must give notice to the licensing authority of
their intention to make gaming machines available for use, and must pay the prescribed
fee (as set by regulations) 72. If the person ceases to be the holder of the relevant
alcohol licence for the premises, the automatic entitlement to the two gaming machines
also ceases. Whoever applies for the new premises alcohol licence would also need to
apply under s.282(2).
26.5
This is not an authorisation procedure. Licensing authorities have no discretion to
consider the notification or to turn it down. The only matter to determine is whether the
person applying for the automatic gaming machine entitlement is the holder of the
alcohol licence and whether the prescribed fee has been paid. There is no statutory
requirement for pubs and other alcohol-licensed premises to display a notice of their
automatic entitlement to gaming machines.
Removal of exemption
26.6
72
Licensing authorities can remove the automatic authorisation in respect of any particular
premises by making an order under s.284 of the Act. They can do so if:
• provision of the machines is not reasonably consistent with the pursuit of the
licensing objectives
• gaming has taken place on the premises that breaches a condition of s.282, for
example the gaming machines have been made available in a way that does not
comply with requirements on the location and operation of gaming machines
• the premises are mainly used for gaming
• an offence under the Act has been committed on the premises.
SI No 1832/2007: The Gaming Machines in Alcohol Licensed Premises (Notification Fee)(England and Wales) Regulations 2007
SSI No 311/2007: The Gambling Act 2005 (Fees No. 2)(Scotland) Regulations 2007
26.7
Before making an order, the licensing authority must give the licensee at least 21 days’
notice of the intention to make the order and consider any representations that they may
make. The licensing authority must hold a hearing if the licensee so requests and must
comply with any other procedural requirements set out in regulations. If there is no
appeal, the order will take effect 21 days after notice of the intention was given. The
authority must give the licensee a copy of the order and written reasons for making it.
The licensee may appeal to the Magistrates’ court or the Sheriff.
Licensed premises gaming machine permits
26.8
Licensing authorities may issue licensed premises gaming machine permits for any
number of category C or D machines in licensed premises 73. Where a permit authorises
the making available of a specified number of gaming machines in particular premises,
this will effectively replace, and not be in addition to, any automatic entitlement to two
machines under s.282 of the Act.
26.9
Holders of licensed premises gaming machine permits are required to comply with a
code of practice issued by the Commission on the location and operation of machines,
Code of practice for gaming machines in clubs and premises with an alcohol licence.
26.10 The detail of how to apply for licensed premises gaming machine permits is set out in
Schedule 13 of the Act (for England and Wales) and in The Licensed Premises Gaming
Machine Permits (Scotland) Regulations 2007 (for Scotland).
26.11 Applications must be made by a person or organisation that holds the on-premises
alcohol licence for the premises for which the application is made. An application may
not be made if a premises licence under the Act is in effect at the premises. The
application must be made to an authority in whose area the premises are wholly or
partly situated. The Act requires an application to include information on the premises to
which it relates and the number and category of gaming machines sought. Apart from
this it is for the licensing authority to direct the form and manner of the application and
what additional information and documents are required.
26.12 In determining an application, the licensing authority must have regard to the licensing
objectives and to this guidance. They may also take account of any other matters that
are considered relevant to the application. The application does not require notification
to the Commission or police before determination, however, licensing authorities are
able to specify this as a requirement should they see fit.
26.13 The licensing authority may grant or refuse an application. In granting the application, it
may vary the number and category of gaming machines authorised by the permit. If
granted, the licensing authority must issue the permit as soon as possible after that.
Where they refuse the application they must notify the applicant as soon as possible,
setting out the reasons for refusal. The licensing authority must not refuse an
application, or grant it for a different number or category of machines, unless they have
notified the applicant of their intention to do so and given the applicant an opportunity to
make representations, orally, in writing, or both.
26.14 The permit must specify the person or organisation to which it is issued, the number of
gaming machines for which the permit has effect, the address of the premises and the
date on which it takes effect.
26.15 The permit holder can apply to the licensing authority to amend the permit to reflect a
change in the holder’s name. They must comply with the request, provided the
prescribed fee is paid.
73
Alcohol licensed premises as described in s.278 of the Act
26.16 The permit holder must keep the permit on the premises and it must be produced on
request for inspection by a constable, enforcement officer or local authority officer. Not
to do so is an offence. If the permit is lost, stolen or damaged, the holder may apply to
the issuing authority for a copy, accompanied by the prescribed fee.
26.17 There are no renewal provisions for this class of permit because they are indefinite and
continue in force for so long as the premises continues to have an alcohol licence and
the holder of the permit continues to hold that licence. The permit can lapse if the holder
surrenders it to the licensing authority.
26.18 The holder may apply to vary the permit by changing the number and/or category of
machines authorised by it.
26.19 The licensing authority is able to cancel a permit. It may only do so in specified
circumstances which include if the premises are used wholly or mainly by children or
young persons or if an offence under the Act has been committed. Before it cancels a
permit the licensing authority must notify the holder, giving 21 days notice of intention to
cancel, consider any representations made by the holder, hold a hearing if requested,
and comply with any other prescribed requirements relating to the procedure to be
followed. Where the licensing authority cancels the permit, the cancellation does not
take effect until the period for appealing against that decision has elapsed or, where an
appeal is made, until the appeal is determined.
26.20 The licensing authority can also cancel a permit if the holder fails to pay the annual fee,
unless failure is the result of an administrative error. The court may order forfeiture of
the permit if the holder is convicted of a relevant offence.
26.21 Where a person applies to a licensing authority for the transfer of an alcohol premises
licence, they will also need to apply separately for the transfer of the licensed premises
gaming machine permit. Both applications will require a fee to be paid.
26.22 The applicant may appeal to the Magistrates’ court or Sheriff against an authority’s
decision not to issue a permit. The holder can also appeal against a decision to cancel a
permit.
Exempt gaming
26.23 Exempt gaming is detailed at paragraphs 25.10 to 25.21 in part 25 of this guidance.
26.24 A fee may not be levied for participation in the equal chance gaming offered by an
alcohol-licensed premises under the exempt gaming rules. A compulsory charge, such
as charging for a meal, may constitute a participation fee, depending on the particular
circumstances.
26.25 Information about poker in alcohol-licensed premises can be found in part 29 of this
guidance.
Removal of exemption
26.26 Licensing authorities can remove the automatic authorisation for exempt gaming in
respect of any particular premises by making an order under s.284 of the Act, if:
• provision of the gaming is not reasonably consistent with the pursuit of the
licensing objectives
• gaming has taken place on the premises that breaches a condition of s.279, for
example the gaming does not abide by the prescribed limits for stakes and
prizes, a participation fee is charged for the gaming or an amount is deducted or
levied from sums staked or won
• the premises are mainly used for gaming
• an offence under the Act has been committed on the premises.
26.27 Before making an order, the licensing authority must give the licensee at least 21 days’
notice of the intention to make the order and consider any representations that they may
make. The authority must hold a hearing if the licensee so requests and must comply
with any other procedural requirements set out in regulations. If there is no appeal, the
order will take effect 21 days after notice of the intention was given. The authority must
give the licensee a copy of the order and written reasons for making it. The licensee
may appeal to the Magistrates’ court or the Sheriff.
Bingo
26.28 Alcohol-licensed premises are able to provide facilities for bingo under s.281 of the Act,
provided that the restrictions in s.281 are complied with. These include that, in any
seven day period, the aggregate stakes or prizes for bingo must not exceed £2,000. If
that limit is exceeded, the relevant operating and personal licences must be sought. It
should be noted, however, that the bingo will still be subject to the conditions for exempt
gaming prescribed in s.279 of the Act. Further details are provided in part 18 of this
guidance.
26.29 The bingo must comply with any code issued by the Commission under s.24 of the Act,
which can be found on the Commission’s website 74.
Betting
26.30 Commercial betting, regardless of the level of stakes, is not permitted in alcohollicensed premises. Those who facilitate such betting in pubs are providing illegal
facilities for gambling and are breaking the law. Even where publicans accept bets on
behalf of licensed bookmakers, or just facilitate betting through their own telephone
betting accounts, they are acting as betting intermediaries and could be prosecuted.
26.31 Licensed bookmakers who knowingly accept bets from pub customers through a single
account are encouraging illegal gambling and may be in breach of the Act and could
risk losing their licence.
26.32 Licensed bookmakers with a remote or ancillary licence can accept telephone bets from
a customer watching an event in a pub, as long as that customer has an individual
account with them. It is illegal for bookmakers or their agents to sit in the pub taking
bets themselves.
26.33 It should be noted, however, that the prohibition on commercial betting in alcohollicensed premises does not apply in relation to tracks in certain circumstances. Where
the betting takes place under the authority of a track premises licence, it can take place
in an area on the track licensed for the sale of alcohol, provided that the licensing
authority has approved the betting area as part of the track premises licence
application. However, this does not apply in relation to separate and discrete premises
on the track where betting takes place under the authority of a general betting licence.
In this case, the consumption of alcohol on those premises is prohibited.
Commission codes of practice
26.34 The Commission has issued a code of practice under s.24 of the Act in respect of
exempt equal chance gaming which can be found on the Commission’s website 75.
26.35 The code of practice requires owners/licensees to adopt good practice measures for the
provision of gaming in general and poker in particular. The code also sets out the stakes
and prizes limits laid out in regulations.
74
75
Code of practice for equal chance gaming in clubs and premises with an alcohol licence
Code of practice for equal chance gaming in clubs and premises with an alcohol licence
26.36 The emphasis of the regulations and the code of practice is on self-regulation by the
management of the premises and licensing authorities should take a strong line in
cases where breaches are detected.
26.37 Under s.310(2) of the Act, an authorised licensing authority officer may enter premises
with an alcohol licence for the purpose of:
• determining whether the gaming satisfies the conditions in s.279 of the Act
• in the case of bingo played on the premises, determining:
i) whether the terms and conditions of any relevant operating licence are
being complied with
ii) whether s.281 of the Act applies
• ascertaining the number and category of gaming machines being made available
for use on the premises.
26.38 Additionally, the Commission’s code of practice on gaming machines in alcohol-licensed
premises can be found on the Commission’s website 76. This code includes sections
relating to:
• the location and operation of machines, which are a requirement of machine
permits
• access to gambling by children and young persons, which sets out good practice
guidance for permit holders
• customer complaints and disputes, which again sets out good practice for permit
holders.
Scotland
26.39 The provisions of the Act which relate to gaming and gaming machines in licensed
premises also apply to Scotland. In Scotland they apply to premises which have a
premises licence granted under the Licensing (Scotland) Act 2005,provided that it is not
a licence authorising the sale of alcohol for consumption off the premises only.
26.40 The provisions affecting licensed premises gaming machine permits in Scotland have
been set out separately. This is because Schedule 13 of the Act does not apply in
Scotland. Instead, Scottish Ministers have power under s.285 of the Act to make
regulations about the regime in Scotland. The same also applies to gaming and gaming
machine permits for clubs in Scotland. Schedule 12 of the Act does not apply in that
case and, instead, Scottish Ministers have the power to make provision in regulations
about the regime for club gaming and club machine permits. The Scottish Executive has
made separate regulations in this regard 77. It is also important to note that, in Scotland,
Schedule 12 does not apply to clubs licensed to sell alcohol (by virtue of s.274(2) of the
Act).
Protection of children and young persons
26.41 The Commission’s code of practice relating to the location and operation of gaming
machines provides that, in respect of gaming machines in alcohol-licensed premises,
the licence holder or permit holder should put into effect procedures intended to prevent
underage gambling. This should include procedures for:
• checking the age of apparently underage customers
• refusing access to anyone who appears to be underage and who tries to use
category B or C gaming machines, and cannot produce an acceptable form of
identification.
76
Code of practice for gaming machines in clubs and premises with an alcohol licence
SSI No 505/2007: The Licensed Premises Gaming Machine Permits (Scotland) Regulations 2007 & SSI No 504/2007: The Club
Gaming and Club Machine Permits (Scotland) Regulations 2007
77
26.42 The code requires that all gaming machines situated on the premises must be located in
a place within the premises where their use can be supervised, either by staff whose
duties include such supervision (including bar or floor staff) or by other means. Alcohol
premises licence holders or permit holders must have in place arrangements for such
supervision.
26.43 In respect of exempt equal chance gaming, the code requires the gaming supervisor to
put into effect procedures designed to prevent underage gambling. These should
include:
• holding the gaming in premises or parts of premises which are restricted to
adults
• checking the age of potentially underage players
• refusing access to the gaming to anyone apparently underage who cannot
produce an acceptable form of age verification and identification.
26.44 Procedures should be in place for dealing with cases where an underage person
repeatedly attempts to gamble, including verbal warnings and reporting the offence to
the Commission and the police. The gaming supervisor should also take reasonable
steps to ensure that all employees understand their responsibilities under the code of
practice.
Prohibited gaming
26.45 No bankers' games may be played in alcohol licensed premises, commercial clubs or in
members’ clubs/miners’ welfare institutes unless they have a club gaming permit. With a
permit the two bankers’ games of pontoon and chemin de fer may be played.
Otherwise, games such as blackjack, roulette and any others which involve staking
against the holder of the bank are unlawful on such premises.
Part 27: Prize gaming and prize gaming permits
Prize gaming
27.1
S.288 defines gaming as prize gaming if the nature and size of the prize is not
determined by the number of people playing or the amount paid for or raised by the
gaming. Normally the prizes are determined by the operator before play commences.
Prize gaming permits
27.2
A prize gaming permit is a permit issued by the licensing authority to authorise the
provision of facilities for gaming with prizes on specified premises.
Prize gaming without a prize gaming permit
27.3
A casino operating licence gives authority to provide all games of chance, except any
form of bingo, which is excluded from the scope of the casino licence by s.68(3)(b). If a
casino wishes to provide bingo generally, it would need to obtain a bingo operating
licence, however, this is subject to the constraint that only one premises licence may be
issued for any particular premises at any time (s.152) and so the premises would have
to be distinct. Only casino premises licences for 2005 Act large casinos permit bingo to
be offered within the casino premises (s.174). If a casino wishes to offer prize bingo, it
could obtain a prize gaming permit, however, it is more likely that the casino will apply
for an operating licence to cover all forms of bingo (subject to the constraint already
mentioned).
27.4
S.291 enables any form of prize gaming to be provided in premises in reliance on their
bingo operating licence. This provision allows bingo operators to provide prize gaming
in respect of casino games as well as games of equal chance, which they would not
otherwise be able to do under the conditions of their operating licence. In the case of
bingo operators, the Commission or Secretary of State could impose conditions
preventing specified games from being offered, although there are currently no plans to
do so. Additionally, limits have been set on individual and aggregated stakes and prizes
for prize gaming in bingo premises, the purpose of which is to ensure that such gaming
is restricted to low stakes 78.
27.5
S.290 provides that any type of prize gaming may be provided in adult gaming centres
and licensed family entertainment centres, and that unlicensed family entertainment
centres may only offer equal chance prize gaming under the auspices of their gaming
machine permit, without the need for a prize gaming permit.
27.6
S.292 provides that travelling fairs are also able to offer equal chance prize gaming
without a permit, provided that, taken together, the facilities for gambling are an ancillary
amusement at the fair.
27.7
Children and young persons may participate in equal chance prize gaming only.
27.8
S.293 sets out four conditions that permit holders, AGCs, FECs and travelling fairs must
comply with to lawfully offer prize gaming. These are:
• the limits on participation fees, as set out in regulations 79, must be complied with
• all chances to participate in the gaming must be allocated on the premises on
which the gaming is taking place and on one day; the game must be played and
completed on the day the chances are allocated; and the result of the game
must be made public in the premises on the day that it is played
• the prize for which the game is played must not exceed the amount set out in
regulations (if a money prize), or the prescribed value (if non-monetary prize)
78
SI No 2257/2007: The Gambling Act 2005 (Operating Licence Conditions) Regulations 2007 and SI No 774/2010: The Gambling
Act 2005 (Operating Licence Conditions) (Amendment) Regulations 2010
SI No 1777/2007: The Gambling Act 2005 (Limits on Prize Gaming) Regulations 2007
79
•
participation in the gaming must not entitle the player to take part in any other
gambling.
Application for a prize gaming permits
27.9
Schedule 14 sets out the application process and regulatory regime for prize gaming
permits. In considering an application, the licensing authority shall have regard to this
guidance and need not, but may wish, to have regard to the licensing objectives.
27.10 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 must be aged 18
or over. An application for a permit cannot be made if a premises licence or club gaming
permit is in effect for the same premises. The application must be made to the licensing
authority in whose area the premises are wholly or partly situated.
27.11 The authority must specify the form and manner in which the application should be
made, and specify what information and documents (for example, insurance certificates,
plans of building) they require to accompany the application. An application must
specify the premises and the nature of the gaming for which the permit is sought.
27.12 In their policy statement, licensing authorities should include a statement of principles
that they propose to apply when exercising their functions in considering applications for
permits. In particular, they may want to set out the matters that they will take into
account in determining the suitability of the applicant. For example, if the premises will
appeal to children and young persons, licensing authorities should think about matters
relating to protection of children from being harmed or exploited by gambling and where
necessary consult the Safeguarding Children Board or local equivalent. Licensing
authorities should ask the applicant to set out the types of gaming that they are
intending to offer and the applicant should be able to demonstrate that:
• they understand the limits to stakes and prizes that are set out in regulations
• the gaming offered is within the law.
Granting or refusing a permit
27.13 The licensing authority can grant or refuse an application for a permit, but cannot add
conditions. The licensing authority may grant a permit only if they have consulted the
chief officer of police about the application. The licensing authority will want to take
account of any objections that the police may wish to make which are relevant to the
licensing objectives. Relevant considerations would include the suitability of the
applicant in terms of any convictions that they may have that would make them
unsuitable to operate prize gaming; and the suitability of the premises in relation to their
location and any issues concerning disorder.
27.14 A permit cannot be issued in respect of a vessel or a vehicle.
27.15 The licensing authority may not refuse an application unless they have notified the
applicant of the intention to refuse and the reasons for it, and given them an opportunity
to make representations orally or in writing or both.
27.16 If a permit is granted, the licensing authority must issue it as soon as is reasonably
practicable. The Secretary of State has set out the form of the permit in regulations 80.
The permit must specify the person to whom it is issued, the premises to which it
relates, the nature of the gaming, the date on which it takes effect, the date on which it
expires, and the name and address of the licensing authority issuing the permit. Scottish
Ministers have made separate regulations 81 in respect of fees associated with prize
gaming permits.
80
81
SI No 455/2007: The Gambling Act 2005 (Prize Gaming) (Permits) Regulations 2007
SSI No 309/2007: The Gambling Act 2005 (Fees)(Scotland) Regulations 2007
27.17 If the person to whom the permit is issued changes their name, or wants to be known by
another name, they may send the permit to the issuing authority for amendment,
together with the appropriate fee. The authority must comply with the request and return
the permit to the holder.
Duration, lapse, surrender and forfeiture
27.18 The permit will have effect for ten years, unless it ceases to have effect, lapses or is
renewed. There is no annual fee for prize gaming permits.
27.19 The permit may lapse for a number of reasons:
• if the holder ceases to occupy the premises
• if an individual permit holder dies, becomes incapable by reason of mental or
physical incapacity, becomes bankrupt, or sequestration of his estate is ordered
• if a company holding the permit goes into liquidation
• if the holder (for example a partnership) otherwise ceases to exist.
27.20 Where a permit lapses, the Act provides that the permit may be relied upon for a period
of six months after it has lapsed, by the following persons:
• the personal representative of the holder (in the case of death)
• the trustee of the bankrupt estate (in the case of individual bankruptcy)
• the holder’s interim or permanent trustee (in the case of an individual whose
estate is sequestrated)
• the liquidator of the company (in the case of a company that goes into
liquidation).
27.21 The permit may also cease to have effect if the holder surrenders it to the licensing
authority. Notice of such surrender must be accompanied by the permit, or an
explanation as to why the permit cannot be produced.
27.22 If the permit holder is convicted of a relevant offence (that is an offence listed in
Schedule 7 of the Act), the court may order the forfeiture of the permit. The court must
order the holder to deliver the permit to the licensing authority, or provide a statement
explaining why it is not reasonably practicable to produce it. The court must notify the
licensing authority that it has made a forfeiture order as soon as is reasonably
practicable after making the order. Such an order may be suspended by a higher court
pending appeal against conviction of a relevant offence.
Renewal
27.23 In accordance with paragraph 18 of Schedule 14, an application for renewal of a permit
must be made during the period beginning six months before the permit expires and
ending two months before it expires. The procedure for renewal is the same as for an
application.
27.24 A permit will not cease to have effect while a renewal application is pending, including
an appeal against a decision not to renew.
Maintenance
27.25 The permit must be kept on the premises and it is an offence not to produce it when
requested to do so by a constable, an enforcement officer, or an authorised local
authority officer.
27.26 If a permit is lost, stolen or damaged, the holder may apply for a replacement subject to
paying the fee set by the Secretary of State and Scottish Ministers. The licensing
authority must grant the application if it is satisfied that the permit has been lost, stolen
or damaged and a report has been made to the police. It should issue a copy and certify
it as a true copy.
Appeals
27.27 The rights of appeal in relation to permits are discussed in part 12 of this guidance.
Part 28: Non-commercial and private gaming, betting and
lotteries
28.1
The Act permits gambling without any specific permissions under limited circumstances,
namely:
• non-commercial gaming
• incidental non-commercial lotteries – these are detailed in Part 34 on small
society lotteries
• private gaming and betting.
Children and young persons are permitted to participate in non-commercial and private
gaming and betting 82.
Non-commercial gaming
28.2
The Act permits non-commercial gaming if it takes place at a non-commercial event,
either as an incidental or principal activity at the event. Events are non-commercial if no
part of the proceeds is for private profit or gain. The proceeds of such events may
benefit one or more individuals if the activity is organised:
• by, or on behalf of, a charity or for charitable purposes
• to enable participation in, or support of, sporting, athletic or cultural activities.
28.3
So it would be possible to raise funds providing the proceeds were, for example, to
support a local hospital appeal or a charitable sporting endeavour. Additionally, events
such as race nights or casino nights may be permitted if they comply with the
regulations and profits go to a ‘good cause’.
28.4
S.297(3) of the Act defines proceeds as:
a) the sums raised by the organisers, whether by way of fees for entrance or for
participation, sponsorship, commission from traders, or otherwise
minus
b) amounts deducted by the organisers in respect of costs reasonably incurred in
organising the event.
However, sums raised by other persons will not form part of the proceeds of the event
and may be appropriated for private gain. An example would be refreshments provided
at the event by an independent third party.
28.5
If someone uses any profits from non-commercial gaming for something other than the
specified purpose, then they commit an offence under s.301 of the Act, which can result
in a fine or imprisonment.
28.6
The Act identifies two types of permissible non-commercial gaming:
• prize gaming which must comply with the conditions set out in s.299 of the Act
• equal chance gaming which must comply with the conditions set out in s.300 of
the Act and the conditions prescribed in regulations.
Non-commercial prize gaming
28.7
82
An organiser does not need to have an operating or premises licence nor a prize
gaming permit, provided that the conditions in s.299 are met, namely:
• players are told that the purpose of the gaming is to raise money for a specified
charitable, sporting, athletic or cultural purpose
• profits are not for private gain
• the event cannot take place in a venue (other than a track) which has a
premises licence. If at a track, the premises licence cannot be in use (in effect
no betting can be taking place) and no temporary use notice can have effect
• the gaming must be on the premises and not be remote gaming.
S.46 and s.48 of the Act
28.8
In these circumstances, prize gaming occurs if the nature and size of the prize is not
determined by the number of people playing or the amount paid for or raised by the
gaming. Normally the prizes will be determined by the operator before play commences.
Non-commercial equal chance gaming
28.9
The conditions set out under s.300 are as follows:
• All players must be told what purpose the money raised from the gaming is
going to be used for – which must be something other than private gain – and
the profits must be applied for that purpose
• The gaming must also comply with regulations 83:
o limiting the maximum payment each player can be required to make to
participate in all games at an event to £8
o limiting the aggregate amount or value of prizes in all games played at an
event to £600, although where an event is the final one of a series in
which all of the players have previously taken part, a higher prize fund of
up to £900 is permitted
• The non-commercial event cannot take place on premises (other than a track)
which hold a premises licence, nor on a track at a time when activities are being
carried on in reliance on a premises licence, nor on premises at a time when
activities are being carried on in reliance on a temporary use notice. There is
nothing to stop such premises running charitable or other gambling events to
raise money for good causes, but they should do so using the gambling
permissions granted to them by their premises licence or use notice. The one
exception to this is that a non-commercial event can take place at a track,
provided no licensed gambling activities are taking place at the same time. This
enables a track to be used for non-commercial gambling when races are not
taking place
• The gaming must be non-remote gaming. In other words, the authorisation can
only apply to gaming which takes place at events, on premises, and for gaming
in person.
Private gaming
28.10 Private gaming can take place anywhere to which the public do not have access, for
example, a workplace. Domestic and residential gaming are two subsets where nonequal chance gaming is allowed.
•
•
Domestic gaming is permitted without the need for permissions if:
° it takes place in a private dwelling
° it is on a domestic occasion
° no charge or levy is made for playing.
Residential gaming is permitted when:
° it takes place in a hall of residence or hostel not administered in the
course of a trade or business
° more than 50% of the participants are residents.
28.11 Private gaming can potentially take place on commercial premises in circumstances
where a members’ club hires a room in, for example, a pub or hotel for a private
function where equal chance gaming only is played. However, organisers would need to
scrutinise very carefully the arrangements put in place to make sure that the particular
area of the pub, hotel or other venue in which the gaming takes place is not, on the
occasion of the private function, a place to which the public have access and that those
participating are not selected by a process which means that, in fact, they are members
of the public rather than members of the club. The law in this area is complex and
83
SI No 2041/2007: The Gambling Act 2005 (Non-Commercial Equal Chance Gaming) Regulations 2007
organisers should be advised to seek their own legal advice before organising events of
this nature.
28.12 It is a condition of private gaming that no charge (by whatever name called) is made for
participation and Schedule 15 to the Act makes it clear that a deduction from or levy on
sums staked or won by participants in gaming is a charge for participation in the
gaming. It is irrelevant whether the charge is expressed to be voluntary or compulsory,
particularly if customers are prevented from playing if they do not make the ‘voluntary’
donation, or there is strong peer pressure to make the donation. A relevant decided
case in another licensing field is that of Cocks v Mayner (1893) 58 JP 104, in which it
was found that an omnibus, said to be available free of charge but whose passengers
were invited to make a voluntary contribution, was ‘plying for hire’ without the
appropriate licence.
28.13 Additionally, the decided cases of Panama (Piccadilly) Ltd v Newberry (1962) 1WLR
610 and Lunn v Colston-Hayter (1991) 155 JP 384 are helpful in guiding licensing
authorities in deciding whether a person ceases to be a member of the public merely
because they have agreed to become a member of a club.
28.14 In the first of these cases, which related to a strip show, the Court said that an applicant
for membership of the club and admission to the show was and remained a member of
the public, as the whole purpose of membership was to get members of the public to
see the show and there was no sufficient segregation or selection to cause an applicant
to cease to be a member of the public and to acquire a different status as a member of
a club on signing his application form and paying the charge. In the second case, which
related to an acid house party, the judge said that it was impossible, merely because of
the existence of a formal scheme of club membership enforced to the extent of requiring
tickets to be obtained 24 hours in advance of the event, to regard those who obtained
such membership and tickets as having ceased to be members of the public.
28.15 This means that people joining a club to attend and take part in a private event are likely
to remain members of the public, particularly if club membership is acquired only a short
time before, in order to attend the event. The courts will not readily allow membership
status to be abused in order to circumvent the law in this way.
Non-commercial and private betting
28.16 The Act also says that betting is private if it is domestic betting or workers’ betting.
Domestic betting is a betting transaction made on premises in which each party to the
transaction habitually resides. Workers’ betting is where a betting transaction is made
between persons who are employed by the same employer. A person does not commit
an offence under s.33 or s.37 of the Act if he or she provides facilities for private betting.
Non-commercial ‘casino night’
28.17 A non-commercial casino night is an event where participants stake money on casinostyle games, such as poker or roulette, at a non-commercial event, where none of the
money the organisers raise from the event is used for private gain.
28.18 Apart from reasonable costs, proceeds (including any entrance fees, sponsorship, the
difference between stakes placed and payout made):
•
must not be used for private gain
•
must all be given to a good cause.
Reasonable costs would include costs incurred by providing the prizes. If third parties
are selling goods or services at the event, this does not count as money raised for the
charity or good cause and can be retained by that third party.
28.19 A non-commercial casino night can be run without a licence, or any other form of
permission, providing the operation of the gaming falls into one of the three categories
discussed below.
28.20 Organisers should note that, under the Act, it is illegal to organise a commercial casino
night outside of a licensed casino. However an application can be made for a temporary
use notice (TUN) in respect of other premises to offer gaming on a commercial basis, so
far as the appropriate operating licence covers the proposed activities in the application,
but then only in respect of equal chance gaming organised on a tournament basis with a
single overall winner 84. There can, however, be more than one competition with a single
winner held at the individual event covered by a specific TUN.
Casino night as non-commercial prize gaming
28.21 Casino nights can be held as non-commercial prize gaming. The players must be told
what good cause will benefit from the profits of the gaming before placing a bet. The
prizes must be advertised in advance and must not depend on the number of people
playing or the stakes raised. In non-commercial prize gaming, the casino gaming
determines the individual winner or winners, for example by counting who has the most
casino chips at a set time. The winners are then awarded the prizes that have been
advertised in advance.
Casino night as non-commercial equal chance gaming
28.22 Casino nights can also be run as non-commercial equal chance gaming, where the
chances are equally favourable to all participants and players are not competing against
a bank. In non-commercial equal chance gaming, the charitable funds are usually raised
through an entrance fee, participation fee, or through other payments related to the
gaming. The maximum amount that a player may be charged is £8 per day which
includes entrance or participation fees, stakes and any other payments in relation to the
gaming. Organisers must ensure that the total amount paid out in prizes remains below
£600 in total across all players. However, where an event is the final one of a series in
which all of the players have previously taken part, a higher prize fund of up to £900 is
allowed.
Casino night as private gaming
28.23 A casino night may also be run under the private gaming provisions in the Act. Private
gaming may only occur in a place to which the public does not have access, normally a
private dwelling, hostel, hall of residence or similar establishment. No charge may be
made for participation in private gaming including an entrance fee or other charge for
admission, nor may any amounts be deducted from stakes or prizes. No profits can be
made from private gaming, irrespective of how the organiser intended to use those
profits and, thus, even if intended for charitable purposes.
28.24 Private gaming is restricted to equal chance gaming except where it is domestic or
residential gaming.
28.25 Private gaming can potentially take place on commercial premises in circumstances
where a members’ club hires a room in, for example, a pub or hotel for a private
function where equal chance gaming only is played. However, organisers would need to
scrutinise very carefully the arrangements put in place, as detailed at paragraph 28.11
above.
84
SI No 3157/2007: The Gambling Act 2005 (Temporary Use Notices) Regulations 2007
Non-commercial ‘race night’
28.26 Race nights are permitted for charitable purposes but, in some circumstances, can only
be undertaken by a licensed betting operator and after appropriate notification to the
licensing authority. Further details are set out at paragraph 28.36 below.
28.27 A non-commercial race night is an event where participants stake money on the
outcome of live, recorded or virtual races.
28.28 Apart from reasonable costs, proceeds which includes any entrance fees, sponsorship,
and the difference between stakes placed and payout made:
• must not be used for private gain
• must all be given to a good cause.
Reasonable costs would include costs reasonably incurred, for example by providing
any prizes and for betting slips. If third parties are selling goods or services this does
not count as money raised for the charity or good cause and can be retained by that
third party.
Race night as non-commercial gaming
28.29 A non-commercial type of race night occurs where the selection of a ‘horse’ by a
participant is totally dependent on chance, and where no ‘odds’ or ‘form’ are available to
assist the gambler’s selection. An example would be the use of archive films of
horseracing without revealing the details of each race.
28.30 Such nights can be run without a licence, or any other form of permission, providing the
operation of the gaming falls into one of the three categories discussed below.
•
Incidental non-commercial lottery
28.31 Where the race night is not the only or main purpose of a non-commercial event 85, it is
possible to operate it as an incidental lottery. In this case there are no limits on the
amount that players may be charged to participate, but no more than £500 may be
deducted from the proceeds of the lottery for the cost of prizes (which may be in cash or
in kind), and no more than £100 for other expenses. The organisers can only sell tickets
at the event and they have to announce the results at the event. As an example, a
‘horse’ might be picked at random for each paying customer who is awarded a prize if
the horse ‘wins’.
•
Race night as non-commercial prize gaming
28.32 Race nights can be held as non-commercial prize gaming. The players must be told
what good cause will benefit from the profits of the gaming. The prizes must be
advertised in advance and must not depend on the number of people playing or the
stakes raised. In non-commercial prize gaming, the ‘race’ determines the individual
winner or winners, for example, those who have paid are allocated or select a named
horse in the race. The winners are then awarded the prizes that had been advertised in
advance.
•
Non-commercial equal chance gaming
28.33 Race nights can also be run as non-commercial equal chance gaming, where the
chances are equally favourable to all participants and players are not competing against
a bank.
85
The guidance in this section is subject to the Legislative Reform (Exempt Lotteries) Order 2015. The LRO will deregulate some of
the requirements for some ‘exempt’ lotteries including incidental lotteries at non commercial events, private society lotteries and
work and residents lotteries (‘exempt’ lotteries are unlicensed lotteries).
28.34 The maximum amount that a player may be charged is £8 per day which includes
entrance or participation fees, betting stakes and any other payments in relation to the
gaming. Organisers must ensure that the total amount paid out in prizes remains below
£600 in total across all players. However, where an event is the final one of a series in
which all of the players have previously taken part, a higher prize fund of up to £900 is
allowed. This could take place, for example, where each participant pays a fee for a
randomly selected ‘horse’ in each ‘race’ and the participant with the winning horse or
chooser of the winning horse receives a prize commensurate with the stakes placed.
Race night as private gaming
28.35 A non-commercial race night may also be run under the private gaming provisions in the
Act. Private gaming may only occur in a place to which the public does not have access,
such as a private dwelling, hostel, hall of residence or similar establishment. No charge
may be made for participation in private gaming including an entrance fee or other
charge for admission, nor may any amounts be deducted from stakes or prizes. Thus,
no profits can be made from private gaming, irrespective of how the organiser intended
to use those profits, and not even for charitable purposes.
Race nights as betting events
28.36 A fundraising race night can be run as a betting event at a track where there is a track
premises licence in place. Where there is no track premises licence in place for the
track, the organiser of such an event will need to give notice under the occasional use
notice (OUN) procedure. Licensing authorities are reminded that a track is defined by
s.353 of the Act as a horse racecourse, greyhound track or other premises on any part
of which a race or other sporting event takes places, such as a football ground, golf
course or an athletics stadium. The person responsible for the administration of events
on the track must serve notice on the licensing authority and copy it to the chief officer
of police for the area. Further details on the procedure for OUNs can be found in Part
15. At such an event, the person administering the betting must be a licensed
bookmaker.
Part 29: Poker
Introduction
29.1
Poker is a card game which, involves elements of both chance and skill and is therefore
classified as a game of chance under the Act by virtue of Part 1, s.6(2). There are many
variations on the game of poker, but this Part deals primarily with equal chance poker
where players compete against each other on equal terms.
29.2
In most forms of equal chance poker, players bet or stake progressively into a
communal pot or kitty, with the player holding the best hand at the end of the game
winning the accumulated stakes.
29.3
Non-equal chance poker, on the other hand, is where the banker or dealer participates
in the game and holds a mathematical edge over the other players. Unequal chance
poker may only be played in licensed casinos or, if it is ‘domestic’ or ‘residential’
gaming, under the private gaming provisions in the Act.
29.4
This Part sets out all the circumstances in which poker can be legally provided. These
circumstances include poker:
• in casinos (including under temporary use notices)
• as exempt gaming in clubs and alcohol-licensed premises
• under a club gaming permit
• as non-commercial gaming poker
• as private gaming.
Poker in casinos 86
29.5
Poker can be played in casinos licensed by the Commission. Casinos can also run
poker tournaments at temporary venues, for a limited amount of time, under temporary
use notices (TUNs). Further information in relation to TUNs is at Part 14.
29.6
Casinos can offer both equal chance and unequal chance poker, except where the
poker is provided under a TUN, in which case it can only be equal chance poker.
29.7
Where a third party organisation is involved in a poker competition held in a licensed
casino, the casino operator must bear full responsibility for that competition
29.8
Where an online competition culminates in live competition in a casino, the online
partner may provide systems and staff for the event but responsibility lies with the
operator whose premises are being used.
29.9
A casino may have a commercial relationship with an agent to promote poker in the
casino, but the poker games that result are the responsibility of the casino and not of
the agent
Poker as exempt gaming in clubs and alcohol-licensed
premises 87
29.10 Exempt gaming is equal chance gaming generally permissible in any club or alcohollicensed premises. Such gaming should be ancillary to the purposes of the premises.
This provision is automatically available to all such premises, but is subject to statutory
stakes and prize limits determined by the Secretary of State.
86
87
Further information on poker in licensed casinos can be found in Advice on poker played in non-remote casinos
Two quick guides to assist officers and pubs and clubs comply with regulations are Poker in pubs and Poker in clubs
29.11 A fee may not be levied for participation in poker offered by alcohol-licensed premises
under the exempt gaming rules. A compulsory charge, such as charging for a meal,
may constitute a participation fee, depending on the particular circumstances. However,
clubs may charge a participation fee. The amount they may charge is as prescribed in
regulations 88. See Appendix C for further details.
29.12 In order for the poker to qualify as exempt gaming, clubs and alcohol-licensed premises
may not charge a fee on games or levy or deduct an amount from stakes or winnings.
The gaming should also be supervised by a nominated gaming supervisor and comply
with any code of practice issued by the Commission under s.24 of the Act.
29.13 Poker clubs established primarily for the purpose of providing poker or other gaming
require Commission operating licences and premises licences.
Removal of exemption for alcohol-licensed premises
29.14 Licensing authorities can remove the automatic authorisation for exempt gaming in
respect of any particular alcohol-licensed premises by making an order under s.284 of
the Act (see also Part 26). That section provides for the licensing authority to make such
an order if:
• provision of the gaming is not reasonably consistent with the pursuit of the
licensing objectives
• gaming has taken place on the premises that breaches a condition of s.279 – for
example, the gaming does not abide by the prescribed limits for stakes and
prizes, a participation fee is charged for the gaming or an amount is deducted or
levied from sums staked or won
• the premises are mainly used for gaming
• an offence under the Act has been committed on the premises.
29.15 Such an order could be used by a licensing authorities where, for example, they
discover that poker is being offered in alcohol-licensed premises that consistently
breaches the prescribed limits on stakes and prizes, participation fees are being
charged for the poker, amounts are deducted from stakes or winnings, or poker (and
other gaming) is the main activity offered on the premises.
Code of practice for exempt equal chance gaming
29.16 The Commission has issued a code of practice under s.24 of the Act in respect of
exempt equal chance gaming which can be found on the Commission’s website 89.
29.17 The code of practice requires owners/licensees/clubs/welfare institutes to adopt good
practice measures for the provision of gaming in general, and poker in particular. The
code also sets out the stakes and prizes limits and the limits on participation fees (for
clubs) laid out in regulations.
Poker in alcohol-licensed premises
29.18 The Commission actively engages with the larger national and regional organisers of
poker leagues to remind them of the limited exemptions that apply to poker being
offered in pubs. Infringements of such requirements as stake and prize limits which are
localised are normally best managed by the local authority responsible for issuing the
alcohol premises licence. Template letters published on the Commission’s website have
proved effective in assisting management of such cases.
88
89
SI No 1944/2007: The Gambling Act 2005 (Exempt Gaming in Clubs) Regulations 2007
Code of practice for equal chance gaming in clubs and premises with an alcohol licence
29.19 Gaming is only covered by the Act if it is played for prizes of money or money’s worth.
However, since 2004 a number of poker tournaments and leagues have been
established in alcohol-licensed premises based on playing for points. In some leagues
the organisers offer ‘prizes’ at the end of a series of weekly games for the players with
the most points.
29.20 It is likely that the association of a prize with a monetary value with a game or series of
games constitutes gaming, certainly by the latter stages of the competition. If the
eventual prize is worth more than the maximum prize set out in regulations then it could
be unlawful gaming. For example, if a tournament simply involves a series of
straightforward ‘knockout’ qualifying rounds, culminating in a 'final’ game, then the
winner’s prize in the final – whether it comprises the stakes laid in that game, a separate
prize provided by the organiser, or a combination of the two – must not exceed £100.
The regulations set a limit of £100 on a prize that may be won in any game of poker (in
a pub). In a knockout tournament, the overall prize is clearly winnable in a single game
(the ‘final’) and is therefore won in a game of poker and subject to the prize limit. The
stake and prize limits must also, of course, be applied to each game in the tournament.
29.21 Alternatively the prize competed for may be the opportunity to play in ‘invitational cash
tournaments’. Notwithstanding that these ‘prizes’ may be of an uncertain value, and are
likely to be held in mainstream gaming venues under regulated conditions, usually a
casino, the Act prohibits gaming in alcohol licensed premises being linked to gaming in
any other premises. Players competing across premises for a ‘prize’ are likely to be
engaged in linked gaming, which is unlawful (s.269(5) of the Act). Consequently,
organisers should not host events where players are competing against players in other
premises for a prize.
29.22 In some types of tournaments there will be no single ‘final’ game in which it can be said
with certainty that the player won the overall prize. In such circumstances, one should
look to the individual games played by the overall winner and ensure that the overall
prize does not cause any of those individual games to exceed the maximum £100 prize
limit per game and the maximum stake of £100 per day.
29.23 For examples of poker tournament, league and competitions games and prize and stake
examples see Appendix I.
Poker under a club gaming permit
29.24 A club gaming permit can only be granted to a members’ club (including a miners’
welfare institute), but cannot be granted to a commercial club or other alcohol-licensed
premises.
29.25 Other than in the case of clubs established to provide facilities for gaming of a
prescribed kind (currently bridge and whist), clubs seeking club gaming permits must be
established ‘wholly or mainly’ for purposes other than gaming. When a club gaming
permit is granted there are no limits on the stakes and prizes associated with poker.
29.26 If a club established to provide facilities for gaming of a prescribed kind (currently bridge
and whist) has a club gaming permit, it may not offer any other gaming besides bridge
and whist. If such a club does not have a permit, it may provide exempt gaming
provided it is not established to function for a limited period of time and it has at least 25
members. If it wishes to offer other non-exempt gaming it will require a Commission
casino operating licence and any relevant personal licences.
29.27 The poker which a club gaming permit allows is subject to conditions:
(a) in respect of equal chance gaming:
• the club must not deduct money from sums staked or won
• the participation fee must not exceed the amount prescribed in regulations
•
the game takes place on the premises and must not be linked with a game on
another set of premises.
Two games are linked if:
• the result of one game is, or may be, wholly or partly determined by reference to
the result of the other game or
• the amount of winnings available in one game is wholly or partly determined by
reference to the amount of participation in the other game, and a game which is
split so that part is played on one site and another part is played elsewhere is
treated as two linked games
• only club members and their genuine guests participate.
(b) in respect of other games of chance:
• the games must be pontoon and chemin de fer only
• no participation fee may be charged otherwise than in accordance with the
regulations
• no amount may be deducted from sums staked or won otherwise than in
accordance with the regulations.
29.28 A 48 hour rule applies in respect of all three types of gaming, so that the games may
only be played by people who have been members of the club for at least 48 hours, or
have applied or been nominated for membership or are genuine guests of a member.
29.29 More information about club gaming permits can be found in Part 25.
29.30 Private clubs with a club gaming permit cannot run the premises wholly or mainly for the
purposes of gaming, nor can the club make a profit as all funds must be applied for the
benefit of members. Experience indicates that illegal clubs will go to considerable
lengths to disguise the true nature of their activities. Consequently building the evidence
required to review and rescind the permit can be time consuming and resource
intensive. It is therefore essential that licensing authorities scrutinise applications for
club gaming permits carefully. The applicant should be asked for as much information
as required (such as a business plan)in order to satisfy the licensing authority that it is a
bone fide club whose main activity will not be gambling. The Commission are in a
position to assist in sharing intelligence on individuals or organisations in circumstances
where a licensing authority has doubts as to the credentials of an applicant.
29.31 There is now a considerable body of knowledge and experience as to how a gaming
permit can be withdrawn. This may include using other legislation such as the Proceeds
of Crime Act which was used by a licensing authority to prosecute and imprison one
club owner.
29.32 On occasion licensing authorities may consider that, as they have not received
complaints about a club, there is no requirement for them to act. In these circumstances
it is worth bearing in mind that they are very unlikely to receive complaints about such
clubs, unless it is issues such as local noise and nuisance. The people attending the
club do so from choice. Secondly, the club is effectively operating as an illegal casino
and none of the protections afforded in a casino are in place, such as personal licence
holders and anti money laundering safeguards.
Poker as non-commercial gaming
29.33 The Act permits non-commercial gaming if it takes place at a non-commercial event,
either as an incidental or principal activity at the event. Events are non-commercial if no
part of the proceeds is for private profit or gain. The proceeds of such events may
benefit one or more individuals if the activity is organised:
• by, or on behalf of, a charity or for charitable purposes
• to enable participation in, or support of, sporting, athletic or cultural activities.
So it would be possible to raise funds for an individual providing the proceeds were, for
example, for a wheelchair or to support a sporting endeavour. Additionally, events such
as casino nights or poker nights may be permitted if they comply with the regulations
and are run on a non-commercial basis.
29.34 S.297(3) of the Act defines proceeds as:
a) the sums raised by the organisers, whether by way of fees for entrance or for
participation, by way of sponsorship, by way of commission from traders, or
otherwise, minus
b) amounts deducted by the organisers in respect of costs reasonably incurred in
organising the event.
However, sums raised by other persons will not form part of the proceeds of the event
and may be appropriated for private gain. An example would be refreshments provided
at the event by an independent third party.
29.35 If someone uses any profits from non-commercial gaming for something other than the
specified purpose, then they commit an offence under s.301 of the Act. The maximum
penalty, upon conviction for such an offence, is a term of imprisonment not exceeding
51 weeks for England and Wales (six months in Scotland), and/or a level five fine.
29.36 The Act identifies two types of permissible non-commercial gaming:
• prize gaming (which must comply with the conditions set out in s.299 of the Act)
• equal chance gaming (which must comply with the conditions set out in s.300 of
the Act and the conditions prescribed in regulations).
Non-commercial prize gaming
29.37 Provided that the conditions set out in s.299 are met, poker can be offered as noncommercial prize gaming without the need to have an operating or premises licence,
nor a prize gaming permit. Paragraphs 28.7 onwards set out detail on s.299 of the Act.
In summary, the conditions are:
29.38 Poker as prize gaming occurs if the nature and size of the prize is not determined by the
number of people playing or the amount paid for or raised by the gaming. Normally the
prizes will be determined by the organiser before play commences.
Non-commercial equal chance gaming
29.39 Provided that the conditions set out under s.300 are met, poker can be offered as noncommercial equal chance gaming without the need to have an operating or premises
licence. Paragraphs 28.9 onwards set out detail on s.300 of the Act.
Non-commercial ‘casino night’ or ‘poker night’
29.40 A non-commercial casino night or poker night is an event where participants stake
money on casino-style games, such as poker, at a non-commercial event, where none
of the money the organisers raise from the event is used for private gain.
29.41 Apart from reasonable costs, proceeds (including any entrance fees, sponsorship, the
difference between stakes placed and payout made):
• must not be used for private gain
• must all be given to a good cause.
Reasonable costs would include costs incurred by providing the prizes. If third parties
are selling goods or services at the event, for example if someone is selling
refreshments, this does not count as money raised for the charity or good cause and
can be retained by that third party.
29.42 A non-commercial casino night or poker night can be run without a licence, or any other
form of permission, providing the operation of the gaming falls into one of the three
categories discussed below.
29.43 Organisers should note that, under the Act, it is illegal to organise a commercial casino
night or poker night outside of a licensed casino. As the law stands, only the holder of a
valid non-remote casino operating licence can apply to a licensing authority for a
temporary use notice (TUN) in respect of other premises to offer gaming on a
commercial basis, and then only in respect of equal chance gaming organised on a
tournament basis with a single overall winner 90.
Casino night or poker night as non-commercial prize gaming
29.44 Casino nights or poker nights can be held as non-commercial prize gaming. The players
must be told what good cause will benefit from the profits of the gaming before placing a
bet. The prizes must be advertised in advance and must not depend on the number of
people playing or the stakes raised. For example, the individual winner or winners could
be determined by counting who has the most casino chips after the game or tournament
ends. The winners are then awarded the prizes that have been advertised in advance.
Casino night or poker night as non-commercial equal chance gaming
29.45 Casino nights or poker nights can also be run as non-commercial equal chance gaming.
In non-commercial equal chance gaming, the charitable funds are usually raised
through an entrance fee, participation fee, or through other payments related to the
gaming. The maximum amount that a player may be charged is £8 per day (this
includes entrance or participation fees, stakes and any other payments in relation to the
gaming). Organisers must ensure that the total amount paid out in prizes remains below
£600 in total across all players. However, where an event is the final one of a series in
which all of the players have previously taken part, a higher prize fund of up to £900 is
allowed.
Poker as private gaming
29.46 Poker offered as private gaming can take place anywhere to which the public do not
have access and this would include a workplace. Domestic and residential gaming are
two subsets where non-equal chance gaming is allowed:
• Domestic gaming is permitted without the need for permissions if:
o it takes place in a private dwelling
o it is on a domestic occasion
o no charge or levy is made for playing.
•
Residential gaming is permitted when:
o it takes place in a hall of residence or hostel not administered in the
course of a trade or business
o more than 50% of the participants are residents.
29.47 Private gaming can potentially take place on commercial premises in circumstances
where a members’ club hires a room in, for example, a pub or hotel for a private
function where equal chance gaming only is played. However, organisers would need to
scrutinise very carefully the arrangements put in place to make sure that the particular
area of the pub, hotel or other venue in which the gaming takes place is not, on the
occasion of the private function, a place to which the public have access and that those
participating are not selected by a process which means that, in fact, they are members
of the public rather than members of the club. The law in this area is complex and
90
SI No 3157/2007: The Gambling Act 2005 (Temporary Use Notices) Regulations 2007
organisers should be advised to seek their own legal advice before proceeding with the
event.
29.48 It is a condition of private gaming that no charge (by whatever name called) is made for
participation and Schedule 15 to the Act makes it clear that a deduction from or levy on
sums staked or won by participants in gaming is a charge for participation in the
gaming. It is irrelevant whether the charge is expressed to be voluntary or compulsory,
particularly if customers are prevented from playing if they do not make the ‘voluntary’
donation, or there is strong peer pressure to make the donation. A relevant decided
case in another licensing field is that of Cocks v Mayner (1893) 58 JP 104, in which it
was found that an omnibus said to be available free of charge but whose passengers
who were invited to (and in some cases did) make a voluntary contribution was ‘plying
for hire’ without the appropriate licence.
29.49 Additionally, the decided cases of Panama (Piccadilly) Ltd v Newberry (1962) 1WLR
610 and Lunn v Colston-Hayter (1991) 155 JP 384 are helpful in guiding local
authorities in deciding whether a person ceases to be a member of the public merely
because they have agreed to become a member of a club.
29.50 In the first of these cases (which related to a strip show), the court said that an applicant
for membership of the club and admission to the show was and remained a member of
the public, as the whole purpose (of membership) was to get members of the public to
see the show and there was no sufficient segregation or selection to cause an applicant
to cease to be a member of the public and to acquire a different status as a member of
a club on signing his application form and paying the charge. In the second (which
related to an acid house party), the judge said that it was impossible, merely because of
the existence of a formal scheme of club membership enforced to the extent of requiring
tickets to be obtained 24 hours in advance of the event, to regard those who obtained
such membership and tickets as having ceased to be members of the public.
29.51 This means that people joining a club to attend and take part in a ‘private’ event are
likely to remain members of the public, particularly if ‘club membership’ is acquired only
a short time before, and in order to attend the event.
Advertising
29.52 The Gambling (Licensing and Advertising) Act 2014 amended the Act so that from 1
November 2014, gambling operators that provide facilities for remote gambling or
advertise to consumers in Great Britain will require a licence issued by the Commission.
29.53 As an example, many poker websites promote other online gambling websites, usually
by the provision of a hyperlink to that website. A hyperlink has been deemed to
constitute advertising as it brings facilities for advertising to the attention of the person
who clicks on the link.
29.54 It not an offence to advertise non-remote gambling that is offered by operators not
licensed by the Commission. For example, a prize could now include entry into a poker
tournament, subject to meeting the appropriate prize limits.
Part 30 Travelling fairs
30.1
The Act defines a travelling fair as ‘wholly or principally’ providing amusements and they
must be on a site that has been used for fairs for no more than 27 days per calendar
year. The Act does not change the principles on which travelling fairs have been
regulated under previous legislation.
30.2
Travelling fairs may provide an unlimited number of Category D gaming machines
provided that facilities for gambling amount to no more than an ancillary amusement at
the fair. They do not require a permit to provide these gaming machines but must
comply with legal requirements about how the machine operates. Current stakes and
prizes can be found at Appendix B of this guidance.
30.3
Higher stake category B and C fruit machines, like those typically played in arcades and
pubs, are not permitted. Fairground operators must source their machines from a
Commission licensed supplier and employees working with gaming machines must be
at least 18 years old.
30.4
Part 27 of the guidance discusses the prize gaming that may be provided at travelling
fairs.
30.5
Licensing authorities should note that the 27 day maximum is during a calendar year
and not in any 12-month period, and applies to the piece of land on which fairs are held,
regardless of whether it is the same or different travelling fairs occupying the land.
Authorities should therefore monitor the use of land and maintain a record of the dates
on which it is used. If the land straddles licensing authority areas, the authorities
concerned will need to work together to maintain a central log.
30.6
Local authorities in England and Wales may adopt byelaws to control travelling fairs
under a discretionary power set out in s.75 of the Public Health Act 1961, as amended.
In Scotland travelling fairs are licensed by the Civic Government (Scotland) Act 1982.
Part 31: Crown immunity and excluded premises
31.1
With the exception mentioned below, the Act applies to the Crown. This includes
government departments and therefore there is no immunity for establishments such as
civil service social clubs, which must apply for club machine permits or other
permissions in the normal way.
31.2
However the Act has no effect in relation to anything done on premises occupied, either
on a permanent or temporary basis, by the armed forces namely Her Majesty’s naval,
military or air forces.
31.3
The Act enables the Secretary of State to classify a premises as exempt from the Act on
the grounds of national security.
Part 32: Territorial application of the Gambling Act 2005
32.1
The Act only applies to Great Britain (England, Wales and Scotland) except for two
main areas which also apply in Northern Ireland. These are:
• Chain gift schemes dealt with in part 35 of this guidance
• Offences relating to foreign gambling (s.331 of the Act).
Vessels
32.2
Vessels such as cruise ships, ferries, boats and hovercrafts are required to have a
premises licence if commercial gambling is provided at them. However if a vessel is
engaged on a journey into or from international waters then no premises licence is
required. Further information is available at Part 7 paragraphs 7.12 to 7.17.
Vehicles
32.3
No premises licences can be issued in respect of a vehicle. In addition to a car, lorry or
coach, the Act also provides that ‘vehicle’ includes a train, aircraft, seaplane and any
amphibious vehicle other than a hovercraft. There is no exemption for international
travel. Whilst this is ultimately a matter for the courts it is the Commission’s view that a
vehicle remains a vehicle not only when stationary but also if located permanently at a
particular site, perhaps with its wheels removed but capable of being re-instated.
Aircraft
32.4
No offence occurs if gambling is conducted on an aircraft which is in international
space. As an aircraft is a vehicle, no premises licences can be granted to aircraft for
gambling in domestic airspace.
Airports
32.5
The Act applies to all parts of an airport including both domestic and international
departure halls. Therefore any business that would normally require a premises licence
will also require a licence to operate at an airport. Further details are provided in Parts
22 and 24 about the requirements for family entertainment centres at airports
32.6
Due to differences in jurisdictional application, there is an anomaly in respect of granting
gaming machine permits to pubs and bars where alcohol is sold airside in airports.
32.7
In England and Wales, the Licensing Act 2003 applies to pubs and bars in the domestic
part of the airport and therefore these businesses are able to qualify for the automatic
gaming machine entitlement or can apply for a gaming machine permit for more than
two gaming machines. Part 26 of this guidance provides more detail. The Licensing Act
2003 does not apply airside, so pubs and clubs are not required to obtain a licence to
serve alcohol.
32.8
In Scotland, designated airports which currently hold alcohol licences under the
Licensing (Scotland) Act 2005, qualify for the automatic gaming machine entitlement
and can apply for gaming machine permits. However, the Licensing (Scotland) Act 2005
does not apply to airside pubs.
Part 33: Door supervision
33.1
If a licensing authority is concerned that a premises may attract disorder or be subject to
attempts at unauthorised access, for example, by children and young persons, then it
may require that the entrances to the premises are controlled by a door supervisor. The
licensing authority is able to impose a condition on the premises licence to this effect.
33.2
S.178 of the Act sets out a definition of ‘door supervisor’ and provides that where a
person employed in such a role is required to hold a licence issued by the Security
Industry Authority (SIA), that requirement will have force as though it were a condition
on the premises licence.
33.3
The SIA regulates the private security industry in England, Wales and Scotland, and is
responsible for licensing individuals working within the various industry sectors, by
virtue of the Private Security Industry Act 2001 (PSIA). The majority of persons
employed to work as door supervisors at premises licensed for gambling, and carrying
out the functions listed under Schedule 2 Part 1 of the PSIA, will need to be licensed by
the SIA. There are, however, exceptions to this requirement.
33.4
The PSIA requires that all contract staff (those employed under a contract for services)
carrying out the functions set out under Schedule 2 Part 1 of the PSIA must be licensed
by the SIA. However, certain premises also need to have their in-house employees
(those employed under a contract of service) who carry out these functions, licensed.
These premises include those holding a premises licence for the supply of alcohol or
regulated entertainment under the Licensing Act 2003.
33.5
This requirement is relaxed when applied to door supervisors at casino and bingo
premises. Where contract staff are employed as door supervisors at casino or bingo
premises, such staff will need to be licensed by the SIA. However, in-house employees
working as door supervisors at casino and bingo premises are exempt from these
requirements.
33.6
In Scotland, the PSIA currently applies in respect of the Licensing (Scotland) Act 2005
by virtue of the Licensing (Scotland) Act 2005 (Consequential provisions) Order 2009,
Scottish SSI 2009/248. This ensures that the same requirements in relation to the
licensing of staff by the SIA in England and Wales also apply in Scotland.
33.7
Licensing authorities are encouraged set out the circumstances in which such matters
as door supervision may be required in their policy statement.
Part 34: Small society lotteries
34.1
The Act denotes ‘local authorities’ as being responsible for registering societies to run
Small Society Lotteries, as opposed to licensing authorities. S.2 of the Act defines
licensing authorities and s.25 defines local authorities, with both given the same
definition. The Commission considers therefore that for the purposes of the Act both
terms are broadly the same, and in the interests of consistency with the other areas of
this guidance, we refer throughout this part to licensing authorities, as opposed to local
authorities.
The status of lotteries under the Act
34.2
The Gambling Commission and the National Lottery Commission merged on 1 October
2013. No change has been made to the legislation which governs how commercial
gambling and the National Lottery are regulated. The Commission licenses and
regulates all commercial gambling and the National Lottery in Great Britain.
34.3
The Act sets out a definition of a lottery, detailed below, and provides that promoting or
facilitating a lottery is illegal, unless it falls into one of two categories of permitted lottery,
namely:
• licensed lotteries – these are large society lotteries and lotteries run for the
benefit of local authorities that are regulated by the Commission and require
operating licences
• exempt lotteries – there are four types of exempt lottery that are expressly
permitted under Schedule 11 of the Act, including the small society lottery.
Definition of lottery
34.4
A lottery is any arrangement that satisfies all of the criteria contained within the statutory
description of either a simple lottery or a complex lottery, under s.14 of the Act.
34.5
An arrangement is a simple lottery if:
• persons are required to pay to participate
• one or more prizes are allocated to one or more members of a class
• the prizes are allocated by a process which relies wholly on chance.
34.6
An arrangement is a complex lottery if:
• persons are required to pay to participate
• one or more prizes are allocated to one or more members of a class
• the prizes are allocated by a series of processes
• the first of those processes relies wholly on chance.
Definition of society
34.7
Licensing authorities should define ‘society’ as the society, or any separate branch of
such a society, on whose behalf a lottery is to be promoted, and need to understand the
purposes for which a society has been established in ensuring that it is a noncommercial organisation. S.19 of the Act defines a society as such if it is established
and conducted:
• for charitable purposes, as defined in s.2 of the Charities Act 2006
• for the purpose of enabling participation in, or of supporting, sport, athletics or a
cultural activity
• for any other non-commercial purpose other than that of private gain.
34.8
It is inherent in this definition that the society must have been established for one of the
permitted purposes as set out in s.19 of the Act, and that the proceeds of any lottery
must be devoted to those purposes. It is not permissible to establish a society whose
sole purpose is to facilitate lotteries.
Local authority lotteries
34.9
Local authorities are entitled to operate their own lotteries, but may only do so if
licensed by the Commission. Authorities must commit a minimum of 20% of the
proceeds from such lotteries for a purpose for which they have power to incur
expenditure, and must also adhere to the other relevant provisions in the Act. They may
also need to hold a remote gambling operating licence, in the event that they wish to
sell lottery tickets via electronic or other remote technological methods such as over the
telephone, email or via the internet.
Licensing authority guidance
34.10 Licensing authorities consider producing their own guidance for organisations and
individuals seeking to operate small society lotteries. If so, the Commission’s advice
note Promoting society and local authority lotteries advice note may provide a useful
starting point.
Social responsibility
34.11 Participation in a lottery is a form of gambling, and as such licensing authorities must be
aware that the societies they register are required to conduct their lotteries in a socially
responsible manner and in accordance with the Act.
34.12 The minimum age for participation in a lottery is 16 and Social Responsibility (SR) code
3.2.9 requires lottery licences to have effective procedures to minimise the risk of lottery
tickets being sold to children, including procedures for:
• checking the age of apparently underage purchasers of lottery tickets
• taking action where there are unlawful attempts to purchase tickets.
34.13 The licensee must take reasonable steps to ensure that all those engaged in the
promotion of lotteries understand their responsibilities for preventing underage
gambling, returning stakes and not paying prizes to underage customers
34.14 As with other aspects of local gambling regulation, licensing authorities are encouraged
to use their policy statement as a means of making clear their expectations of lottery
operators and particular risks that may exist.
External lottery managers’ licence status
34.15 External lottery managers (ELMs) are required to hold a lottery operator’s licence issued
by the Commission to promote a lottery on behalf of a licensed society..
34.16 However, individuals or firms can and do provide services to a society or local authority
lottery without assuming the role of an ELM. When determining whether a third party is
a ‘service provider’ only, or has assumed the role of an ELM, the degree of
management undertaken by both the promoter and the sub-contractor will be crucial
factors. Key indicators will include:
• who decides how the lottery scheme will operate
• who appoints and manages any sub-contractors
• the banking arrangements for handling the proceeds of the lottery
• who sells the tickets and pays the prizes
• who controls promotional aspects of the lottery.
34.17 Societies employing an unlicensed ELM may be committing an offence and they will
need to satisfy themselves that any ELM they employ holds the relevant operator’s
licence issued by the Commission. The Commission publishes a register of operating
licences held on its website.
34.18 Licensing authorities can refer those seeking further information on ELMs to the
Commission’s website or its publication Promoting society and local authority lotteries
advice note. 91
Lottery tickets
34.19 Lotteries may involve the issuing of physical or virtual tickets to participants (a virtual
ticket being non-physical, for example in the form of an email or text message). All
tickets must state:
• the name of the promoting society
• the price of the ticket, which must be the same for all tickets
• the name and address of the member of the society who is designated as
having responsibility at the society for promoting small lotteries or, if there is
one, the ELM
• the date of the draw, or information which enables the date to be determined.
The requirement to provide this information can be satisfied by providing an opportunity
for the participant to retain the message electronically or print it.
34.20 The Commission recommends that licensing authorities require all registered small
society lottery operators to maintain written records of any unsold and returned tickets
for a period of one year from the date of the lottery draw. The licensing authority is
permitted to inspect the records of the lottery for any purpose related to the lottery.
34.21 The Act requires that lottery tickets may only be sold by persons that are aged 16 or
over to persons that are aged 16 or over.
34.22 With regards to where small society lottery tickets may be sold, the Commission
recommends that licensing authorities should apply the following criteria to all small
society lottery operators:
• lottery tickets must not be sold to a person in any street. For these purposes
‘street’ includes any bridge, road, lane, footway, subway, square, court, alley or
passage (including passages through enclosed premises such as shopping
malls) whether a thoroughfare or not. Tickets may, however, be sold in a street
from a static structure such as a kiosk or display stand. Tickets may also be sold
door to door. Licensees must ensure that they have any necessary local
authority permissions, such as a street trading licence.
This approach is consistent with the operating licence conditions imposed upon
operators of large society lotteries and local authority lotteries.
Prizes
34.23 Prizes awarded in small society lotteries can be either cash or non-monetary. Licensing
authorities need to be aware that the value of prizes declared on returns must not
exceed the limits on prizes set out by the Act – in effect that combined with any
expenses incurred with the running of the lottery, such as managers’ fees, they must not
comprise more than 80% of the total proceeds of the lottery. Donated prizes would not
be counted as part of this 80% (as no money would be withdrawn from the proceeds to
cover their purchase) but are still subject to the limit on a single maximum prize of
£25,000 and should be declared on the return following the lottery draw.
91
The quick guide does not form part of the Guidance to Licensing Authorities
34.24 The Commission recommends that licensing authorities should advise small society
lottery operators to check with local police if they wish to award items containing alcohol
as prizes. This is in order to ensure that licensing law is not breached.
Specific offences in relation to lotteries
34.25 The Act sets out a number of offences that apply to lotteries, as follows:
Section of the
Act
Offence
s. 258
Promoting a non-exempt lottery without a licence
s. 259
Facilitating a non-exempt lottery without a licence
s. 260
Misusing the profits of a lottery
s. 261
Misusing the profits of an exempt lottery
s. 262
Purporting to operate a small society lottery when not registered, or
failing to make the required, or making false or misleading, returns in
respect of such lotteries
s. 326
Without reasonable excuse, obstructing or failing to co-operate with
an authorised person exercising his/her powers
s. 342
Without reasonable excuse, giving false or misleading information to
the Commission or a licensing authority
34.26 If a society running small lotteries fails to comply with any of the conditions of running
such lotteries specified in Part 4 of Schedule 11 of the Act, it will be operating in an
illegal manner, irrespective of whether it is registered with a licensing authority or not. In
these circumstances, small society lottery operators may face prosecution by the
Commission, a licensing authority, or the police. The lead organisation for initiating
prosecutions will vary depending upon the specific circumstances of the case, but it is
expected that licensing authorities will investigate offences in respect of small society
lotteries. If necessary, licensing authorities can ask for advice from their Gambling
Commission compliance manager, but the Commission is unlikely to investigate a case
unless it has national or regional significance.
34.27 Licensing authorities in Scotland should refer cases where there has been a breach of
the Act to the police for investigation, in line with Crown Office and Procurator Fiscal
Service 92 guidance on reporting practices for non-police agencies.
Application and registration process for small society lotteries
34.28 When licensing authorities are approached by societies who want to register with them
to operate lotteries, they will need to refer to the Act’s definition of a small society
lottery, which falls into two distinct areas:
•
•
92
society status – the society in question must be ‘non-commercial’
lottery size – the total value of tickets to be put on sale per single lottery must be
£20,000 or less, or the aggregate value of tickets to be put on sale for all their
lotteries in a calendar year must not exceed £250,000. If the operator plans to
exceed either of these values then they may need to be licensed with the
Commission to operate large lotteries instead.
Refer to website: www.crownoffice.gov.uk
34.29 The Commission has published a series of advisory documents which licensing
authorities may wish to refer applicants or potential applicants to, to enable them to
establish which type of lottery they plan to operate. Promoting society and local
authority lotteries advice note provides information for those seeking to run small and
large society lotteries and local authority lotteries.
Organising small lotteries provides advice on exempt lotteries that do not require a
licence or registration. The Commission has also published a leaflet for fundraisers, to
help them identify what types of lottery they can run.
34.30 The promoting society of a small society lottery must, throughout the period during
which the lottery is promoted, be registered with a licensing authority. Parts 4 and 5 of
Schedule 11 of the Act set out the requirements on both societies and licensing
authorities with respect to the registration of small society lotteries.
34.31 The licensing authority with which a small society lottery is required to register must be
in the area where their principal office is located. If a licensing authority believes that a
society’s principal office is situated in another area, it should inform the society and the
other licensing authority as soon as possible.
34.32 Applications for small society lottery registrations must be in the form prescribed by the
Secretary of State and be accompanied by both the required registration fee and all
necessary documents required by the licensing authority to assess the application.
Licensing authorities are encouraged to ask applicants for a copy of their terms and
conditions and their constitution to establish that they are a non-commercial society.
They may also choose to require applicants to provide a declaration, stating that they
represent a bona fide non-commercial society.
34.33 The Commission has been made aware that some small society lotteries may be
avoiding applying for a society lottery operating licence from the Commission by
obtaining two or more registrations with the same or different licensing authorities. As
set out previously, the Act states that a society lottery is a large lottery if the
arrangements for it are such that its proceeds may exceed £20,000 in a single lottery, or
if the aggregate proceeds in a calendar year exceed £250,000.
34.34 In cases where a society has separate branches with different aims and objectives, it is
acceptable for them to hold more than one licence or registration. However, in cases
where a society holds more than one registration and the aims and objectives of those
societies are the same, this may constitute a breach of the threshold limits for small
society lotteries set out in Schedule 11 of the Act.
34.35 Licensing authorities are advised to carefully consider any application by a society for
more than one registration. If the aims and objectives are the same and therefore the
threshold limits for small society lotteries are likely to be exceeded, the applicant should
be advised to apply to the Commission for a society lottery operating licence.
34.36 By virtue of Schedule 11 paragraph 31(5), societies may not hold an operating licence
and a local authority registration with the same aims and objectives at the same time.
This paragraph also provides for a statutory period of 3 years during which a large
society cannot convert to small society status. Licensing authorities should check that
applicants for registration do not hold (and have not held in the preceding 3 years) a
society lottery operating licence granted by the Commission.
34.37 Local authorities may also wish to check with the society at the time the annual fee is
paid to renew the registration, to ensure that a society does not hold a duplicate
registration with them or another local authority where the aims and objectives of the
societies are the same. If that is the case and the combined proceeds exceed or are
likely to exceed the threshold limits for small society lotteries, the society should be
advised to apply to the Commission for a society lottery operating licence. The local
authority should also notify the Commission.
34.38 Licensing authorities may delegate the registration of small societies to licensing
officers, subject to each authority’s own specific process of delegations.
34.39 Licensing authorities are required by paragraph 44 of Schedule 11 of the Act to record
details of the society on a register. While it does not have to be a public register, the
Commission recommends that licensing authorities make the register available to the
public on request.
34.40 Once the application for registration has been accepted and entered on the local
register, the licensing authority must then notify both the applicant and the Commission
of this registration as soon as practicable. The Commission would prefer to receive this
information electronically via email to [email protected], although
licensing authorities may also forward this information by post.
34.41 Registrations run for an unlimited period, unless the registration is cancelled. If a
licensing authority cancels the registration of a society they are required by paragraph
53 of Schedule 11 of the Act to notify the Commission.
Refusal of an application
34.42 Paragraphs 47 and 48 of Schedule 11 of the Act set out the grounds for licensing
authorities to refuse a small society lottery registration application. In summary,
licensing authorities may propose to refuse an application for any of the following
reasons:
• An operating licence held by the applicant for registration has been
revoked or an application for an operating licence made by the applicant
for registration has been refused, within the past five years.
The Commission will be able to advise the details of people and organisations
that have been refused an operating licence or have had an operating licence
revoked in the past five years. Licensing authorities should consult the
Commission as part of their consideration process.
• The society in question cannot be deemed non-commercial.
Under previous regimes, licensing authorities often required applicants to
provide a statement with their application form declaring that they represented a
bona fide non-commercial society, and identifying how the purpose of the
society could be established. The Commission considers that a similar approach
remains appropriate. However, licensing authorities should also consider
whether such a declaration is sufficient in the particular circumstances of each
case or whether there are additional determining factors, such as an unusual or
novel purpose of the society, which may suggest that further enquiry is needed.
• A person who will or may be connected with the promotion of the lottery
has been convicted of a relevant offence, listed in Schedule 7 of the Act.
Under previous regimes, licensing authorities often required applicants to
provide a statement alongside their application form declaring that they had no
relevant convictions that would prevent them from running lotteries. The
authority could then verify the accuracy of the statement with the police. The
Commission considers that this approach remains appropriate.
• Information provided in or with the application for registration is found to
be false or misleading.
34.43 A licensing authority may only refuse an application for registration after the society has
had the opportunity to make representations. These can be taken at a formal hearing or
via correspondence. Licensing authorities should inform the society of the reasons why
it is minded to refuse registration and provide it with at least an outline of the evidence
on which it has reached that preliminary conclusion, in order to enable representations
to be made.
34.44 Representations, and any objections that may result after such a decision, should be
handled in accordance with local procedures, and in the same way that the licensing
authority would deal with any other licensing matters. The Commission considers that,
as a matter of good practice, licensing authorities should set out the principles they will
apply in such circumstances. This could be in their policy statement or on their website.
Revocation of a small society’s registered status
34.45 A licensing authority may determine to revoke the registration of a society if it thinks that
they would have had to, or would be entitled to, refuse an application for registration if it
were being made at that time. Revocations cannot take place unless the society has
been given an opportunity to make representations at a hearing or via correspondence.
In preparation for this, licensing authorities should inform the society of the reasons why
it is minded to revoke the registration and provide them with the evidence on which it
has reached that preliminary conclusion. Representations that may result after such a
decision should be handled in accordance with local procedures.
Appeals
34.46 Following the conclusion of any hearings and receipt of representations, paragraph 51
of Schedule 11 of the Act then requires the authority to notify the applicant or the
society as soon as possible if their registration is still to be revoked, or if their application
for registration has still been rejected.
34.47 The applicant or society may decide to make an appeal against the decision, and has
21 days following receipt of the notice of the decision to lodge an appeal, which must be
made directly to the local Magistrates’ court if in England or Wales, or the Sheriff court
in Scotland. On appeal they may choose to affirm the decision of the licensing authority,
reverse the decision, or make any other order.
Administration and returns
34.48 As the purpose of permitted lotteries is to raise money for non-commercial causes, the
Act requires that a minimum proportion of the money raised by the lottery is channelled
to the goals of the society that promoted the lottery. If a small society lottery does not
comply with these limits it will be in breach of the Act’s provisions, and consequently be
liable to prosecution.
34.49 The limits are as follows:
• at least 20% of the lottery proceeds must be applied to the purposes of the
society (Schedule 11, paragraph 33)
• no single prize may be worth more than £25,000 (Schedule 11, paragraph 34)
• rollovers between lotteries are only permitted where every lottery affected is also
a small society lottery promoted by the same society, and the maximum single
prize is £25,000 (Schedule 11, paragraph 35)
• every ticket in the lottery must cost the same and the society must take payment
for the ticket fee before entry into the draw is allowed (Schedule 11, paragraph
37).
34.50 Paragraph 39 of Schedule 11 in the Act sets out the information that the promoting
society of a small society lottery must send as returns to the licensing authority with
which it is registered, following each lottery held. This information allows licensing
authorities to assess whether financial limits are being adhered to and to ensure that
any money raised is applied for the proper purpose.
34.51 The following information must be submitted:
• the arrangements for the lottery – specifically the date on which tickets were
available for sale or supply, the dates of any draw and the value of prizes,
including any donated prizes and any rollover
• the total proceeds of the lottery
• the amounts deducted by the promoters of the lottery in providing prizes,
including prizes in accordance with any rollovers
• the amounts deducted by the promoters of the lottery in respect of costs incurred
in organising the lottery
• the amount applied to the purpose for which the promoting society is conducted
(this must be at least 20% of the proceeds)
• whether any expenses incurred in connection with the lottery were not paid for
by deduction from the proceeds, and, if so, the amount of expenses and the
sources from which they were paid.
34.52 Paragraph 39 of Schedule 11 in the Act also requires that returns must:
• be sent to the licensing authority no later than three months after the date of the
lottery draw, or in the case of ‘instant lotteries’ (scratch cards) within three
months of the last date on which tickets were on sale
• be signed (electronic signatures are acceptable if the return is sent
electronically) by two members of the society, who must be aged eighteen or
older, are appointed for the purpose in writing by the society or, if it has one, its
governing body, and be accompanied by a copy of their letter or letters of
appointment.
34.53 The Commission may inspect a society’s returns, although it will not routinely do so. As
such, licensing authorities are required to retain returns for a minimum period of three
years from the date of the lottery draw. They should also make them available for
inspection by the general public for a minimum period of 18 months following the date of
the lottery draw. Licensing authorities should ensure that information is made available
to the public regarding the location of statements, when they can be viewed and the
cost of obtaining copies.
34.54 Licensing authorities should allow for returns to be sent to them both electronically and
manually. The Commission recommends that each licensing authority should make
details concerning the form of returns required available through appropriate media,
such as licensing authority websites and leaflets.
34.55 Where societies run more than one lottery in a calendar year, licensing authorities must
monitor the cumulative totals of returns to ensure that societies do not breach the
annual monetary limit of £250,000 on ticket sales. Licensing authorities must notify the
Commission if returns reveal that a society’s lotteries have exceeded the values
permissible, and such notifications should be copied to the society in question. The
Commission will contact the society to determine if they are going to apply for a lottery
operator’s licence, thereby enabling them to run large society lotteries lawfully, and will
inform the licensing authority of the outcome of its exchanges with the society.
34.56 Licensing authorities will also need to be aware of the status of external lottery
managers, when monitoring returns. They are an individual, a firm or a company
appointed by a society to manage a lottery or lotteries on behalf of the society, and are
generally consultants that take their fees from the expenses of the lottery. A maximum
of 80% of a lottery’s proceeds may be attributed to expenses and prizes, and managers’
fees must be included within this total.
Part 35: Chain gift schemes
35.1
S.43 of the Act makes it an offence to invite others to join a chain gift scheme or to
participate knowingly in the promotion or administration of a scheme. These schemes
have many of the features of pyramid selling schemes, but escape the ban on them
because they do not involve the sale of any product. A person found guilty of the
offence could be liable to a fine or imprisonment.
35.2
The Commission is aware that local authority trading standards officers have
considerable relevant experience in dealing with chain gift schemes and are well placed
to deal with schemes that arise from time to time. The Commission will keep its role in
tackling chain gift schemes, where there is a gambling issue related to the scheme,
under review so that if more concerted action is required centrally it can liaise with other
bodies to determine what action may be taken.
35.3
The chain gifting offence is part of a suite of consumer protections set out in the
Consumer Protection from Unfair Trading Regulations 2008. The main element of
consumer protection against these schemes is publicity to prevent people becoming
involved in them. Local authorities may wish to use their websites and other publicity
tools to educate consumers against participation in such schemes.
35.4
If licensing authorities are contacted by members of the public regarding schemes of
this nature they should, in the first instance, refer to their trading standards department
as they are likely to have relevant experience of dealing with chain gift schemes, lotterystyle scams and similar arrangements.
Street collectors selling game cards
35.5
Licensing authorities may also be aware of street sellers in their areas approaching the
public to sell them gamecards, often saying that the cards are being sold to raise money
for good causes. If such cards require an element of skill on the part of the player, such
as completing a tiebreak question, they may be genuinely distinguishable from a lottery.
35.6
It will be unlikely that the product being sold is a legal lottery. This is because societies
running large lotteries are not permitted to sell lottery tickets in the street by virtue of a
condition on their operating licence, and the Commission recommends in this guidance
that those running small lotteries are recommended have a similar restriction imposed
upon them by the local authority that registers them.
35.7
The Commission has no comment on products that are not classed as gambling under
the Act, but would advise authorities with concerns over street sales of such products to
contact the trading standards department. They will be able to advise on whether the
product being sold amounts to a gambling product and agree on the best course of
action, which may include relying on relevant legislation such as street trading
regulations.
Part 36: Compliance and enforcement matters
Fees
36.1
Licensing authorities’ compliance and enforcement work and the costs of dealing with
illegal gambling is covered by fees from premises licences and permits.
36.2
Licensing authorities in England and Wales will be aware that section 212(2)(d) of the
Act specifically states that local authorities ‘shall aim to ensure that the income from
fees… as nearly as possible equates to the costs of providing the service to which the
fees relates’.
36.3
Furthermore DCMS Guidance to licensing authorities on setting premises licence fees
states ‘The annual fee will cover the reasonable costs of compliance and enforcement
work, including the cost of dealing with illegal gambling in a licensing authority’s area’.
36.4
Fee setting must be transparent and licensing authorities should closely track their costs
and be able to evidence how they arrived at the fee levels in order to demonstrate that
they have been calculated on a cost recovery basis only. Fees should be reviewed
annually.
36.5
In Scotland all fees for gambling licences and permits are set centrally by Scottish
Ministers at a flat rate but again are designed to cover the costs of compliance and
enforcement work.
Enforcement officers and authorised persons
36.6
S.303 of the Act enables the Commission to designate employees of the Commission
and to appoint persons other than employees, as enforcement officers for the purpose
of the Act.
36.7
An officer of a licensing authority can be an authorised local authority person
(authorised person) under s.304 of the Act, if the conditions in s.304(2) of the Act are
met, namely if:
• the premises are wholly or partly situated in the authority's area
• the officer is designated by the authority as an authorised person for the
purposes of s.304.
36.8
Designation of someone as an authorised person for the purposes of s.304(2) is likely to
be carried out by the local authority’s licensing committee.
36.9
In England and Wales, s.101(1) of the Local Government Act 1972 provides that ‘a local
authority may arrange for the discharge of any of its functions by a committee, subcommittee or officer of the authority.’ Delegations are set out in tables at Appendix H.
36.10 In Scotland, a Council’s internal functions are laid down in the Local Government
(Scotland) Act 1973 as amended, principally by the Local Government (Scotland) Act
1994 and the Local Government in Scotland Act 2003. S.56 of the Local Government
(Scotland) Act 1973 provides that ‘a local authority may arrange for the discharge of any
of their functions by a committee of the authority, a sub-committee, an officer of the
authority or by any other local authority in Scotland’.
36.11 Authorised persons of the licensing authority exercise their inspection powers in
accordance with the principles set out in the licensing authority’s policy statement.
36.12 S.304(3) and (4) set out the circumstances in which officers of local authorities that are
not licensing authorities, and certain other persons, can be authorised persons for the
purposes of Part 15 of the Act. One example is Trading Standards officers who can be
authorised by licensing authorities under s.304(3)(b) of the Act for the purposes of
conducting test purchasing exercises.
Powers of entry - England and Wales
36.13 The Act states that authorised persons, constables and enforcement officers may:
• undertake activities for the purpose of assessing compliance with provisions made
under the Act or to assess whether an offence is being committed under the Act,
by virtue of s.305. This is a general power and so it is unlikely that an authorised
person can gain entry under s.305 alone. It should be read in conjunction with the
sections of the Act that follow it and set out specific powers
• enter premises if they reasonably suspect that facilities for gambling are being, are
about to be, or have been provided on the premises. This would include a private
club but does not apply if the suspected gambling is private or non-commercial
gaming or betting (s.307). If in doubt, a licensing authority should seek legal
advice about also securing a warrant issued by a justice of the peace
• enter a premises in respect of which an application has been made for a family
entertainment centre (FEC) gaming permit, for a purpose connected with the
consideration of the application, or to enter a premises in respect of which a FEC
gaming machine permit has effect, in order to determine compliance with gaming
machine permit requirements (s.309)
• enter premises in respect of which an on-premises alcohol licence has effect for
the purpose of determining if any gaming that is taking place satisfies the
conditions for exempt gaming in s.279 of the Act, to ascertain that any bingo
taking place meets the requirements of the Act, or to ascertain the number and
category of gaming machines being made available for use on the premises
(s.310)
• enter premises in respect of which an application has been made for a prize
gaming permit, for a purpose connected with the consideration of the application,
or to enter a premises in respect of which a prize gaming permit has effect in order
to determine whether prize gaming on the premises complies with the
requirements of the Act and regulations under it (s.311).
36.14 Where an application for a club gaming permit or club machine permit has been made,
authorised persons, constables and enforcement officers may also enter a members’
club, a commercial club or miners’ welfare institute under s.312 of the Act, for a purpose
connected with consideration of the application, to:
• determine whether gaming is taking place on the premises or is about to take
place on the premises
• or to determine whether any gaming that is taking place or is about to take place
on the premises meets the requirements for exempt gaming in section 269 of the
Act, a club gaming permit or a club machine permit.
It should be noted that only police officers and enforcement officers can enter the
premises that have been granted a permit to determine if the things being done are in
accordance with that permit (and not primarily because they suspect a crime is taking
place/has taken place). Therefore, if an authorised person was to accompany a police
officer or enforcement officer (under s.324, see below), they would not then be able to
exercise any powers whilst on the premises such as the seizure of evidence
36.15 Under s.318 of the Act a constable, enforcement officer or authorised person can only
enter a dwelling under a warrant issued by a justice of the peace.
36.16 S.324 of the Act allows a constable, enforcement officer, or authorised person who is
exercising a power under Part 15 of the Act, to take one or more persons with him. It
should be noted that the Act would not permit an authorised person to exercise any
powers on premises such as the seizure of evidence, unless they had entered under a
power of entry under the Act that is applicable to their status as an authorised person.
This section of the Act seeks to provide access to premises for those assisting a
constable, enforcement officer or authorised person in carrying out duties, such as
photographers, forensic examiners and note takers.
36.17 Further detail about powers of entry and inspection are set out in Appendix G.
Powers of entry in Scotland
36.18 In Scotland, the relevant licensing authority is called a licensing board. The powers of
licensing boards are similar to those of licensing authorities in England and Wales in
that they grant, review and cancel club gaming permits and club machine permits.
36.19 However, s.310 and s.312 of the Act have created an anomaly in Scotland. In Scotland
the equivalent of a licensing officer is a licensing standards officer (LSO). Although
s.304(2) of the Act was intended to provide licensing authorities with the opportunity to
empower licensing authority staff already involved in licensing, it does not apply to
Scotland because those given responsibility by Scottish licensing authorities (usually
the LSOs) are not officers of the licensing authority. The licensing boards are separate
and LSOs are deliberately legally separated from the boards.
36.20 S.304(3) and (4) of the Act were intended to provide licensing authorities with the
opportunity to empower staff involved in other regulatory roles, such as trading
standards officers and environmental health officers, but because most Scottish
licensing authorities have given responsibility to LSOs instead, they are unable to do
this.
36.21 The Commission encourages local authorities to deploy suitably trained authorised
persons under the Act to ensure that gambling is regulated effectively and that the
public are afforded the protections set out in the three licensing objectives. The advice
note The role of authorised persons in Scotland advice note (click on the related links)
sets out the Commission’s understanding of the powers of authorised persons in
Scotland. The note also offers guidance to licensing authorities and others about how
they might contribute to effective co-regulation of the gambling industry in Scotland.
36.22 It should also be noted that police officers have the power to enter and inspect premises
that are licensed under the Licensing (Scotland) Act 2005 at any time.
Illegal gambling
36.23 The Commission views the prevention of illegal gambling as an enforcement priority.
Combating illegal gambling is of significant benefit to the licensed community as the
provision of illegal unregulated gambling impacts upon the reputation of the industry as
a whole. The persistent and widespread existence of illegal gambling also reduces the
incentive on operators to be correctly licensed. Those engaged in illegal gambling
should expect to be subject to the criminal investigation and prosecution process.
36.24 The Commission will generally take the lead in prosecuting the offence of providing
facilities for gambling where it is committed in the context of illegal gambling which
appears organised and has a potentially national or regional impact, or where there are
deliberate, reckless or significant breaches by a licensed operator.
36.25 The expectation is that licensing authorities will take prosecutions against those
providing or facilitating illegal gambling - in effect gambling without a licence or permit where the criminality is contained in one premises.
36.26 Dealing with illegal poker or illegal / illegally sited machines in a specific premises often
lends itself to a multi-agency coordinated approach with licensing authority officers
leading the operation and the Commission, the police and sometimes HMRC providing
support, advice and expertise. Licensing officers should contact their compliance
manager in the first instance to agree if such a multi-agency approach would be
appropriate.
36.27 As stated in paragraph 36.1, the annual premises licence fee is set to cover the costs of
compliance and enforcement work undertaken by licensing authorities, including the
cost of dealing with illegal gambling in a licensing authority’s area.
Test purchasing and age verification
36.28 Test purchasing is one method by which the Commission or licensing authorities may,
in England and Wales, measure the compliance of licensed operators or groups of
licensed operators, with aspects of the Act subject to Primary Authority arrangements,
detailed in paragraph 36.36 below. Test purchasing in Scotland is the subject of an
Enforcement Protocol with offences prosecuted by the Crown Office and Procurator
Fiscal Service.
36.29 Licensing authorities are familiar with the methodology in relation to the sale of age
restricted products and are aware of the importance of following current guidance in this
area, in order to ensure that tests are carried out in a manner that is risk-based and fair,
with due regard to the welfare of young people involved in the test purchasing.
36.30 As noted above, in the first instance it is up to operators to ensure they are compliant
with the Act and the associated regulations. The Commission’s approach in relation to
test purchasing in general and age verification in particular is set out in our advice
note 93. This approach is in line with the responsibilities set out for regulators and
enforcers in the Code of Practice: age restricted products and services published by the
Better Regulation Delivery Office, which applies to England and Wales.
36.31 The Commission encourages operators to manage the business risk associated with
both underage access to premises and permitting a young person to gamble. Where an
operator is required to commission a third party to test the effectiveness of their policies
and procedures or put its own testing in place as required by the Licence Conditions
and Codes of Practice (LCCP) and where the results of the tests are shared with us, we
are less inclined to conduct our own test purchasing.
36.32 Local authorities, whether acting as a licensing authority or through another function
such as trading standards, should consult with operators in the first instance where they
have concerns about the underage access and age verification policies or whose
premises they plan to test purchase. This will enable them to identify what programmes
are in place to manage the business risk and take these into account in planning a test
purchase exercise. To do otherwise would not be compliant with the Hampton
principles. This approach is analogous to what is sometimes called ‘earned recognition’.
36.33 Local authorities should also consult with the Commission before planning such
exercises in order to ensure that there is no conflict between any ongoing investigation
or enforcement activity related to either the premises or the operator that we have
initiated and the test purchase operation. Local authorities in England and Wales are
also subject to Primary Authority (PA) arrangements.
36.34 Local authorities undertaking their own test purchase operations are requested to share
any test purchasing results with the Commission.
36.35 However, local authorities will have in place democratically determined priorities and
resource allocations as well as the ability to respond to complaints and intelligence
related to specific premises. As a result, irrespective of the actions of an operator on
their overall estate, test purchasing may be deemed to be an appropriate course of
action.
93
Approach to test purchasing – England and Wales only February 2015
Primary Authority
36.36 The PA scheme, administered by the Better Regulation Delivery Office (BRDO)
provides for a statutory partnership to be formed between a business and a single
authority, eg a local authority. That single authority, the PA, can provide a national
inspection strategy within which other local regulators can operate 94, to improve the
effectiveness of visits by local regulators and enable better sharing of information
between them. The PA scheme therefore aims to ensure that local regulation is
consistent at the national level.
36.37 Since October 2013, the PA has been extended to include age-restricted sales of
gambling in England and Wales (it currently does not apply in Scotland). It does not
apply to any other aspect of the Act. This means local authorities in England and Wales
must follow any age restricted sales of gambling national inspection plans and
strategies that are published on the PA register when considering proactive age
restricted sales (gambling) activity including testing. PA plans do not prohibit licensing
authorities undertaking reactive test purchasing. PA does not apply to the police or the
Commission.
36.38 The Commission fully supports the development of PA schemes between gambling
operators and local authorities, and has already worked closely with PAs in the
development of their national inspection strategies for the major bookmakers with whom
they have entered into partnerships. The inspection plans are designed to be largely
uniform and to bring consistency to proactive test purchasing in those betting shops.
36.39 The PA scheme does not, of course, transfer responsibility for the regulation of age
restricted sales of gambling to PAs. The PA inspection plans have the potential to help
gambling businesses achieve high standards while also providing for more efficient and
consistent regulation. These arrangements underpin the primary objectives of the Act in
relation to protecting children from gambling-related harm and preventing them from
accessing gambling facilities. The regulatory frameworks for gambling and for PA are
therefore complementary.
Prosecutions
36.40 The Act gives licensing authorities in England and Wales, the police and the
Commission the power to prosecute the offence of using premises for gambling without
the requisite permissions. In exceptional circumstances, such as repeated deliberate
breaches of premises licence conditions, licensed operators or permit holders may be
prosecuted without any prior regulatory action, such as warnings, suspension or
revocation of licence or removal of permit. Most prosecutions will be against those
illegally providing gambling without a licence or permit.
36.41 In Scotland, licensing authorities are not able to institute criminal proceedings
themselves, but are to refer cases where there has been a breach of the Act to the
Procurator Fiscal.
36.42 Normally the Commission or the licensing authority would decide when to involve the
police, rather than the police initiating any action. The Commission considers that
examples of scenarios where the police should be involved include:
•
•
94
when non-gambling offences are discovered, for example large-scale theft or
other serious crime which extends beyond the reach of licence conditions
assistance with Commission investigations, for example enquiries into other
criminal activity.
Primary Authority statutory guidance
36.43 There is a distinction between those who conduct gambling operations under a licence
or permit but breach the conditions of that, and those who seek to profit from providing
facilities for gambling without a licence or permit. While both situations result in unlawful
gambling, the latter situation is generally considered by the Commission to be more
serious.
Other powers
36.44 Licensing authorities may want to consider whether their officers have powers under
other relevant legislation, such as the Licensing Act 2003 or Local Government Act
1972. For example, s.87, s.88 and s.89 of the Licensing Act 2003 give licensing
authorities the ability to review club premises certificates, including suspending and
withdrawing certificates, and s.90 allows licensing authorities to withdraw certificates
where it appears to the licensing authority that the club does not satisfy the conditions
for being a qualifying club.
36.45 There are various local authority and police powers to manage issues such as street
drinking and anti-social behaviour, and licensing authorities should look to these powers
in the first instance as being more appropriate remedies than the Act.
36.46 Whilst of limited use due to the absence of a central database and the ability to share
information with other authorities, licensing authorities may wish to consider the use of
police cautions as a deterrent.
Gambling Commission March 2015
Keeping gambling fair and safe for all
For further information or to register your interest in the Commission please visit our website at:
www.gamblingcommission.gov.uk
Copies of this document are available in alternative formats on request.
Gambling Commission
Victoria Square House
Victoria Square
Birmingham B2 4BP
T 0121 230 6666
F 0121 230 6720
E [email protected]
GUI 15/01
Appendix A: Summary of machine provisions by premises
Premises type
Large casino
(machine/table ratio of
5-1 up to maximum)
Small casino
(machine/table ratio of
2-1 up to maximum)
Pre-2005 Act casino
(no machine/table
ratio)
Betting premises
and tracks occupied
by pool betting
Bingo premises 1
Adult gaming
centre2
Licensed family
entertainment
centre 3
Family entertainment
centre (with permit)3
Clubs or miners’
welfare
institute (with
permits)4
Qualifying alcohollicensed
premises
Qualifying alcohollicensed
premises (with
licensed premises
gaming machine
permit)
A
Machine category
B3
B4
C
D
Maximum of 150 machines
Any combination of machines in categories B to D (except B3A
machines), within the total limit of 150 (subject to machine/table
ratio)
Maximum of 80 machines
Any combination of machines in categories B to D (except B3A
machines), within the total limit of 80 (subject to machine/table ratio)
B1
B2
Maximum of 20 machines categories B to D (except B3A
machines), or any number of C or D machines instead
Maximum of 4 machines categories B2 to D (except
B3A machines)
Maximum of 20%
of the total number
of gaming
machines which
are available for
use on the
premises
categories B3 or
B4
Maximum of
20% of the total
number of gaming
machines which
are available for
use on the
premises
categories B3 or
B4
No limit on category
C or D machines
No limit on category
C or D machines
No limit on category
C or D machines
No limit on
category D
machines
Maximum of 3 machines in
categories B3A or B4 to D
1 or 2 machines of
category C or D
automatic upon
notification
Number of category C-D
machines as specified
on permit
Travelling fair
No limit on
category D
machines
1.Bingo premises licence are entitled to make available for use a number of category B gaming
machines not exceeding 20% of the total number of gaming machines on the premises. Where
a premises licence was granted before 13 July 2011, they are entitled to make available eight 95
category B gaming machines, or 20% of the total number of gaming machines, whichever is the
greater. Category B machines at bingo premises are restricted to sub-category B3 and B4
machines, but not B3A machines.
2 Adult gaming centres are entitled to make available for use a number of category B gaming
machines not exceeding 20% of the total number of gaming machines which are available for
use on the premises and any number of category C or D machines. Where a premises licence
was granted before 13 July 2011, they are entitled to make available four category B gaming
machines, or 20% of the total number of gaming machines, whichever is the greater. Category
B machines at adult gaming centres are restricted to sub-category B3 and B4 machines, but
not B3A machines.
3.Only premises that are wholly or mainly used for making gaming machines available may
hold an unlicensed FEC gaming machine permit or an FEC premises licence. Category C
machines may only be sited within licensed FEC’s and where an FEC permit is in force. They
must be in a separate area to ensure the segregation and supervision of machines that may
only be played by adults. there is no power for the licensing authority to set a limit on the
number of machines under the FEC permit.
4.Members’ clubs and miners’ welfare institutes with a club gaming permit or with a club
machine permit, are entitled to site a total of three machines in categories B3A to D but only
one B3A machine can be sited as part of this entitlement.
5. Commercial clubs with club machine or gaming permits are entitled to a total of three
machines in categories B4 to D.
95
The Gambling Act 2005 (Gaming Machines in Bingo Premises) Order 2009
Appendix B: Summary of gaming machine categories and
entitlements
Category of machine
A
Maximum stake Maximum prize
(from Jan 2014) (from Jan 2014)
Unlimited – No category A gaming machines
are currently permitted
B1
£5
£10,000*
B2
£100
£500
B3A
£2
£500
B3
£2
£500
B4
£2
£400
C
£1
£100
D – non-money prize
30p
£8
D – non-money prize (crane grab
machines only)
£1
£50
D – money prize
10p
£5
D – combined money and non-money
prize
10p
D – combined money and non-money
prize (coin pusher or penny falls
machines only)
20p
£8 (of which no more
than £5 may be a money
prize)
£20 (of which no more
than £10 may be a
money prize)
* With option of max £20,000 linked progressive jackpot on premises basis only
Appendix C: Summary of gaming entitlements for clubs and
alcohol-licensed premises
Equal
chance
gaming
Limits
on
stakes
Members’
club or MW
institute with
club gaming
permit
Clubs
established to
provide
facilities for
gaming of a
prescribed
kind
(currently
bridge or
whist clubs)
Yes
Bridge and/or
Whist only
No limit
No limit
Members’
club or
commercial
club with club
machine
permit
Members’
club,
commercial
club or MW
institute
without a club
gaming
permit or club
machine
permit
Pubs and
other alcohollicensed
premises
Yes
Yes
Yes
Poker
£1000 / week
£250 / day
£10 /person
per game
Poker
£1000 / week
£250 / day
£10 / person
per game
Other gaming Other gaming
No limit
No limit
Limits
on
prizes
Max
particip.
fees –
per
person
per day
Bankers
/unequal
chance
gaming
Limits
on
bingo **
Poker
£250 / game
No limit
Poker
£250 / game
Poker
£100 /
premises per
day
Other gaming
£5 / person
per game
Cribbage &
dominoes
No limit
Poker
£100 / game
No limit
Other gaming Other gaming Other gaming
No limit
No limit
No limit
Bridge/whist*
£20
Other gaming
£3
Pontoon
Chemin de fer
Maximum of
£2,000 / week
in stakes or
prizes.
£18 (without
club gaming
permit)
£20 (with club
gaming
permit)
Bridge/whist ∗
£18
Bridge/whist ∗
£18
Other gaming
£3 (for a
Other gaming
commercial
club)
£1
£1 (members’
club)
None
permitted
None
permitted
None
permitted
None
permitted
None
permitted
No bingo
permitted
Maximum of
£2,000 / week
in stakes or
prizes.
Maximum of
£2,000 / week
in stakes or
prizes.
Maximum of
£2,000 / week
in stakes or
prizes.
* On a day when no other facilities for gaming are provided
** If more than the maximum, then an operating licence will be required.
Appendix D: Summary of offences under the Gambling Act
2005
General offences regarding the provision of gambling facilities
Providing gambling facilities in Great Britain without a relevant licence,
permit, notice, or exemption included under the Act.
Using premises to provide gambling facilities from, or causing them to be
provided, without a relevant licence, permit, notice or exemption under the
Act.
S.33
S.37
Offence regarding cheating at gambling
Cheating, attempting to cheat, or assisting another person to cheat at
gambling.
S.42
Offences committed towards or by under-18s
Inviting, causing or permitting a child (under 16) or young person (16 – 17)
to gamble, with the exception of:
• private / non-commercial gaming and betting
• participating in lotteries
• participating in football pools
• using a category D gaming machine
• participating in equal chance gaming at premises subject of a prize
gaming permit or an FEC premises licence
• participating in prize gaming at a fair or an unlicensed FEC
This offence includes intentional distribution of advertising to under-18s
where the intent is to encourage gambling.
S.46
It is also an offence on the part of a young person to gamble with the
exception of situations listed above.
Inviting or permitting a child or young person to enter:
• a casino
• a betting premises (except for betting areas of horse and
greyhound tracks on race days)
• an adult gaming centre
• areas of a family entertainment centre where category C gaming
machines are situated.
This offence is committed at all times when the premises listed above are
being used in reliance on the premises licence.
S.48
It is also an offence on the part of a young person to enter the premises
listed above.
Young person providing facilities for gambling, with the exception of:
• private / non-commercial gaming and betting
• a lottery
• football pools
• prize gaming at a travelling fair.
Employing a child or young person to provide gambling facilities, with the
exception of providing the following facilities:
• private / non-commercial gaming and betting
• prize gaming at a travelling fair.
S.49
Employing a child to provide facilities in connection with:
• a lottery
• football pools.
S.52
S.47
S.50
S.51
Employing a child for any purposes when bingo is provided or gambling
provided in accordance with a club gaming permit or club machine permit.
Employing a child or young person to perform any function connected to a
gaming machine.
It is also an offence on the part of a young person if they are employed in
such a role.
Employing a child or young person in a casino, an adult gaming centre, or
at a betting premises, unless it is at a time when no activity is being carried
on in reliance on the premises licence.
It is also an offence on the part of a young person if they are employed in
such a role.
Inviting, causing or permitting a child to take part in football pools or a
lottery with the exception of:
• an incidental non-commercial lottery
• a private lottery
• part of the National Lottery.
Failure to comply with an operating licence condition to return stake to a
child or young person.
S.53
S.54
S.55
Sections 56
and 57
S.58
Offences connected to operating licences
Failure to comply with an operating licence condition to return stake to a
child or young person.
Failing without reasonable excuse to notify the Commission of change in
circumstances.
Licensee failing without reasonable excuse to produce their operating
licence when requested by a police officer or enforcement officer.
Licensee failing to notify the Commission without reasonable excuse and
as soon as reasonably practicable about conviction of an offence.
Licensee failing to notify the court upon conviction of a relevant offence
that they are an operating licence holder.
Licensee failing without reasonable excuse to produce records for the
Commission relating to operating licensed activities or information about
licensed activities.
Operating licence holder fails without reasonable excuse to produce the
authorisation they have given to someone to accept bets on their behalf,
when asked to do so by a police officer or enforcement officer.
This offence can also apply to the person that has been authorised to
accept bets.
S.58
S.101
S.108
S.109
S.109
S.122
S.316
Offences connected to personal licences
Failure without reasonable excuse to produce a personal licence to a
police officer or enforcement officer.
Licensee failing to notify the Commission as soon as reasonably
practicable about a conviction of offence.
Licensee failing to act within the terms and conditions of their licence.
S.134
S.138
S.139
General offences connected to all premises licences
Licensee failing without reasonable excuse to keep premises licence on
premises and make available for inspection to a police officer, enforcement
officer or authorised person.
Licensee failing to notify without reasonable excuse the licensing authority
about change of residential address or other details on the licence.
Offences connected to temporary use notices
S.185
S.186
Failure of premises licence holder to without reasonable excuse
prominently display or make available their temporary use notice to a
police officer, customs and excise officer, enforcement officer or licensing
authority officer.
S.229
Offences connected to gaming machines
Making a gaming machine available for use without a relevant licence or
permit, or in contravention of regulations made under s.240 of the Act (SI
No 2007/2319).
Manufacturing, supplying, installing, adapting, maintaining, or repairing a
gaming machine without a suitable operating licence, unless:
• the gaming machine is scrap with no commercial value
• the gaming machine is incidental to the sale/letting of previouslylicensed property.
Supplying, installing, adapting, maintaining or repairing a gaming machine
(or part of) without complying with regulations made under s.241 of the Act
(SI: No. 2007/2320), unless:
• the gaming machine is scrap with no commercial value
• the gaming machine is incidental to the sale/letting of previouslylicensed property.
Supplying, installing or making available for use a gaming machine
allowing payment by credit card.
S.242
S.243
S.243
S.245
Offences connected to lotteries
The offences listed here do not apply to lotteries or products forming part of the National
Lottery, which are dealt with under the National Lottery etc. Act 1998 rather than the Gambling
Act 2005. Police enquiries regarding offences connected to the National Lottery should be
directed to the Commission.
Promoting a non-exempt lottery without a suitable operating licence or on
behalf of someone with a suitable operating licence.
Facilitating a non-exempt lottery without holding a suitable operating
licence (where facilitating includes functions such as advertising and
printing tickets and promotional materials).
Misusing profits from a lottery, ie using them or causing them to be used
for purposes other than the advertised purpose of the lottery.
Misusing profits from an incidental non-commercial lottery, a private
society lottery, or a small society lottery.
A non-commercial society promoting a lottery without being registered with
a licensing authority, or failing to provide the licensing authority with
returns (or providing false returns) following a small society lottery.
S.258
S.259
S.260
S.261
S.262
Offence connected to bingo played in clubs and institutes
Failing without reasonable excuse to inform the Commission of periods of
high turnover bingo if the club or institute does not hold an operating
licence (high turnover bingo being where the stakes or prizes of all games
of bingo played in a seven day period exceed £2,000).
S.275
Offence connected to use of proceeds from gaming at non-commercial events
Using the profits (or permitting them to be used) from non-commercial
prize gaming or equal chance gaming for a purpose other than that
specified as the fund-raising purpose of the gaming.
S.301
Offence connected to casino premises licences
Failure on the part of the casino premises licence holder to produce upon
demand (by a police officer or enforcement officer) the authorisation they
have given to someone to provide bingo or betting facilities at the casino in
question.
This offence can also be committed by the individual or organisation
authorised by the casino premises licence holder if they fail to produce the
authorisation.
S.316
Offence of obstructing or failing to co-operate during an inspection
Obstructing or failing to cooperate without reasonable excuse with a police
officer, enforcement officer or authorised person carrying out inspection
activity under Part 15 of the Act.
S.326
Offence of providing false or misleading information
Providing false or misleading information to the Commission or a licensing
authority regarding any provision of the Act.
S.342
Offences connected to advertising of gambling facilities
Contravention of any regulations relating to gambling advertising. (Nb the
Secretary of State for Culture, Media and Sport has chosen not to exercise
their reserve powers to make such secondary legislation at this time).
Knowingly advertising unlawful gambling without reasonable belief
otherwise.
Advertising foreign gambling facilities other than lotteries (in accordance
with regulations SI: 2007/2329).
S.328
S.330
S.331
Offence of failing to comply with a forfeiture order
Failure to comply with a court’s forfeiture order to surrender named
materials to a police officer, or co-operate with steps to comply with the
order.
S.345
Offence connected to unlicensed family entertainment centres
Occupier of premises failing without reasonable excuse to produce their
family entertainment centre gaming machine permit for a police officer,
enforcement officer or authorised officer.
Schedule
10(20)
Offences connected to club gaming and club machine permits
Failing without reasonable excuse to produce a club gaming permit or club
machine permit for a police officer or enforcement officer.
Failure without reasonable excuse to have club gaming or club machine
permits varied by the licensing authority as soon as practicable upon a
change of circumstances.
Schedule
12(13)
Schedule
12(15)
Offence connected to alcohol licensed premises gaming machine permits
Failure without reasonable excuse to produce a licensed premises gaming
machine permit upon the request of a police officer, enforcement officer or
authorised person.
Schedule
13(10)
Offence connected to prize gaming permits
Failure without reasonable excuse to produce a prize gaming permit upon
the request of a police officer, enforcement officer or authorised person.
Schedule
14(20)
Offence connected to gambling software
Manufacturing, supplying, installing or adapting gambling software without
holding a relevant operating licence.
S.41
Offence connected to chain-gift schemes
Inviting another person to join chain-gift schemes or participating in the
promotion of chain-gift schemes.
S.43
Appendix E: Summary of statutory application forms and
notices 96
List of prescribed forms
Application
Application for a premises licence under the Gambling Act 2005 (standard form)
Application for a premises licence under the Gambling Act 2005 (vessel)
Notice of application for a premises licence under the Gambling Act 2005 (to be published)
Notice of application for a premises licence (Form A) (for responsible authorities)
Notice of application for a premises licence (Form B) (for responsible authorities)
Summary of the Terms and Conditions of a premises licence
Premises licence
Notice of a grant of an application for a premises licence
Annex A – form to accompany notice of grant (conditions to be attached)
Annex B – form to accompany notice of grant (conditions to be excluded)
Annex C – form to accompany notice of grant (representations)
Notice of rejection of an application for a premises licence
Variation
Application to vary a premises licence under the Gambling Act 2005
Notice of Application to vary a premises licence under the Gambling Act 2005 (to be
published)
Notice of Application to vary a premises licence (Form A) (for responsible authorities)
Notice of Application to vary a premises licence (Form B) (for responsible authorities)
Notice of grant of an application to vary a premises licence
Annex A – form to accompany notice of grant (conditions to be attached)
Annex B – form to accompany notice of grant (conditions to be excluded)
Annex C – form to accompany notice of grant (representations)
Notice of rejection of an application to vary a premises licence
Review
Application for a review of a premises licence under the Gambling Act 2005
Notice of application for a review of a premises licence under the Gambling Act 2005
Notice of application for a review of a premises licence (to the premises licence holder and
responsible authorities)
Notice of intention to hold a review of a premises licence under the Gambling Act 2005
Notice of intention to hold a review of a premises licence (to the premises licence holder)
Notice of the decision on a review of a premises licence
Provisional
Application for a provisional statement under the Gambling Act 2005 (standard form)
Notice of application for a provisional statement under the Gambling Act 2005
Application for a provisional statement under the Gambling Act 2005 (vessel)
Notice of application for a provisional statement (Form A) (for responsible authorities)
Notice of application for a provisional statement (Form B) (for responsible authorities)
Provisional statement
Notice of grant of an application for a provisional statement
Annex A – form to accompany notice of grant (conditions to be attached)
Annex B – form to accompany notice of grant (conditions to be excluded)
96
Statutory application forms and notices available at www.gamblingcommission.gov.uk
Annex C – form to accompany notice of grant (representations)
Notice of rejection of an application for a provisional statement
Transfer
Application to transfer a premises licence under the Gambling Act 2005
Notice of application to transfer a premises licence (Form A ) (for responsible authorities)
Notice of application to transfer a premises licence (Form B ) (for responsible authorities)
Summary of terms and conditions of a premise licence
Premises Licence
Notice of grant of an application to transfer a premises licence
Annex A – form to accompany notice of grant (conditions to be attached)
Annex B – form to accompany notice of grant (conditions to be excluded)
Annex C – form to accompany notice of grant (representations)
Notice of rejection of an application to transfer a premises licence
Reinstatement
Application for the reinstatement of a premises licence under the Gambling Act 2005
Notice of application of the reinstatement of a premises licence (Form A)
Notice of application of the reinstatement of a premises licence (Form B)
Summary of terms and conditions of a premise licence
Premises Licence
Notice of grant of an application for the reinstatement of a premises licence
Annex A – form to accompany notice of grant (conditions to be attached)
Annex B – form to accompany notice of grant (conditions to be excluded)
Annex C – form to accompany notice of grant (representations)
Notice of the rejection of an application for the reinstatement of a premises licence
Temporary Use Notices
Gambling Act 2005 – Temporary Use Notice (for premises other than vessels)
Gambling Act 2005 – Temporary Use Notice (vessel)
Counter Notice (given in response to a temporary use notice)
Permits /lottery
Application Form for Club Gaming Permit or Club Machine Permit
Registration of Small Society Lotteries (Application form for registration of non commercial
society)
Club Gaming Permit
Club Machine Permit
Prize Gaming Permit
Family Entertainment Centre Gaming Machine Permit
Licensed Premises Gaming Machine Permit
Appendix F: Sample of premises licence conditions
This section provides a sample of conditions that have been attached to premises licences by
licensing authorities, with some amended for illustrative purposes. Licensing authorities should
note that these are not blanket conditions but have been imposed in a number of
circumstances to address evidence based concerns. Part 9 of this guidance provides further
details on the principles licensing authorities should apply when exercising their discretion to
impose premises licence conditions.
The conditions listed below have been grouped under specific headings for ease of reference.
There will inevitably be some overlap between those conditions that address different concerns,
for example those related to security and to anti-social behaviour.
1. Security
1.1
No pre-planned single staffing after 8pm and, when this is unavoidable, for a Maglock to
be in constant use.
1.2
A minimum of two members of staff after 10pm.
1.3
A minimum of two members of staff will be on duty throughout the whole day.
1.4
The premises will have an intruder alarm and panic button.
1.5
Maglock systems are employed and access is controlled.
1.6
Requirements for full-height security screens to be installed.
1.7
A requirement for 50% of the shop frontage to be clear of advertising so that staff have
a clear view and can monitor the exterior of the premises.
1.8
The premise shall maintain a ‘safe haven’ to the rear of the counter.
1.9
The premises shall install and maintain a comprehensive CCTV system as per the
minimum requirements of a Metropolitan Police Crime Prevention Officer. All entry and
exit points will be covered enabling frontal identification of every person entering in any
light condition. The CCTV system shall continually record whilst the premises is open
for licensable activities and during all times when customers remain on the premises. All
recordings shall be stored for a minimum period of 31 days with date and time
stamping. Recordings shall be made available immediately upon the request of Police
or an authorised officer throughout the preceding 31-day period.
1.10
A member of staff from the premises who is conversant with the operation of the CCTV
system shall be on the premises at all times when the premises are open to the public.
This member of staff must be able to show a member of the police or authorised council
officer recent data or footage with the absolute minimum of delay when requested.
1.11
A monitor shall be placed inside the premises above the front door showing CCTV
images of customers entering the premises.
1.12
If at any time (whether before or after the opening of the premises), the police or
licensing authority supply to the premises names and/or photographs of individuals
which it wishes to be banned from the premises, the licensee shall use all reasonable
endeavours to implement the ban through staff training.
2. Anti-social behaviour
2.1
The Licensee shall develop and agree a protocol with the police as to incident reporting,
including the type and level of incident and mode of communication, so as to enable the
police to monitor any issues arising at or in relation to the premises.
2.2
The Licensee shall take all reasonable steps to prevent street drinking of alcohol directly
outside the premises and to ban from the premises those who do so.
2.3
The Licensee shall place a notice visible from the exterior of the premises stating that
drinking alcohol outside the premises is forbidden and that those who do so will be
banned from the premises.
2.4
Notices indicating that CCTV is in use at the premises shall be placed at or near the
entrance to the premises and within the premises.
2.5
The Licensee shall place and maintain a sign at the entrance which states that ‘only
drinks purchased on the premises may be consumed on the premises’.
2.6
The Licensee shall implement a policy of banning any customers who engage in crime
or disorder within or outside the premises.
2.7
The Licensee shall install and maintain an ultraviolet lighting system in the customer
toilet.
2.8
The Licensee shall install and maintain a magnetic door locking system for the customer
toilet operated by staff from behind the counter.
2.9
Prior to opening the Licensee shall meet with the Crime Prevention Officer in order to
discuss any additional measures to reduce crime and disorder.
3. Underage controls
3.1
The Licensee shall maintain a bound and paginated ‘Think 21 Refusals’ register at the
premises. The register shall be produced to the police or licensing authority forthwith on
request.
3.2
Customers under 21 will have to provide ID.
3.3
The premises will operate a ‘challenge 25’ policy and prominent signage and notices will
be displayed showing the operation of such policy
3.4
Compulsory third party test purchasing on a twice yearly external system and the results
to be reported to the Local Authority and police. In the first twelve months (from the date
of the Review) two additional internal test purchase operations to be carried out. 97
3.5
A physical barrier (ie a supermarket metal type or similar) acceptable to the licensing
authority, and operated in conjunction with the existing monitored alert system, to be put
in place within 3 months from the date of the review.
3.6
No machines in the Unlicensed Family Entertainment Centre to be sited within one
metre of the Adult Gaming Centre entrance.
97
In some cases it will be more practical to request test purchasing to be carried out on a minimum number of occasions (eg at
least twice a year) rather than during a specific a timeframe (eg once every six months). For example, it would not be practical to
impose a condition on premises within a holiday park that requires test purchasing to be carried out ‘once every six months’ as the
park may not be open for business during the winter months.
4. Player protection controls
4.1
Prominent GamCare documentation will be displayed at the premises.
4.2
There shall be no cash point or ATM facilities on the premises.
4.3
The Licensee shall train staff on specific issues related to the local area and shall
conduct periodic refresher training. Participation in the training shall be formally
recorded and the records produced to the police or licensing authority upon request.
4.4
New and seasonal staff must attend induction training. All existing staff must attend
refresher training every six months.
4.5
All notices regarding gambling advice or support information within the vicinity of
Chinatown must be translated into both simplified and traditional Chinese.
4.6
Infra Red Beam to be positioned across the entrance to the premises. To be utilised
whenever:
(a)
The first member of staff is not positioned within the Cash Box or,
(b)
The second member of staff is not on patrol.
Appendix G: Inspection powers
PO
EO
AP
LAAP
Police Officer
Enforcement Officer
Authorised Person
Licensing Authority Authorised Person
Section of
Act
S.307
Inspection of
gambling
S.308
Operating
licence
holders
Classes
of
person
PO, EO,
AP
PO, EO
S.309
PO, EO,
Family
LAAP
Entertainment
Centres
Premises to which the
inspection power
applies
Reasonable suspicion of
provision at premises of
gambling other than
private and noncommercial gaming or
betting
Reasonable belief
premises used by
operating licensed holder
for purpose connected
with licensed activities
Premises for which an
application for a family
entertainment centre
gaming machine permit
has been made
Premises licensed for the
supply of alcohol
Purpose for which inspection
power is available
(a) whether gaming satisfies
conditions under S179 for exempt
gaming
(b) whether there is compliance with
any operating licence conditions
where bingo is played
(c) whether high turnover bingo is
played under s181
(d) the number and category of
gaming machines available for use
(a) A purpose connected with the
consideration of the application
(b) For determining whether prize
gaming complies with the Act and
the Regulations
(a) whether gaming is or is about to
take place
(b) whether any gaming accords
with a club gaming permit, club
machine permit or exempt gaming
provision under s169
A purpose connected with
consideration of the application
S.310(1)
Premises
licensed for
alcohol
S.310(2)
Premises
licensed for
alcohol
EO,
LAAP
PO, EO,
LAAP
Premises licensed for
alcohol for consumption
on the premises
S.311
Prize gaming
permits
PO, EO,
LAAP
Premises for which an
application for a prize
gaming permit has been
made
S.312(1)-(3)
Clubs
PO, EO
Premises reasonably
believed to be a members’
club , commercial club or
miners welfare institute
S.312(4)
Clubs
LAAP
Premises for which an
application for a club
gaming permit or club
machine permit has been
made
(a) Whether gambling facilities
are/have been provided
(b) Whether there is an operating
licence or premises licence
(c) Whether there is compliance
with licence conditions
Whether there is compliance with
licence conditions
(a) A purpose connected with
consideration of the application
(b) For determining whether gaming
machines comply with the Act and
the Regulations
A purpose connected with
consideration of the application
S.313(1)
Licensed
premises
S.313(2)
Licensed
premises
S.314
Registered
society
lotteries
PO, EO,
AP
S.315(1)
Temporary
use notice
S.315(2)
Temporary
use notice
PO, EO,
AP
PO, EO,
AP
EO,
LAAP
PO, EO,
AP
Premises for which an
application for a premises
licence has been made
Premises for which a
premises licence is in
force
Premises owned or used
by a (non-commercial)
society registered with a
local authority for exempt
lotteries
Premises for which a
temporary use notice has
been notified
Premises for which a
temporary use notice has
effect
Assess likely effects of activities on
licensing objectives
A purpose connected with a
premises licence review under s201
Enquiries in connected with a lottery
promoted on behalf of the society
Assess likely effectives of activities
on licensing objectives
Whether activities accord with the
temporary use notice
Appendix H: Licensing authority delegations
Summary of licensing authority delegations permitted under the Gambling Act,
applicable to England and Wales only
Matter to be dealt with
Final approval of the Licensing
Authority Policy statement
Policy not to permit casinos
Fee setting
(when appropriate)
Application for
premises licences
Full Council
Sub-committee of
licensing committee
X
X
X
(if delegated by full
council)
X
Where representations
have been received
and not withdrawn
Application for a variation to a
licence
X
Where representations
have been received
and not withdrawn
Application for a transfer of a
licence
X
Where representations
have been received
from the Commission
or responsible authority
Application for a provisional
statement
X
Where representations
have been received
and not withdrawn
Review of a premises licence
Application for club gaming/club
machine permits
Cancellation of club
gaming/club machine permits
Applications for other permits
Cancellation of licensed
premises gaming machine
permits
Consideration of temporary use
notice
Decision to give a counter
notice to a temporary use notice
Officers
X
Where no
representations
received/representation
s have been withdrawn
X
Where no
representations
received/representation
s have been withdrawn
X
Where no
representations
received from the
Commission or
responsible authority
X
Where no
representations
received/representation
s have been withdrawn
X
X
Where objections have
been made and not
withdrawn
X
X
Where no objections
made/objections have
been withdrawn
X
X
X
X
X indicates the lowest level to which decisions can be delegated
Summary of licensing authority delegations permitted under the Gambling Act,
applicable to Scotland only
Matter to be dealt with
Committee of
Licensing Board or
member of the
Licensing Board
Clerk of the
Licensing Board (and
member of staff
appointed to assist
the clerk)
Application for
premises licences
X
Where representations
have been made and
not withdrawn
Application for a variation of a
premises licence
X
Where representations
have been made and
not withdrawn
Application for a transfer of a
licence
X
Where representations
have been received
from the Commission
Application for a provisional
statement
X
Where representations
have been made and
not withdrawn
X
Where no
representations
made/representations
have been withdrawn
X
Where no
representations
made/representations
have been withdrawn
X
Where no
representations
received from the
Commission
X
Where no
representations
made/representations
have been withdrawn
Final approval of the Licensing
Authority Statement of Principles
Policy not to permit casinos
Review of a premises licence
Application for club gaming/club
machine permits
Cancellation of club gaming/club
machine permits
Applications for other permits
Cancellation of licensed
premises gaming machine
permits
Consideration of temporary use
notice
Decision to give a counter notice
to a temporary use notice
Licensing
Board
X
X
X
X
Where objections have
been made and not
withdrawn
X
X
Where no objections
made/objections have
been withdrawn
X
X
X
X
X indicates the lowest level to which decisions can be delegated
Appendix I: Poker games and prizes
(i)
The overall winner wins the pot in each game and wins an overall prize based on
points
If the tournament winner played three games in the whole tournament, and his winnings (from
the pot) in each of these games were £100, £70 and £60 respectively, each game would fall
under the £100 prize limit. This would leave £0 from the first game, £30 from the second game
and £40 from the third game, which could be put towards the winner’s overall tournament prize.
In these circumstances, the tournament prize could be up to £70 (£0 + £30 + £40). Thus where
the pot in individual games is under £100, the tournament winner’s overall prize must not
exceed the aggregate of the shortfall in each of the games he plays.
(ii) The overall winner is only awarded points in each game and wins an overall prize
based on points
Let’s still assume that the tournament winner plays three games in the whole tournament. If
there is no individual prize in any of the three games, then the overall prize can be up to £300
(£100 for each game the winner has played). If, on the other hand, the winner played in only
two games, then his overall prize may not exceed £200, and so on. Please note that the
relevant number of games is the games in which the winning player participated, and not only
the games that they won.
Organisers of such competitions will therefore need to work out the total value of any overall
prize with reference to the number of games to be played by the overall winner and the total pot
(if any) in each game.
While ‘non-cash’ poker for points leagues can provide harmless and legal entertainment, those
promoting such leagues should be aware of the Commission’s code of practice on equal
chance gaming, and take steps to prevent individual stakes limits being exceeded through side
bets or illegal activity such as agreements to ‘settle’ games outside the gaming area. Where
illegal activity is detected, licensing authorities should consider the removal of the alcohollicensed premises’ exemption, which allows poker and other exempt gaming to be played.
(iii) The overall winner is only awarded points in each game and wins an overall prize
such as the opportunity to participate in a major poker tournament, casino
vouchers, holidays, etc
In these circumstances, tournament organisers must ensure that the statutory limits for poker in
alcohol-licensed premises and clubs are complied with. In particular, they must carefully
consider the value of the prizes offered for games leading up to the tournament final (including
money’s worth or non-monetary prizes such as holidays, cars, casino vouchers, or buy-ins or
seats at the final). In addition, organisers should take into account that where players are
competing across premises for an overall prize, they are likely to be engaged in linked gaming,
which is not permitted.
(iv) Free or donated prizes are awarded to players in addition to the maximum prize
pools for poker in clubs and alcohol licensed premises
The Act refers to money or money’s worth in respect of prizes. This would include free or
donated prizes which have an intrinsic value. Any prizes offered in addition to the prize pool
must remain within the limits for prizes in games of poker in clubs and alcohol licensed
premises. The prize limit is £250 per game in a club and £100 per game in a pub. Therefore, for
example, if the prize pool available for a particular game is £80, then any non-monetary prizes
must not have a value exceeding £20.
(iv) Poker is offered in a members’ club or miners’ welfare institute with a club gaming
permit
Members’ clubs or miners’ welfare institutes with club gaming permits may offer poker with
unlimited stakes and prizes, but the only persons who may participate in such gaming are club
members and their genuine guests. In this regard, the club must be able to demonstrate that it
has a genuine and legitimate club membership scheme. Clubs must also ensure that the
statutory limits on participation fees are not exceeded. The limit for bridge and whist is £20 and
for other gaming is £3. In addition, there is a limit of a maximum of £2,000 per week in stakes
and prizes for bingo in a members’ club or welfare institute. If it is the intention of the club or
institute to exceed these limits, it will be necessary for them to apply for an operating licence.
What constitutes ‘money’s worth’?
Money’s worth relates to the realistic value of the prize offered. It includes emoluments,
vouchers, goods or other items which have a value. A prize such as a ‘goody bag’ would be
considered money’s worth and is, therefore, subject to the statutory limits for exempt gaming.
Donated prizes would also be considered money’s worth. This would include prizes such as the
buy-ins at major poker tournaments or the opportunity to participate in poker tournaments at
venues such as Monte Carlo, especially as this type of prize is likely to include the cost of the
airfare and accommodation.
Appendix J: Glossary of terms
The Act
AGCs
ATM
AWP
BRDO
The Code
The Commission
CORCA
COSLA
DCLG
EBT
ELM
FCA
FECs
Guidance
HRA 1998
IOL
LACE
LBO
LCCP
LGA
LSO
OC
OUN
Policy statement
The regulations
The review regulations
S.153
SIA
SOLAR
SR code
SSBT
SSL
SWP machines
TUN
uFEC
VBT
WLGA
The Gambling Act 2005
Adult Gaming Centres
Automated telling machine
Amusement with prizes
Better Regulation Delivery Office
The Regulators’ Code
The Gambling Commission
Convention of Scottish Local Authorities
Department of Communities and Local Government
Electronic Bingo Terminal
External lottery manager
Financial Conduct Authority
Family Entertainment Centres
Guidance to Licensing Authorities, issued by the Commission
under S.25 of the Gambling Act 2005
Human Rights Act 1998
Institute of Licensing
Local Authority Compliance Events
Licensed betting office
Licence conditions and Codes of Practice
Local Government Association
Licensing Standards Officer
Ordinary Code
Occasional use notices
Licensing Authority’s statement of licensing policy published
under S.349 of the Gambling Act 2005
The Gambling Act 2005 (Licensing Authority Policy Statement)
(England and Wales) Regulations 2006 and The Gambling Act
2005 (Licensing Authority Policy Statement) (Scotland)
Regulations 2006
The Gambling Act 2005 (Premises Licences)(Review)
Regulations 2007 and The Gambling Act 2005 (Review of
Premises Licences)(Scotland) Regulations 2007
Section 153 of the Gambling Act 2005
Security Industry Authority
Society of Local Authority Lawyers and Administrators
Social Responsibility code
Self service betting terminal
Small society lotteries
Skill with prizes machines
Temporary use notices
Unlicensed Family Entertainment Centres
Video bingo terminals
Welsh Local Government Association
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