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Police Law 11th Edition

20. Betting, Gaming and Lotteries

Chapter 20

INTRODUCTION

The Gambling Act 2005 (GA 2005) repealed all existing legislation covering the activities which would fall under these headings. The Act provides a new regulatory system to govern the provision of gambling facilities in Great Britain, other than the National Lottery. The new system covers all the forms of betting, although some activities fall outside the terms of the Act in prescribed circumstances. GA 2005 responds to the fact that the nature of gambling activities has changed significantly since the enactment of previous legislation. Forms of communication (and thereby the forms of conducting betting transactions) have expanded. Television, the internet and mobile telephones are just some examples of the means by which gambling transactions can be effected.

PRINCIPAL CONCEPTS

Licensing objectives

The GA 2005 refers on a number of occasions to 'the licensing objectives'. The licensing objectives are:

1. preventing gambling from being a source of crime or disorder, being associated with crime or disorder or being used to support crime; and
2. ensuring that gambling is conducted in a fair and open way; and
3. protecting children and other vulnerable people from being harmed or exploited by gambling.
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Gambling Commission and licensing authorities

In exercising its functions under the GA 2005 the Gambling Commission must aim (a) to pursue, and wherever appropriate have regard to, the licensing objectives of the GA 2005, and (b) to permit gambling, so far as it thinks that it is reasonably consistent with those objectives. Thus, the control of the issue of various forms of authorisation to permit people to provide gambling is in the hands of the Gambling Commission. The previous responsibilities for such matters, held by the Gaming Board and licensing justices, are removed by GA 2005. The members of the Gambling Commission are appointed by the Secretary of State.

The Gambling Commission is responsible for directly authorising the activities of persons who are involved in the provision of gambling facilities, including the person controlling and providing the facilities and specified members of staff. Licensing authorities (local authorities) are made responsible for the licensing of premises upon which gambling activities will take place but these matters are supervised by the Gambling Commission.

The Gambling Commission, together with local authority inspectors, is closely involved with ensuring that the correct forms of authority are held by persons and in respect of premises involved in gambling activities. In consequence, the various forms of authorisation and the conditions which may be applied to them are dealt with below in a narrative form rather than by constant reference to Parts or sections of GA 2005.The Gambling Commission may carry out investigations and take proceedings for offences.

Both the Commission and the licensing authorities must maintain registers containing details of licences and permits issued.

Gambling

Gambling is defined by GA 2005, s 3 as meaning gaming, betting and participation in a lottery. These terms are defined under the heading 'Gaming'.

Remote gambling

GA 2005 is concerned with the various technological means by which gambling can take place. 'Remote gambling' is defined by GA 2005, s 4 as gambling in which persons participate by the use of 'remote communication', ie by using the internet, telephone, television, radio or any other form of electronic or other technology for facilitating communication.

Facilities for gambling

The primary aim of the Act is to licence persons and organisations involved in gambling activities. There are many ways in which a person can provide gambling facilities or be involved in them. GA 2005, s 5 provides that a person provides facilities for gambling if he:

1. invites others to gamble in accordance with arrangements made by him;
2. provides, operates or administers arrangements for gambling by others, or
3. participates in the operation or administration of gambling by others.

Thus, the term covers the provision of facilities (by individuals or companies) such as betting offices or casinos, or a website by means of which betting or gaming can take place. It also covers the administration of the arrangements for gambling by exercising some form of control, or being involved in the operation by participation, such as the part played by a croupier, or a person who assists others to complete betting transactions.

The suppliers of articles for gambling (other than gaming machines), eg packs of cards, are exempted, as are service providers of electronic communications. This is because they do no more than provide a commercial service, as opposed to a service which is directly aimed at gaming.

OTHER KEY CONCEPTS

Gaming

Gaming and game of chance

GA 2005, s 6 deals with these concepts. Gaming is the playing of a game of chance for a prize.

A game of chance includes (a) a game that involves both an element of chance and an element of skill; (b) a game that involves an element of chance that can be eliminated by superlative skill; and (c) a game that is presented as involving an element of chance. It does not include a sport. A person can play a game of chance whether or not there are other participants, and whether or not a computer takes the place of another participant. In this way, machine games or virtual games are brought within the scope of the Act.

Casino

By GA 2005, s 7, a 'casino' is an arrangement (whether conducted on premises or by remote communication) where people can participate in one or more casino games. 'Casino games' are games which are not equal chance games, as defined below. Thus, games which involve playing against a bank, or where chances are not equally favourable to all players, is a casino game. The Secretary of State is empowered to specify that an activity is or is not a casino game.

There are four categories of casino: regional, large, small or below the minimum size for a licensed casino. The Categories of Casino Regulations 2008 specify the matters by reference to which a casino is to be classified as a large or small casino, or as below the minimum size for a licensed casino. They specify the minimum and maximum floor areas used for providing facilities for gaming. The premises of a casino below the minimum size for a licensed casino will have been previously licensed under previous legislation. Transitional provisions permit this class to continue to operate. The premises of a casino below the minimum size for a licensed casino will have been previously licensed under previous legislation. Transitional provisions permit this class to continue to operate.

Equal chance gaming

The distinction, recognised by previous legislation, between equal chance gaming and unequal chance gaming (including bankers' games) is retained. Gaming is equal chance gaming if (a) it does not involve playing or staking against a bank, and (b) the chances are equally favourable to all participants (GA 2005, s 8).

The right to conduct games of equal chance is more widely spread through clubs, private premises and non-commercial gaming. Unequal chance gaming is restricted, mostly to casinos.

Betting

In GA 2005, 'betting' means making or accepting a bet on:

1. the outcome of a race, competition or other event or process,
2. the likelihood of anything occurring or not occurring, or
3. whether anything is or is not true (GA 2005, s 9).

In short, 'betting' involves the staking of money or other value on the outcome of a doubtful issue. The provisions of GA 2005 do not apply to 'spread betting' (a stock market activity).

GA 2005, s 11 provides that, despite the fact that no stake is deposited in the normal way of betting, prize competitions may amount to betting for the purposes of the Act if there is a requirement to pay to enter the competition generally. The term 'payment' includes a reference to paying money, transferring 'money's worth, and paying for goods and services at a price or rate which reflects the opportunity to participate in an arrangement under which a participant may win a prize. It is immaterial to whom the payment is made and who receives a benefit from it. An entry, or prize claim, by telephone where the call is charged at a standard rate, or by ordinary post, or by use of another comparable service at its standard price, does not amount to payment for entry. It does amount to payment to participate where an operator, or any third party, obtains income from the competition because the entrant must pay to find out whether he has won a prize (perhaps by use of a premium rate line). However, a competition will not be regarded as requiring payment for entry if there is a 'free entry route' (by letter or other means which is no more expensive or less convenient that the option for participating by paying). The free entry route must be displayed as prominently as that involving payment, and free entries must be no less likely to win all or any of the prizes than entries which are paid for.

Pool betting GA 2005 refers to 'pool betting'. For these purposes betting is pool betting if made on terms that all or part of winnings:

1. shall be determined by reference to the aggregate of stakes paid or agreed to be paid by the persons betting,
2. shall be divided among the winners, or
3. shall or may be something other than money (GA 2005, s 12(1)).

Pool betting is horse-race pool betting if it relates to horse-racing in Great Britain (GA 2005, s 12(2)).

Betting intermediary In the days before licensed betting shops, there existed a well-known member of the local community who was known as a 'bookies' runner'. He journeyed from place to place throughout the day collecting bets on behalf of a bookmaker. GA 2005 provides the title 'betting intermediary', which is defined as follows by GA 2005, s 13. 'Betting' intermediary' means a person who provides a service designed to facilitate the making or acceptance of bets between others. For the purposes of GA 2005 acting as a betting intermediary constitutes providing facilities for betting. As 'runners' have now mostly sought sanctuary in betting shops and become static, the new term is more appropriate.

Lotteries

For the purposes of GA 2005, there are two types of lottery: a simple lottery and a complex lottery. Both are defined by GA 2005, s 14.

An arrangement is a simple lottery if:

1. persons are required to pay in order to participate in the arrangement,
2. in the course of the arrangement one or more prizes are allocated to one or more members of a class, and
3. the prizes are allocated by a process which relies wholly on chance.

An arrangement is a complex lottery if:

1. persons are required to pay in order to participate in the arrangement,
2. in the course of the arrangement one or more prizes are allocated to one or more members of a class,
3. the prizes are allocated by a series of processes, and
4. the first of those processes relies wholly on chance.

The definition of complex lottery recognises that a lottery may involve more than one process for determining prize winners. Where more than one person are involved, an arrangement is a lottery if the first process relies entirely upon chance. If this is so, it does not matter that any following process relies upon an element of skill or judgement. Where the first process does not rely wholly on chance, there will be no lottery, even if following procedures involve no more than chance.

'Payment' in the above definitions has the same meaning as it has in respect of 'betting'. The 'payment to enter' elements cannot be circumvented by offering two methods of entry both of which involve premium rate communications, or where one involves payment and the other communication at a premium rate. Neither of these alternatives provides a mode of free entry.

Competitions which do not involve a minimum level of skill, judgment or knowledge are treated as relying solely on chance and are therefore lotteries. Moreover, a process which requires persons to exercise skill or judgment or to display knowledge is treated as relying wholly on chance if the requirement is unlikely to prevent a significant proportion of participants from receiving a prize, and is unlikely to prevent a significant proportion of persons who wish to participate from doing so. Where a competition is one for children, these levels of skill, judgment or knowledge must be examined accordingly; where it is provided within a publication produced for persons with a specialised skill or knowledge, 'challenge' will be looked at in recognition of the target population. The Secretary of State is empowered to specify within regulations types of arrangements which may be considered as lotteries.

Participating in the National Lottery is not gambling with the exception under GA 2005, s 42 referred to under the heading 'Other offences'.

Cross-category activities

With one exception, transactions which satisfy the definitions of betting and of gaming are treated by GA 2005, s 16 as gaming (and not as betting). This provision prevents games such as roulette being available on licensed betting premises. The exception is that a transaction satisfying both definitions which is pool betting is treated as betting (and not as gaming).

Transactions which satisfy the definitions of a game of chance and of a lottery are treated by GA 2005, s 17 as a game of chance (and not as a lottery) if a person who pays to join the class amongst whom members' prizes are allocated is required to participate in, or be more successful in, more than three processes before becoming entitled to a prize, and so is any other lottery besides a private society lottery, work lottery, residents' lottery, customer lottery, small society lottery, non-incidental commercial lottery. These types of lottery (see under heading 'Lotteries') are treated as a lottery (and not as a game of chance).

Where a transaction satisfies the definition of participating in a lottery and also satisfies the definition of pool betting and of betting by virtue of the provisions relating to prize competitions, the transaction is treated by GA 2005, s 18 as participating in a lottery (and not as betting) if it is an incidental non-commercial lottery, private society lottery, work lottery, residents' lottery, customer lottery or small society lottery. Otherwise it is so treated as betting (and not as participating in a lottery).

Non-commercial society

The provisions of GA 2005 relating to operating licences and to lotteries refer to such a society. A society is non-commercial if established and conducted for charitable purposes, or for cultural or sporting purposes, or for any other non-commercial purpose other than that of private gain.

GENERAL OFFENCES

Provision of facilities for gambling

Generally

GA 2005, s 33 provides that the provision of facilities for gambling (see under heading 'Gambling') is an offence unless that activity is authorised by an operating licence or is specifically exempted. Exempted activities are those which may take place without an operating licence, but may require a permit or some other authorisation, or do not require any form of authorisation, viz equal chance gaming in certain circumstances in particular clubs or in miners' welfare institutes or in on-licensed alcohol premises, prize gaming, private gaming and betting, and non-commercial gaming. These activities are dealt with under heading 'Clubs, Pubs and Fairs'. In addition, the offence does not apply to the provision of facilities for a lottery or making a gaming machine available for use. Other offences may be committed in those circumstances.

It is immaterial whether facilities for gambling are provided in whole or in part by means of remote communication, or whether such facilities are provided inside or outside the United Kingdom or partly inside and partly outside.

However, where the gambling takes place by means of remote communication, the offence is committed only if one piece of remote gambling equipment is located in Great Britain. Where such equipment does not exist in Great Britain, no offence is committed even if people in Great Britain can participate. 'Remote gambling equipment' covers such equipment as a computer database or server which stores information about a person's gambling activities (virtual gambling); equipment used for determining the result or the effect of the result of a transaction (random number generators; and equipment to store information relating to the result. The term does not cover the equipment being used by the person participating (personal computer equipment) provided that it is not provided by the person providing the remote gambling facilities.

In instances in which the gambling concerned is other than by remote communication, the offence is committed only if any act of provision of unlicensed facilities takes place in Great Britain.

Provision of unlawful facilities abroad

A person commits an offence contrary to GA 2005, s 44 if he does anything in Great Britain, or uses remote gambling equipment situated in Great Britain, for the purpose of inviting or enabling a person in a prohibited territory to participate in remote gambling. 'Prohibited territory' means a country or place specified by the Secretary of State.

Relating to the use of premises

GA 2005, s 37 creates the offences of using premises, or causing or permitting the use of premises, for specified gambling activities, unless authorised by the appropriate premises licence or, in the case of bingo or betting in a casino, by a casino premises licence, or the activity is an exempted activity. An activity is exempted if it is:

1. one in respect of which a temporary use notice exists;
2. one in respect of which an occasional use notice exists;
3. one on premises used for facilitating authorised football pools;
4. one which relates to making available a gaming machine in specified circumstances;
5. one which is covered by a prize gaming permit or involves prize gaming at an adult gaming centre, family entertainment centre (in specified circumstances) or travelling fair; or
6. one to which an exception applies in relation to specific facilities such as the provisions of gaming machines on liquor licensed premises, at travelling fairs or at non-commercial events.

A temporary use notice, endorsed by the licensing authority (local authority), allows gambling temporarily on specified premises. By this means the holder of an operating licence may use other premises on a temporary basis. Regulations will provide for the extent of operations on temporary premises. These authorisations could cover some gambling activities at conference centres or entertainment venues. A temporary use notice must be submitted in writing by the holder of an operating licence and must relate to an activity covered by that operating licence. A set of premises cannot be subject to a temporary use notice for more than 21 days in any 12-month period. Objections may be made by the Commission, the police and HM Revenue and Customs.

The term 'occasional use notice' is one which applies to tracks which are used only occasionally. Where they are not used for more than eight days in a year, such a notice may authorise the provision of betting facilities. A 'track' is a racecourse, dog track or any other premises used or intended for a race or other sporting event. Such a notice must be served by the occupier of a track, or a responsible officer, on the local authority and the police force of the area. However, persons providing betting facilities at the track will need to be authorised to act as betting operators.

Gaming is 'prize gaming' if neither the nature nor the size of the prize is determined by reference to the number of people playing, or the amount paid for or raised by the gaming. Where a permit is held in respect of prize gaming the charges and prizes must not exceed prescribed amounts and the gaming must take place on the relevant premises on one day only. The Gambling Act 2005 (Limits on Prize Gaming) Regulations 2009 prescribe a maximum charge of £ 1 [SI 2009/1272] for any one chance to win a prize. Where a person pays this fee for one game card which provides a chance to win more than one prize (as would occur on purchase of one bingo card which offered prizes for lines as well as a final prize) the purchase price must still be £ 1. The Regulations place a limit of £ 500 on the aggregate amount of participation fees that may be charged for a game. They also limit a money prize to £ 70.

Other offences

Gambling software

GA 2005, s 41 provides that it is an offence to manufacture, supply, install or adapt, in the course of a business, computer software for remote gambling except in accordance with an operating licence held for that activity. Software which is used solely in connection with a gaming machine is excluded from the provisions of the section. Communication service providers do not supply or install gambling software simply by making facilities available to another which he uses to supply or install gambling software.

Cheating

GA 2005, s 42 creates offences of 'cheating' at gambling and of doing anything to enable or assist another so to cheat. 'Cheating' is not defined and should carry its normal meaning. There is no requirement that, as a result of his act, the offender should win, or that the act has the effect of improving the chances of success. The offences embrace actual or attempted deceptions, or interference with the process of gambling (for example, interfering with the operation of a roulette wheel). The event interfered with may be real or virtual.

An offence under s 42 extends to cheating etc in relation to the National Lottery.

Chain-gift schemes

GA 2005, s 43 deals with chain-gift schemes. A chain-gift scheme is an arrangement which requires a joining fee to be paid to one or more of the other participants, and where each participants is required or invited to invite others to take part and is are encouraged to believe that he will receive more from joining fees from others than he paid. A joining fee may be money or money's worth, but not the provision of goods or services.

Section 43 makes it an offence to invite another to join, or knowingly to participate in the promotion, administration or management of a chain-gift scheme. No offence is committed by a participant in such a scheme. The offences are committed irrespective of whether the joining fees are paid directly between participant, or through a person responsible for managing or administering the scheme.

OFFENCES INVOLVING CHILDREN AND YOUNG PERSONS

For the purposes of GA 2005, a person aged less than 16 is a child and a person aged 16 or over, but under 18, is a young person.

Invitation to child or young person to gamble

By GA 2005, s 46, it is an offence to invite or cause or permit a person who is under 18 to gamble.

The term 'invitation' includes intentionally sending the child or young person an advertisement of gambling or intentionally bringing to his attention information about gambling so as to encourage him to gamble. A person identified in such an advertisement as someone to whom payment may be made, or from whom information can be obtained, is deemed to have committed an offence under s 46, unless he proves that the document was sent without that person's consent or authority. If information about gambling is brought to the attention of a child or young person and identifies a person as to whom payment may be made or from whom information may be obtained, that person is deemed to have committed an offence under s 46, unless he proves that the information was brought to the child or young person's attention without his consent or authority or as an incident of the information being brought to the attention of adults and not with a view to encouraging the child or young person to gamble.

Inviting or permitting child or young person to enter a casino, betting shop or adult gaming centre

GA 2005, s 47 prohibits inviting or permitting a child or young person to enter licensed casino premises which are being used under that licence at the time. The offence does not apply to permitting a child or young person to enter the non-gambling area of a regional casino.

Section 47 also provides the following offences.

A person commits an offence if he invites or permits a child or young person to enter premises other than a track if a betting premises licence has effect in respect of the premises, and the premises are being used in reliance on that licence when the child or young person is invited or permitted to enter.

A person commits an offence if he invites or permits a child or young person to enter premises if an adult gaming centre premises licence has effect in respect of the premises, and the premises are being used in reliance on that licence when the child or young person is invited or permitted to enter.

A person commits an offence if he invites or permits a child or young person to enter an area at a track from which children and young persons are required by the premises licence to be excluded. These are areas where betting facilities are provided and gaming machines (other than Category D machines)(see under heading 'Categories of gaming machines') are situated.

A person commits an offence if he invites or permits a child or young person to enter part of premises if:

1. the premises are a licensed family entertainment centre,
2. a person entering that part of the premises has access to a Category C gaming machine, and
3. at the time when the child or young person is permitted or invited to enter, a Category C gaming machine is being used or is available for use.

Offences by young persons

The following offences can be committed by a young person (but not by a child).

A young person commits an offence under GA 2005, s 48 if he gambles. But this does not apply in relation to participation in private gambling or non-commercial gaming or betting, or in a lottery or in football pools. Nor does it apply to the use of Category D gaming machines or participation in equal chance gaming in accordance with a prize gaming permit or at a licensed family entertainment centre, or in prize gaming at an unlicensed family entertainment centre or travelling fair.

By GA 2005, s 49, a young person also commits an offence if he enters premises of the type and in circumstances where it would be an offence under s 47 to invite or permit him to do so. An additional offence can be committed under GA 2005, s 50 by a young person who provides facilities for gambling other than private or non-commercial gaming and betting, lotteries, football pools and prize gaming at a travelling fair.

Employment of children or young persons to provide gambling facilities

By GA 2005, s 51, it is an offence to employ children or young persons for the purpose of providing gambling facilities other than facilities in connection with private or non-commercial gaming and betting, prize gaming at a travelling fair, a lottery or football pools. GA 2005, s 52 provides that a person commits an offence if he employs a child to provide facilities in relation to lotteries and football pool betting.

It is an offence against s 53 to employ children on premises where and at a time when facilities are provided for bingo or when gambling facilities are provided under a club gaming permit or club machine permit.

A person commits an offence under GA 2005, s 54 if he employs a child or young person to perform any function on premises where a Category A, B, C or D gaming machine (see below) is situated, and the child or young person is or may be required in the course of his employment to perform a function in connection with the gaming machine. Thus, a child may be employed at a family entertainment centre to carry out duties not connected with gaming, but he may not operate or handle the machines or pay customers prizes and he may not enter any area in which there are Category C machines.

A person commits an offence under GA 2005, s 55 if he employs a child or young person to perform any function on premises in respect of which any of the following have effect:

1. a casino premises licence,
2. a betting premises licence, and
3. an adult gaming centre premises licence.

The offence does not apply to employment at a time when no activity is being carried on in reliance on the premises licence, or to employment on a part of premises which are being used for a regional casino at a time when that part is not being used for the provision of facilities for gambling.

A young person commits an offence if he is employed in contravention of s 54 or s 55.

The provisions which allow children and young persons to be employed in non-gambling areas are aimed at permitting them to carry out jobs which are not directly connected with gambling, such as an apprentice carrying out structural repairs to a building or its fittings.

It is an offence against GA 2005, s 56 to invite, or cause or permit a child to take part in a lottery other than a private lottery or an incidental exempt non-commercial one or the National Lottery. Thus, children may buy tickets at their school fete.

It is an offence under GA 2005, s 57 to invite, cause or permit a child to participate in football pools. The provisions of s 46 (see under heading 'Offences involving children and young persons' relating to the meaning of 'inviting' and whereby a person may be deemed to have invited participation apply to the offence under s 57.

Defences

By GA 2005, s 63, it is a defence for a person charged with any of the offences under GA 2005, ss 46-57 where they relate to a child or (as the case may be) a young person to prove that he took all reasonable steps to establish a person's age and that he reasonably believed that the person was not a child or (as the case may be) young person.

Temporary or occasional use notices

By GA 2005, s 60, notices of these types authorising gambling at premises which do not have a premises licence are regarded as being premises licences for the purposes of the offences under GA 2005, ss 46-57.

OPERATING LICENCES

Operating licence are the principal authorisations issued under GA 2005. The relevant provisions are contained in GA 2005, Pt 5. The Gambling Commission issues such licences and administers the licensing regime. There are 10 types of operating licence:

1. a casino operating licence;
2. a bingo operating licence;
3. a general betting operating licence;
4. a pool betting operating licence;
5. a betting intermediary operating licence;
6. a gaming machine general operating licence;
7. a gaming machine operating licence for a family entertainment centre;
8. a gaming machine technical licence;
9. a gambling software operating licence; and
10. a lottery operating licence.

Both the Gambling Commission, by way of general and individual conditions attached to a licence, and the Secretary of State, by regulations containing specified conditions which must be attached to a licence, can make requirements in relation to operating licences. The Gambling Act 2005 (Operating Licence Conditions) Regulations 2007 impose the following condition upon a casino operating licence in respect of a game played on a wholly automated gaming table. The game must be capable of being played by four persons at the same time using four separate player positions. The Regulations also impose a condition on bingo operating licences relating to the provision of facilities for prize gaming. The condition is that:

1. the amount charged by way of participation fee in respect of any one chance to win a prize (or more than one prize) in a particular game must not exceed fifty pence;
2. the aggregate amount of the participation fees for participating in a particular game must not exceed £ 500;
3. a money prize may not exceed £ 50 where no person under the age of 18 (other than an employee in the course of his duties) is permitted to be on the premises, and £ 35 in any other case;
4. the aggregate amount or value of the prizes for which a game is played must not exceed £ 500.

Such gaming will only be permitted where the charge for participation does not exceed 50 pence (even where that fee provides an opportunity to win more than one prize); the aggregate amount of participation fees charged for participation in a particular game must not exceed £ 500; a money prize may not exceed £ 50 where no person under the age of 18 (other than an employee in the course of his duties) is permitted to be on the premises and £ 35 in any other case. The aggregate amount or value of the prizes for which a game is played must not exceed £ 500.

Operating licences are of indefinite duration.

In the case of a bingo operating licence, the Secretary of State may make comprehensive regulations limiting stakes, participation charges and the payment of prizes. 'Multiple' and 'linked' bingo provisions are replaced by the necessity to obtain a remote operating licence for the operation of bingo by means of remote communication. No condition may be attached to such a licence prohibiting roll-over prizes.

A general betting operating licence is required by anyone wishing to accept or make bets by way of a business. Those providing facilities to accept another person's bets will require a betting intermediary operating licence. Employees of the holder of a general betting operating licence holder may accept or make bets on his behalf.

Conditions are also imposed on pool betting and horserace betting operating licences.

Lotteries, other than the National Lottery or exempt lotteries (see under heading 'Exempt lotteries) must be licensed. A lottery operating licence may only be issued to:

1. non-commercial societies;
2. local authorities; or
3. a person proposing to act as external lottery manager on behalf of a non-commercial society or a local authority.

A non-commercial society (see under heading 'Non-commercial society') requires an operating licence if the proceeds of a lottery which it promotes exceed certain thresholds (set out in Sch 11 below). If these thresholds are not exceeded the lottery is a 'small society lottery' and is exempt. However, such a lottery must be registered with the local authority.

The Commission may impose upon a lottery operating licence requiring that all arrangements are to be made by an external lottery manager. An external lottery manager is someone who makes arrangements for a lottery on behalf of a society or authority of which he is not a member, officer or employee.

Delivery of lottery tickets by post may not be prohibited by regulations or by conditions. The Gambling Commission may impose conditions in respect of roll-overs. They include conditions that 20 % of the proceeds of any lottery must go to good causes; the proceeds of a single lottery must be limited; the proceeds of all lotteries held in one year are restricted to an overall upper limit; and an upper limit may be imposed upon the size of a prize. Proceeds may not exceed £ 4,000,000 and the aggregate of the proceeds of lotteries in a calendar year must not exceed £ 10,000,000.

Non-remote operating licences and remote operating licences

An operating licence may authorise the provision of facilities for gambling on premises or the carrying on of activity in respect of remote gambling or by means of remote communication. It cannot authorise both. Where on-premises gambling and remote gambling or gambling by means of remote communication are both carried out, two licences must be in force. An operating licence must state whether it is a remote operating licence or not.

A non-remote operating licence authorises the operation of gambling facilities which are to be carried out on premises. However, the person to whom the licence is granted also requires a licence in respect of particular premises upon which such gambling will take place. This may be in the form of a premises licence, an occasional use notice or a temporary use notice. In addition, operating licences may be obtained to authorise the manufacture, supply, installation, adaptation, maintenance of gaming machines computer software.

A remote operating licence authorises activity to be carried on in respect of remote gambling or gambling by means of remote communication. It may carry conditions limiting the forms of remote gambling which are permitted. A form of communication may be specifically authorised. A remote operating licence may authorise remote gambling equipment to be situated outside Great Britain. [SI 2007/2321]

One licence for more than one activity

Although it cannot authorise within one licence remote and non-remote activities, the Gambling Commission may issue a licence which covers more than one of the activities set out under heading 'Operating licences'.

A casino licence also authorises facilities for betting on the outcome of a virtual game, race, competition or other event or process, unless limited by a condition, and also authorises the provision of equal chance gaming other than bingo. A betting operating licence authorises facilities for betting on the outcome of such events (other than a game of chance) unless restricted by a condition. However, these provisions do not apply to virtual gaming by way of a machine.

Gaming machines - authorisations

Some forms of operating licence authorise making machines available for use. These are:

1. a non-remote casino operating licence;
2. a non-remote bingo operating licence;
3. a non-remote general betting operating licence; and
4. a non-remote pool betting operating licence.

PERSONAL LICENCES

Once a person has obtained an operating licence, there generally will be a need to have persons holding personal licences. Personal licences are governed by GA 2005, Pt 6. A personal licence is a licence which authorises an individual to perform the functions of a specified management office, or to perform a specified operational function, in connection with the provision of facilities for gambling or in connection with a person who provides facilities for gambling. Thus, it authorises people to carry out certain duties on behalf of the licence holder. The Gambling Commission grants such licences. Every operating licence must specify at least one management office to be occupied by a personal licence holder (unless the operating licence holder is a 'small scale operator', in which case a personal licence requirement may not be attached to an operating licence).

The term 'small scale operator' is defined by the Gambling Act 2005 (Definition of Small Scale Operators) Regulations. These provide that the holder of an operating licence is a small scale operator if he satisfies the condition that, in relation to the relevant licensed activity, there are no more than three qualifying positions in or in respect of the licensee or in connection with the licensed activity, and each qualifying position is occupied by a qualified person (ie a person named in the operating licence as a person who holds a qualifying position or a person who is the subject of an application which has been made to vary the operating licence to include his name as a person holding a qualifying position). A 'qualifying position' means a position held by a person who, by the terms of his appointment has primary responsibility for a management or marketing function.

GA 2005, s 128 provides that the provisions of Part 5 of the Act (operating licences) are to apply to personal licences as they apply to operating licences, subject to certain exceptions. The Gambling (Personal Licences) (Modification of Part 5 of the Gambling Act 2005) Regulations 2006 specify a number of exclusions and modifications of Part 5 of the Act, as it is to apply to personal licences.

Personal licences are of indefinite duration.

PREMISES LICENCE

The licence

The Gambling Commission licences those operating gambling activities and makes requirements in respect of persons who must hold personal licences. It then becomes the duty of licensing authorities (local authorities) to licence specified premises through the grant of premises licences under GA 2005, Pt 8. Operators' licences cannot specify particular premises upon which gambling activities can take place, but may specify the maximum number of sets of premises upon which licensed activities may be conducted, or the number of people for whom facilities may be provided on any premises. A casino licence, for example, does not necessarily restrict activities to one set of premises. The provision of an operating licence by the Gambling Commission allows the specified person to provide specified gambling facilities, but, for these to be provided on particular premises, those premises must be licensed by the licensing authority.

Premises licences are required for:

1. casino premises;
2. bingo premises;
3. betting premises (including tracks and premises used by a betting intermediary);
4. adult gaming centres; and
5. family entertainment centres.

In the case of the centres referred to in (d) and (e) a premises licence can only licence specified types of gaming machines (see Gaming Machines below).

There are three types of casino premises licence: regional, large and small depending on which type of casino they relate to. There must be no more than one regional casino premises licence; eight large casino premises licences and eight small casino premises licences. The geographical distribution of the eight local authorities which may issue large casino premises licences has been prescribed by order. No more than one licence issued by each such local authority may have effect at any time. The prescription of the local authority which may issue a regional casino premises licence has not yet happened.

An applicant for a premises licence must hold (or have applied for) a relevant operating licence. However, this requirement does not apply to an applicant for a premises licence which authorises a track to be used for accepting bets and for no other gambling purpose (except a maximum of four category B, C or D gaming machines).

A licensing authority may issue a 'provisional statement' in advance of the construction or adaptation of premises to be used for providing gambling facilities, or where a person is intending to occupy premises.

Licensing authorities are required to maintain a register of premises licensed under GA 2005 which must be open to public inspection. The Gambling Commission, police and certain other public bodies have the right to make representations about applications for premises licences. Persons living close to the premises and those with business interests (or their representatives) may also make representations.

Unless the Secretary of State provides otherwise by regulations, premises licences are of indefinite duration.

Conditions

The Secretary of State and licensing authorities may include conditions within premises licences. They may be mandatory (set out in the Gambling Act 2005 (Mandatory and Default Conditions) (England and Wales) Regulations 2007) or default (also set out in the Regulations and to be applied unless the licensing authority excludes them in which case different conditions may be imposed concerning the same issues).

A licensing authority may not impose a condition: (a) which would prevent compliance with a default condition included in an operating licence; (b) which requires premises or a part of those premises to operate as a club or any other body which requires membership; or (c) which places a limit upon stakes, fees, winnings or prizes.

Other forms of premises authorisation

There are forms of authorisation of the use of premises for gambling other than premises licences. These are:

1. occasional use notices (tracks) (see under heading 'Relating to the use of premises');
2. temporary use notices (for a specified activity) );
3. authorisation given in respect of football pools given by holder of pool betting operating licence;
4. gaming machine permits for family entertainment centres (Category D machines only) issued by a licensing authority (local authority);
5. authorisations or entitlements for alcohol licensed premises, clubs and miners' welfare institutes, and travelling fairs; and
6. prize gaming permits.

People may provide facilities for private gaming and non-commercial gaming without the need for a premises licence if certain conditions are satisfied (see under heading 'Private gaming and private betting').

REQUIREMENT TO PRODUCE A LICENCE

By GA 2005, s 108, a constable or an enforcement officer of the Gambling Commission may require the holder of an operating licence to produce it within a specified period. It is an offence for an operating licensee to fail, without reasonable excuse, to do so. In addition, by s 134, a constable or such an officer may require the individual who holds a personal licence to produce his licence. If the individual is carrying on a licensed activity or is on the licensed premises, the licence must be produced immediately. Failure by a personal licensee to comply with a requirement to produce a personal licence is an offence.

REQUIREMENT TO DISCLOSE CONVICTION

Holders of operating licences, if convicted of an offence in Great Britain, or of a relevant offence outside Great Britain, must inform the Gambling Commission as soon as reasonably practicable.

Where a holder of an operating licence is convicted of a relevant offence in Great Britain, he must inform the court that he is the holder of such a licence. The court may then consider whether to exercise its power to order forfeiture as part of the sentence imposed. The court may also order the disqualification from holding a licence for a period of not more than ten years.

'Relevant offences' are defined in GA 2005, Sch 7 and are generally those related to 'gambling offences' whether committed under the Act or previous legislation, all forms of theft and associated offences involving dishonesty, sexual and violent offences as defined by the Powers of Criminal Courts (Sentencing) Act 2000, firearms offences, drug offences and those involving forgery or counterfeiting. Offences under the law of another country are relevant offences if of a similar nature.

GAMING MACHINES

Number and type of machines permitted in different circumstances

Definition of gaming machine

A gaming machine is defined by GA 2005, s 235 as a machine which is designed or adapted for use by individuals to gamble (whether or not it can also be used for other purposes). GA 2005 specifically excludes:

1. domestic or dual-use computers (both defined below);
2. a telephone or other communication device;
3. a machine designed or adapted for betting only on future real events;
4. a machine for playing bingo or bingo prize gaming;
5. a machine used for playing real games of chance; or
6. a machine which dispenses lottery tickets or otherwise enables someone to enter a lottery provided that the results of the lottery are not determined by the machine and are not announced by the machine until at least one hour after each entry.

Where a lottery ticket is purchased from a machine, the result of that lottery must not be announced until there has been an interval of at least one hour since purchase.

Dual-use computer The Gambling Act 2005 (Gaming Machines) (Definitions) Regulations 2007 provide that a 'dual use computer' is a computer which:

1. is capable of being used for a purpose which is not related to gaming, and
either-
1. it is not knowingly adapted or presented, by or on behalf of an owner of the computer, or a person connected with such an owner, in such a way as to facilitate, or to draw attention to the possibility of, its use for gambling; or
2. where it is so adapted or presented, either it is being made available for use (other than in circumstances where it is being adapted, maintained or repaired), but its use is restricted or intended to be restricted to private use or it is being adapted, maintained or repaired, (whether or not it is also being made available for use) but its use is restricted or intended to be restricted to persons involved in this work, provided that otherwise its use would be restricted or intended to be restricted to private use and enabling or facilitating its use for gambling is not the main purpose of the adaptation etc.

Domestic computer A 'domestic computer' is one that is capable of being used for a purpose which is not related to gambling; it is located in a private dwelling; and if used, is used on a domestic occasion. [SI 2007/2082]

Categories of gaming machines

The Categories of Gaming Machines Regulations 2007 define the different categories of gaming machines:

1. category D. There are five types of category D machine:
1. A money-prize machine is a Category D machine if the maximum charge for use is no more than 10 pence; and the maximum prize value is no more that £ 5. A money prize machine is a machine in respect of which every prize which can be won as a result of using the machine is a money prize. 'Money prize' means a prize in the form of cash or a cheque (or partly in the form of cash and partly in the form of a cheque); or in the form of a voucher, token or the like redeemable on the premises for cash or a cheque (whether or not it may also be used to pay for goods or services, including gambling, available on the premises).
2. A non-money prize machine (other than a crane grab machine) is a Category D machine if the maximum charge for use is no more than 30 pence; and the maximum prize value prize is no more than £ 8. A crane grab machine is a non-money prize machine in respect of which every prize which can be won as a result of using the machine consists of an individual physical object (such as a stuffed toy), and whether or not a person using the machine wins a prize is determined by the person's success or failure in manipulating a device forming part of the machine so as to separate, and keep separate, one or more physical objects from a group of such objects.
3. A crane grab machine is a Category D machine if the maximum charge for use is no more than £ 1; and the maximum prize value is no more than £ 50.
4. A coin pusher or penny fall machine is a Category D machine if the maximum charge for use is no more than 10 pence; and the maximum prize value is no more than £ 15, of which no more than £ 8 may be a money prize.

A coin pusher or penny drop machine is a machine of which

1. the charge for use may only be paid by means of a single coin or token, inserted into the machine, and
2. whether or not a person using the machine wins a prize is determined (wholly or in part) by the position in which the coin or token comes to rest after insertion, together with the position of other coins or tokens previously inserted, or if the insertion of a single coin to pay for use enables the person using the machine to release token(s) within the machine, the position in which such tokens come to rest after being released, together with the position of other tokens previously released,

and which is neither a money prize machine or a non-money prize machine.

5. In any other case, a machine is a Category D machine if the maximum charge for use is no more than 10 pence; and the maximum prize value is no more than £ 8, of which no more than £ 5 may be a money prize.
2. category C (the maximum charge for use is no more than 50 pence; the maximum prize value is no more than £ 35 and it is not a category D machine);
3. category B machines are sub-divided into five sub-categories-
1. B4 (the maximum charge for use is no more than £ 1; the maximum prize value is no more than £ 250 and it is not a category C or D machine);
2. B3A (a machine which enables a person to participate in a lottery but not in any other form of gambling used in a members' club or a miners' welfare institute; the maximum charge for use is no more than £ 1; the maximum value of a prize is no more than £ 500 and it is not a sub-category B4 or C or D machine);
3. B3 (the maximum charge for its use is no more than £ 1; the maximum prize value is no more than £ 500 and it is not a sub-category B3A or B4 machine or a Category C or D machine);
4. B2 (the maximum charge for its use is no more than £ 100; the maximum prize value is no more than £ 500 and it is not a sub-category B3, B3A or B4 machine or a Category C or D machine);
5. B1 (the maximum charge for its use is no more than £ 2; the maximum prize value is no more than £ 4,000 and it is not a sub-category B2, B3, B3A or B4 machine or a category C or D machine;
4. a category A machine is one which is not a category B, C or D machine and there is no prescribed limit to stakes or prizes.

The Gaming Machines (Circumstances of Use) Regulations 2007 require that a gaming machine must display the category or sub-category of the machine together with details of a person from whom assistance may be obtained: unless it is a category D machine, a warning that the machine is not to be used by a child or young person; and details of prizes to be won. A gaming machine shall not be made available for use if it is designed or adapted to permit money to be paid by means of a credit card or debit card In addition, a person making a gaming machine available for use shall not participate in, arrange, permit or knowingly facilitate payment of a charge for use by means of a credit card.

In the case of Category A, B and C machines a player may make a 'committed payment' (held in credit for further play and is non-recoverable) not exceeding £ 10 in the case of a Category A, B1, B2, B3 or B3A machine or £ 5 in respect of a Category B4 or C machine). A 'money prize' may be in the form of cash or a cheque, (or partly in the form of cash and partly in the form of a cheque) or in the form of a document enabling its redemption in those forms or by way of receipt of goods or services, on the premises.

There are some permitted variations to these provisions contained in regs 7 to 11. [SI 2007/2319]

Entitlements to have gaming machines

GA 2005, s 172 sets out entitlements to gaming machines, which are framed in terms of different types of premises licences. Those entitlements, as amended by SIs 2007/2158 and SI 2009/324, are:

1. licensed adult gaming centres: up to four Category B3 or B4 machines and any number of machines of Category C or D;
2. licensed family entertainment centres: any number of machines of Category C or D;
3. casinos-
1. small casinos: two machines, which may be of Category B (except B3A), C or D, per gaming table used in the casino, up to a maximum of 80 machines;
2. large casinos: five machines, which may be of Category B (except B3A), C or D, per gaming table used in the casino, up to a maximum of 150 machines;
3. regional casinos: 25 machines, which may be of Category A, B (except B3A), C or D, per gaming table used in the casino provided that there are at least 40 tables, up to a maximum of 1250 machines. Where there are fewer than 40 tables, the entitlement is that of a large casino.

For these purposes, a gaming table is to be treated as being used in a casino at a particular time only if it is being used to play a 'casino game' (see text) or is available at that time for that purpose. A 'wholly automated gaming table' is not a 'gaming table'. A 'wholly automated gaming table' is an apparatus designed or adapted to enable the playing of a 'real game of chance (see text), whose design or adaptation is such that it is not required to be controlled or operated by a casino employee or individual concerned in arranging for others to play the game, and which is not designed or adapted for use in connection with a game whose arrangements are controlled or operated by an individual. [Gambling Act 2005 (Gaming Tables in Casinos) (Definitions) Regulations 2009, SI 2009/1970)].

4. licensed bingo premises: up to eight Category B3 or B4 gaming machines and any number of machines of Category C or D;
5. licensed betting premises: up to four gaming machines of Category B2, 3 and B4, C or D;
6. tracks: where the licence permits the offer of pool betting, up to four machines of Category B, C or D.

Premises licences for different types of premises may not vary these statutory entitlements.

The Gaming Machines (Single Apparatus) Regulations 2007 provide that where there is a single piece of apparatus which is a gaming machine, each player position at such apparatus will be treated as a gaming machine.

The Gaming Machines (Circumstances of Use) Regulations 2007, reg 4 provides that a gaming machine shall not be made available for use if it is designed or adapted to permit money to be paid by means of a credit or debit card.

Offences in relation to gaming machines

GA 2005, s 242 provides that a person commits an offence by making a gaming machine available for use by another, unless he does so in accordance with an operating licence or a family entertainment centre gaming permit, club gaming permit which gives an automatic entitlement to operate the machine (see under heading 'Exempt gaming'), club machine permit or appropriate on-licensed premises gaming machine permit or unless he makes the machine available under the automatic permission relating to on-premises alcohol licensed premises or at a travelling fair or offers no or a limited prize.

Two gaming machines of Category C or D may be made available on on-licensed premises alcohol licensed premises in compliance with any relevant code of practice as to their location and operation but the alcohol related licence holder must have notified the licensing authority of his intention to install machines. An on- licensed premises gaming machine permit will authorise the provision of further machines of those categories as specified in the permit. Travelling fairs may provide unlimited Category D machines.

LOTTERIES

GA 2005, pt 11 contains provisions relating to lotteries.

Promoting a lottery

For the purposes of GA 2005, a person promotes a lottery if he makes or participates in making arrangements for a lottery. In particular, a person promotes a lottery if he:

1. makes arrangements for the printing of lottery tickets; or
2. makes arrangements for the printing, distribution or publication of promotional material (ie a document that advertises, invites participation in, or contains information about how to participate in, a particular lottery, or lists winners in a lottery);
3. possesses promotional material for distribution or publication;
4. makes arrangements to advertise a lottery;
5. invites a person to participate;
6. offers or supplies, or possesses with intent to sell or supply, a lottery ticket;
7. does or offers to do anything whereby someone becomes a member of a class among whom lottery prizes are to be distributed; or
8. uses premises for purposes connected with the administration of the lottery.

Where there is an external lottery manager (see under heading 'Operating licences') lottery manager in relation to a lottery on behalf of a society or local authority, both he and the society or local authority promote the lottery.

It is an offence against GA 2005, s 258 for a person to promote a lottery unless: (a) he holds an appropriate operating licence and is acting in accordance with it; (b) he is acting (otherwise than as external lottery manager) on behalf of the holder of such a licence and in accordance with it; or (c) the lottery is an exempt one. As already noted, operating licences for lotteries may only be issued to local authorities, large non-commercial societies, or to an external lottery manager acting on their behalf. GA 2005, Sch 11 lists the following exempt lotteries:

1. incidental non-commercial lotteries;
2. private lotteries;
3. customer lotteries; and
4. small society lotteries (ie society lotteries which do not generate sufficient proceeds to require an operating licence and are registered with the local authority).

Exempt lotteries are dealt with further under heading 'Exempt lotteries'.

A person charged with promoting a lottery contrary to s 258 has a defence if he shows that he reasonably believed that the lottery was exempt, or that a lottery operating licence was held and being complied with; that the arrangement in question was part of the National Lottery; or that it did not fall within the definition of a lottery under the Act.

Facilitating a lottery

It is an offence against GA 2005, s 259 to facilitate a lottery. For these purposes a person facilitates a lottery if (and only if) he advertises a particular lottery, or prints tickets or promotional material for it. The offence relates to 'a particular lottery' and therefore is not concerned with those who print lottery tickets to be used in lotteries generally. It does not apply to exempt lotteries or if what is done is done in accordance with the terms and conditions of an operating licence.

The same defences apply as in the case of the offence of promoting a lottery.

Misusing the profits of a lottery

It is an offence against GA 2005, s 260 where a promoter declares on a ticket or in an advertisement that the proceeds of a lottery are to be used for a specific purpose, and he uses, or permits to be used, any part of the profits for other than the stated purpose.

There is a separate offence in the case of exempt lotteries (which, in this context means an incidental non-commercial lottery, a private society lottery and a small society lottery). Such lotteries are only exempt if they are run entirely for the purposes (ie for the benefit) of the charity or club. It is an offence against GA 2005, s 261 for a person to use, or permit the use, of any part of the profits of such a lottery for a purpose other than a permitted purpose.

Small society lottery: breach of condition

An offence against GA 2005, s 262 is committed by a non-commercial society if a lottery purporting to be an exempt lottery as a small society lottery is promoted on its behalf when it is not registered with the local authority, if the society fails to comply with a notification requirement or if it provides false or misleading information in relation to such a requirement.

Exempt lotteries

The lotteries which are exempt from the necessity to have an operating licence are defined as follows by GA 2005, Sch 11.:

Incidental non-commercial lotteries

An exempt incidental non-commercial lottery is a lottery incidental to a non-commercial event, and in respect of which specified conditions are complied with. An event is non-commercial if no money raised from the event is appropriated for the purposes of private gain. The specified conditions are:

1. no deduction must be made from the proceeds of the lottery for prizes or for other costs in excess of the prescribed sum in respect of costs permitted by regulations. The prescribed sums are £ 500 in respect of prizes, and £ 100 in respect of organisational costs;
2. the lottery must be promoted for purposes other than private gain;
3. the arrangements must not include a rollover; and
4. tickets may only be sold at the event location during the event and the result must be declared during the event.

Private lotteries

These may be:

1. a private society lottery (ie a lottery, promoted only by authorised members of a non-gambling society, where each person to whom a ticket is sold is a member or on the society's premises). A private society lottery may be promoted for any purpose of the society;
2. a work lottery (ie a lottery where the promoters work on a single set of premises and each person to whom a ticket is sold or supplied also works there); and
3. a residents' lottery which is similar to (b) but is restricted to persons who live in a single set of premises. A work lottery or residents' lottery must be organised so as to ensure that no profits are made.

Public advertisement of these lotteries is prohibited.

Customer lottery

A customer lottery is a lottery promoted by the occupier of business premises, ticket sales being restricted to customers who are on the premises. Certain conditions apply and must be satisfied in order to be exempt:

1. the lottery must be so organised that no profits are made, ie the proceeds must be fully used in the reasonable expenses of the lottery and the provision of prizes;
2. advertising must be restricted to the premises;
3. no prize exceeding £ 50 in value may be received by a winner; and
4. the arrangements must not include a rollover.

Small society lottery

A small society lottery is a lottery satisfying the following requirements. It must be promoted on behalf of a non-commercial society (ie a society for cultural or sporting purposes); the proceeds of the lottery must fall below the thresholds prescribed (£ 20,000 per lottery and £ 250,000 for all lotteries in a year), and certain conditions must be satisfied. It may be promoted for any of the society's purposes. Such a lottery must be registered with the local authority. The conditions are:

1. at least 20 % of the proceeds must go to a purpose for which the society is conducted;
2. no prize may exceed £ 25,000 per ticket;
3. a rollover may be permitted only if each lottery liable to be affected by it is a small society lottery of the same society and the roll over does not permit any person to win more than £ 25,000 per ticket.

CLUBS, PUBS AND FAIRS

Gaming and the provision of gaming machines in members' clubs, commercial clubs, miners' welfare institutes, alcohol licensed premises and travelling fairs is dealt with by GA 2005. The provisions set out below do not apply to betting or lotteries which are dealt with separately.

Members' club, commercial club and miners' welfare institute

A members' club is a club with at least 25 members, established and conducted (a) wholly or mainly for purposes other than gaming, and (b) (on a non-commercial basis) for the benefit of members. Such clubs may not be temporary. However, a club is a members' club despite (a) if it is established or conducted wholly or mainly for the purposes of bridge and/or whist, and facilities are not provided for any other kind of gaming.

A commercial club is a club with at least twenty-five members, established wholly or mainly for purposes other than gaming (unless the gaming is of a prescribed type). Such clubs may not be temporary. The Secretary of State may prescribe forms of gaming which may take place.

A miners' welfare institute is an association established for social or recreational purposes, where the association is either managed by a group at least two-thirds of whom are miners' representatives or operates on premises regulated under a charitable trust which has, at some time, received funds from one of a number of mining organisations.

Exempt gaming

BY GA 2005, s 269 certain facilities for club gaming may be provided by these clubs without the need for an operating licence or premises licence provided that certain conditions are observed:

1. the gaming must be equal chance gaming;
2. stakes must not exceed limits prescribed by regulations. The Gambling Act 2005 (Exempt Gaming in Clubs) Regulations 2007 provide that the amount that may be staked by a person on any game of poker must not exceed £ 10; the aggregate of the amounts staked on games of poker in a day must not exceed £ 250; the aggregate of amounts staked on games of poker must not exceed £ 1000 in any period of seven days;
3. prizes must not exceed the limits prescribed by regulations. The Gambling Act 2005 (Exempt Gaming in Clubs) Regulations 2007 provide the maximum value of any prize that may be won in any game of poker is limited to £ 250;
4. there must be no deduction by the club from the stakes or winnings;
5. charges for participation must not exceed an amount prescribed by regulations. The Gambling Act 2005 (Exempt Gaming in Clubs) Regulations 2007 prescribe participation fees in relation to forms of gaming in respect of which no club gaming permit is held and in respect of gaming on premises in respect of which such a permit is held [SI 2007/1944];
6. games played may only take place on one set of premises (no linking);
7. each participant must be a member of the club or institute who has applied, or was nominated for membership, or became a member, at least 48 hours before playing, or is a genuine guest of such a person (but (f) does not apply in the case of commercial clubs).

Club gaming permit

Members' clubs (but not commercial clubs) and miners' welfare institutes may apply to a local authority for a club gaming permit authorising the provision on club premises of equal chance gaming; gaming machines and prescribed games of chance. A permit will allow these types of gaming in the circumstances set out below to be provided without an operating licence or premises licence, in addition to those types exempt under GA 2005, s 269.

Equal chance gaming may take place under a club gaming permit without the prescribed limits in (b) above applying to maximum stakes or prizes provided (c)-(f) are satisfied. Such other gaming as may be prescribed may also take place. A club gaming permit authorises a total of three gaming machines which may be in category B3A, B4, C or D, but no person under 18 may be permitted to use a machine of category B3A, B4 or C. The games of chance which have been prescribed for the purposes of a club gaming permit are pontoon (but not blackjack) and chemin-de-fer provided that the participation fee does not exceed £ 3 (exclusive of VAT) per day.

Club machine permit

Club machine permits are available to a miners' welfare institute or a commercial club. The provisions as to gaming machine permits are similar to those set out above in respect of club gaming permits. The permit obviates the need for a premises licence to be held in respect of such machines. The appropriate machines are those of Categories B3A and B4.

Alcohol licensed premises

Alcohol licensed premises are premises which contain a bar at which alcohol is served for consumption on the premises under an on-premises alcohol licence but only during such time as alcohol may be served under that licence. Thus, restaurants and similar premises which do not have a bar are not included within this category of premises.

The provision of equal chance gaming on such alcohol licensed premises is permitted subject to the following conditions: no deductions are permitted from stakes or winnings; there must be no participation fee; games must be restricted to one set of premises (no linking); children and young persons must be excluded from participation in the gaming and stakes and prizes must not exceed prescribed limits. The Gambling Act 2005 (Exempt Gaming in Alcohol-Licensed Premises) Regulations 2007 limit the amount which may be staked on any game of chance (other than dominoes or cribbage) to £ 5; the aggregate of the amounts which may be staked on games of poker in any one day to £ 100; and the maximum amount or value of a prize that may be won in a game of poker to £ 100.

Travelling fairs

A 'fair' means a fair consisting wholly or principally of the provision of amusements. Travelling fairs are those which travel from place to place, such a place not having been used for more than 27 days in a calendar year for such a purpose.

A premises licence is not required if one or more Category D gaming machine is made available for use at a travelling fair and facilities for gambling amount to no more than an ancillary amusement at the fair.

Bingo in clubs, institutes and alcohol licensed premises

The authorisations set out above, applicable to clubs, miners' welfare institutes and alcohol licensed premises, do not cover 'high turnover bingo', ie bingo where the total stakes or prizes for bingo games played in any period of seven days exceed £ 2000. If such bingo is to be played a bingo operating licence will be required.

PRIVATE AND NON-COMMERCIAL GAMING AND BETTING

Private gaming and private betting

To be private gaming, the gaming must take place in a private dwelling and on a domestic occasion, or in a hostel, hall of residence or similar establishment which is not administered in the course of a trade or business, provided that more than half of the participants are residents. In addition, there must be no charge, in any form, to participate and no public access, and the gaming must be equal chance gaming.

Despite the absence of an operating licence or a premises licence, people may offer facilities for private gaming or private betting without committing an offence, provided that certain conditions are met.

Private betting is betting which is domestic or workers' betting. It is domestic if made on premises in which each party to the transaction habitually resides. Workers' betting is betting restricted to persons employed under a contract of employment by the same employer.

Non-commercial gaming

Gaming is non-commercial if it takes place at a non-commercial event (whether as an incidental, principal or sole activity). A non-commercial event is one where no part of the proceeds is to be taken for private gain. Despite the absence of an operating licence or a premises licence, people may offer facilities for non-commercial prize gaming or non-commercial equal chance gaming without committing an offence under GA 2005, s 33 or s 37, provided that the following conditions are satisfied.

Players must be told that the purpose of the gaming is to raise money for a specified purpose other than that of private gain. The arrangements must be such that the profits will be applied for a purpose other than private gain. The gaming must not be remote. The non-commercial event must not take place on premises (other than a track) where a premises licence or temporary use notice has effect or on a track when activities are being carried on in reliance on a premises licence. In the case of equal chance gaming the arrangements must comply with regulations limiting stakes, participation fees and prizes. In this respect, the Gambling Act 2005 (Non-Commercial Equal-Chance Gaming) Regulations 2007 provide that no person may be required to make more than one payment (whether by way of participation fee, stake or other charge) in order to participate in each and every game played at an event; that payment shall not exceed £ 8; and the aggregate value of prizes and awards may not exceed £ 600, although it may be £ 900 where an event is held as a final event where each person taking part is qualified to do so by reason of having taken part in games played at another event held on a previous day. In such a case, no other event may be promoted on the same premises, by the same person, on the same day.

It is an offence against GA 2005, s 301 to use the profit of such gaming other than for its specified purpose.

ENFORCEMENT

General provisions

Aspects of the administration and the enforcement of the various provisions of GA 2005 are placed by Pt 18 of the Act in the hands of enforcement officers appointed by the Gambling Commission, authorised local authority officers and constables. In the course of their enforcement duties they may use children and young persons to test that the provisions of the Act in respect of such persons are being complied with.

Suspected offences: powers of entry

GA 2005, s 306 authorises a constable or enforcement officer of the Gambling Commission to enter premises if he reasonably suspects that an offence under GA 2005 has been, is being, or is about to be committed, on the premises.

Where a justice is satisfied that there are reasonable grounds for suspecting that an offence under GA 2005 has been committed, or that evidence of the commission of such an offence may be found on those premises, and that certain conditions are satisfied, he may grant a warrant authorising entry by a constable or enforcement officer. Those conditions are that entry has been refused, or is likely to be refused unless a warrant is produced, that the purpose of entry may be frustrated or seriously prejudiced unless immediate entry can be achieved, or that there is likely to be no-one on the premises to permit entry. Where there has been a refusal, or refusal is likely, a warrant can be issued only if the justice of the peace is satisfied that notice has been given to the occupier of an intention to apply for a warrant, or that the purpose may be frustrated or seriously prejudiced by the giving of such notice. Such a warrant is valid for twenty eight days.

The powers to enter premises without a warrant do not apply in relation to a dwelling but an entry warrant authorising entry into a dwelling may be obtained if specified conditions are satisfied.

Inspection of gambling

GA 2005, s 307 provides that For the purpose of inspection, a constable, enforcement officer of the Gambling Commission or authorised person of a local authority may enter premises if he reasonably suspects that facilities for gambling (other than private or non-commercial gaming or betting) may be provided on the premises. Such entry must be for the purpose (a) establishing whether facilities for gambling other than private and non-commercial gaming or betting are being provided; (b) of ascertaining whether an appropriate licence is in force; or (c) of to determining whether facilities are being, or will be or have been provided, in accordance with the terms or conditions of the licence.

Powers of entry to authorised establishments

Premises	Who may enter	Purpose
Of holder of operating licence where offence suspected (s 308)	A constable or enforcement officer of the Gambling Commission	To enter premises upon which, although gambling may not be taking place, are used in connection with gambling activities eg head office of a casino operator.
Family entertainment centre (s 309)	A constable, enforcement officer or authorised local authority officer	To determine whether licensed activities are being carried on in accordance with terms and conditions of operating licence.
Premises licensed for alcohol (s 310)	Enforcement officer or authorised local authority officer PLUS additionally, a constable	Any purpose connected with the application for Category C or D machines PLUS additionally for purposes of determining whether gaming satisfies the conditions for exempt gaming; that conditions applying to any operating licence for bingo are being complied with; whether 'high turnover bingo' is being played; and to check the number and category of machines.
Prize gaming permit (s 311)	A constable, enforcement officer or authorised local authority officer	Any purpose connected with an application for a permit and to ascertain whether the gaming complies with the requirements of the Act and regulations.
Clubs (s 312)	Authorised local authority officer PLUS, a constable or enforcement officer	Any purpose connected with an application for a club gaming permit or a club machine permit PLUS, where premises reasonably believed to be used by a members' club, commercial club or miners' welfare institute to determine whether gaming is taking, or is about to take place, or whether any gaming is in accordance with the provisions in respect of exempt gaming, a club gaming permit or a club machine permit.
Licensed premises (s 313)	A constable, enforcement officer or an authorised local authority officer	Any purpose connected with an application for a premises licence or a review of that licence.
Lotteries: registered societies (s 314)	Enforcement officer and authorised local authority officer	Any purpose connected with a lottery promoted on behalf of the society.
Temporary use notice (s 315)	A constable, enforcement officer or an authorised local authority officer	To determine whether the activities carried on are in accordance with the notice, or to assess likely effects of activity in reliance on notice.

Persons exercising powers of entry may inspect any part of the premises or any machine or other thing on the premises, access written or electronic records and require copies. Material may be seized and retained where it is reasonably believed to contain or constitute evidence of an offence or a breach of licence conditions. There is power to make regulations laying down rules governing the procedure. Where records are 'mixed' they may only be seized under a warrant.

GA 2005, s 323 authorises a constable to use reasonable force to enter premises when exercising powers under the Act. An enforcement officer may do so if he reasonably suspects that an offence under GA 2005 has been, is being, or is about to be committed on the premises, and he or an authorised person may do so where he reasonably suspect that gambling (other than private or non-commercial gambling) is taking place.

The exercise of all such powers must be at a reasonable time and that which is reasonable will vary according to circumstances.

Production of authorisations

GA 2005, s 316 provides that a constable or enforcement officer of the Gambling Commission may require the holder of an operating licence who has given a written authorisation, or the person to whom the authorisation was given, to produce a copy of it. Failure to comply, without reasonable excuse, is an offence. The types of authorisations concerned are:

1. an authorisation relating to pool betting, where the licence holder has authorised a person to accept bets at a track, or in relation to football pools, where the holder has authorised a person to receive payments on his behalf, or has authorised a person to provide facilities for horse race pool betting;
2. an authorisation relating to a casino premises licence, where the licence holder has authorised a person to use those premises for providing betting, bingo or both.

Powers on entry

By GA 2005, s 317, a constable, enforcement officer or authorised person exercising power under or by virtue of Pt 15 to enter premises may-

1. inspect any part of the premises and any machine or other thing on the premises;
2. question any person on the premises;
3. require access to any written or electronic record which is kept on the premises;
4. require to be supplied with a copy, in such form as he directs, of an entry in a written or electronic record which is kept on the premises;
5. remove and retain anything if he reasonably believes that it constitutes or contains evidence of the commission of an offence under the Act, or the breach of a term or condition of a licence issued under this Act;
6. remove and retain anything if he reasonably believes that it is being used or has been used in the commission of an offence under this Act.

Supplementary provisions

The Gambling Act 2005 (Inspection) (Provision of Information) Regulations 2007 require inspectors (constable, enforcement officer or authorised person) exercising their powers of entry and inspection to ensure that evidence of identity is produced by anyone who is accompanying them. Inspectors exercising their powers must also inform an 'appropriate recipient' (person on the premises who appears to occupy them or to be responsible for their management) of their right to require a written record of the visit. If no such person appears to be on the premises, the inspector must leave a written notice, with his name and the date of the inspection. Inspectors must also inform persons whom they are questioning of their powers and that it is an offence to obstruct them. This obligation arises when a person refuses to answer any of his questions. On request, an inspector must provide a written record of his inspection to interested persons (the Gambling Commission; an appropriate recipient; and the holder of a relevant authorisation in relation to the premises).

GA 2005, s 326 makes it an offence without reasonable excuse to obstruct or fail to cooperate with a constable, enforcement officer or an authorised local authority officer exercising any of the powers set out above.

ADVERTISING

For the purposes of GA 2005 'advertising' embraces anything which is done to encourage one or more persons to take advantage of facilities for gambling, or is done with a view to increasing the use of gambling facilities. Persons who knowingly participate in or facilitate such an activity are also advertising for the purposes of the Act. 'Advertising' also includes entering into arrangements such as sponsorship or brand-sharing agreements under which a name is displayed in connection with an event or product and either (a) the provision of gambling facilities is the sole or main activity under that name, or (b) the way the name is displayed is designed to draw attention to the fact that gambling facilities are provided under that name.

Regulations are to be made to control the form, content, timing and location of advertising for gambling. It is an offence against GA 2005, s 328 to contravene a requirement of such regulations, and this is a continuing offence. By s 330, the advertising of unlawful gambling is also an offence, but this does not apply to lotteries. The offence will cover circumstances in which advertising takes place in advance of obtaining an operating licence.

The advertising of foreign gambling, other than lotteries, is prohibited by s 331. 'Foreign gambling' means (a) non-remote gambling in a non-EEA state, and (b) remote gambling none of the arrangements for which are subject to the gambling law of an EEA state.