(c) by the person making the bet,

are to be treated as amounts due in respect of the bet except so far as the
contrary is proved by the bookmaker whose profits on the bet are being
calculated.

(6) 5In calculating any amount falling due in respect of the bet, no deduction is to
be made in respect of—

(a) any other benefit secured by the person who makes the bet as a result
of paying the money,

(b) a person’s expenses, whether in paying duty or otherwise, or

(c) 10any other matter.

133 Chapter 1: winnings

(1) Only winnings in the form of money are to be taken into account when
determining for the purposes of this Chapter what are winnings on a bet.

(2) For those purposes, winnings on a bet include—

(a) 15the return of a stake on the bet, and

(b) any winnings on the bet held in an account for a person (“P”) if P is
notified that the amount is being held in the account and may be
withdrawn by P on demand.

(3) The Commissioners may by regulations make provision as to when, for the
20purposes of any calculation under this Chapter—

(a) winnings are to be treated as paid or provided, and

(b) expenditure on winnings is to be treated as incurred.

Exchanges

134 General betting duty charge on betting exchanges

(1) 25This section applies where—

(a) one person makes a bet with another person using facilities provided
by a third person in the course of a business, and

(b) that business is one that does not involve the provision of premises for
use by persons making or taking bets.

(2) 30General betting duty is charged on the amounts (“commission charges”) that
any party to the bet who is a UK person is charged, whether by deduction from
winnings or otherwise, for using those facilities.

(3) No deductions are allowed from commission charges.

(4) The amount of duty charged under this section in respect of bets determined
35in an accounting period is 15% of the commission charges relating to those bets.

(5) Where a person arranges for facilities relating to a bet to be provided by
another person, the facilities are to be treated for the purposes of this section
and section 135(4) as provided by the person who makes the arrangements
instead of by the person who provides the facilities.

(6) 40For the purposes of this section it does not matter—

(a) whether the bet is made in the United Kingdom or elsewhere;

(b) whether the facilities are in the United Kingdom or elsewhere.

Payment

135 Liability to pay

(1) All general betting duty chargeable in respect of—

(a) bets made in an accounting period, or

(b) 5in the case of duty chargeable under section 134, bets determined in an
accounting period,

becomes due at the end of that period.

(2) In the case of bets made with a bookmaker in an accounting period the general
betting duty is to be paid—

(a) 10when it becomes due, and

(b) by the bookmaker.

(3) But general betting duty which is due to be paid by a bookmaker in respect of
bets may be recovered from the following persons as if they and the
bookmaker were jointly and severally liable to pay the duty—

(a) 15the holder of any licence which authorises—

(i) the provision of facilities for betting by the business in the
course of which the bets were made, or

(ii) betting at the place where the bets were made;

(b) a person responsible for the management of the business mentioned in
20paragraph (a)(i);

(c) where the bookmaker is a company, a director.

(4) In the case of bets made in an accounting period by means of facilities provided
by a person as described in section 134 the general betting duty is to be paid—

(a) when it becomes due, and

(b) 25by the person who provides the facilities.

CHAPTER 2 Pool betting duty

136 Chapter 2 pool bets

(1) A bet is a Chapter 2 pool bet for the purposes of this Part if—

(a) it is not made wholly in relation to horse racing or dog racing,

(b) 30it is not made for community benefit,

(c) it does not constitute the taking of a ticket or chance in a lottery,

(d) it is made by way of pool betting, and

(e) one or more of conditions A to C is met in relation to it.

(2) Condition A is that the person who makes the bet (whether as principal or
35agent) does so while present at a place in the United Kingdom where betting
facilities are provided in the course of a business and the bet is made using
those facilities.

(3) Condition B is that—

(a) the person who makes the bet as principal is a UK person, and

(b) 40the bet is not an excluded bet.

(4) Condition C is that—

(a) the person who makes the bet as principal is a body corporate not
legally constituted in the United Kingdom,

(b) the bookmaker with whom the bet is made knows or has reasonable
5cause to believe that at least one potential beneficiary of any winnings
from the bet is a UK person, and

(c) the bet is not an excluded bet.

(5) A Chapter 2 pool bet is a “pooled stake Chapter 2 pool bet” for the purposes of
this Part if all or any part of the stake money on the bet is assigned by or on
10behalf of the bookmaker with whom the bet is made to a fund (referred to in
this Part as a “Chapter 2 stake fund”) from which winnings are to be paid in
respect of pool betting.

(6) A Chapter 2 pool bet is an “ordinary Chapter 2 pool bet” for the purposes of
this Part if it is not a pooled stake Chapter 2 pool bet.

137 15Pool betting duty charge on Chapter 2 pool bets

(1) A duty of excise, to be known as pool betting duty, is charged on a Chapter 2
pool bet made with a bookmaker.

(2) It is charged at the rate of 15% of the bookmaker’s profits on Chapter 2 pool
bets for an accounting period.

(3) 20The bookmaker’s profits on Chapter 2 pool bets for an accounting period are
the aggregate of—

(a) the amount of the bookmaker’s profits for the period in respect of
pooled stake Chapter 2 pool bets (calculated in accordance with section
138),

(b) 25the amount of the bookmaker’s profits for the period in respect of
ordinary Chapter 2 pool bets (calculated in accordance with section
139), and

(c) the amount of the bookmaker’s profits for the period in respect of
retained winnings on Chapter 2 pool bets (calculated in accordance
30with section 140).

(4) Where the calculation for an accounting period under subsection (3) produces
a negative amount—

(a) the bookmaker’s profits on Chapter 2 pool bets for the accounting
period are treated as nil, and

(b) 35the amount produced by the calculation may be carried forward in
reduction of the bookmaker’s profits on Chapter 2 pool bets for one or
more later accounting periods.

138 Profits on pooled stake Chapter 2 pool bets

(1) Take the following steps to calculate the amount of a bookmaker’s profits for
40an accounting period in respect of pooled stake Chapter 2 pool bets.

Step 1

Take the aggregate of the relevant stake money falling due to the bookmaker
in the accounting period and deduct the aggregate of any of that stake money
that is assigned by or on behalf of the bookmaker to Chapter 2 stake funds
45during the period.

Step 2

If in the accounting period any amount contained in a Chapter 2 stake fund to
which relevant stake money has been assigned by or on behalf of the
bookmaker is used otherwise than to provide winnings to persons who made
5bets by way of pool betting, multiply each amount so used in the accounting
period by the relevant proportion that applies in relation to it.

Step 3

Add the aggregate of the amounts calculated under Step 2 to the amount
calculated under Step 1.

10Step 4

If in the accounting period any top-up payment is assigned to a Chapter 2 stake
fund by the bookmaker, multiply the amount of each top-up payment so
assigned in the accounting period by the appropriate proportion that applies
in relation to it.

15Step 5

Subtract the aggregate of the amounts calculated under Step 4 from the amount
calculated under Step 3.

Subtract the aggregate of the amounts calculated under Step 4 from the amount
calculated under Step 3.

(2) 20For the purposes of Step 2 the relevant proportion, in relation to any amount
which is used otherwise than to provide winnings, is—

(a) if the amount relates to bets on a specific event, the proportion of that
amount that consists of relevant stake money that fell due to the
bookmaker in respect of the bets,

(b) 25if the amount does not relate to bets on a specific event but relates to
amounts assigned to the fund during a specific period, the proportion
of that amount that consists of relevant stake money assigned to the
fund by or on behalf of the bookmaker during that period, and

(c) in any other case, the proportion of the total amount contained in the
30fund immediately before the amount is so used which consists of
relevant stake money assigned to the fund by or on behalf of the
bookmaker.

(3) For the purposes of Step 4—

(a) a top-up payment is assigned to a Chapter 2 stake fund if the
35bookmaker assigns an amount (other than stake money on a bet) to the
fund to satisfy a guarantee given by the bookmaker that a specified
minimum amount of winnings will be available in respect of bets made
with the bookmaker, and

(b) the appropriate proportion, in relation to such a payment, is the
40proportion determined in accordance with a notice published by the
Commissioners.

(4) A notice under subsection (3)(b) may provide for top-up payments to be
ignored for the purposes of Step 4 in a specified case or class of cases.

(5) In this section “relevant stake money” means stake money in respect of a
45pooled stake Chapter 2 pool bet.

139 Profits on ordinary Chapter 2 pool bets

To calculate the amount of a bookmaker’s profits for an accounting period in
respect of ordinary Chapter 2 pool bets—

(a) take the aggregate of the stake money falling due to the bookmaker in
50the accounting period in respect of such bets, and

(b) subtract the aggregate of the expenditure by or on behalf of the
bookmaker for the period on winnings in respect of such bets.

140 Profits on retained winnings on Chapter 2 pool bets

(1) The amount of a bookmaker’s profits for an accounting period in respect of
5retained winnings on Chapter 2 pool bets is the aggregate of the amounts
which cease to be qualifying amounts during the accounting period.

(2) An amount is a qualifying amount for the purposes of this section if, as a result
of a person (“P”) being notified as mentioned in section 142(2)(b), it has been
taken into account in calculating the bookmaker’s profits for any accounting
10period under section 138 or 139.

(3) An amount ceases to be a qualifying amount for the purposes of this section if,
otherwise than by virtue of being withdrawn by P as mentioned in section
142(2)(b), P ceases to be entitled to withdraw it.

(4) The Commissioners may by notice published by them direct that subsection (3)
15is not to apply in a specified case or class of cases.

141 Chapter 2: stake money

(1) For the purposes of this Chapter the stake money on a bet is the aggregate of
the amounts which fall due in respect of the bet.

(2) If the stake money falls due to a person other than the bookmaker with whom
20the bet is made, it is to be treated as falling due to the bookmaker.

(3) Any payment that entitles a person to make the bet is, if the person makes the
bet, to be treated as an amount falling due in respect of the bet.

(4) All payments made—

(a) for or on account of or in connection with the bet,

(b) 25in addition to amounts falling due in respect of the bet, and

(c) by the person making the bet,

are to be treated as amounts due in respect of the bet except so far as the
contrary is proved by the bookmaker whose profits on the bet are being
calculated.

(5) 30Subsections (6) and (7) apply for the purposes of subsection (1) but have effect
subject to any regulations under subsection (8).

(6) Where—

(a) a person makes a bet, and

(b) the bet relates to a single event, or to two or more events taking place
35on the same day,

any sum due to the bookmaker in respect of the bet is treated as falling due on
the day on which the event or events take place.

(7) Where—

(a) a person makes a bet, and

(b) 40subsection (6) does not apply,

any sum due to the bookmaker in respect of the bet is treated as falling due
when the bet is made.

(8) The Commissioners may by regulations make provision as to when any sum
due to the bookmaker in respect of a bet is to be treated as falling due.

(9) Provision made by regulations under subsection (8) may not provide for a sum
due to the bookmaker in respect of a bet to be treated as falling due—

(a) 5earlier than when the bet is made, or

(b) later than when the bet is determined.

142 Chapter 2: winnings

(1) Only winnings in the form of money are to be taken into account when
determining for the purposes of this Chapter what are winnings on a bet.

(2) 10For those purposes, winnings on a bet include—

(a) the return of a stake on the bet, and

(b) any winnings on the bet held in an account for a person (“P”) if P is
notified that the amount is being held in the account and may be
withdrawn by P on demand.

(3) 15Winnings on a bet for which no stake money fell due are to be ignored for the
purposes of any calculation under this Chapter.

(4) The Commissioners may by regulations make provision as to when, for the
purposes of any calculation under this Chapter—

(a) winnings are to be treated as paid or provided, and

(b) 20expenditure on winnings is to be treated as incurred.

143 Payments treated as bets

(1) Where payments are made for the chance of winning any money or money’s
worth on terms under which the persons making the payments have a power
of selection that may (directly or indirectly) determine the winner, those
25payments are (subject to section 176) to be treated as bets for the purposes of
this Chapter even if the power is not exercised.

(2) Where any payment entitles a person to take part in a transaction that is, on the
person’s part only, not a bet made by way of pool betting by reason of the
person not in fact making any stake as if the transaction were such a bet, the
30transaction is to be treated as such a bet for the purposes of this Chapter (and
section 141(4) applies to any such payment).

144 Payment and recovery

(1) Pool betting duty charged on a bookmaker’s profits on Chapter 2 pool bets for
an accounting period—

(a) 35becomes due at the end of the period,

(b) is to be paid by the bookmaker, and

(c) is to be paid when it becomes due.

(2) Pool betting duty that is due to be paid may be recovered from the following
persons as if they were jointly and severally liable to pay the duty—

(a) 40the bookmaker;

(b) a person responsible for the management of any business in the course
of which any bets have been made that are Chapter 2 pool bets for the

purposes of the calculation of the amount of the bookmaker’s profits on
Chapter 2 pool bets for any accounting period;

(c) a person responsible for the management of any totalisator used for the
purposes of any such business;

(d) 5where a person within any of paragraphs (a) to (c) is a company, a
director.

145 Notification of reliance on community benefit exemption

(1) Where a bookmaker relies for the purposes of pool betting duty on the fact that
a bet is not a Chapter 2 pool bet by virtue of being made for community benefit,
10the bookmaker must inform the Commissioners of that fact.

(2) The Commissioners may by notice published by them—

(a) specify the manner in which, and the time at which, the Commissioners
are to be informed as mentioned in subsection (1), and

(b) direct that subsection (1) is not to apply in a specified case or class of
15cases.

146 Bets made for community benefit

(1) For the purposes of this Part (but subject to any direction under subsection (3)),
a bet is made “for community benefit” if—

(a) the promoter of the betting concerned is a community society or is
20bound to pay all benefits accruing from the betting to such a society,
and

(b) the person making the bet knows, when making it, that the purpose of
the betting is to benefit such a society.

(2) In the case of a bet made by means of a totalisator, the reference in subsection
25(1) to the promoter of the betting concerned is a reference to the operator.

(3) The Commissioners may direct that any bet specified by the direction, or of a
description so specified, is not a bet made for community benefit.

(4) The power conferred by subsection (3) may not be exercised unless the
Commissioners consider that an unreasonably large part of the amounts paid
30in respect of the bets concerned will, or may, be applied otherwise than—

(a) in the payment of winnings, or

(b) for the benefit of a community society.

(5) In this section “community society” means—

(a) a society established and conducted for charitable purposes only, or

(b) 35a society established and conducted wholly or mainly for the support
of athletic sports or athletic games and not established or conducted for
purposes of private or commercial gain.

(6) In this section “society” includes any club, institution, organisation or
association of persons, by whatever name called.

CHAPTER 3 Remote gaming duty

147 Remote gaming

(1) For the purposes of this Part “remote gaming” is gaming in which persons
participate by the use of—

(a) 5the internet,

(b) telephone,

(c) television,

(d) radio, or

(e) any other kind of electronic or other technology for facilitating
10communication.

(2) Remote gaming is “pooled prize gaming” for the purposes of this Part if all or
any part of the gaming payment is assigned by or on behalf of the gaming
provider to a fund (referred to in this Part as a “gaming prize fund”) from
which prizes are to be provided to participants in the gaming.

(3) 15Remote gaming is “ordinary gaming” for the purposes of this Part if it is not
pooled prize gaming.

(4) The Treasury may by regulations—

(a) amend the definition of “remote gaming” in subsection (1), and

(b) make such consequential amendments of section 17(2A) of BGDA 1981
20(cases in which bingo duty is not charged on bingo played by means of
remote communication) as appear to the Treasury to be necessary.

(5) Nothing in subsection (4)(b) affects the generality of section 187(1).

148 Remote gaming duty

(1) A duty of excise, to be known as remote gaming duty, is charged on a
25chargeable person’s participation in remote gaming under arrangements
(whether or not enforceable) between the chargeable person and another
person (referred to in this Part as a “gaming provider”).

(2) In this Part “chargeable person” means—

(a) any UK person, and

(b) 30any body corporate not legally constituted in the United Kingdom if the
person with whom the arrangements mentioned in subsection (1) are
made knows, or has reasonable cause to believe, that at least one
potential beneficiary of any prizes from remote gaming under the
arrangements is a UK person.

(3) 35Remote gaming duty is chargeable at the rate of 15% of the gaming provider’s
profits on remote gaming for an accounting period.

(4) The gaming provider’s profits on remote gaming for an accounting period are
the aggregate of—

(a) the amount of the provider’s profits for the period in respect of pooled
40prize gaming (calculated in accordance with section 149),

(b) the amount of the provider’s profits for the period in respect of
ordinary gaming (calculated in accordance with section 150), and

(c) the amount of the provider’s profits for the period in respect of retained
prizes (calculated in accordance with section 151).

(5) Where the calculation for an accounting period under subsection (4) produces
a negative amount—

(a) 5the gaming provider’s profits on remote gaming for the accounting
period are treated as nil, and

(b) the amount produced by the calculation may be carried forward in
reduction of the gaming provider’s profits on remote gaming for one or
more later accounting periods.

149 10Profits on pooled prize gaming

(1) Take the following steps to calculate the amount of a gaming provider’s profits
for an accounting period in respect of pooled prize gaming.

Step 1

Take the aggregate of the relevant gaming payments made to the provider in
15the accounting period and deduct the aggregate of any of those payments that
are assigned by or on behalf of the provider to gaming prize funds during the
period.

Step 2

If in the accounting period any amount contained in a gaming prize fund to
20which relevant gaming payments have been assigned by or on behalf of the
provider is used otherwise than to provide prizes to participators in pooled
prize gaming, multiply each amount so used in the accounting period by the
relevant proportion that applies in relation to it.

Step 3

25Add the aggregate of the amounts calculated under Step 2 to the amount
calculated under Step 1.

Step 4

If in the accounting period any top-up payment is assigned to a gaming prize
fund by the gaming provider, multiply the amount of each top-up payment so
30assigned in the accounting period by the appropriate proportion that applies
in relation to it.

Step 5

Subtract the aggregate of the amounts calculated under Step 4 from the amount
calculated under Step 3.

35Subtract the aggregate of the amounts calculated under Step 4 from the amount
calculated under Step 3.

(2) For the purposes of Step 2 the relevant proportion, in relation to any amount
which is used otherwise than to provide prizes, is—

(a) if the amount relates to a specific game of chance, the proportion of that
40amount that consists of relevant gaming payments made to the
provider in respect of that game,

(b) if the amount does not relate to a specific game of chance but relates to
amounts assigned to the fund during a specific period, the proportion
of that amount that consists of relevant gaming payments assigned to
45the fund by or on behalf of the provider during that period, and

(c) in any other case, the proportion of the total amount contained in the
fund immediately before the amount is so used which consists of
relevant gaming payments assigned to the fund by or on behalf of the
provider.

(3) 50For the purposes of Step 4—

(a) a top-up payment is assigned to a gaming prize fund if the gaming
provider assigns an amount (other than a gaming payment) to the fund
to satisfy a guarantee given by the gaming provider that prizes of a
specified minimum amount will be available in respect of gaming
5under arrangements made with the provider, and

(b) the appropriate proportion, in relation to such a top-up payment, is the
proportion determined in accordance with a notice published by the
Commissioners.

(4) A notice under subsection (3)(b) may provide for top-up payments to be
10ignored for the purposes of Step 4 in a specified case or class of cases.

(5) In this section “relevant gaming payment” means a gaming payment in respect
of pooled prize gaming.

150 Profits on ordinary gaming

(1) To calculate the amount of a gaming provider’s profits for an accounting
15period in respect of ordinary gaming—

(a) take the aggregate of the gaming payments made to the provider in the
accounting period in respect of ordinary gaming, and

(b) subtract the amount of the provider’s expenditure for the period on
prizes in respect of such gaming.

(2) 20The amount of the gaming provider’s expenditure on prizes for an accounting
period in respect of ordinary gaming is the aggregate of the value of prizes
provided by or on behalf of the provider in that period which have been won
(at any time) by chargeable persons participating in ordinary gaming.

151 Profits on retained prizes

(1) 25The amount of a gaming provider’s profits for an accounting period in respect
of retained prizes is the aggregate of the amounts which cease to be qualifying
amounts during the accounting period.

(2) An amount is a qualifying amount for the purposes of this section if, as a result
of a person (“P”) being notified as mentioned in section 153(1), it has been taken
30into account in calculating the provider’s profits for any accounting period
under section 149 or 150.

(3) An amount ceases to be a qualifying amount for the purposes of this section if,
otherwise than by virtue of being withdrawn by P as mentioned in section
153(1), P ceases to be entitled to withdraw it.

(4) 35The Commissioners may by notice published by them direct that subsection (3)
is not to apply in a specified case or class of cases.

152 Gaming payments

(1) Where a chargeable person participates in remote gaming, the “gaming
payment” for the purposes of this Chapter is the aggregate of—

(a) 40any amount that entitles the person to participate in the gaming, and

(b) any other amount payable for or on account of or in connection with the
person’s participation in the gaming.