Horserace Betting and Olympic Lottery Bill

House of Commons

Session 2003 - 04
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Other Bills before Parliament

Horserace Betting and Olympic Lottery Bill

Horserace Betting and Olympic Lottery Bill
Part 1 — Sale of the Tote
1

A
Bill
To
Make provision for the sale of the Tote; to make provision for the abolition of
the horserace betting levy system; to make provision for the establishment of
National Lottery games designed to raise money in connection with the
hosting by London of the Olympic Games in 2012; and for connected
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—
Part 1
Sale of the Tote
Dissolution, and transfer of assets
1
Dissolution of the Tote
(1)
On the appointed day the Horserace Totalisator Board shall by virtue of this
5
section cease to exist.
(2)
In this Part “the appointed day” means a day appointed for the purposes of this
section by the Secretary of State by order made by statutory instrument.
2
Successor company: transfer
(1)
All property, rights and liabilities to which the Horserace Totalisator Board
10
was entitled or subject immediately before the appointed day shall on that day
vest in the successor company by virtue of this section.
(2)
In this Part “the successor company” means a company which—
(a)
is nominated for the purposes of this section by the Secretary of State in
writing before the appointed day, and
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(b)
on the appointed day is—

Bill 8 53/3

Horserace Betting and Olympic Lottery Bill
Part 1 — Sale of the Tote
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(i)
a company formed and registered under the Companies Act
1985 (c. 6) as a company limited by shares, and
(ii)
wholly owned by the Crown.
3
Sections 1 and 2: supplemental
(1)
Anything done by or in relation to the Horserace Totalisator Board which has
5
effect immediately before the appointed day shall continue to have effect as if
done by or in relation to the successor company.
(2)
Anything (including any legal proceedings) which immediately before the
appointed day is in the process of being done by or in relation to the Board may
be continued by or in relation to the successor company.
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(3)
So far as necessary or appropriate in consequence of section 2, on and after the
appointed day—
(a)
a reference to the Board in an agreement (whether written or not),
instrument or other document shall be treated as a reference to the
successor company, and
15
(b)
a reference in an agreement (whether written or not), instrument or
other document to a member or officer of the Board shall be treated as
a reference either—
(i)
to a person appointed for the purpose in writing by the
successor company, or
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(ii)
where no person is appointed under sub-paragraph (i), to the
person who most nearly corresponds in relation to the successor
company to that member or officer of the Board.
(4)
The successor company shall provide information on request about an
appointment under subsection (3)(b)(i).
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(5)
Section 2(1) shall operate in relation to property, rights or liabilities—
(a)
whether or not they would otherwise be capable of being transferred by
the Board,
(b)
without any instrument or other formality being required, and
(c)
irrespective of any requirement for consent that would otherwise
30
apply.
(6)
In so far as section 2 transfers to the successor company liabilities under
contracts of employment—
(a)
nothing in that section or this section shall affect the operation of the
Transfer of Undertakings (Protection of Employment) Regulations 1981
35
(S.I. 1981/1794), and
(b)
the Secretary of State shall not appoint the appointed day unless
satisfied that sufficient notice has been given to enable compliance with
any applicable requirement of those regulations.
(7)
An order under section 1 may include consequential, incidental or transitional
40
provision.
(8)
The Secretary of State shall consult the Board before nominating the successor
company.
(9)
The Secretary of State shall consult the Board and the successor company
before appointing the appointed day.
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Horserace Betting and Olympic Lottery Bill
Part 1 — Sale of the Tote
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(10)
A nomination under section 2(2)(a) may be revoked (and replaced) before the
appointed day.
4
Tax
(1)
For the purposes of any enactment about income tax, corporation tax or capital
gains tax—
5
(a)
the successor company and the Horserace Totalisator Board shall be
treated as the same person, and
(b)
in particular, the transfer effected by section 2 shall be disregarded.
(2)
The transfer effected by section 2—
(a)
shall be disregarded for the purpose of section 12 of the Finance Act
10
1895 (c. 16) (duty on property vested by Act, &c.), and
(b)
shall not give rise to liability under an enactment about stamp duty in
respect of anything done (by any person) before the transfer.
Operation of successor company
5
Pre-sale issue of shares, &c. to government
15
(1)
The successor company shall comply with any request of the Secretary of State
to issue securities to—
(a)
the Secretary of State, or
(b)
a person nominated by the Secretary of State.
(2)
A request under subsection (1) may include provision about—
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(a)
the nature and nominal value of securities to be issued;
(b)
timing;
(c)
terms of issue.
(3)
A request under subsection (1) requiring the issue of shares shall specify the
nominal value of the shares to be issued; and the shares—
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(a)
shall be issued as fully paid,
(b)
shall be treated for the purposes of the Companies Act 1985 (c. 6) as
having been paid up by virtue of payment of their nominal value in
cash, and
(c)
shall be treated for the purposes of the Corporation Tax Acts as if they
30
had been issued wholly in consideration of a subscription of an amount
equal to their nominal value.
(4)
A debenture issued in accordance with a request under subsection (1) shall be
treated for the purposes of the Corporation Tax Acts as if it had been issued
wholly in consideration of a loan of an amount equal to the principal sum
35
payable under the debenture.
(5)
A request under subsection (1)—
(a)
may be made before, on or after the appointed day, but
(b)
may not be made after the successor company has ceased to be wholly
owned by the Crown.
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(6)
The Secretary of State shall not make a request under subsection (1) without the
consent of the Treasury.

Horserace Betting and Olympic Lottery Bill
Part 1 — Sale of the Tote
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(7)
Where a security is issued in accordance with a request under subsection (1) to
the Secretary of State or his nominee, neither the Secretary of State nor his
nominee may dispose of the security without the consent of the Treasury.
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Accounts
(1)
This section applies for the purposes of statutory accounts prepared by the
5
successor company.
(2)
The transfer effected by section 2(1) shall be treated as having—
(a)
occurred immediately after the end of the last complete accounting
year of the Horserace Totalisator Board, and
(b)
transferred all property, rights and liabilities to which the Board was
10
entitled or subject immediately before the end of that year.
(3)
For the purpose of subsection (2)(b) in its application to accounts of the
successor company the value of an asset, or the amount of a liability, on
transfer shall be taken as the value or amount assigned for the purposes of the
corresponding accounts of the Board for its last complete accounting year.
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(4)
The amount to be included in the accounts in respect of an asset or liability
shall be determined as if anything done by the Board had been done by the
successor company.
(5)
An amount included in the accounts for the Board’s last complete accounting
year as accumulated realised profits retained by the Board shall be treated as if
20
realised and retained by the successor company.
(6)
Before the preparation of the successor company’s first set of statutory
accounts for a complete accounting year, sections 270 to 276 of the Companies
Act 1985 (c. 6) (distribution: justification by reference to accounts) shall apply
as if the successor company had prepared accounts for the relevant period in
25
accordance with the preceding provisions of this section.
(7)
In this section “statutory accounts” means accounts prepared for the purpose
of a provision of the Companies Act 1985.
7
Shadow directors
While the successor company is wholly owned by the Crown, neither the
30
Secretary of State nor the Treasury shall be treated as a shadow director of the
successor company for the purpose of any provision of the Companies Act
1985.
Post-transfer control of horserace pool betting
8
Exclusive licence
35
(1)
The Gaming Board shall, if the Secretary of State so requires, issue to the
successor company a licence (referred to in this Part as “the exclusive licence”)
granting the successor company the right—
(a)
to carry on pool betting business (in any form) in connection with horse
races on approved horse racecourses,
40
(b)
by way of business to receive or negotiate bets in connection with horse
races on approved horse racecourses on terms that all or part of the

Horserace Betting and Olympic Lottery Bill
Part 1 — Sale of the Tote
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winnings shall be calculated or regulated directly or indirectly by
reference to the amounts or rates of payments or distributions in
respect of winning bets made by way of pool betting, and
(c)
to provide facilities in relation to a matter mentioned in paragraph (a)
or (b).
5
(2)
In requiring the issue of the exclusive licence the Secretary of State may
specify—
(a)
the duration of the licence;
(b)
other terms or conditions of the licence.
(3)
The Secretary of State—
10
(a)
may require the issue of the exclusive licence before, on or after the
appointed day,
(b)
may require the issue of the exclusive licence after the successor
company has ceased to be wholly owned by the Crown, and
(c)
may not require the issue of the exclusive licence more than once.
15
(4)
While the exclusive licence has effect—
(a)
the successor company may authorise one or more other persons to do
anything that the successor company is authorised to do by the
exclusive licence, and
(b)
a person other than the successor company may not do anything that
20
the successor company is authorised to do by the exclusive licence,
except in accordance with an authorisation under paragraph (a).
(5)
An authorisation under subsection (4)(a) may be given on terms and
conditions; which may, in particular, include provision—
(a)
for payment to or by the successor company;
25
(b)
for agency or commission;
(c)
about facilities to be provided by the successor company under
subsection (1)(c).
(6)
The Gaming Board—
(a)
may make an order revoking the exclusive licence if they think that a
30
term or condition of the licence has been breached, and
(b)
shall make an order revoking the exclusive licence if the Secretary of
State so directs.
(7)
A direction of the Secretary of State under subsection (6)(b) shall specify the
reasons for the direction.
35
(8)
An order revoking the exclusive licence—
(a)
must specify the reasons for the revocation (or, in the case of revocation
pursuant to a direction under subsection (6)(b), the reasons for the
direction specified under subsection (7)), and
(b)
shall take effect at such time as the order may specify.
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(9)
The Secretary of State may require revocation under subsection (6)(b) only—
(a)
while the successor company is wholly owned by the Crown, or
(b)
subject to any undertaking given by the Secretary of State, during the
period of 14 days starting with the day on which the successor
company ceases to be wholly owned by the Crown.
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(10)
The exclusive licence may not be—

Horserace Betting and Olympic Lottery Bill
Part 1 — Sale of the Tote
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(a)
renewed, or
(b)
issued or revoked otherwise than in accordance with subsection (1) or
(6).
9
Section 8: supplemental
(1)
In considering whether to require the Gaming Board to issue or revoke the
5
exclusive licence the Secretary of State shall consider whether the issue or
revocation—
(a)
would be in the best interests of members of the public who are in the
habit of placing bets on horse races;
(b)
would be in the best interests of the sport of horse racing;
10
(c)
would promote the objectives of—
(i)
preventing betting from being a source of crime or disorder,
being associated with crime or disorder or being used to
support crime,
(ii)
ensuring that betting is conducted in a fair and open way, and
15
(iii)
protecting children and other vulnerable persons from being
harmed or exploited by betting.
(2)
While the exclusive licence has effect—
(a)
sections 4(1) and 4A(1) of the Betting, Gaming and Lotteries Act 1963
(c. 2) (restriction on pool betting) (as substituted by section 10 of this
20
Act) shall not apply in relation to anything done—
(i)
by the successor company in pursuance of the exclusive licence,
or
(ii)
in accordance with an authorisation under section 8(4)(a) above,
and
25
(b)
nothing in section 4 or 4A of that Act shall prejudice the generality of
section 8(4)(b) above.
(3)
While the exclusive licence has effect—
(a)
the successor company or a person authorised under section 8(4)(a)
above may apply under section 9(2) of that Act for the grant or renewal
30
of a betting office licence authorising the use of premises for carrying
on activity in accordance with the exclusive licence,
(b)
a betting office licence under section 9(2) of that Act shall not authorise
the use of premises for doing anything prohibited by section 8(4)(b),
and
35
(c)
section 9(1) of that Act disapplies section 1(1) of that Act only in relation
to activity authorised by a betting office licence.
(4)
While the exclusive licence has effect—
(a)
the successor company shall not be treated as a bookmaker for the
purposes of that Act by virtue of anything done in accordance with the
40
exclusive licence, and
(b)
a person authorised under section 8(4)(a) above shall not be treated as
a bookmaker for the purposes of that Act by virtue of anything done in
accordance with the authorisation.
(5)
A person who acts in contravention of section 8(4)(b) above shall be treated as
45
having committed an offence under—
(a)
section 4(1) of that Act, in the case of anything done on a track, or

Horserace Betting and Olympic Lottery Bill
Part 1 — Sale of the Tote
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(b)
section 4A(1) of that Act, in the case of anything done otherwise than
on a track,

whether or not he otherwise would have committed the offence.
(6)
If a person commits or threatens a breach of section 8(4)(b), the successor
company may (whether or not criminal proceedings are instituted against him
5
by virtue of subsection (5) above) proceed against him in the High Court or a
county court for damages or such other relief as the court thinks appropriate.
(7)
Subsection (6) is subject to—
(a)
Civil Procedure Rules, and
(b)
section 1 of the Courts and Legal Services Act 1990 (c. 41) (allocation of
10
business between High Court and county courts).
10
Control when no exclusive licence
(1)
For section 4 of the Betting, Gaming and Lotteries Act 1963 (c. 2) (restriction on
pool betting) substitute—
“4
Restriction on pool betting on track
15
(1)
A person commits an offence if he carries on pool betting business on a
track unless subsection (2), (3) or (5) applies.
(2)
This subsection applies to pool betting business which is in connection
with horse racing and which is carried on—
(a)
by the holder of a bookmaker’s permit,
20
(b)
on an approved horse racecourse,
(c)
on a day on which one or more horse races take place on the
racecourse, and
(d)
in accordance with Part 2 of Schedule 1A.
(3)
This subsection applies to pool betting business in connection with
25
horse racing carried on—
(a)
on an approved horse racecourse, and
(b)
in accordance with a notice (to be known as a “point-to-point
exemption notice”) issued by the Gaming Board under this
subsection.
30
(4)
A point-to-point exemption notice—
(a)
may be issued by the Gaming Board in response to an
application in writing,
(b)
must relate to horse racing to be carried on along a single course
specified in the notice,
35
(c)
must specify a maximum number of days, not exceeding 4, on
which horse racing may be carried on in reliance on the notice,
(d)
may specify other conditions which relate to—
(i)
the operation of a totalisator,
(ii)
the publication of terms on which pool bets may be
40
made (and a condition may, in particular, relate to
minimum stakes, or deductions), or
(iii)
compliance with terms published under sub-paragraph
(ii),