Gambling Bill

House of Commons

Session 2002 - 03
Internet Publications
Other Bills before Parliament

Gambling Bill

Gambling Bill
Part 5 — Operating Licences
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(2)
Before specifying a condition the Commission shall consult—
(a)
one or more persons who in the Commission’s opinion represent the
interests of operating licensees who may be affected by the condition,
and
(b)
such of the persons specified in section 22(5) as the Commission thinks
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appropriate (if any).
(3)
The Commission shall publish any specification as soon as is reasonably
practicable.
(4)
Where the Commission proposes to specify a condition—
(a)
at least three months before making the specification the Commission
10
shall give notice of it to the holder of each licence which—
(i)
has effect at that time, and
(ii)
is within a class affected by the specification,
(b)
if the Commission issues, after that time but before the specification is
made, an operating licence of a class affected by the specification, the
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Commission shall give the licensee notice of the proposed specification,
and
(c)
on the making of the specification an existing licence shall by virtue of
this paragraph be subject to the condition specified.
(5)
If the Commission thinks it necessary by reason of urgency to make a
20
specification without giving the notice required by subsection (4)(a)—
(a)
the Commission shall give as much notice as it thinks possible in the
circumstances to the persons mentioned in that provision,
(b)
subsection (4)(b) shall have effect after the time when notice is given
under paragraph (a) above, and
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(c)
subsection (4)(c) shall have effect.
(6)
Subsection (4)(c), in its application to the amendment or revocation of a
condition (by virtue of subsection (1)), shall be treated as—
(a)
making existing licences subject to the condition as amended, or
(b)
relieving existing licences from the condition revoked.
30
73
Individual condition imposed by Commission
Where the Commission issues an operating licence it may attach a condition to
the licence.
74
Condition imposed by Secretary of State
(1)
The Secretary of State may by regulations provide for a specified condition to
35
be attached to operating licences falling within a specified description.
(2)
Transitional provision of regulations under this section (made by virtue of
section 332(1)(c)) may, in particular, apply a condition (with or without
modification) to licences issued before the regulations are made (or come into
force).
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Gambling Bill
Part 5 — Operating Licences
32

75
Scope of powers to attach conditions
(1)
Without prejudice to the generality of the powers conferred by sections 71, 73
and 74, a condition attached under any of those sections may, in particular, do
any of the things specified in this section.
(2)
A condition may have the effect of restricting the activities that may be carried
5
on in reliance on the licence by reference to—
(a)
the nature of the activities,
(b)
the circumstances in which they are carried on, or
(c)
their extent.
(3)
A condition may make provision wholly or partly by reference to—
10
(a)
the nature of the licensed activities;
(b)
the circumstances in which the licensed activities are carried on;
(c)
the nature or circumstances of the licensee or of another person
involved or likely to be involved in the conduct of the licensed
activities.
15
(4)
In regulating the licensed activities a condition may make provision about—
(a)
the facilities that may or must be provided in connection with the
licensed activities;
(b)
the manner in which facilities are provided;
(c)
the number of persons that may or must be employed in the provision
20
of facilities;
(d)
the financial resources available for particular purposes to the person
providing facilities;
(e)
any other matter.
(5)
A condition may relate to the financial circumstances of the licensee or of
25
another person involved or likely to be involved in the conduct of the licensed
activities; in particular, a condition may make provision about the
maintenance of reserves in respect of potential liabilities.
(6)
A condition of a remote operating licence may restrict the methods of
communication that may be used in the course of the licensed activities.
30
(7)
A condition may make provision about the advertising of facilities for
gambling.
(8)
A condition may make provision about the provision of assistance to persons
who are or may be affected by problems related to gambling.
(9)
A condition may make provision about—
35
(a)
establishing the identity of users of facilities;
(b)
recording the identity of users of facilities;
(c)
restricting facilities to persons registered in respect of the facilities in
advance.
76
Requirement for personal licence
40
(1)
The Commission shall use its powers under sections 71 and 73 to ensure that
in respect of each operating licence at least one person—
(a)
occupies a specified management office in or in respect of the licensee
or in connection with the licensed activities, and

Gambling Bill
Part 5 — Operating Licences
33

(b)
holds a personal licence authorising the performance of the functions of
the office.
(2)
A condition under either of those sections may impose requirements which
relate to a management office and are in addition to any required by subsection
(1).
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(3)
A condition attached to an operating licence by virtue of section 71, 73 or 74
may, in particular, provide that if a specified management office is held in or
in respect of the licensee or in connection with a licensed activity (whether or
not in pursuance of another condition)—
(a)
it must be held by an individual who holds a personal licence
10
authorising the performance of the functions of the office, and
(b)
anything done in the performance of the functions of the office must be
done in accordance with the terms and conditions of the personal
licence.
(4)
A condition attached to an operating licence by virtue of section 71, 73 or 74
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may, in particular, provide that if a specified operational function is performed
in connection with a licensed activity it must be performed—
(a)
by an individual who holds a personal licence authorising performance
of the function, and
(b)
in accordance with the terms and conditions of the personal licence.
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(5)
In this section “management office” in relation to a licensee means—
(a)
if the licensee is a company, the office of director,
(b)
if the licensee is a partnership (including a limited liability
partnership), the office of partner,
(c)
if the licensee is an unincorporated association, any office in the
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association, and
(d)
in any case, any position which carries (whether solely or otherwise)
responsibility for—
(i)
the conduct of a person who performs an operational function
in connection with a licensed activity, or
30
(ii)
facilitating or ensuring compliance with terms or conditions of
the operating licence.
(6)
In this section “operational function” means—
(a)
any function which enables the person exercising it to influence the
outcome of gambling,
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(b)
receiving or paying money in connection with gambling, and
(c)
manufacturing, supplying, installing, maintaining or repairing a
gaming machine.
(7)
Provision by virtue of subsection (1) may be general or may relate only to
specified—
40
(a)
kinds of operating licence,
(b)
cases, or
(c)
circumstances.
(8)
The Secretary of State may by order amend the definition of “management
office” or “operational function” for the purposes of this section.
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(9)
In relation to a bingo operating licence issued to a members’ club, a commercial
club or a miners’ welfare institute—

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Part 5 — Operating Licences
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(a)
subsection (1) shall not apply, and
(b)
a condition attached by virtue of section 71, 73 or 74 may not
(i)
require that a person hold a personal licence, or
(ii)
operate by reference to whether a person holds a personal
licence.
5
77
Credit and inducements
(1)
A condition attached to an operating licence by virtue of section 71, 73 or 74
may, in particular, restrict or otherwise make provision about—
(a)
the giving of credit in connection with the licensed activities;
(b)
the making of offers designed to induce persons to participate, or to
10
increase their participation, in the licensed activities;
(c)
participation in arrangements for inducing, permitting or assisting
persons to gamble.
(2)
A non-remote casino operating licence or a non-remote bingo operating licence
shall by virtue of this subsection be subject to the condition that the licensee
15
may not—
(a)
give credit in connection with the licensed activities, or
(b)
participate in, arrange or knowingly facilitate the giving of credit in
connection with the licensed activities.
(3)
A licensee does not facilitate the giving of credit for the purposes of subsection
20
(2)(b) by reason only of permitting a person “(the credit provider”) to conduct
financial business on the premises on which licensed activities are carried on,
provided that—
(a)
the licensee has no other commercial connection with the credit
provider in relation to the licensed activities, and
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(b)
the licensee neither makes nor receives any payment or reward
(whether by way of commission, rent or otherwise) in connection with
the permission or the financial business.
(4)
In this section “credit” includes—
(a)
any form of financial accommodation, and
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(b)
in particular, the acceptance by way of payment of a fee, charge or stake
of anything other than—
(i)
cash,
(ii)
a cheque which is not post-dated and for which full value is
given, or
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(iii)
a debit card payment which is not post-dated and for which full
value is given.
(5)
In subsection (4)(b)(iii) “debit card payment” means a payment—
(a)
debited against a person’s banking account, and
(b)
made by means of a card which is not a credit-token within the
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meaning of section 14 of the Consumer Credit Act 1974 (c. 39).
78
Compliance with code of practice
(1)
An operating licence shall by virtue of this section be subject to the condition
that the licensee ensures compliance with any relevant social responsibility
provision of a code of practice issued under section 23.
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Gambling Bill
Part 5 — Operating Licences
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(2)
In subsection (1)—
(a)
the reference to a licensee includes a reference to anyone employed or
engaged by a licensee to perform an operational function within the
meaning of section 76, and
(b)
the reference to a social responsibility provision of a code is a reference
5
to a provision identified by a code as being included in pursuance of
section 23(2).
(3)
This section does not prevent compliance with a provision of a code, other than
a social responsibility provision, from being made the subject of a condition
under section 71, 73 or 74.
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79
Return of stakes to children
(1)
An operating licence shall by virtue of this section be subject to the condition
that if the licensee becomes aware that a child or young person is using or has
used facilities provided in reliance on the licence, the licensee—
(a)
must return any money paid in respect of the use of those facilities
15
(whether by way of fee, stake or otherwise) by the child or young
person as soon as is reasonably practicable, and
(b)
may not give a prize to the child or young person.
(2)
But subsection (1) does not apply to the use of a Category D gaming machine.
(3)
The condition in subsection (1)—
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(a)
shall have effect despite any contract or other agreement and despite
any rule of law, and
(b)
shall not enable a licensee to demand repayment of, and shall not
require a child or young person to return, a prize paid before the
licensee becomes aware that the participant is a child or young person.
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(4)
In this section—
(a)
a reference to a licensee includes a reference to anyone employed or
engaged by a licensee to perform an operational function within the
meaning of section 76, and
(b)
in relation to participation in a lottery or football pools a reference to a
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child or young person shall be treated as a reference only to a child.
(5)
In this section “prize” includes both a prize provided by a person organising
gaming and winnings of money staked.
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Premises
An operating licence—
35
(a)
may not include a condition (whether attached by virtue of section 71,
73 or 74) specifying premises on which the licensed activities may be
carried on, but
(b)
may include a condition about—
(i)
the number of sets of premises on which the licensed activities
40
may be carried on;
(ii)
the number of persons for whom facilities may be provided on
any premises where the licensed activities are carried on.