Gambling Bill

House of Commons

Session 2002 - 03
Internet Publications
Other Bills before Parliament

Gambling Bill

Gambling Bill
Part 5 — Operating Licences
36

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Equipment
(1)
A condition attached to an operating licence by virtue of section 71, 73 or 74
may make provision about equipment used in connection with the licensed
activities.
(2)
In particular, a condition attached by virtue of this section may—
5
(a)
make provision about the number of pieces of equipment that may be
used to provide facilities for gambling;
(b)
make provision about the specification of equipment used to provide
facilities for gambling.
(3)
For the purposes of this section “equipment” includes—
10
(a)
a computer,
(b)
a device for the playing of a casino game, and
(c)
any other piece of equipment.
(4)
But a gaming machine is not equipment for the purposes of this section.
82
Gaming machines
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An operating licence may not include a condition (whether attached by virtue
of section 71, 73 or 74)—
(a)
about the number or categories of gaming machine that may be made
available for use in accordance with the licence,
(b)
that contradicts a provision of regulations under section 220, 224 or 225,
20
or
(c)
of a kind prohibited by regulations under any of those sections.
83
Membership
An operating licence may not be subject to a condition (whether by virtue of
section 71, 73 or 74)—
25
(a)
requiring facilities to be provided by, or used in the course of the
activities of, a club or other body with membership, or
(b)
restricting the provision or use of facilities wholly or partly by reference
to membership of a club or other body.
Rules for particular kinds of licence
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84
Remote operating licence
(1)
This section applies to a remote operating licence.
(2)
A remote licence shall, by virtue of this subsection, be subject to the condition
that remote gambling equipment used by the licensee in connection with the
licensed activities must be situated in Great Britain.
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(3)
The Commission may establish, or provide for the establishment of, standards
in respect of—
(a)
a system used for the generation of results in a virtual game, virtual
race or other virtual event or process used in the course of remote
gambling;
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(b)
any other aspect of the process of remote gambling.

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Part 5 — Operating Licences
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(4)
In particular, the Commission may—
(a)
provide for the enforcement of standards by the attachment of
conditions under section 71 or 73;
(b)
make arrangements with any person for the establishment of
standards;
5
(c)
make arrangements with any person for the administration of tests of
compliance with standards;
(d)
for the purpose of considering whether a condition under section
section 71 or 73 has been complied with, require the licensee under a
remote licence—
10
(i)
to submit to a test in accordance with arrangements made under
paragraph (c) above, and
(ii)
to produce specified evidence of the result of the test;
(e)
for the purpose of considering whether to grant an application under
this Part, require a licensee under a remote licence or an applicant for a
15
remote licence—
(i)
to submit to a test in accordance with arrangements made under
paragraph (c) above, and
(ii)
to produce specified evidence of the result of the test.
(5)
Standards established under subsection (4) may, in particular, be expressed—
20
(a)
by reference to the opinion of a specified person or class of persons;
(b)
by reference to a specified process or piece of equipment.
(6)
This section is without prejudice to the generality of sections 71, 73 and 74.
85
Casino operating licence
(1)
A casino operating licence may authorise a person to operate a casino in more
25
than one place.
(2)
A casino operating licence may be subject to a condition (whether imposed by
virtue of section 71, 73 or 74) restricting the class of casino game that may be
made available.
(3)
A casino operating licence may be subject to a condition imposed by virtue of
30
section 71 or 73 specifying rules for the playing of—
(a)
a casino game;
(b)
another game of chance.
86
Bingo operating licence
(1)
Regulations under section 74 may provide for the attachment to a bingo
35
operating licence of a condition—
(a)
limiting amounts that may be staked;
(b)
limiting the amount that may be charged by way of participation fee;
(c)
limiting the amount or value of a prize or class of prize;
(d)
requiring that at least a specified proportion of stakes be paid out by
40
way of prizes;
(e)
imposing requirements that are specific to games of bingo played on
more than one set of premises (whether facilities for the game are
provided in accordance with one bingo operating licence or more than
one).
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Gambling Bill
Part 5 — Operating Licences
38

(2)
But subject to subsection (1) a bingo operating licence may not be subject to a
condition—
(a)
limiting the amount that may be accepted or charged by way of stakes,
(b)
limiting the amount that may be charged by way of participation fee,
(c)
restricting the nature of prizes,
5
(d)
controlling the proportion of stakes paid out by way of prizes,
(e)
preventing the provision of prizes funded other than out of stakes,
(f)
requiring a game of bingo to be played entirely on one set of premises,
or
(g)
imposing requirements that are specific to games of bingo played on
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more than one set of premises (whether facilities for the game are
provided in accordance with one bingo operating licence or more than
one).
(3)
Regulations by virtue of subsection (1)(b) may, in particular, make different
provision for different kinds of fee.
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(4)
Provision made by virtue of subsection (1)(c) may define a class of prize—
(a)
by reference to a game or a number of games,
(b)
by reference to a period of time, or
(c)
in any other way.
87
General betting operating licence
20
(1)
A general betting operating licence shall, by virtue of this section, be subject to
the condition that bets may be accepted on behalf of the licensee only by—
(a)
the licensee,
(b)
a person employed by the licensee under a written contract of
employment, or
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(c)
the holder of another general betting operating licence.
(2)
A general betting operating licence may not be subject to a condition (whether
imposed by virtue of section 71, 73 or 74)—
(a)
requiring that facilities be provided at a specified place or class of place,
or
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(b)
preventing the provision of facilities at a specified place or class of
place.
(3)
A general betting operating licence shall, by virtue of this subsection, contain
an implied term permitting the use of postal services for the making of bets.
(4)
The effect of the term implied by subsection (3) may not be disapplied or
35
restricted by a condition attached under section 71, 73 or 74.
88
Pool betting operating licence
(1)
A pool betting operating licence shall, by virtue of this section, be subject to the
condition that bets may be accepted on behalf of the licensee only—
(a)
by the licensee,
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(b)
by a person employed by the licensee under a written contract of
employment,
(c)
by the holder of another pool betting operating licence, or
(d)
in accordance with subsection (2) or (3).

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(2)
A bet is accepted by a person (“the agent”) on behalf of a licensee in accordance
with this subsection if—
(a)
the agent is authorised by the licensee in writing to accept bets on
behalf of the licensee,
(b)
the agent is an adult,
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(c)
at the time of accepting the bet the agent is on a track,
(d)
the bet is accepted in reliance on an occasional use notice, and
(e)
the bet is in connection with a horse-race or a dog race.
(3)
The holder of a pool betting operating licence that authorises (whether
expressly or impliedly) the provision of facilities for football pools may in
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writing authorise an adult or young person—
(a)
to make documents or other facilities available in connection with the
licensed activities;
(b)
to receive entries on behalf of the licensee;
(c)
to receive payments on behalf of the licensee;
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(d)
to make payments of winnings on behalf of the licensee.
(4)
An authorisation under subsection (3)—
(a)
shall be treated for the purposes of section 30 as if it were a pool betting
operating licence, but
(b)
shall have no effect in relation to any activity, entry or payment that
20
relates partly to a football pool and partly to another form of gambling.
(5)
An authorisation under subsection (3) may be issued on terms and conditions
which may, in particular, include—
(a)
provision for payment by the person issuing the authorisation;
(b)
provision for commission.
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(6)
A condition of a pool betting operating licence (whether attached by virtue of
section 71, 73 or 74) may make provision regulating or restricting the activities
of persons authorised under subsection (3).
(7)
A pool betting operating licence shall, by virtue of this subsection, contain an
implied term permitting the use of postal services for the making of bets.
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(8)
The effect of the term implied by subsection (7) may not be disapplied or
restricted by a condition attached under section 71, 73 or 74.
(9)
The Secretary of State may by order—
(a)
amend or repeal subsection (2)(e);
(b)
amend subsection (3) so as to permit authorisation in relation to betting
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of a specified kind that relates to a sport but is not a football pool.
89
Horse-race pool betting operating licence
(1)
This section applies to a pool betting operating licence which provides for this
section to apply.
(2)
The holder of a licence to which this section applies may in writing authorise a
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person to provide facilities for horse-race pool betting.
(3)
An authorisation under subsection (2) shall be treated for the purposes of
section 30 as if it were a pool betting operating licence authorising the
provision of facilities for horse-race pool betting.

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(4)
An authorisation under subsection (2) may be issued on terms and conditions
which may, in particular, include—
(a)
provision for payment to or by the person issuing the authorisation;
(b)
provision for agency or commission.
(5)
A pool betting operating licence to which this section applies shall, by virtue of
5
this subsection, contain an implied term permitting the use of postal services
for the making of bets.
(6)
The effect of the term implied by subsection (5) may not be disapplied or
restricted by a condition attached under section 71, 73 or 74.
(7)
The Secretary of State may by order repeal this section.
10
90
Gaming machine technical operating licence
(1)
The Commission may establish, or provide for the establishment of, standards
in respect of the manufacture, supply, installation, adaptation, maintenance or
repair of gaming machines.
(2)
Standards under subsection (1)—
15
(a)
may operate by reference to regulations under Part 10, and
(b)
may not make provision which is inconsistent with a provision of
regulations under Part 10.
(3)
In particular, the Commission may—
(a)
provide for the enforcement of standards by the attachment of
20
conditions under section 71 or 73;
(b)
make arrangements with any person for the establishment of
standards;
(c)
make arrangements with any person for the administration of tests of
compliance with standards;
25
(d)
for the purpose of considering whether a condition under section
section 71 or 73 has been complied with, require the holder of a gaming
machine technical operating licence—
(i)
to submit to a test in accordance with arrangements made under
paragraph (c) above, and
30
(ii)
to produce specified evidence of the result of the test;
(e)
for the purpose of considering whether to grant an application under
this Part, require the holder of or an applicant for a gaming machine
technical operating licence—
(i)
to submit to a test in accordance with arrangements made under
35
paragraph (c) above, and
(ii)
to produce specified evidence of the result of the test.
(4)
Standards established under subsection (3) may, in particular, be expressed—
(a)
by reference to the opinion of a specified person or class of persons;
(b)
by reference to a specified process or class of machine.
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(5)
This section is without prejudice to the generality of sections 71, 73 and 74.
91
Lottery operating licences
(1)
A lottery operating licence may be issued only to—

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Part 5 — Operating Licences
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(a)
a non-commercial society,
(b)
a local authority, or
(c)
a person proposing to act as external lottery manager on behalf of a
non-commercial society or a local authority.
(2)
A lottery operating licence may authorise—
5
(a)
promotion generally or only specified promoting activities;
(b)
the promotion of lotteries generally or only the promotion of lotteries
of a specified kind or in specified circumstances;
(c)
action as an external lottery manager (in which case it is known as a
“lottery manager’s operating licence”).
10
(3)
In issuing a lottery operating licence to a society or authority the
Commission—
(a)
may attach a condition under section 71 or 73 requiring that the society
or authority ensure that all the arrangements for the lottery are made
by the holder of a lottery manager’s operating licence, and
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(b)
may, if they attach a condition under paragraph (a), issue the lottery
licence to the society or authority without consideration of the matters
specified in section 66(1)(b).
(4)
A lottery operating licence shall, by virtue of this subsection, permit the
delivery of lottery tickets by post.
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(5)
The effect of the term implied by subsection (4) may not be disapplied or
restricted by a condition attached under section 71, 73 or 74.
(6)
In issuing a lottery operating licence the Commission may attach a condition
under section 71 or 73 preventing, restricting or controlling the use of a
rollover.
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(7)
In this section “local authority” means—
(a)
in relation to England—
(i)
a district council,
(ii)
a county council for a county in which there are no district
councils,
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(iii)
a parish council,
(iv)
a London borough council,
(v)
the Common Council of the City of London, and
(vi)
the Council of the Isles of Scilly,
(b)
in relation to Wales—
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(i)
a county council,
(ii)
a county borough council, and
(iii)
a community council, and
(c)
in relation to Scotland, a council constituted under section 2 of the Local
Government etc. (Scotland) Act 1994 (c. 39).
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92
Mandatory conditions of lottery operating licence
(1)
In issuing a lottery operating licence to a non-commercial society or to a local
authority the Commission shall attach conditions under section 71 or 73 for the
purpose of achieving the requirements specified in this section.

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Part 5 — Operating Licences
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(2)
The first requirement is that at least 20% of the proceeds of any lottery
promoted in reliance on the licence are applied—
(a)
in the case of a licence issued to a non-commercial society, to a purpose
for which the promoting society is conducted, and
(b)
in the case of a licence issued to a local authority, for a purpose for
5
which the authority has power to incur expenditure.
(3)
The second requirement is that—
(a)
the proceeds of any lottery promoted in reliance on the licence may not
exceed £2,000,000, and
(b)
the aggregate of the proceeds of lotteries promoted wholly or partly in
10
a calendar year in reliance on the licence may not exceed £10,000,000.
(4)
The third requirement is that it must not be possible for the purchaser of a
ticket in a lottery promoted in reliance on the licence to win by virtue of that
ticket (whether in money, money’s worth, or partly the one and partly the
other) more than—
15
(a)
£25,000, or
(b)
if more, 10% of the proceeds of the lottery;

and any rollover must comply with this subsection.
(5)
The fourth requirement is that each ticket in any lottery promoted by a non-
commercial society in reliance on the licence—
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(a)
must be a document,
(b)
must identify the promoting society,
(c)
must state the name and address of a member of the society who is
designated, by persons acting on behalf of the society, as having
responsibility within the society for the promotion of the lottery, and
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(d)
must give the date of the draw (or each draw) in the lottery.
(6)
The fifth requirement is that the price payable for each ticket in any lottery
promoted in reliance on the licence—
(a)
must be the same,
(b)
must be shown on the ticket, and
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(c)
must be paid to the promoter of the lottery before any person is given
the ticket or any right in respect of membership of the class among
whom prizes are to be allocated.
(7)
The sixth requirement is that membership of the class among whom prizes in
any lottery promoted in reliance on the licence are allocated may not be
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dependent on making any payment (apart from payment of the price of a
ticket).
(8)
Where—
(a)
conditions are attached to a lottery operating licence in accordance with
this section, and
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(b)
the lottery operating licence is also subject to a condition under section
91(3)(a) requiring arrangements for the lottery to be made by the holder
of a lottery manager’s operating licence,

the conditions specified in paragraph (a) above shall, by virtue of this
subsection, attach to the lottery manager’s operating licence in so far as it is
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relied upon in pursuance of the condition specified in paragraph (b) above.