Gambling Bill

House of Commons

Session 2002 - 03
Internet Publications
Other Bills before Parliament

Gambling Bill

Gambling Bill
Part 5 — Operating Licences
48

104
Power to limit duration
(1)
The Commission may determine that operating licences, or a specified class of
operating licence, shall cease to have effect at the end of a specified period
(unless terminated earlier in accordance with section 106, 107, 108 or 112).
(2)
The period specified under subsection (1)—
5
(a)
in the case of an operating licence issued after the determination, must
begin with the date on which the licence is issued, and
(b)
in the case of an operating licence issued before the determination,
must begin with the date of the determination.
(3)
The Commission—
10
(a)
may determine different periods under subsection (1) for operating
licences authorising different classes of activity (but may not otherwise
determine different periods for different licences), and
(b)
may alter a determination under subsection (1) (but an alteration shall
have effect only in relation to licences issued after the alteration).
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(4)
The Commission shall publish any determination under subsection (1) as part
of a statement (or revised statement) under section 22.
105
Renewal of licence
(1)
Where an operating licence is subject to a determination under section 104, the
licensee may apply to the Commission for renewal of the licence.
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(2)
The provisions of this Part shall apply in relation to an application for renewal
as they apply in relation to an application for a licence—
(a)
subject to the provisions of this section, and
(b)
with any other necessary modifications.
(3)
An application for renewal of an operating licence may be made only during
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the period which—
(a)
begins three months before the date on which the licence would
otherwise expire by virtue of section 104, and
(b)
ends one month before the date on which the licence would otherwise
expire by virtue of that section.
30
(4)
Where an application for renewal of an operating licence is awaiting
determination on the date when it would expire by virtue of section 104, the
licence shall continue to have effect by virtue of this subsection until the
application is determined (unless it ceases to have effect by virtue of section
106, 107, 108, 111 or 112).
35
(5)
A direction or regulations under this Part which relate to an application for an
operating licence may make—
(a)
provision which applies only in the case of an application for renewal;
(b)
provision which does not apply in the case of an application for
renewal;
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(c)
different provision in relation to an application for renewal from that
made in relation to an application for an operating licence.
(6)
An application for renewal must (in addition to anything required by section
65) be accompanied by—
(a)
the licence to be renewed, or
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Gambling Bill
Part 5 — Operating Licences
49

(b)
a statement explaining why it is not reasonably practicable to submit
the licence to be renewed.
(7)
The Commission shall determine the period during which a renewed
operating licence is to have effect (subject to sections 106, 107, 108, 111 and 112);
and the Commission—
5
(a)
may determine different periods for operating licences authorising
different classes of activity (but may not otherwise determine different
periods for different licences),
(b)
may alter a determination (but an alteration shall have effect only in
relation to licences issued after the alteration), and
10
(c)
shall publish any determination under this subsection as part of a
statement (or revised statement) under section 22.
(8)
The Secretary of State may by order amend subsection (3) so as to substitute a
different time for a time specified.
106
Surrender
15
An operating licence shall cease to have effect if the licensee—
(a)
notifies the Commission of his intention to surrender the licence, and
(b)
gives the Commission either—
(i)
the licence, or
(ii)
a written statement explaining why it is not reasonably
20
practicable to produce the licence.
107
Lapse
(1)
In the case of an operating licence issued to an individual, the licence shall
lapse if—
(a)
the licensee dies,
25
(b)
the licensee becomes, in the opinion of the Commission as notified to
the licensee, incapable of carrying on the licensed activities by reason of
mental or physical incapacity,
(c)
the licensee becomes bankrupt (within the meaning of section 381 of the
Insolvency Act 1986 (c. 45)), or
30
(d)
sequestration of the licensee’s estate is awarded under section 12(1) of
the Bankruptcy (Scotland) Act 1985 (c. 66).
(2)
In any other case an operating licence shall lapse if the licensee—
(a)
ceases to exist, or
(b)
goes into liquidation (within the meaning of section 247(2) of the
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Insolvency Act 1986.
108
Forfeiture
(1)
Where the holder of an operating licence is convicted of a relevant offence by
or before a court in Great Britain the court may order forfeiture of the licence.
(2)
Forfeiture under this section shall be on such terms (which may include terms
40
as to suspension) as may be specified by—
(a)
the court which orders forfeiture,

Gambling Bill
Part 5 — Operating Licences
50

(b)
a court to which an appeal against the conviction, or against any order
made on the conviction, has been or could be made, or
(c)
the High Court, if hearing proceedings relating to the conviction.
(3)
Subject to any express provision made under subsection (2), an operating
licence shall cease to have effect on the making of a forfeiture order under
5
subsection (1).
(4)
The terms on which a forfeiture order is made under this section shall, in
particular, include a requirement that the licensee deliver to the Commission,
within such time as the order may specify—
(a)
the licence, or
10
(b)
a statement explaining why it is not reasonably practicable to produce
the licence.
(5)
As soon as is reasonably practicable after making an order for forfeiture under
this section the court shall notify the Commission.
Regulation
15
109
Review
(1)
The Commission may in relation to operating licences of a particular
description review—
(a)
the manner in which licensees carry on licensed activities, and
(b)
in particular, arrangements made by licensees to ensure compliance
20
with conditions attached under section 71, 73 or 74.
(2)
The Commission may review any matter connected with the provision of
facilities for gambling as authorised by an operating licence if the
Commission—
(a)
has reason to suspect that activities may have been carried on in
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purported reliance on the licence but not in accordance with a condition
of the licence,
(b)
believes that the licensee, or a person who exercises a function in
connection with or is interested in the licensed activities, has acquired
a conviction of a kind mentioned in section 67(1), or
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(c)
for any reason—
(i)
suspects that the licensee may be unsuitable to carry on the
licensed activities, or
(ii)
thinks that a review would be appropriate.
(3)
For the purposes of subsection (2)(c) a reason—
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(a)
may, in particular, relate to the receipt of a complaint about the
licensee’s activities;
(b)
need not relate to any suspicion or belief about the licensee’s activities.
(4)
Before commencing a review of an operating licence under subsection (2) the
Commission shall—
40
(a)
notify the licensee, and
(b)
inform him of the procedure to be followed in the conduct of the
review.

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Part 5 — Operating Licences
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(5)
In conducting a review of an operating licence under subsection (2) the
Commission—
(a)
shall give the licensee an opportunity to make representations, and
(b)
may give other persons an opportunity to make representations.
110
Regulatory powers
5
(1)
Following a review under section 109(1) or (2) the Commission may—
(a)
give the holder of an operating licence a warning;
(b)
attach an additional condition to a licence under section 73;
(c)
remove or amend a condition attached to a licence under section 73;
(d)
exercise the power under section 111 to suspend a licence;
10
(e)
exercise the power under section 112 to revoke a licence;
(f)
exercise the power under section 114 to impose a penalty.
(2)
Where the Commission determines to take action under subsection (1) in
respect of a licence it shall as soon as is reasonably practicable notify the
licensee of—
15
(a)
the action, and
(b)
the Commission’s reasons.
(3)
In determining what action to take under subsection (1) following a review the
Commission may have regard to a warning under that subsection given to the
licensee following an earlier review (whether or not of that licence).
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111
Suspension
(1)
The Commission may suspend an operating licence if following a review
under section 109(1) or (2) the Commission thinks that any of the conditions
specified in section 113(1) applies.
(2)
The Commission may suspend an operating licence if at the time of deciding to
25
conduct a review under section 109(1) or (2), or at any time during the course
of a review, the Commission suspects that any of the conditions specified in
section 113(1) may apply.
(3)
The Commission may suspend an operating licence if it thinks that any of the
conditions specified in section 113(2) applies.
30
(4)
Where the Commission suspends an operating licence it—
(a)
shall specify the time when the suspension takes effect,
(b)
shall specify either—
(i)
a period for which the suspension shall last (which is without
prejudice to the re-exercise of the power under subsection (1) on
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or after the expiry of that period), or
(ii)
that the suspension shall last until some specified event occurs
(which may be the giving of a notice by the Commission), and
(c)
may make saving or transitional provision (which may, in particular,
provide for a licence to continue to have effect in relation to a gaming
40
machine supplied, or another thing done, before the time when the
suspension takes effect for other purposes).
(5)
An operating licence shall have no effect in respect of anything done while it is
suspended under this section.