Gambling Bill

House of Commons

Session 2002 - 03
Internet Publications
Other Bills before Parliament

Gambling Bill

Gambling Bill
Part 1 — Interpretation of Key Concepts
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Betting
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Betting: general
(1)
In this Act “betting” means making or accepting a bet on—
(a)
the outcome of a race, competition or other event or process,
(b)
the likelihood of anything occurring or not occurring, or
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(c)
whether anything is or is not true.
(2)
A transaction that relates to the outcome of a race, competition or other event
or process may be a bet within the meaning of subsection (1) despite the facts
that—
(a)
the race, competition, event or process has already occurred or been
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completed, and
(b)
one party to the transaction knows the outcome.
(3)
A transaction that relates to the likelihood of anything occurring or not
occurring may be a bet within the meaning of subsection (1) despite the facts
that—
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(a)
the thing has already occurred or failed to occur, and
(b)
one party to the transaction knows that the thing has already occurred
or failed to occur.
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Spread bets, &c.
(1)
For the purposes of section 9(1) “bet” does not include a bet the making or
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accepting of which is a regulated activity within the meaning of section 22 of
the Financial Services and Markets Act 2000 (c. 8).
(2)
An order under section 22 of that Act which has the effect that a class of bet
becomes or ceases to be a regulated activity may, in particular, include
transitional provision relating to the application of this Act to that class of bet.
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(3)
This section is subject to section 35(3).
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Betting: prize competitions
(1)
For the purposes of section 9(1) a person makes a bet (despite the fact that he
does not deposit a stake in the normal way of betting) if—
(a)
he participates in an arrangement in the course of which he guesses any
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of the matters specified in section 9(1)(a) to (c),
(b)
he is required to pay to participate, and
(c)
if his guess is accurate, or more accurate than other guesses, he is to—
(i)
win a prize, or
(ii)
enter a class among whom one or more prizes are to be allocated
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(whether or not wholly by chance).
(2)
In subsection (1) a reference to guessing includes a reference to predicting
using skill or judgment.
(3)
Schedule 1 makes further provision about when a person is to be or not to be
treated for the purposes of subsection (1)(b) as being required to pay to
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participate in an arrangement.
(4)
In subsection (1)(c)(i) “prize” includes any money, articles or services—

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Part 1 — Interpretation of Key Concepts
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(a)
whether or not described as a prize, and
(b)
whether or not consisting wholly or partly of money paid, or articles or
services provided, by the members of the class among whom the prizes
are allocated.
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Pool betting
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(1)
For the purposes of this Act betting is pool betting if made on terms that all or
part of winnings—
(a)
shall be determined by reference to the aggregate of stakes paid or
agreed to be paid by the persons betting,
(b)
shall be divided among the winners, or
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(c)
shall or may be something other than money.
(2)
For the purposes of this Act pool betting is horse-race pool betting if it relates
to horse-racing in Great Britain.
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Betting intermediary
(1)
In this Act “betting intermediary” means a person who provides a service
15
designed to facilitate the making or acceptance of bets between others.
(2)
For the purposes of this Act acting as a betting intermediary is providing
facilities for betting.
Lottery
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Lottery
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(1)
For the purposes of this Act an arrangement is a lottery, irrespective of how it
is described, if it satisfies one of the descriptions of lottery in subsections (2)
and (3).
(2)
An arrangement is a simple lottery if—
(a)
persons are required to pay in order to participate in the arrangement,
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(b)
in the course of the arrangement one or more prizes are allocated to one
or more members of a class, and
(c)
the prizes are allocated by a process which relies wholly on chance.
(3)
An arrangement is a complex lottery if—
(a)
persons are required to pay in order to participate in the arrangement,
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(b)
in the course of the arrangement one or more prizes are allocated to one
or more members of a class,
(c)
the prizes are allocated by a series of processes, and
(d)
the first of those processes relies wholly on chance.
(4)
In this Act a reference to entry, in relation to a lottery, is a reference to
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participating in the arrangement constituting the lottery.
(5)
In this Act “prize” in relation to lotteries includes any money, articles or
services—
(a)
whether or not described as a prize, and

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Part 1 — Interpretation of Key Concepts
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(b)
whether or not consisting wholly or partly of money paid, or articles or
services provided, by the members of the class among whom the prize
is allocated.
(6)
A process which requires persons to exercise skill or judgment or to display
knowledge shall be treated for the purposes of this section as relying wholly on
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chance if the requirement neither—
(a)
prevents a significant proportion of persons who participate in the
arrangement of which the process forms part from receiving a prize,
nor
(b)
prevents a significant proportion of persons who wish to participate in
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that arrangement from doing so.
(7)
Schedule 2 makes further provision about when an arrangement is to be or not
to be treated for the purposes of this section as requiring persons to pay.
(8)
The Secretary of State may by regulations provide that an arrangement of a
specified kind is to be or not to be treated as a lottery for the purposes of this
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Act; and—
(a)
the power in this subsection is not constrained by subsections (1) to (7)
or Schedule 2, and
(b)
regulations under this subsection may amend other provisions of this
section or Schedule 2.
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Cross-category activities
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Betting and gaming
(1)
This section applies to a transaction which satisfies—
(a)
the definition of betting in section 9, and
(b)
the definition of gaming in section 6.
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(2)
A transaction to which this section applies which is pool betting (within the
meaning of section 12) shall be treated for the purposes of this Act as betting
(and not as gaming).
(3)
Any other transaction to which this section applies shall be treated for the
purposes of this Act as gaming (and not as betting).
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(4)
This section is subject to regulations under section 6(6).
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Lotteries and gaming
(1)
This section applies to an arrangement which satisfies—
(a)
the definition of a game of chance in section 6, and
(b)
the definition of a lottery in section 14.
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(2)
An arrangement to which this section applies shall be treated for the purposes
of this Act as a game of chance (and not as a lottery) if a person who pays in
order to join the class amongst whose members prizes are allocated is required
to participate in, or to be successful in, more than three processes before
becoming entitled to a prize.
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(3)
An arrangement to which this section applies shall, subject to subsection (2), be
treated for the purposes of this Act as a lottery (and not as a game of chance)
if—

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Part 1 — Interpretation of Key Concepts
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(a)
it satisfies paragraph 1(1)(a) and (b) of Schedule 9,
(b)
it satisfies paragraph 8(1)(a) and (b) of Schedule 9,
(c)
it satisfies paragraph 9(1)(a) and (b) of Schedule 9,
(d)
it satisfies paragraph 10(1)(a) and (b) of Schedule 9,
(e)
it satisfies paragraph 18(1)(a) and (b) of Schedule 9,
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(f)
it satisfies paragraph 25(1)(a) and (b) of Schedule 9, or
(g)
it is promoted in reliance on a lottery operating licence.
(4)
Any other arrangement to which this section applies shall be treated for the
purposes of this Act as a game of chance (and not as a lottery).
(5)
This section is subject to regulations under section 6(6) or 14(9).
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Lotteries and betting
(1)
This section applies to a transaction which satisfies the definition of entering a
lottery in section 14 and also—
(a)
satisfies the definition of pool betting in section 12, or
(b)
satisfies the definition of betting in section 9 by virtue of section 11.
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(2)
A transaction to which this section applies shall be treated for the purposes of
this Act as entering a lottery (and not as betting) if—
(a)
it satisfies paragraph 1(1)(a) and (b) of Schedule 9,
(b)
it satisfies paragraph 8(1)(a) and (b) of Schedule 9,
(c)
it satisfies paragraph 9(1)(a) and (b) of Schedule 9,
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(d)
it satisfies paragraph 10(1)(a) and (b) of Schedule 9,
(e)
it satisfies paragraph 18(1)(a) and (b) of Schedule 9,
(f)
it satisfies paragraph 25(1)(a) and (b) of Schedule 9, or
(g)
it is promoted in reliance on a lottery operating licence.
(3)
Any other transaction to which this section applies shall be treated for the
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purposes of this Act as betting (and not as entering a lottery).
(4)
This section is subject to regulations under section 14(8).
Miscellaneous
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Non-commercial society
(1)
For the purposes of this Act a society is non-commercial if it is established and
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conducted—
(a)
for charitable purposes,
(b)
for the purpose of enabling participation in, or of supporting, sport,
athletics or a cultural activity, or
(c)
for any other non-commercial purpose other than that of private gain.
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(2)
In subsection (1) “charitable purposes” means—
(a)
in relation to England and Wales, purposes which are exclusively
charitable according to the law of England and Wales, and
(b)
in relation to Scotland, purposes which are charitable purposes only
(that expression having the same meaning as in the Income Tax Acts).
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Gambling Bill
Part 2 — The Gambling Commission
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(3)
The provision of a benefit to one or more individuals is not a provision for the
purpose of private gain for the purposes of this Act if made in the course of the
activities of a society that is a non-commercial society by virtue of subsection
(1)(a) or (b).
Part 2
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The Gambling Commission
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Establishment of the Commission
(1)
There shall be a body corporate to be known as the Gambling Commission.
(2)
Schedule 3 (which makes provision about the constitution and proceedings of
the Commission) shall have effect.
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Gaming Board: transfer to Commission
(1)
Section 10 of and Schedule 1 to the Gaming Act 1968 (c. 65) (Gaming Board for
Great Britain) shall cease to have effect.
(2)
The functions, rights and liabilities of the Gaming Board for Great Britain shall
on commencement become functions, rights and liabilities of the Gambling
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Commission.
(3)
The persons who immediately before commencement are the members of the
Gaming Board for Great Britain shall be treated as if on commencement they
were appointed as commissioners of the Gambling Commission under
paragraph 1 of Schedule 3 to this Act.
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(4)
The person who immediately before commencement is the chairman of the
Gaming Board for Great Britain shall be treated as if on commencement he
were appointed as the chairman of the Gambling Commission under
paragraph 1 of Schedule 3 to this Act.
(5)
In this section “commencement” means the coming into force of this section.
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(6)
Schedule 4 (which makes supplementary provision in relation to the transfer
of functions and property from the Gaming Board to the Gambling
Commission) shall have effect.
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Duty to promote the licensing objectives
In exercising its functions under this Act the Commission shall aim—
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(a)
to pursue, and wherever appropriate to have regard to, the licensing
objectives, and
(b)
to permit gambling, in so far as the Commission thinks it reasonably
consistent with pursuit of the licensing objectives.
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Policy for licensing and regulation
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(1)
The Commission shall prepare a statement setting out the principles to be
applied by it in exercising its functions under this Act.

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Part 2 — The Gambling Commission
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(2)
The statement under this section shall, in particular, explain how the principles
to be applied are expected to assist the Commission in its pursuit of the
licensing objectives.
(3)
The Commission shall—
(a)
review the statement from time to time, and
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(b)
revise the statement when the Commission thinks it appropriate.
(4)
The Commission shall as soon as is reasonably practicable publish—
(a)
the statement, and
(b)
any revision.
(5)
Before issuing or revising a statement under this section the Commission shall
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consult—
(a)
the Secretary of State,
(b)
one or more persons who appear to the Commission to represent local
authorities,
(c)
one or more persons who appear to the Commission to represent chief
15
constables of police forces,
(d)
one or more persons who appear to the Commission to represent the
interests of persons carrying on gambling businesses,
(e)
one or more persons who appear to the Commission to have
knowledge about social problems relating to gambling, and
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(f)
to such extent and in such manner as the Commission thinks
appropriate, members of the public.
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Codes of practice
(1)
The Commission shall issue one or more codes of practice about the manner in
which facilities for gambling are provided (whether by the holder of a licence
25
under this Act or by another person).
(2)
In particular, a code shall describe arrangements that should be made by a
person providing facilities for gambling for the purposes of—
(a)
ensuring that gambling is conducted in a fair and open way,
(b)
protecting children and other vulnerable persons from being harmed or
30
exploited by gambling, and
(c)
making assistance available to persons who are or may be affected by
problems related to gambling.
(3)
A code may include provision about the advertising of facilities for gambling.
(4)
A code may be revised or revoked by the Commission.
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(5)
A code, and any revision, must state when it comes into force.
(6)
The Commission shall publish a code and any revision in a manner which the
Commission thinks likely to bring it to the attention of those whose activities it
concerns.
(7)
The Commission may make different provision under this section for different
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cases or circumstances (whether or not by way of separate codes of practice).
(8)
A failure to comply with a provision of a code shall not of itself make a person
liable to criminal or civil proceedings; but this subsection is subject to any

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Part 2 — The Gambling Commission
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provision of or by virtue of this Act making an exception to an offence
dependent on compliance with a code.
(9)
But a code—
(a)
shall be admissible in evidence in criminal or civil proceedings,
(b)
shall be taken into account by a court or tribunal in any case in which it
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appears to the court or tribunal to be relevant, and
(c)
shall be taken into account by the Commission in the exercise of a
function under this Act.
(10)
Before issuing or revising a code under this section the Commission shall
consult—
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(a)
the Secretary of State,
(b)
one or more persons who appear to the Commission to represent the
interests of persons who—
(i)
carry on gambling businesses, and
(ii)
are likely to be affected by the code or revision,
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(c)
one or more persons who appear to the Commission to have
knowledge about social problems relating to gambling, and
(d)
in the case of a code including provision by virtue of subsection (3), one
or more persons who appear to the Commission to have a relevant
responsibility for regulating the advertising industry.
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(11)
Before issuing or revising a code under this section the Commission shall also
consult, if and to the extent that the Commission thinks appropriate having
regard to the nature of the code or revision—
(a)
one or more persons who appear to the Commission to represent local
authorities,
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(b)
one or more persons who appear to the Commission to represent chief
constables of police forces,
(c)
one or more persons who appear to the Commission to represent the
interests of persons carrying on gambling businesses (apart from those
consulted under subsection (10)(b)), and
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(d)
in such manner as the Commission thinks appropriate, members of the
public.
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Guidance to local authorities
(1)
The Commission shall from time to time issue guidance as to—
(a)
the manner in which local authorities are to exercise their functions
35
under this Act, and
(b)
in particular, the principles to be applied by local authorities in
exercising functions under this Act.
(2)
A local authority shall have regard to guidance issued under subsection (1).
(3)
The Commission shall publish guidance issued under subsection (1).
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(4)
Before issuing guidance under subsection (1) the Commission shall consult—
(a)
the Secretary of State,
(b)
the Scottish Ministers,
(c)
one or more persons who appear to the Commission to represent local
authorities,
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