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Session 2004 - 05
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Gambling Bill


Gambling Bill
Part 10 — Gaming Machines

104

 

228     

Linked machines

(1)   

A person commits an offence if—

(a)   

he makes a gaming machine (“the first gaming machine”) available for

use by another, and

(b)   

the amount or value of a prize available through use of the first gaming

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machine is or may be wholly or partly determined by reference to use

made of another gaming machine (“the linked gaming machine”).

(2)   

But subsection (1) does not apply where—

(a)   

the person who makes the first gaming machine available for use is the

holder of a casino premises licence, and

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(b)   

the first gaming machine and the linked gaming machine are situated

on the same premises.

(3)   

The Secretary of State may by order amend, or modify the effect of, subsection

(2) so that subsection (1) is disapplied to the linking of machines in casinos

whether or not the machines are situated on the same premises—

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(a)   

to such extent as the order may specify,

(b)   

in such circumstances as the order may specify, and

(c)   

subject to such conditions as the order may specify.

229     

Credit

(1)   

A person commits an offence if he supplies, installs or makes available for use

20

a gaming machine which is designed or adapted to permit money to be paid

by means of a credit card.

(2)   

In this section “credit card” means a card which is a credit-token within the

meaning of section 14 of the Consumer Credit Act 1974 (c. 39).

230     

Penalty

25

(1)   

A person guilty of an offence under this Part shall be liable on summary

conviction to—

(a)   

imprisonment for a term not exceeding 51 weeks,

(b)   

a fine not exceeding level 5 on the standard scale, or

(c)   

both.

30

(2)   

In the application of subsection (1) to Scotland the reference to 51 weeks shall

have effect as a reference to six months.

Exceptions

231     

Family entertainment centre gaming machine permit

(1)   

A person does not commit an offence under section 34 or 226 if he makes a

35

Category D gaming machine available for use in accordance with a family

entertainment centre gaming machine permit.

(2)   

A family entertainment centre gaming machine permit is a permit issued by a

licensing authority authorising a person to make Category D gaming machines

available for use in a specified family entertainment centre.

40

 
 

Gambling Bill
Part 10 — Gaming Machines

105

 

(3)   

Schedule 8 makes further provision about family entertainment centre gaming

machine permits.

232     

No prize

A person does not commit an offence under section 34 or 226 if—

(a)   

he makes a gaming machine available for use by an individual, and

5

(b)   

the individual does not, by using the machine, acquire an opportunity

to win a prize.

233     

Limited prize

(1)   

A person does not commit an offence under section 34 or 226 if—

(a)   

he makes a gaming machine available for use by an individual, and

10

(b)   

the individual does not, by using the machine, acquire an opportunity

to win a prize of a value in excess of the amount that he pays for or in

connection with his use of the machine.

(2)   

For the purpose of subsection (1)(b)—

(a)   

the reference to paying includes a reference to—

15

(i)   

paying money by way of an entrance charge,

(ii)   

using a coin to activate a gaming machine where the coin will

not or may not be returned,

(iii)   

transferring money’s worth, and

(iv)   

paying for goods or services at a price or rate which reflects the

20

opportunity to use a gaming machine, and

(b)   

it is immaterial—

(i)   

to whom payment is made, and

(ii)   

who receives benefit from the payment.

234     

Single-machine supply and maintenance permits

25

(1)   

A person does not commit an offence under section 30 or 227(1) by reason only

of the fact that he supplies, repairs, installs or maintains a gaming machine or

part of a gaming machine in accordance with a permit under this section.

(2)   

A person may apply to the Commission for a permit authorising him to supply,

repair, install or maintain a gaming machine or part of a gaming machine.

30

(3)   

An application under this section must—

(a)   

be made in writing,

(b)   

specify the gaming machine or part in relation to which the permit is

sought,

(c)   

give such details of the activity in relation to which the permit is sought

35

as the Commission may direct,

(d)   

be in such form, and contain such other information, as the

Commission may direct, and

(e)   

be accompanied by the prescribed fee.

(4)   

On consideration of an application under this section the Commission may—

40

(a)   

grant the application and issue a permit to the applicant, or

(b)   

refuse the application.

 
 

Gambling Bill
Part 11 — Lotteries

106

 

(5)   

The Commission may grant an application under this section only if satisfied

that the licensing objectives are irrelevant to the activity for which the permit

is sought.

(6)   

A permit under this section must specify—

(a)   

a period, not exceeding one year, during which it has effect,

5

(b)   

the machine or part to which it relates, and

(c)   

the activities which it authorises.

(7)   

A permit under this section may be subject to a condition attached by the

Commission.

(8)   

In subsection (3)(e) “prescribed” means prescribed by regulations made by the

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Secretary of State.

General

235     

Territorial application

This Part applies—

(a)   

to anything done in relation to a gaming machine which (or any part of

15

which) is situated in Great Britain, and

(b)   

to anything done in Great Britain in relation to a gaming machine

(irrespective of where it is situated).

Part 11

Lotteries

20

Interpretation

236     

Promoting a lottery

(1)   

For the purposes of this Act a person promotes a lottery if he makes or

participates in making the arrangements for a lottery.

(2)   

In particular, a person promotes a lottery if he—

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(a)   

makes arrangements for the printing of lottery tickets,

(b)   

makes arrangements for the printing of promotional material,

(c)   

arranges for the distribution or publication of promotional material,

(d)   

possesses promotional material with a view to its distribution or

publication,

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(e)   

makes other arrangements to advertise a lottery,

(f)   

invites a person to participate in a lottery,

(g)   

sells or supplies a lottery ticket,

(h)   

offers to sell or supply a lottery ticket,

(i)   

possesses a lottery ticket with a view to its sale or supply,

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(j)   

does or offers to do anything by virtue of which a person becomes a

member of a class among whom prizes in a lottery are to be allocated, or

(k)   

uses premises for the purpose of allocating prizes or for any other

purpose connected with the administration of a lottery.

(3)   

In subsection (2) “promotional material” means a document which—

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Gambling Bill
Part 11 — Lotteries

107

 

(a)   

advertises a specified lottery,

(b)   

invites participation in a specified lottery,

(c)   

contains information about how to participate in a specified lottery, or

(d)   

lists winners in a specified lottery.

(4)   

Where arrangements for a lottery are made by an external lottery manager on

5

behalf of a society or authority, for the purposes of this Act both the external

lottery manager and the society or authority promote the lottery.

237     

Lottery ticket

(1)   

For the purposes of this Act a document or article is a lottery ticket if it confers,

or can be used to prove, membership of a class for the purpose of the allocation

10

of prizes in a lottery.

(2)   

A reference in this Act to the sale or supply of a lottery ticket by a person

includes a reference to a person doing anything as a result of which another

person becomes a member of the class among whom prizes in a lottery are to

be allocated.

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(3)   

A reference in this Act to purchase of a lottery ticket includes a reference to any

action by a person as a result of which he becomes a member of the class among

whom prizes in a lottery are to be allocated.

238     

Proceeds and profits

(1)   

In this Act a reference to the proceeds of a lottery is a reference to the aggregate

20

of amounts paid in respect of the purchase of lottery tickets.

(2)   

In this Act a reference to the profits of a lottery is a reference to—

(a)   

the proceeds of the lottery, minus

(b)   

amounts deducted by the promoters of the lottery in respect of—

(i)   

the provision of prizes,

25

(ii)   

sums to be made available for allocation in another lottery in

accordance with a rollover, or

(iii)   

other costs reasonably incurred in organising the lottery.

239     

Draw

In this Act “draw”, in relation to a lottery, includes any process by which a

30

prize in the lottery is allocated.

240     

Rollover

(1)   

In this Act “rollover” in relation to a lottery means an arrangement whereby the

fact that a prize is not allocated or claimed in one lottery increases the value of

the prizes available for allocation in another lottery.

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(2)   

For the purposes of this Act where prizes are allocated by means of more than

one draw—

(a)   

the draws together constitute a single lottery if the class of persons

among whom prizes are allocated is (and, by virtue of arrangements for

the sale or supply of tickets, must be) the same in the case of each draw,

40

and

 
 

Gambling Bill
Part 11 — Lotteries

108

 

(b)   

otherwise, the arrangements for each draw constitute a separate lottery.

241     

External lottery manager

A person acts as an external lottery manager for the purposes of this Act if he

makes arrangements for a lottery on behalf of a society or authority of which

he is not—

5

(a)   

a member,

(b)   

an officer, or

(c)   

an employee under a contract of employment.

Offences

242     

Promotion of lottery

10

(1)   

A person commits an offence if he promotes a lottery unless—

(a)   

the exception in subsection (2) or (3) applies, or

(b)   

the lottery is an exempt lottery.

(2)   

This section does not apply to activity by a person if—

(a)   

he holds an operating licence authorising the activity, and

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(b)   

he acts in accordance with the terms and conditions of the licence.

(3)   

This section does not apply to activity by a person if—

(a)   

he acts, otherwise than as an external lottery manager, on behalf of a

person who holds an operating licence authorising the activity, and

(b)   

the activity is carried on in accordance with the terms and conditions of

20

the licence.

(4)   

It is a defence for a person charged with an offence under this section to show

that he reasonably believed that—

(a)   

he was not committing the offence by reason of subsection (1)(b), (2) or

(3),

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(b)   

that the arrangement to which the charge relates was not a lottery, or

(c)   

that the arrangement to which the charge relates was a lottery forming

part of the National Lottery.

(5)   

In this Act “exempt lottery” means a lottery which is exempt by virtue of a

provision of Schedule 9.

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243     

Facilitating a lottery

(1)   

A person commits an offence if he facilitates a lottery unless—

(a)   

the exception in subsection (3) applies, or

(b)   

the lottery is an exempt lottery.

(2)   

For the purposes of this section a person facilitates a lottery if (and only if) he—

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(a)   

prints lottery tickets for a specified lottery,

(b)   

prints promotional material for a specified lottery, or

(c)   

advertises a specified lottery.

(3)   

This section does not apply to activity by a person if he acts in accordance with

the terms and conditions of an operating licence.

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Gambling Bill
Part 11 — Lotteries

109

 

(4)   

It is a defence for a person charged with an offence under this section to show

that he reasonably believed—

(a)   

that he was not committing the offence by reason of subsection (1)(b) or

(3), or

(b)   

that the arrangement to which the charge relates was not a lottery, or

5

(c)   

that the arrangement to which the charge relates was a lottery forming

part of the National Lottery.

(5)   

In subsection (2)(b) “promotional material” means a document which—

(a)   

advertises a specified lottery,

(b)   

invites participation in a specified lottery,

10

(c)   

contains information about how to participate in a specified lottery, or

(d)   

lists winners in a specified lottery.

244     

Misusing profits of lottery

(1)   

This section applies to a lottery in respect of which the promoter has stated (in

whatever terms) a fund-raising purpose for the promotion of the lottery.

15

(2)   

A person commits an offence if he uses any part of the profits of a lottery to

which this section applies for a purpose other than that stated.

(3)   

The reference in subsection (2) to using profits includes a reference to

permitting profits to be used.

(4)   

In subsection (1) the reference to a statement of a purpose for the promotion of

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a lottery is a reference to a statement appearing—

(a)   

on lottery tickets, or

(b)   

in an advertisement for the lottery.

(5)   

In subsection (4)(b) “advertisement” in relation to a lottery includes any

written notice announcing that a lottery will take place or inviting people to

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participate in a lottery (in either case whether or not it also gives other

information).

245     

Misusing profits of exempt lottery

(1)   

This section applies to the following kinds of lottery—

(a)   

an incidental non-commercial lottery (within the meaning of Part 1 of

30

Schedule 9),

(b)   

a private society lottery (within the meaning of Part 2 of that Schedule),

and

(c)   

a small society lottery (within the meaning of Part 4 of that Schedule).

(2)   

A person commits an offence if he uses any part of the profits of a lottery to

35

which this section applies for a purpose other than one for which the lottery is

permitted to be promoted in accordance with Schedule 9.

(3)   

Subsection (3) of section 244 shall have effect for the purpose of this section as

it has effect for the purpose of that section.

246     

Small society lottery: breach of condition

40

A non-commercial society commits an offence if—

 
 

Gambling Bill
Part 11 — Lotteries

110

 

(a)   

a lottery, purporting to be an exempt lottery under Part 4 of Schedule

9, is promoted on the society’s behalf wholly or partly at a time when

the society is not registered with a local authority in accordance with

Part 5 of that Schedule,

(b)   

the society fails to comply with the requirements of paragraph 40 of

5

that Schedule, or

(c)   

the society provides false or misleading information for the purposes of

paragraph 40 of that Schedule.

247     

Penalty

(1)   

A person guilty of an offence under this Part shall be liable on summary

10

conviction to—

(a)   

imprisonment for a term not exceeding 51 weeks,

(b)   

a fine not exceeding level 5 on the standard scale, or

(c)   

both.

(2)   

In the application of subsection (1) to Scotland the reference to 51 weeks shall

15

have effect as a reference to six months.

Miscellaneous

248     

Preventing repetitive play

(1)   

The Secretary of State may make regulations—

(a)   

requiring the Commission to attach to lottery operating licences under

20

section 71 a specified condition;

(b)   

attaching a specified condition to lottery operating licences;

(c)   

making a specified condition an additional condition to be satisfied by

an exempt lottery under paragraph 1(1)(b), 9(1)(b), 20(1)(c) or 30(1)(c)

of Schedule 9.

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(2)   

A condition specified under subsection (1) must be intended by the Secretary

of State to reduce the temptation, or to limit the opportunity, for a person to

enter a number of lotteries in succession.

(3)   

Regulations under this section may, in particular—

(a)   

make provision generally or only in relation to a specified description

30

of lottery or only in relation to specified circumstances;

(b)   

provide for exceptions or alternatives;

(c)   

apply irrespective of whether a succession of lotteries is promoted by

the same person or by different persons.

249     

Exclusion of the National Lottery

35

The preceding provisions of this Part do not apply to a lottery which forms part

of the National Lottery.

General

250     

Territorial application

(1)   

This Part applies to anything done in relation to a lottery—

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