Gambling Bill

House of Commons

Session 2004 - 05
Internet Publications
Other Bills before Parliament

Gambling Bill

Gambling Bill
Part 5 — Operating Licences
31

(b)
such of the persons specified in section 22(5) as the Commission thinks
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—
5
(a)
at least three months before making the specification the Commission
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
10
made, an operating licence of a class affected by the specification, the
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.
15
(5)
If the Commission thinks it necessary by reason of urgency to make a
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
20
under paragraph (a) above, and
(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
25
(b)
relieving existing licences from the condition revoked.
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
30
(1)
The Secretary of State may by regulations provide for a specified condition to
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
35
force).
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.
40
(2)
A condition may have the effect of restricting the activities that may be carried
on in reliance on the licence by reference to—
(a)
the nature of the activities,

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Part 5 — Operating Licences
32

(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—
(a)
the nature of the licensed activities;
(b)
the circumstances in which the licensed activities are carried on;
5
(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.
(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
10
licensed activities;
(b)
the manner in which facilities are provided;
(c)
the number of persons that may or must be employed in the provision
of facilities;
(d)
the financial resources available for particular purposes to the person
15
providing facilities;
(e)
any other matter.
(5)
A condition may relate to the financial circumstances of the licensee or of
another person involved or likely to be involved in the conduct of the licensed
activities; in particular, a condition may make provision about the
20
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.
(7)
A condition may make provision about the advertising of facilities for
gambling.
25
(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—
(a)
establishing the identity of users of facilities;
(b)
recording the identity of users of facilities;
30
(c)
restricting facilities to persons registered in respect of the facilities in
advance.
76
Requirement for personal licence
(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—
35
(a)
occupies a specified management office in or in respect of the licensee
or in connection with the licensed activities, and
(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
40
relate to a management office and are in addition to any required by subsection
(1).
(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

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Part 5 — Operating Licences
33

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
authorising the performance of the functions of the office, and
(b)
anything done in the performance of the functions of the office must be
5
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
may, in particular, provide that if a specified operational function is performed
in connection with a licensed activity it must be performed—
10
(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.
(5)
In this section “management office” in relation to a licensee means—
(a)
if the licensee is a company, the office of director,
15
(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
association, and
(d)
in any case, any position which carries (whether solely or otherwise)
20
responsibility for—
(i)
the conduct of a person who performs an operational function
in connection with a licensed activity, or
(ii)
facilitating or ensuring compliance with terms or conditions of
the operating licence.
25
(6)
In this section “operational function” means—
(a)
any function which enables the person exercising it to influence the
outcome of gambling,
(b)
receiving or paying money in connection with gambling, and
(c)
manufacturing, supplying, installing, maintaining or repairing a
30
gaming machine.
(7)
Provision by virtue of subsection (1) may be general or may relate only to
specified—
(a)
kinds of operating licence,
(b)
cases, or
35
(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.
(9)
In relation to a bingo operating licence issued to a members’ club, a commercial
club or a miners’ welfare institute—
40
(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.
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Gambling Bill
Part 5 — Operating Licences
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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
5
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
10
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
15
(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
20
(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
25
(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
30
(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
35
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.
40
(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

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(b)
the reference to a social responsibility provision of a code is a reference
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
5
under section 71, 73 or 74.
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—
10
(a)
must return any money paid in respect of the use of those facilities
(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.
15
(3)
The condition in subsection (1)—
(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
20
licensee becomes aware that the participant is a child or young person.
(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
25
(b)
in relation to participation in a lottery or football pools a reference to a
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.
80
Premises
30
An operating licence—
(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—
35
(i)
the number of sets of premises on which the licensed activities
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.
81
Equipment
40
(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.

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(2)
In particular, a condition attached by virtue of this section may—
(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.
5
(3)
For the purposes of this section “equipment” includes—
(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.
10
82
Gaming machines
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,
15
(b)
that contradicts a provision of regulations under section 220, 224 or 225,
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
20
section 71, 73 or 74)—
(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.
25
Rules for particular kinds of licence
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
30
licensed activities must be situated in Great Britain.
(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
35
gambling;
(b)
any other aspect of the process of remote gambling.
(4)
In particular, the Commission may—
(a)
provide for the enforcement of standards by the attachment of
conditions under section 71 or 73;
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Gambling Bill
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(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;
(d)
for the purpose of considering whether a condition under section
5
section 71 or 73 has been complied with, require the licensee under a
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;
10
(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
remote licence—
(i)
to submit to a test in accordance with arrangements made under
paragraph (c) above, and
15
(ii)
to produce specified evidence of the result of the test.
(5)
Standards established under subsection (4) 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 piece of equipment.
(6)
This section is without prejudice to the generality of sections 71, 73 and 74.
20
85
Casino operating licence
(1)
A casino operating licence may authorise a person to operate a casino in more
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
25
made available.
(3)
A casino operating licence may be subject to a condition imposed by virtue of
section 71 or 73 specifying rules for the playing of—
(a)
a casino game;
(b)
another game of chance.
30
86
Bingo operating licence
(1)
Regulations under section 74 may provide for the attachment to a bingo
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;
35
(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
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
40
provided in accordance with one bingo operating licence or more than
one).
(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,
45