Gambling Bill

House of Commons

Session 2004 - 05
Internet Publications
Other Bills before Parliament

Gambling Bill

Gambling Bill
Part 5 — Operating Licences
38

(b)
limiting the amount that may be charged by way of participation fee,
(c)
restricting the nature of prizes,
(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,
5
or
(g)
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).
10
(3)
Regulations by virtue of subsection (1)(b) may, in particular, make different
provision for different kinds of fee.
(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
15
(c)
in any other way.
87
General betting operating licence
(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,
20
(b)
a person employed by the licensee under a written contract of
employment, or
(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)—
25
(a)
requiring that facilities be provided at a specified place or class of place,
or
(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
30
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
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
35
condition that bets may be accepted on behalf of the licensee only—
(a)
by the licensee,
(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
40
(d)
in accordance with subsection (2) or (3).
(2)
A bet is accepted by a person (“the agent”) on behalf of a licensee in accordance
with this subsection if—

Gambling Bill
Part 5 — Operating Licences
39

(a)
the agent is authorised by the licensee in writing to accept bets on
behalf of the licensee,
(b)
the agent is an adult,
(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
5
(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
writing authorise an adult or young person—
(a)
to make documents or other facilities available in connection with the
10
licensed activities;
(b)
to receive entries on behalf of the licensee;
(c)
to receive payments on behalf of the licensee;
(d)
to make payments of winnings on behalf of the licensee.
(4)
An authorisation under subsection (3)—
15
(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
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
20
which may, in particular, include—
(a)
provision for payment by the person issuing the authorisation;
(b)
provision for commission.
(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
25
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.
(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.
30
(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
of a specified kind that relates to a sport but is not a football pool.
89
Horse-race pool betting operating licence
35
(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
person to provide facilities for horse-race pool betting.
(3)
An authorisation under subsection (2) shall be treated for the purposes of
40
section 30 as if it were a pool betting operating licence authorising the
provision of facilities for horse-race pool betting.
(4)
An authorisation under subsection (2) may be issued on terms and conditions
which may, in particular, include—

Gambling Bill
Part 5 — Operating Licences
40

(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
this subsection, contain an implied term permitting the use of postal services
for the making of bets.
5
(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.
90
Gaming machine technical operating licence
(1)
The Commission may establish, or provide for the establishment of, standards
10
in respect of the manufacture, supply, installation, adaptation, maintenance or
repair of gaming machines.
(2)
Standards under subsection (1)—
(a)
may operate by reference to regulations under Part 10, and
(b)
may not make provision which is inconsistent with a provision of
15
regulations under Part 10.
(3)
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
20
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
section 71 or 73 has been complied with, require the holder of a gaming
25
machine technical operating 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;
(e)
for the purpose of considering whether to grant an application under
30
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
paragraph (c) above, and
(ii)
to produce specified evidence of the result of the test.
35
(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.
(5)
This section is without prejudice to the generality of sections 71, 73 and 74.
91
Lottery operating licences
40
(1)
A lottery operating licence may be issued only to—
(a)
a non-commercial society,
(b)
a local authority, or

Gambling Bill
Part 5 — Operating Licences
41

(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—
(a)
promotion generally or only specified promoting activities;
(b)
the promotion of lotteries generally or only the promotion of lotteries
5
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”).
(3)
In issuing a lottery operating licence to a society or authority the
Commission—
10
(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
(b)
may, if they attach a condition under paragraph (a), issue the lottery
licence to the society or authority without consideration of the matters
15
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.
(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.
20
(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.
(7)
In this section “local authority” means—
(a)
in relation to England—
25
(i)
a district council,
(ii)
a county council for a county in which there are no district
councils,
(iii)
a parish council,
(iv)
a London borough council,
30
(v)
the Common Council of the City of London, and
(vi)
the Council of the Isles of Scilly,
(b)
in relation to Wales—
(i)
a county council,
(ii)
a county borough council, and
35
(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).
92
Mandatory conditions of lottery operating licence
(1)
In issuing a lottery operating licence to a non-commercial society or to a local
40
authority the Commission shall attach conditions under section 71 or 73 for the
purpose of achieving the requirements specified in this section.
(2)
The first requirement is that at least 20% of the proceeds of any lottery
promoted in reliance on the licence are applied—

Gambling Bill
Part 5 — Operating Licences
42

(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
which the authority has power to incur expenditure.
(3)
The second requirement is that—
5
(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
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
10
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—
(a)
£25,000, or
(b)
if more, 10% of the proceeds of the lottery;
15

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—
(a)
must be a document,
(b)
must identify the promoting society,
20
(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
(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
25
promoted in reliance on the licence—
(a)
must be the same,
(b)
must be shown on the ticket, and
(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
30
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
dependent on making any payment (apart from payment of the price of a
ticket).
35
(8)
Where—
(a)
conditions are attached to a lottery operating licence in accordance with
this section, and
(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
40
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
relied upon in pursuance of the condition specified in paragraph (b) above.
(9)
Nothing in this section prevents the Commission from attaching a condition to
45
a lottery operating licence of a kind similar to but more onerous than a
requirement of this section.

Gambling Bill
Part 5 — Operating Licences
43

(10)
The Secretary of State may by order vary a monetary amount or a percentage
in this section.
Maintenance
93
Annual fee
(1)
The holder of an operating licence—
5
(a)
shall pay a first annual fee to the Commission within such period after
the issue of the licence as may be prescribed, and
(b)
shall pay an annual fee to the Commission before each anniversary of
the issue of the licence.
(2)
In this section—
10
“annual fee” means a fee of such amount as may be prescribed, and
“prescribed” means prescribed by the Secretary of State by regulations.
(3)
Regulations under this section may, in particular, make different provision
for—
(a)
different kinds of operating licence, or
15
(b)
different circumstances.
(4)
Subsection (1)(b) does not apply in relation to an anniversary of the issue of a
licence on or immediately before which the licence ceases to have effect by
virtue of section 104.
94
Change of circumstance
20
(1)
The Secretary of State may make regulations requiring the holder of an
operating licence—
(a)
to notify the Commission of any change of circumstance of a prescribed
kind in relation to him or to a licensed activity, and
(b)
to give the Commission prescribed details of the change.
25
(2)
If a change of circumstance notified under subsection (1) falsifies information
contained in the operating licence in accordance with section 62 the notification
must be accompanied by—
(a)
the licence, or
(b)
an application to the Commission for the issue of a copy of the licence
30
under section 100.
(3)
Where notification is accompanied by the licence, the Commission shall—
(a)
make such alteration to the information contained in the licence as
appears to it to be required by the change in circumstance, and
(b)
return the licence to the licensee.
35
(4)
Where the notification is accompanied by an application for a copy of the
licence, the Commission shall, if it grants the application, issue the copy in a
form which appears to the Commission to reflect the change in circumstance.
(5)
In this section “prescribed” means prescribed by regulations under this section.
(6)
The holder of an operating licence commits an offence if he fails without
40
reasonable excuse to comply with regulations under this section.

Gambling Bill
Part 5 — Operating Licences
44

(7)
A person guilty of an offence under subsection (6) shall be liable on summary
conviction to a fine not exceeding level 2 on the standard scale.
(8)
This section does not prevent the imposition of a requirement to notify the
Commission of a specified change of circumstance by way of the attachment of
a condition to an operating licence.
5
95
Change of corporate control
(1)
This section applies where the holder of an operating licence is a company
limited by shares (“the company”).
(2)
If a person becomes a controller of the company (“the new controller”), within
the meaning of section 422 of the Financial Services and Markets Act 2000 (c. 8),
10
the company shall inform the Commission and either—
(a)
surrender the operating licence under section 106, or
(b)
apply to the Commission under this section for a determination that the
operating licence shall continue to have effect.
(3)
An application under subsection (2)(b) must be accompanied by such
15
information as the Commission may direct about—
(a)
the new controller,
(b)
his interest in the company, and
(c)
his interest in any company of which the company is a subsidiary
(within the meaning of section 736 of the Companies Act 1985 (c. 6)).
20
(4)
On considering an application under section (2)(b) the Commission shall—
(a)
make the determination sought, if satisfied that the Commission would
have granted the operating licence to the licensee had the new
controller been a controller of the company when the application for the
operating licence was made, and
25
(b)
otherwise, revoke the operating licence.
(5)
If the Commission becomes aware that a company has failed to comply with
the duty under subsection (2) within the period of five weeks beginning with
the day on which the duty began to apply to the company, the Commission
shall revoke the relevant operating licence.
30
(6)
But the Commission may extend the period under subsection (5)—
(a)
before it expires, or
(b)
after it expires (if the relevant operating licence has not yet been
revoked).
96
Section 95: supplemental
35
(1)
The Secretary of State may by regulations provide for section 95 not to apply to
the holder of a specified description of operating licence.
(2)
An application under section 95(2)(b) must be accompanied by the prescribed
fee.
(3)
An application may be made under section 95(2)(b) in respect of a person who
40
is expected to become a controller of a company.
(4)
The Commission shall as soon as is reasonably practicable inform an applicant
under section 95(2)(b) of—