Gambling Bill

House of Commons

Session 2004 - 05
Internet Publications
Other Bills before Parliament

Gambling Bill

Gambling Bill
Part 5 — Operating Licences
52

(3)
The Commission shall revoke an operating licence if the licensee fails to pay the
annual fee in accordance with section 93; but the Commission may disapply
this subsection if it thinks that a failure to pay is attributable to administrative
error.
(4)
Where the Commission revokes an operating licence it—
5
(a)
shall specify the time when the revocation takes effect, and
(b)
may make saving or transitional provision (which may, in particular,
provide for a licence to continue to have effect in relation to a gaming
machine supplied, or another thing done, before the time when the
revocation takes effect for other purposes).
10
113
Conditions for suspension or revocation
(1)
The conditions referred to in sections 111(1) and (2) and 112(1) are—
(a)
that a licensed activity is being or has been carried on in a manner
which is inconsistent with the licensing objectives,
(b)
that a condition of the licence has been breached,
15
(c)
that the licensee has failed to cooperate with a review under section
109(1) or (2), or
(d)
that the licensee is unsuitable to carry on the licensed activities.
(2)
The conditions referred to in sections 111(3) and 112(2) are—
(a)
that the licensee has failed to comply with a requirement of regulations
20
under section 94, or
(b)
that the licensee has failed to submit the licence to the Commission for
amendment in accordance with section 98.
(3)
In considering a licensee’s suitability for the purpose of subsection (1)(d) the
Commission may, in particular, have regard to—
25
(a)
the integrity of the licensee or of any person who exercises a function in
connection with or is interested in the licensed activities;
(b)
the competence of the licensee, or of any person who exercises a
function in connection with the licensed activities, to carry on the
licensed activities in a manner consistent with pursuit of the licensing
30
objectives;
(c)
the financial and other circumstances of the licensee or of any person
who exercises a function in connection with or is interested in the
licensed activities (and, in particular, the resources available for the
purpose of carrying on the licensed activities).
35
114
Financial penalty
(1)
The Commission may require the holder of an operating licence to pay a
penalty if the Commission thinks that a condition of the licence has been
breached.
(2)
Before imposing a requirement on a licensee to pay a penalty under this section
40
the Commission must notify him—
(a)
that the Commission proposes to require him to pay a penalty,
(b)
of the amount of the proposed penalty,
(c)
of the Commission’s reasons, and
(d)
of a period within which he may make representations to the
45
Commission.

Gambling Bill
Part 5 — Operating Licences
53

(3)
The Commission may not give a notice under subsection (2) in respect of the
breach of a condition after the end of the period of two years beginning with—
(a)
the day on which the breach occurred or began to occur, or
(b)
if later, the day on which the breach came to the knowledge of the
Commission.
5
(4)
After the end of the period specified under subsection (2)(d) the Commission
may give the licensee a notice requiring him to pay a penalty under this section.
(5)
A penalty imposed by notice under subsection (4)—
(a)
shall be payable by the licensee to the Commission,
(b)
may be enforced as if it were a debt owed by the licensee to the
10
Commission, and
(c)
on receipt by the Commission shall be paid into the Consolidated Fund after
deduction of a sum which represents the direct costs to the Commission of, and
a reasonable share of expenditure by the Commission which is indirectly
referable to—
15
(i)
the investigation by the Commission of the matter in respect of which
the penalty is imposed (whether by review under section 109 or
otherwise), or
(ii)
the imposition and enforcement of the penalty.
(6)
The Commission shall—
20
(a)
prepare a statement setting out the principles to be applied by the
Commission in exercising the powers under this section,
(b)
review the statement from time to time,
(c)
revise the statement when the Commission thinks it necessary,
(d)
as soon as is reasonably practicable—
25
(i)
send the statement and any revision to the Secretary of State,
and
(ii)
publish the statement and any revision, and
(e)
have regard to the statement when exercising a power under this
section.
30
(7)
The statement maintained under subsection (6) must, in particular, require the
Commission in considering the imposition of a penalty under this section or
the amount of a penalty to have regard, in particular, to—
(a)
the seriousness of the breach of condition in respect of which the
penalty is proposed,
35
(b)
whether or not the licensee knew or ought to have known of the breach,
and
(c)
the nature of the licensee (including, in particular, his financial
resources).
(8)
Before preparing or revising a statement under subsection (6) the Commission
40
shall consult—
(a)
the Secretary of State,
(b)
the Lord Chancellor, and
(c)
such other persons as the Commission thinks appropriate.

Gambling Bill
Part 5 — Operating Licences
54

115
Information
(1)
The holder of an operating licence shall comply with a request of the
Commission to—
(a)
produce a written or electronic record relating to the licensed activities;
(b)
provide a copy of a written or electronic record relating to the licensed
5
activities;
(c)
provide information about the licensed activities.
(2)
A request under subsection (1) may specify—
(a)
the form and manner in which a record or information is to be
produced or provided;
10
(b)
the period within which a record or information is to be produced or
provided.
(3)
The Commission may retain anything provided under subsection (1).
(4)
The Commission may exercise a power under this section only for the purpose
of—
15
(a)
determining whether activities have been carried on in purported
reliance on the licence but not in accordance with a condition of the
licence, or
(b)
determining the suitability of the licensee to carry on the licensed
activities.
20
(5)
A person commits an offence if he fails without reasonable excuse to comply
with subsection (1).
(6)
A person guilty of an offence under subsection (5) shall be liable on summary
conviction to a fine not exceeding level 2 on the standard scale.
General
25
116
Levy
(1)
The Secretary of State may make regulations requiring holders of operating
licences to pay an annual levy to the Commission.
(2)
The regulations shall, in particular, make provision for—
(a)
the amount of the levy;
30
(b)
timing of payment of the levy.
(3)
The regulations may, in particular, make provision—
(a)
determining the amount of the levy by reference to a percentage of
specified receipts of an operating licence holder,
(b)
determining the amount of the levy by reference to a percentage of
35
specified profits of an operating licence holder,
(c)
determining the amount of the levy by reference to a percentage of the
annual fee under section 93,
(d)
providing for the determination of the amount of the levy according to
a specified formula, or
40
(e)
providing for the determination of the amount of the levy in some other
way.

Gambling Bill
Part 5 — Operating Licences
55

(4)
Any sum due by way of levy by virtue of this section shall be treated for the
purposes of this Act as if it were due by way of annual fee under section 93.
(5)
The Commission shall, with the consent of the Treasury and of the Secretary of
State, expend money received by way of levy for purposes related to, or by
providing financial assistance for projects related to—
5
(a)
addiction to gambling,
(b)
other forms of harm or exploitation associated with gambling, or
(c)
any of the licensing objectives.
(6)
In subsection (5) the reference to financial assistance is a reference to grants,
loans and any other form of financial assistance, which may be made or given
10
on terms or conditions (which may include terms and conditions as to
repayment with or without interest).
(7)
The Secretary of State shall consult the Commission before making regulations
under this section.
117
Directions and requirements
15
Where the Commission has power under this Part to give a direction or impose
a requirement it may give different directions or impose different requirements
in relation to different cases or circumstances.
118
Relevant offence: disapplication of rehabilitation
Section 4 of the Rehabilitation of Offenders Act 1974 (c. 53) (effect of
20
rehabilitation) shall not apply for the purposes of or in connection with—
(a)
section 65(2)(d), or
(b)
section 67(1).
119
Interpretation
(1)
In this Part—
25
“conviction”—
(a)
has the meaning given by section 1(4) of the Rehabilitation of
Offenders Act 1974, and
(b)
includes, to the extent required by section 118, a spent
conviction within the meaning of that Act,
30
“holder”, in relation to an operating licence, means the person to whom
the licence is issued,
“the licensed activities” in relation to an operating licence means the
activities which it authorises, and
“licensee”, in relation to an operating licence, means the person to whom
35
the licence is issued.
(2)
In this Act “relevant offence” means—
(a)
an offence listed in Schedule 6, and
(b)
an offence under the law of a country or territory outside the United
Kingdom (a “foreign offence”) which prohibits a kind of activity
40
prohibited by an offence listed in that Schedule (a “domestic offence”).
(3)
For the purpose of subsection (2)(b) it is immaterial—

Gambling Bill
Part 6 — Personal Licences
56

(a)
whether or not the foreign offence prohibits all the kinds of activity
prohibited by the domestic offence, and
(b)
whether or not the foreign offence prohibits kinds of activity not
prohibited by the domestic offence.
Part 6
5
Personal Licences
120
Nature of personal licence
For the purposes of this Act a “personal licence” is a licence which authorises
an individual to perform a specified function in connection with—
(a)
the provision of facilities for gambling, or
10
(b)
a person who provides facilities for gambling.
121
Application of provisions of Part 5
(1)
The provisions of Part 5 shall apply to a personal licence as they apply to an
operating licence, with—
(a)
the modifications and exclusions specified in this Part,
15
(b)
such modifications and exclusions as the Secretary of State may specify
by regulations, and
(c)
any other necessary modifications.
(2)
Regulations under a provision of Part 5—
(a)
may make different provision for purposes of this Part and for
20
purposes of that Part, and
(b)
in making provision for purposes of this Part, may make different
provision in relation to personal licences authorising—
(i)
the performance of different kinds of function, or
(ii)
the performance of functions in different circumstances.
25
122
Exemption for small-scale operators
(1)
A condition may not be attached to an operating licence under section 71, 73 or
74 requiring possession of a personal licence if the licensee is a small-scale
operator.
(2)
In this section “small-scale” operator shall have such meaning as the Secretary
30
of State may prescribe by regulations.
(3)
Regulations under subsection (2) may, in particular, make provision by
reference to—
(a)
the size or value of business carried on, or expected to be carried on, in
reliance on an operating licence;
35
(b)
the number of persons employed, or expected to be employed, by the
licensee.
(4)
A constable or enforcement officer may under section 101(1) require a small-
scale operator to produce his operating licence—
(a)
within a specified period, or
40
(b)
while the operator is carrying on a licensed activity, immediately.