House of Commons portcullis
House of Commons
Session 2004 - 05
Internet Publications
Other Bills before Parliament

Gambling Bill


Gambling Bill
Part 1 — Interpretation of Key Concepts

1

 

A

Bill

[AS AMENDED IN STANDING COMMITTEE B]

To

make provision about gambling.                                                                          

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and

consent of the Lords Spiritual and Temporal, and Commons, in this present

Parliament assembled, and by the authority of the same, as follows:—

Part 1

Interpretation of Key Concepts

Principal concepts

1       

The licensing objectives

In this Act a reference to the licensing objectives is a reference to the objectives

5

of—

(a)   

preventing gambling from being a source of crime or disorder, being

associated with crime or disorder or being used to support crime,

(b)   

ensuring that gambling is conducted in a fair and open way, and

(c)   

protecting children and other vulnerable persons from being harmed or

10

exploited by gambling.

2       

Licensing authorities

For the purposes of this Act the following are licensing authorities—

(a)   

in relation to England—

(i)   

a district council,

15

(ii)   

a county council for a county in which there are no district

councils,

(iii)   

a London borough council,

(iv)   

the Common Council of the City of London, and

 
Bill 1953/4
 
 

Gambling Bill
Part 1 — Interpretation of Key Concepts

2

 

(v)   

the Council of the Isles of Scilly,

(b)   

in relation to Wales—

(i)   

a county council, and

(ii)   

a county borough council, and

(c)   

in relation to Scotland, a licensing board constituted under section 1 of

5

the Licensing (Scotland) Act 1976 (c. 66).

3       

Gambling

In this Act “gambling” means—

(a)   

gaming (within the meaning of section 6),

(b)   

betting (within the meaning of section 9), and

10

(c)   

participating in a lottery (within the meaning of section 14 and subject

to section 15).

4       

Remote gambling

(1)   

In this Act “remote gambling” means gambling in which persons participate by

the use of remote communication.

15

(2)   

In this Act “remote communication” means communication using—

(a)   

the internet,

(b)   

telephone,

(c)   

television,

(d)   

radio, or

20

(e)   

any other kind of electronic or other technology for facilitating

communication.

(3)   

The Secretary of State may by regulations provide that a specified system or

method of communication is or is not to be treated as a form of remote

communication for the purposes of this Act (and subsection (2) is subject to any

25

regulations under this subsection).

5       

Facilities for gambling

(1)   

For the purposes of this Act a person provides facilities for gambling if he—

(a)   

invites others to gamble in accordance with arrangements made by

him,

30

(b)   

provides, operates or administers arrangements for gambling by

others, or

(c)   

participates in the operation or administration of gambling by others.

(2)   

But a person does not provide facilities for gambling for the purposes of this

Act by virtue only of—

35

(a)   

providing an article other than a gaming machine to a person who

intends to use it, or may use it, in the course of any of the activities

mentioned in subsection (1)(a) to (c),

(b)   

providing, otherwise than in the course of providing, operating or

administering arrangements for gambling or participating in the

40

operation or administration of gambling, an article to a person who

intends to use it, or may use it, for gambling, or

(c)   

making facilities for remote communication available for use by—

 
 

Gambling Bill
Part 1 — Interpretation of Key Concepts

3

 

(i)   

persons carrying on any of those activities, or

(ii)   

persons gambling in response to or in accordance with any of

those activities.

(3)   

A person provides facilities for gambling (despite subsection (2)(c)) if—

(a)   

he makes facilities for remote communication available for use, and

5

(b)   

the facilities are adapted or presented in such a way as to facilitate, or

to draw attention to the possibility of, their use for gambling.

Gaming

6       

Gaming & game of chance

(1)   

In this Act “gaming” means playing a game of chance for a prize.

10

(2)   

In this Act “game of chance”—

(a)   

includes—

(i)   

a game that involves both an element of chance and an element

of skill,

(ii)   

a game that involves an element of chance that can be

15

eliminated by superlative skill, and

(iii)   

a game that is presented as involving an element of chance, but

(b)   

does not include a sport.

(3)   

For the purposes of this Act a person plays a game of chance if he participates

in a game of chance—

20

(a)   

whether or not there are other participants in the game, and

(b)   

whether or not a computer generates images or data taken to represent

the actions of other participants in the game.

(4)   

For the purposes of this Act a person plays a game of chance for a prize—

(a)   

if he plays a game of chance and thereby acquires a chance of winning

25

a prize, and

(b)   

whether or not he risks losing anything at the game.

(5)   

In this Act “prize” in relation to gaming (except in the context of a gaming

machine)—

(a)   

means money or money’s worth, and

30

(b)   

includes both a prize provided by a person organising gaming and

winnings of money staked.

(6)   

The Secretary of State may by regulations provide that a specified activity, or

an activity carried on in specified circumstances, is or is not to be treated for the

purposes of this Act as—

35

(a)   

a game;

(b)   

a game of chance;

(c)   

a sport.

7       

Casino

(1)   

For the purposes of this Act a casino is an arrangement whereby people are

40

given an opportunity to participate in one or more casino games.

 
 

Gambling Bill
Part 1 — Interpretation of Key Concepts

4

 

(2)   

In this Act “casino game” means a game of chance which is not equal chance

gaming.

(3)   

But the Secretary of State may by regulations provide that a specified activity,

or an activity carried on in specified circumstances, is to be or not to be treated

as a casino game for the purposes of this Act (and subsection (2) is subject to

5

regulations under this subsection).

(4)   

For the purposes of this section it is immaterial—

(a)   

whether an arrangement is provided on one set of premises or on more

than one;

(b)   

whether an arrangement is provided wholly or partly by means of

10

remote communication.

(5)   

The Secretary of State shall make regulations by reference to which any casino

may be classified as—

(a)   

a regional casino,

(b)   

a large casino,

15

(c)   

a small casino, or

(d)   

below the minimum size for a licensed casino.

(6)   

Regulations under subsection (5) may make provision by reference to—

(a)   

the number of gaming tables used or designated for the playing of

specified casino games or classes of casino game,

20

(b)   

the location of gaming tables used or designated for the playing of

specified casino games or classes of casino game,

(c)   

the concentration of gaming tables used or designated for the playing

of specified casino games or classes of casino game,

(d)   

the floor area used or designated for gaming at tables,

25

(e)   

the floor area used or designated for other forms of gambling,

(f)   

the floor area used or designated for the provision of other facilities,

(g)   

any combination of the matters listed in paragraph (a) to (f), or

(h)   

any other matter.

(7)   

Regulations under subsection (5) may—

30

(a)   

include provision for determining what floor area is to be treated as

being used or designated for a purpose;

(b)   

include provision for determining what activities do or do not amount

to the playing of a specified casino game or class of casino game;

(c)   

include provision for determining what is or is not to be treated as a

35

gaming table (and, in particular, in what circumstances a number of

tables are to be treated as if they were a single gaming table);

(d)   

provide that a gaming table is to be treated as being used or designated

only if specified conditions (which may, in particular, relate to purpose

of use, extent of use or circumstances of use) are satisfied.

40

8       

Equal chance gaming

(1)   

For the purposes of this Act gaming is equal chance gaming if—

(a)   

it does not involve playing or staking against a bank, and

(b)   

the chances are equally favourable to all participants.

(2)   

For the purposes of subsection (1) it is immaterial—

45

 
 

Gambling Bill
Part 1 — Interpretation of Key Concepts

5

 

(a)   

how a bank is described, and

(b)   

whether or not a bank is controlled or administered by a player.

Betting

9       

Betting: general

(1)   

In this Act “betting” means making or accepting a bet on—

5

(a)   

the outcome of a race, competition or other event or process,

(b)   

the likelihood of anything occurring or not occurring, or

(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

10

that—

(a)   

the race, competition, event or process has already occurred or been

completed, and

(b)   

one party to the transaction knows the outcome.

(3)   

A transaction that relates to the likelihood of anything occurring or not

15

occurring may be a bet within the meaning of subsection (1) despite the facts

that—

(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.

20

10      

Spread bets, &c.

(1)   

For the purposes of section 9(1) “bet” does not include a bet the making or

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

25

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.

(3)   

This section is subject to section 37(3).

11      

Betting: prize competitions

(1)   

For the purposes of section 9(1) a person makes a bet (despite the fact that he

30

does not deposit a stake in the normal way of betting) if—

(a)   

he participates in an arrangement in the course of which participants

are required to guess any of the matters specified in section 9(1)(a) to

(c),

(b)   

he is required to pay to participate, and

35

(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

(whether or not wholly by chance).

(2)   

In subsection (1) a reference to guessing includes a reference to predicting

40

using skill or judgment.

 
 

Gambling Bill
Part 1 — Interpretation of Key Concepts

6

 

(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

participate in an arrangement.

(4)   

In subsection (1)(c)(i) “prize” includes any money, articles or services—

(a)   

whether or not described as a prize, and

5

(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.

12      

Pool betting

(1)   

For the purposes of this Act betting is pool betting if made on terms that all or

10

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

(c)   

shall or may be something other than money.

15

(2)   

For the purposes of this Act pool betting is horse-race pool betting if it relates

to horse-racing in Great Britain.

13      

Betting intermediary

(1)   

In this Act “betting intermediary” means a person who provides a service

designed to facilitate the making or acceptance of bets between others.

20

(2)   

For the purposes of this Act acting as a betting intermediary is providing

facilities for betting.

Lottery

14      

Lottery

(1)   

For the purposes of this Act an arrangement is a lottery, irrespective of how it

25

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,

(b)   

in the course of the arrangement one or more prizes are allocated to one

30

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,

(b)   

in the course of the arrangement one or more prizes are allocated to one

35

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 “prize” in relation to lotteries includes any money, articles or

services—

40

(a)   

whether or not described as a prize, and

 
 

Gambling Bill
Part 1 — Interpretation of Key Concepts

7

 

(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.

(5)   

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

5

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

10

that arrangement from doing so.

(6)   

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.

(7)   

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

15

Act; and—

(a)   

the power in this subsection is not constrained by subsections (1) to (6)

or Schedule 2, and

(b)   

regulations under this subsection may amend other provisions of this

section or Schedule 2.

20

15      

National Lottery

(1)   

Entering the National Lottery is not gambling for the purposes of this Act

(despite section 3(c) but subject to subsections (2) to (4) below).

(2)   

Entering the National Lottery is gambling for the purposes of—

(a)   

section 41, and

25

(b)   

section 323.

(3)   

Where entering the National Lottery would also constitute gaming within the

meaning of section 6, it shall be treated as gaming for the purposes of this Act

if and only if a person entering the lottery is required to participate in, or to be

successful in, more than three processes before becoming entitled to a prize.

30

(4)   

Entering the National Lottery shall not be treated as betting for the purposes of

this Act where it would—

(a)   

satisfy the definition of pool betting in section 12, or

(b)   

satisfy the definition of betting in section 9 by virtue of section 11.

(5)   

Schedule 3 shall have effect.

35

Cross-category activities

16      

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.

40

 
 

 
previous section contents continue
 
House of Commons home page Houses of Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 2005
Revised 13 January 2005