Gambling Bill

House of Commons

Session 2004 - 05
Internet Publications
Other Bills before Parliament

Gambling Bill

Gambling Bill
Part 11 — Lotteries
111

246
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.
(2)
For the purposes of this Act where prizes are allocated by means of more than
5
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,
and
10
(b)
otherwise, the arrangements for each draw constitute a separate lottery.
247
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—
15
(a)
a member,
(b)
an officer, or
(c)
an employee under a contract of employment.
Offences
248
Promotion of lottery
20
(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
25
(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
30
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),
35
(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 11.
40

Gambling Bill
Part 11 — Lotteries
112

249
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—
5
(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.
10
(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
15
(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,
20
(c)
contains information about how to participate in a specified lottery, or
(d)
lists winners in a specified lottery.
250
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.
25
(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
30
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
35
participate in a lottery (in either case whether or not it also gives other
information).
251
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
40
Schedule 11),

Gambling Bill
Part 11 — Lotteries
113

(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
which this section applies for a purpose other than one for which the lottery is
5
permitted to be promoted in accordance with Schedule 11.
(3)
Subsection (3) of section 250 shall have effect for the purpose of this section as
it has effect for the purpose of that section.
252
Small society lottery: breach of condition
A non-commercial society commits an offence if—
10
(a)
a lottery, purporting to be an exempt lottery under Part 4 of Schedule
11, 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
15
that Schedule, or
(c)
the society provides false or misleading information for the purposes of
paragraph 40 of that Schedule.
253
Penalty
(1)
A person guilty of an offence under this Part shall be liable on summary
20
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
25
have effect as a reference to six months.
Miscellaneous
254
Preventing repetitive play
(1)
The Secretary of State may make regulations—
(a)
requiring the Commission to attach to lottery operating licences under
30
section 73 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 11.
35
(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
40
of lottery or only in relation to specified circumstances;
(b)
provide for exceptions or alternatives;

Gambling Bill
Part 12 — Clubs, pubs, fairs, &c.
114

(c)
apply irrespective of whether a succession of lotteries is promoted by
the same person or by different persons.
255
Exclusion of the National Lottery
The preceding provisions of this Part do not apply to the National Lottery.
General
5
256
Territorial application
(1)
This Part applies to anything done in relation to a lottery—
(a)
in Great Britain, or
(b)
by the provision of, or by means of, remote gambling equipment
situated in Great Britain.
10
(2)
For the purposes of subsection (1) it is immaterial whether the lottery is
promoted wholly or partly—
(a)
elsewhere in the United Kingdom, or
(b)
outside the United Kingdom.
Part 12
15
Clubs, pubs, fairs, &c.
Clubs
257
Members’ club
(1)
In this Act members’ club means a club—
(a)
which is established and conducted wholly or mainly for purposes
20
other than the provision of facilities for gaming (subject to subsection
(2)),
(b)
which is established and conducted for the benefit of its members (and
which is not otherwise established or conducted as a commercial
enterprise),
25
(c)
which is not established with the purpose of functioning only for a
limited period of time, and
(d)
which has at least 25 individual members.
(2)
A club is a members’ club for the purposes of this Act despite subsection (1)(a)
if—
30
(a)
it is established or conducted wholly or mainly for the purpose of the
provision of facilities for gaming of a prescribed kind, and
(b)
facilities are not provided for any other kind of gaming in the course of
the club’s activities.
258
Commercial club
35
(1)
In this Act commercial club means a club—

Gambling Bill
Part 12 — Clubs, pubs, fairs, &c.
115

(a)
which is established and conducted wholly or mainly for purposes
other than the provision of facilities for gaming (subject to subsection
(2)),
(b)
which is not established with the purpose of functioning only for a
limited period of time, and
5
(c)
which has at least 25 individual members.
(2)
A club is a commercial club for the purposes of this Act despite subsection
(1)(a) if—
(a)
it is established or conducted wholly or mainly for the purpose of the
provision of facilities for gaming of a prescribed kind, and
10
(b)
facilities are not provided for any other kind of gaming in the course of
the club’s activities.
259
Miners’ welfare institute
(1)
In this Act miners’ welfare institute means an association—
(a)
which is established and conducted for social and recreational
15
purposes, and
(b)
which satisfies subsection (2) or (4).
(2)
An association satisfies this subsection if its affairs are managed by a group of
individuals of whom at least two thirds are miners’ representatives.
(3)
In subsection (2) “miners’ representative” means a person who—
20
(a)
is nominated or appointed by a person who employs or has employed
individuals in the course of a coal mining business,
(b)
is nominated or appointed by the charitable trust known as the Coal
Industry Social Welfare Organisation,
(c)
is nominated or appointed by an organisation representing persons
25
who are or were employed in connection with coal mining, or
(d)
is or was employed in connection with coal mining;

and the group mentioned in subsection (2) must contain both one or more
persons of a kind specified in paragraph (a) or (b) and one or more persons of
a kind specified in paragraph (c) or (d).
30
(4)
An association satisfies this subsection if—
(a)
it operates on premises the use of which is regulated in accordance with
a charitable trust, and
(b)
the trust has received money from—
(i)
the Miners’ Welfare Fund established by section 20 of the
35
Mining Industry Act 1920 (c. 50),
(ii)
the former body corporate which was known as the Coal
Industry Social Welfare Organisation and incorporated under
the Companies Act 1948 (c. 38), or
(iii)
the charitable trust known as the Coal Industry Social Welfare
40
Organisation.
260
Exempt gaming
(1)
Sections 32 and 36 shall not apply to the provision of facilities for equal chance
gaming which satisfies the conditions of this section by—
(a)
a members’ club,
45

Gambling Bill
Part 12 — Clubs, pubs, fairs, &c.
116

(b)
a commercial club,
(c)
a club that would be a members’ club but for section 257(1)(a),
(d)
a club that would be a commercial club but for section 258(1)(a), or
(e)
a miners’ welfare institute.
(2)
The first condition of gaming for the purposes of subsection (1) is that the
5
arrangements for the gaming satisfy the prescribed requirements (if any) in
relation to—
(a)
amounts that may be staked, or
(b)
the amount or value of a prize.
(3)
The second condition of gaming for the purposes of subsection (1) is that no
10
amount is deducted or levied from sums staked or won.
(4)
The third condition of gaming for the purposes of subsection (1) is that any
participation fee does not exceed such maximum as may be prescribed.
(5)
The fourth condition of gaming for the purposes of subsection (1) is that a game
played on one set of premises is not linked with a game played on another set
15
of premises.
(6)
The fifth condition of gaming for the purposes of subsection (1), which does not
apply to a club of a kind mentioned in subsection (1)(b) or (d), is that each
person who participates—
(a)
is a member of the club or institute who applied for membership, was
20
nominated for membership or became a member, at least 48 hours
before he participates, or
(b)
is a guest of a member of the club or institute who would be entitled to
participate by virtue of paragraph (a).
261
Section 260: supplementary
25
(1)
In section 260(1) a reference to the provision of facilities by a club or institute
includes a reference to any provision of facilities made—
(a)
on behalf of or by arrangement with the club or institute, and
(b)
in the course of its activities.
(2)
In section 260(3) the reference to a deduction or levy in respect of gaming
30
provided by, on behalf of or by arrangement with a club or institute is to a
deduction or levy made by or on behalf of—
(a)
the club or institute, or
(b)
a person providing facilities for gaming on behalf of, or by arrangement
with, the club or institute.
35
(3)
Regulations prescribing a maximum charge for the purposes of section 260(4)
may, in particular—
(a)
make different provision for different classes of club or institute;
(b)
make provision depending on whether a club or institute holds a club
gaming permit;
40
(c)
make different provision for different classes or descriptions of game;
(d)
make different provision for different classes or descriptions of fee.
(4)
For the purposes of section 260(5) two games are linked if—
(a)
the result of one game is or may be wholly or partly determined by
reference to the result of the other game, or
45

Gambling Bill
Part 12 — Clubs, pubs, fairs, &c.
117

(b)
the amount of winnings available in one game is or may be wholly or
partly determined by reference to the amount of participation in the
other game;

and if a single game is played partly on one set of premises and partly on
another it shall be treated as two linked games.
5
(5)
For the purposes of section 260(6) a person shall not be treated as the guest of
a member if the member extends an invitation—
(a)
having had no previous acquaintance with the person, and
(b)
for the purpose only of enabling the person to take advantage of
facilities for gaming provided by or for the club or institute.
10
262
Club gaming permit
(1)
Sections 32, 36 and 232 shall not apply to the provision of facilities for gaming
in accordance with a club gaming permit.
(2)
A club gaming permit is a permit issued by a licensing authority authorising
the provision of facilities for gaming—
15
(a)
on premises on which a members’ club or a miners’ welfare institute
operates, and
(b)
in the course of the activities of the club or institute.
(3)
A club gaming permit shall, by virtue of this section, authorise—
(a)
making up to three gaming machines available for use, each of which
20
must be of Category B, C or D,
(b)
the provision of facilities for gaming which satisfies the conditions in
section 260 except for the first condition, and
(c)
the provision of facilities for games of chance, of such class or
description as may be prescribed, in accordance with the conditions
25
specified in subsection (4).
(4)
Those conditions are—
(a)
that no participation fee is charged otherwise than in accordance with
regulations (which may make provision about the circumstances in
which a fee may be charged and about the amount of a fee),
30
(b)
that no amount is deducted or levied from sums staked or won
otherwise than in accordance with regulations (which may make
provision about the circumstances in which an amount may be
deducted or levied, about the amount of the deduction or levy and
about the method by which the amount is determined),
35
(c)
that the public is excluded from any area of the club’s or institute’s
premises where gaming is taking place, and
(d)
that children and young persons are excluded from any area of the
club’s or institute’s premises where gaming is taking place.
(5)
A club gaming permit shall, by virtue of this subsection, be subject to the
40
condition that each person who participates in gaming in reliance on the
permit—
(a)
is a member of the club or institute who applied for membership, was
nominated for membership or became a member, at least 48 hours
before he participates, or
45
(b)
is a guest of a member of the club or institute who would be entitled to
participate by virtue of paragraph (a).