Gambling Bill

House of Commons

Session 2004 - 05
Internet Publications
Other Bills before Parliament

Gambling Bill

Gambling Bill
Part 18 — Miscellaneous and General
155

347
Short title
This Act may be cited as the Gambling Act 2005.

156
Gambling Bill
Schedule 1 — Betting: Prize Competitions: Definition of Payment to Enter

Schedules
Schedule 1
Section 11

Betting: Prize Competitions: Definition of Payment to Enter
Introduction
1
This Schedule makes provision about the circumstances in which a person is
5
to be or not to be treated for the purposes of section 11(1)(b) as being
required to pay to participate in an arrangement.
Meaning of payment
2
For the purposes of section 11 and this Schedule a reference to paying
includes a reference to—
10
(a)
paying money,
(b)
transferring money’s worth, and
(c)
paying for goods or services at a price or rate which reflects the
opportunity to participate in an arrangement under which a
participant may win a prize.
15
3
It is immaterial for the purposes of section 11 and this Schedule—
(a)
to whom a payment is made, and
(b)
who receives benefit from a payment.
4
It is also immaterial for the purposes of section 11 and this Schedule whether
a person knows when he makes a payment that he thereby participates in an
20
arrangement as a result of which he may win a prize.
Stamps, telephone calls, &c.
5     (1)
For the purposes of section 11 and this Schedule a reference to paying does
not include a reference to incurring the expense, at a normal rate, of—
(a)
sending a letter by ordinary post,
25
(b)
making a telephone call, or
(c)
using any other method of communication.
      (2)
For the purpose of sub-paragraph (1)—
(a)
a “normal rate” is a rate which does not reflect the opportunity to
participate in an arrangement under which a person may win a
30
prize, and
(b)
ordinary post means ordinary first-class or second-class post
(without special arrangements for delivery).

Gambling Bill
Schedule 2 — Lotteries: Definition of Payment to Enter
157

Payment to discover whether prize won
6
For the purposes of section 11 and this Schedule a requirement to pay in
order to discover whether a prize has been won under an arrangement shall
be treated as a requirement to pay to participate in the arrangement.
Payment to claim prize
5
7
For the purposes of section 11 and this Schedule a requirement to pay in
order to take possession of a prize which a person has or may have won
under an arrangement shall be treated as a requirement to pay to participate
in the arrangement.
Choice of free entry
10
8     (1)
For the purposes of section 11 and this Schedule an arrangement shall not be
treated as requiring a person to pay to participate if under the
arrangement—
(a)
each person who is eligible to participate has a choice whether to
participate by paying or by sending a communication,
15
(b)
the communication mentioned in paragraph (a) may be—
(i)
a letter sent by ordinary post, or
(ii)
another method of communication which is neither more
expensive nor less convenient than participating by paying,
(c)
the choice is publicised in such a way as to be likely to come to the
20
attention of each person who proposes to participate, and
(d)
the system for allocating prizes does not differentiate between those
who participate by paying and those who participate by sending a
communication.
      (2)
In this paragraph “ordinary post” has the meaning given by paragraph
25
5(2)(b).
Power to make regulations
9
The Secretary of State may make regulations providing that an activity of a
specified kind or performed in specified circumstances is to be or not to be
treated for the purposes of section 11 as paying to participate in an
30
arrangement.
Schedule 2
Section 14

Lotteries: Definition of Payment to Enter
Introduction
1
This Schedule makes provision about the circumstances in which an
35
arrangement is to be or not to be treated for the purposes of section 14 as
requiring persons to pay in order to participate in an arrangement.

Gambling Bill
Schedule 2 — Lotteries: Definition of Payment to Enter
158

Meaning of payment
2
For the purposes of section 14 and this Schedule a reference to paying
includes a reference to—
(a)
paying money,
(b)
transferring money’s worth, and
5
(c)
paying for goods or services at a price or rate which reflects the
opportunity to participate in an arrangement.
3
It is immaterial for the purposes of section 14 and this Schedule—
(a)
to whom a payment is made, and
(b)
who receives benefit from a payment.
10
4
It is also immaterial for the purposes of section 14 and this Schedule whether
a person knows when he makes a payment that he thereby participates in an
arrangement.
Stamps, telephone calls, &c.
5     (1)
For the purposes of section 14 and this Schedule a reference to paying does
15
not include a reference to incurring the expense, at a normal rate, of—
(a)
sending a letter by ordinary post,
(b)
making a telephone call, or
(c)
using any other method of communication.
      (2)
For the purpose of sub-paragraph (1)—
20
(a)
a “normal rate” is a rate which does not reflect the opportunity to
enter a lottery, and
(b)
ordinary post means ordinary first-class or second-class post
(without special arrangements for delivery).
Payment to discover whether prize won
25
6
For the purposes of section 14 and this Schedule a requirement to pay in
order to discover whether a prize has been won under an arrangement shall
be treated as a requirement to pay in order to participate in the arrangement.
Payment to claim prize
7
For the purposes of section 14 and this Schedule a requirement to pay in
30
order to take possession of a prize which has or may have been allocated to
a person under an arrangement shall be treated as a requirement to pay in
order to participate in the arrangement.
Choice of free entry
8     (1)
For the purposes of section 14 and this Schedule an arrangement shall not be
35
treated as requiring persons to pay in order to participate if under the
arrangement—
(a)
each individual who is eligible to participate has a choice whether to
participate by paying or by sending a communication,
(b)
the communication mentioned in paragraph (a) may be—
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(i)
a letter sent by ordinary post, or

Gambling Bill
Schedule 4 — The Gambling Commission
159

(ii)
another method of communication which is neither more
expensive nor less convenient than entering the lottery by
paying,
(c)
the choice is publicised in such a way as to be likely to come to the
attention of each individual who proposes to participate, and
5
(d)
the system for allocating prizes does not differentiate between those
who participate by paying and those who participate by sending a
communication.
      (2)
In this paragraph “ordinary post” has the meaning given by paragraph
5(2)(b).
10
Power to make regulations
9
Regulations under section 14(8) may, in particular, provide that an activity
of a specified kind or performed in specified circumstances is to be or not to
be treated as paying to enter a lottery.
Schedule 3
15
Section 15

Amendment of National Lottery etc. Act 1993 (c. 39)
Consultation with Gambling Commission
1
After section 4 of the National Lottery etc. Act 1993 (c. 39) (overriding duties)
insert—
“4A
Consultation with Gambling Commission
20
(1)
If in the course of the exercise of its functions the National Lottery
Commission becomes aware of a matter about which the Gambling
Commission is likely to have an opinion, the National Lottery
Commission shall consult the Gambling Commission.
(2)
The National Lottery Commission shall comply with any direction of
25
the Secretary of State (which may be general or specific) to consult
the Gambling Commission.”
Definition of “lottery”
2
In section 20 of the National Lottery etc. Act 1993 (interpretation) after the
definition of “contravention” insert—
30
“lottery” has the same meaning as in the Gambling Act 2005;”.
Schedule 4
Section 20

The Gambling Commission
Constitution
1
The Gambling Commission shall consist of a chairman and other
35
commissioners appointed by the Secretary of State.

Gambling Bill
Schedule 4 — The Gambling Commission
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Tenure
2     (1)
A commissioner shall hold and vacate office in accordance with the terms of
his appointment (subject to this Schedule).
      (2)
A commissioner may resign by notice in writing to the Secretary of State.
      (3)
If the Secretary of State thinks that a commissioner is unable, unfit or
5
unwilling to perform his functions, the Secretary of State may dismiss the
commissioner.
3
The chairman—
(a)
shall hold and vacate office in accordance with the terms of his
appointment (subject to this Schedule),
10
(b)
may resign by notice in writing to the Secretary of State, and
(c)
shall cease to be chairman if he ceases to be a commissioner.
4
The Secretary of State may not appoint a person as commissioner—
(a)
for a period of more than five years, or
(b)
for periods (whether or not consecutive) exceeding ten years in
15
aggregate.
Staff
5     (1)
The Commission may, with the Secretary of State’s consent as to terms and
conditions of employment, appoint a chief executive.
      (2)
A person—
20
(a)
may hold appointment both as the chief executive and as a
commissioner, but
(b)
may not hold appointment both as the chief executive and as the
chairman.
      (3)
Where a person holds appointment both as the chief executive and as a
25
commissioner, if he ceases to be the chief executive he shall cease to be a
commissioner.
6
The Commission may, with the Secretary of State’s consent as to terms and
conditions of employment, appoint other staff.
Proceedings
30
7
The Commission shall—
(a)
determine arrangements for the conduct of its proceedings (which
may, in particular, include arrangements for a quorum), and
(b)
publish those arrangements.
8     (1)
The Commission may delegate a function to—
35
(a)
a commissioner,
(b)
a committee consisting of commissioners, or
(c)
an employee of the Commission.
      (2)
Sub-paragraph (1) applies to any function of the Commission including, in
particular—
40
(a)
a discretionary function;
(b)
the function of conducting a review;

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Schedule 4 — The Gambling Commission
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(c)
the function of determining whether to revoke a licence or of
determining whether to impose a requirement to pay a penalty.
Money
9
The Commission may, with the consent of the Secretary of State, pay to or in
respect of a commissioner or employee sums by way of or in respect of—
5
(a)
remuneration;
(b)
allowances;
(c)
expenses;
(d)
pension;
(e)
gratuity.
10
10
The Secretary of State may make payments to the Commission for the
purpose of enabling the Commission to meet such of its expenses as cannot
be met out of fees paid to the Commission under this Act.
11
The Commission may, with the consent of the Secretary of State, borrow
money.
15
12
The Commission may pay money into the Consolidated Fund.
13
The Commission shall keep accounting records in such form as the Secretary
of State may direct.
14    (1)
The Commission shall prepare a statement of accounts for each financial
year in such form as the Secretary of State may direct.
20
      (2)
The Commission shall send a copy of a statement of accounts under sub-
paragraph (1) to—
(a)
the Secretary of State, and
(b)
the Comptroller and Auditor General.
      (3)
The Commission must comply with sub-paragraph (2) within such period,
25
beginning with the end of the financial year to which the accounts relate, as
the Secretary of State may specify.
      (4)
The Comptroller and Auditor General shall—
(a)
examine a statement sent to him under sub-paragraph (2),
(b)
report on it, and
30
(c)
lay a copy of his report before Parliament.
15    (1)
The financial year of the Commission shall be the period of 12 months
ending with 31st March.
      (2)
But the first financial year of the Commission shall be the period—
(a)
beginning with the commencement of section 20, and
35
(b)
ending with the following 31st March.
Annual report
16    (1)
As soon as is reasonably practicable after the end of each financial year the
Commission shall send to the Secretary of State a report about the activities
of the Commission during the year.
40
      (2)
Where the Secretary of State receives a report under sub-paragraph (1)—
(a)
he shall lay a copy before Parliament, and