Gambling Bill

House of Commons

Session 2004 - 05
Internet Publications
Other Bills before Parliament

Gambling Bill

Gambling Bill
Part 5 — Operating Licences
40

91
Pool betting operating licence
(1)
A pool 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—
(a)
by the licensee,
(b)
by a person employed by the licensee under a written contract of
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employment,
(c)
by the holder of another pool betting operating licence, or
(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—
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(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
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(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
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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)—
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(a)
shall be treated for the purposes of section 32 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
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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 73, 75 or 76) may make provision regulating or restricting the activities
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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 73, 75 or 76.
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(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.

Gambling Bill
Part 5 — Operating Licences
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92
Horse-race pool betting operating licence
(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.
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(3)
An authorisation under subsection (2) shall be treated for the purposes of
section 32 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—
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(a)
provision for payment to or by the person issuing the authorisation;
(b)
provision for agency or commission.
(5)
A condition of a pool betting operating licence to which this section applies
(whether attached by virtue of section 73, 75 or 76) may make provision
regulating or restricting the activities of persons authorised under subsection
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(2).
(6)
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.
(7)
The effect of the term implied by subsection (6) may not be disapplied or
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restricted by a condition attached under section 73, 75 or 76.
(8)
The Secretary of State may by order repeal this section.
93
Gaming machine technical operating licence
(1)
The Commission may establish, or provide for the establishment of, standards
in respect of the manufacture, supply, installation, adaptation, maintenance or
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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
regulations under Part 10.
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(3)
In particular, the Commission may—
(a)
provide for the enforcement of standards by the attachment of
conditions under section 73 or 75;
(b)
make arrangements with any person for the establishment of
standards;
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(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 73 or
75 has been complied with, require the holder of a gaming machine
technical operating licence—
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(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;

Gambling Bill
Part 5 — Operating Licences
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(e)
for the purpose of considering whether to grant an application under
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
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(ii)
to produce specified evidence of the result of the test.
(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 73, 75 and 76.
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94
Standards
(1)
The Commission may establish, or provide for the establishment of, standards
in respect of the manufacture, supply, installation or adaptation of gambling
software.
(2)
In particular, the Commission may—
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(a)
provide for the enforcement of standards by the attachment of
conditions under section 73 or 75;
(b)
make arrangements with any person for the establishment of
standards;
(c)
make arrangements with any person for the administration of tests of
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compliance with standards;
(d)
for the purpose of considering whether a condition under section 73 or
75 has been complied with, require the holder of a gambling software
operating licence—
(i)
to submit to a test in accordance with arrangements made under
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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
this Part, require the holder of or an applicant for a gambling software
operating licence—
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(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.
(3)
Standards established under subsection (2) may, in particular, be expressed—
(a)
by reference to the opinion of a specified person or class of persons;
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(b)
by reference to a specified process or description of software.
(4)
This section is without prejudice to the generality of sections 73, 75, or 76.
95
Lottery operating licences
(1)
A lottery operating licence may be issued only to—
(a)
a non-commercial society,
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(b)
a local authority, or
(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—

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Part 5 — Operating Licences
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(a)
promotion generally or only specified promoting activities;
(b)
the promotion of lotteries generally or only the promotion of lotteries
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”).
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(3)
In issuing a lottery operating licence to a society or authority the
Commission—
(a)
may attach a condition under section 73 or 75 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
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(b)
may, if they attach a condition under paragraph (a), issue the lottery
licence to the society or authority without consideration of the matters
specified in section 68(1)(b).
(4)
A lottery operating licence shall, by virtue of this subsection, permit the
delivery of lottery tickets by post.
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(5)
The effect of the term implied by subsection (4) may not be disapplied or
restricted by a condition attached under section 73, 75 or 76.
(6)
In issuing a lottery operating licence the Commission may attach a condition
under section 73 or 75 preventing, restricting or controlling the use of a
rollover.
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(7)
In this section “local authority” means—
(a)
in relation to England—
(i)
a district council,
(ii)
a county council for a county in which there are no district
councils,
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(iii)
a parish council,
(iv)
a London borough council,
(v)
the Common Council of the City of London, and
(vi)
the Council of the Isles of Scilly,
(b)
in relation to Wales—
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(i)
a county council,
(ii)
a county borough council, and
(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).
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96
Mandatory conditions of lottery operating licence
(1)
In issuing a lottery operating licence to a non-commercial society or to a local
authority the Commission shall attach conditions under section 73 or 75 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
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promoted in reliance on the licence are applied—
(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.
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Part 5 — Operating Licences
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(3)
The second requirement is that—
(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.
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(4)
The third requirement is that it must not be possible for the purchaser of a
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
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(b)
if more, 10% of the proceeds of the lottery;

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,
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(b)
must identify the promoting society,
(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.
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(6)
The fifth requirement is that the price payable for each ticket in any lottery
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
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the ticket or any right in respect of membership of the class among
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
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ticket).
(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
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95(3)(a) requiring arrangements for the lottery to be made by the holder
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.
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(9)
Nothing in this section prevents the Commission from attaching a condition to
a lottery operating licence of a kind similar to but more onerous than a
requirement of this section.
(10)
The Secretary of State may by order vary a monetary amount or a percentage
in this section.
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