Gambling Bill

House of Commons

Session 2004 - 05
Internet Publications
Other Bills before Parliament

Gambling Bill

Gambling Bill
Part 5 — Operating Licences
45

Maintenance
97
Annual fee
(1)
The holder of an operating licence—
(a)
shall pay a first annual fee to the Commission within such period after
the issue of the licence as may be prescribed, and
5
(b)
shall pay an annual fee to the Commission before each anniversary of
the issue of the licence.
(2)
In this section—
“annual fee” means a fee of such amount as may be prescribed, and
“prescribed” means prescribed by the Secretary of State by regulations.
10
(3)
Regulations under this section may, in particular, make different provision
for—
(a)
different kinds of operating licence, or
(b)
different circumstances.
(4)
Subsection (1)(b) does not apply in relation to an anniversary of the issue of a
15
licence on or immediately before which the licence ceases to have effect by
virtue of section 108.
98
Change of circumstance
(1)
The Secretary of State may make regulations requiring the holder of an
operating licence—
20
(a)
to notify the Commission of any change of circumstance of a prescribed
kind in relation to him or to a licensed activity, and
(b)
to give the Commission prescribed details of the change.
(2)
If a change of circumstance notified under subsection (1) falsifies information
contained in the operating licence in accordance with section 64 the notification
25
must be accompanied by—
(a)
the licence, or
(b)
an application to the Commission for the issue of a copy of the licence
under section 104.
(3)
Where notification is accompanied by the licence, the Commission shall—
30
(a)
make such alteration to the information contained in the licence as
appears to it to be required by the change in circumstance, and
(b)
return the licence to the licensee.
(4)
Where the notification is accompanied by an application for a copy of the
licence, the Commission shall, if it grants the application, issue the copy in a
35
form which appears to the Commission to reflect the change in circumstance.
(5)
In this section “prescribed” means prescribed by regulations under this section.
(6)
The holder of an operating licence commits an offence if he fails without
reasonable excuse to comply with regulations under this section.
(7)
A person guilty of an offence under subsection (6) shall be liable on summary
40
conviction to a fine not exceeding level 2 on the standard scale.

Gambling Bill
Part 5 — Operating Licences
46

(8)
This section does not prevent the imposition of a requirement to notify the
Commission of a specified change of circumstance by way of the attachment of
a condition to an operating licence.
99
Change of corporate control
(1)
This section applies where the holder of an operating licence is a company
5
limited by shares (“the company”).
(2)
If a person becomes a controller of the company (“the new controller”), within
the meaning of section 422 of the Financial Services and Markets Act 2000 (c. 8),
the company shall inform the Commission and either—
(a)
surrender the operating licence under section 110, or
10
(b)
apply to the Commission under this section for a determination that the
operating licence shall continue to have effect.
(3)
An application under subsection (2)(b) must be accompanied by such
information as the Commission may direct about—
(a)
the new controller,
15
(b)
his interest in the company, and
(c)
his interest in any company of which the company is a subsidiary
(within the meaning of section 736 of the Companies Act 1985 (c. 6)).
(4)
On considering an application under section (2)(b) the Commission shall—
(a)
make the determination sought, if satisfied that the Commission would
20
have granted the operating licence to the licensee had the new
controller been a controller of the company when the application for the
operating licence was made, and
(b)
otherwise, revoke the operating licence.
(5)
If the Commission becomes aware that a company has failed to comply with
25
the duty under subsection (2) within the period of five weeks beginning with
the day on which the duty began to apply to the company, the Commission
shall revoke the relevant operating licence.
(6)
But the Commission may extend the period under subsection (5)—
(a)
before it expires, or
30
(b)
after it expires (if the relevant operating licence has not yet been
revoked).
100
Section 99: supplemental
(1)
The Secretary of State may by regulations provide for section 99 not to apply to
the holder of a specified description of operating licence.
35
(2)
An application under section 99(2)(b) must be accompanied by the prescribed
fee.
(3)
An application may be made under section 99(2)(b) in respect of a person who
is expected to become a controller of a company.
(4)
The Commission shall as soon as is reasonably practicable inform an applicant
40
under section 99(2)(b) of—
(a)
the Commission’s decision, and
(b)
the reasons for it.

Gambling Bill
Part 5 — Operating Licences
47

(5)
In giving a direction under section 99(3) the Commission shall have regard to
normal commercial practices in relation to the confidentiality of information.
(6)
Regulations under subsection (2) above may, in particular, provide for a
reduction of fee where the application is a result of—
(a)
the merger of more than one company, or
5
(b)
the division of a company.
(7)
Revocation of an operating licence under section 99 shall be treated for all
purposes (including the application of section 116) as revocation under section
116.
101
Application to vary licence
10
(1)
The holder of an operating licence may apply to the Commission to vary the
licence by—
(a)
adding, amending or removing a licensed activity,
(b)
amending another detail of the licence, or
(c)
adding, amending or removing a condition attached to the licence
15
under section 75.
(2)
A licence may not be varied under this section so as to authorise anyone other
than the person to whom it was issued to provide facilities for gambling.
(3)
The provisions of this Part shall apply in relation to an application for variation
as they apply in relation to an application for a licence—
20
(a)
subject to the provisions of this section, and
(b)
with any other necessary modifications.
(4)
Regulations under this Part which relate to an application for an operating
licence may make—
(a)
provision which applies only in the case of an application for variation;
25
(b)
provision which does not apply in the case of an application for
variation;
(c)
different provision in relation to an application for variation from that
made in relation to an application for an operating licence;
(d)
different provision in relation to applications for variations of different
30
kinds.
(5)
An application for variation must (in addition to anything required by section
67) be accompanied by—
(a)
a statement of the variation sought, and
(b)
either—
35
(i)
the licence to be varied, or
(ii)
a statement explaining why it is not reasonably practicable to
produce the licence.
(6)
In granting an application for variation the Commission—
(a)
shall specify a time when the variation shall begin to have effect, and
40
(b)
may make transitional provision.

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Part 5 — Operating Licences
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102
Amendment
(1)
The Commission may require the holder of an operating licence to submit it to
the Commission for the purpose of amendment to reflect—
(a)
a general variation of conditions under section 73,
(b)
a change notified under section 98,
5
(c)
the grant of an application for variation under section 101,
(d)
the attachment of an additional condition, or the amendment of a
condition, under section 114,
(e)
the grant of an application for renewal under section 109, or
(f)
anything done in relation to a personal licence under Part 6.
10
(2)
A licensee shall comply with a requirement under subsection (1) within the
period of 14 days beginning with the day on which he receives notice of the
requirement.
(3)
A person commits an offence if he fails without reasonable excuse to comply
with a requirement imposed under subsection (1).
15
(4)
A person guilty of an offence under subsection (3) shall be liable on summary
conviction to a fine not exceeding level 2 on the standard scale.
(5)
Subsection (1)(a) is without prejudice to section 74(4)(c).
103
Register of operating licences
(1)
The Commission shall—
20
(a)
maintain a register of operating licences containing such details of and
relating to each licence as the Commission thinks appropriate,
(b)
make the register available for inspection by members of the public at
all reasonable times, and
(c)
make arrangements for the provision of a copy of an entry in the
25
register to a member of the public on request.
(2)
The Commission may refuse to provide access to the register or to provide a
copy of an entry unless the person seeking access or a copy pays a fee specified
by the Commission.
(3)
The Commission may not specify a fee under subsection (2) which exceeds the
30
reasonable cost of providing the service sought (but in calculating the cost of
providing a service to a person the Commission may include a reasonable
share of expenditure which is referable only indirectly to the provision of that
service).
104
Copy of licence
35
(1)
The Commission may make arrangements to issue to a licensee on request a
copy of an operating licence which has been lost, stolen or damaged.
(2)
The arrangements may, in particular, include a requirement—
(a)
for the payment of a fee not exceeding such sum as may be prescribed
for the purposes of this subsection by the Secretary of State by
40
regulations;
(b)
in the case of a licence being lost or stolen, that the licensee has
complied with specified arrangements for reporting the loss or theft to
the police.

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Part 5 — Operating Licences
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(3)
A copy of a licence issued under this section shall be treated as if it were the
licence.
105
Production of licence
(1)
A constable or enforcement officer may require the holder of an operating
licence to produce it to the constable or enforcement officer within a specified
5
period.
(2)
A licensee commits an offence if he fails without reasonable excuse to comply
with a requirement under subsection (1).
(3)
A person guilty of an offence under subsection (2) shall be liable on summary
conviction to a fine not exceeding level 2 on the standard scale.
10
106
Conviction
(1)
If the holder of an operating licence is convicted of an offence by or before a
court in Great Britain he shall as soon as is reasonably practicable notify the
Commission of—
(a)
his conviction, and
15
(b)
any sentence passed in respect of it.
(2)
If the holder of an operating licence is convicted of a relevant offence by or
before a court in Great Britain he shall immediately inform the court that he is
the holder of an operating licence.
(3)
If the holder of an operating licence is convicted of a relevant offence by or
20
before a court outside Great Britain he shall as soon as is reasonably practicable
notify the Commission of—
(a)
his conviction, and
(b)
any sentence passed in respect of it.
(4)
A person commits an offence if he fails without reasonable excuse to comply
25
with any of subsections (1) to (3).
(5)
A person guilty of an offence under subsection (4) shall be liable on summary
conviction to a fine not exceeding level 2 on the standard scale.
Duration
107
Indefinite duration
30
An operating licence shall continue to have effect unless and until it ceases to
have effect in accordance with—
(a)
a determination under section 108, or
(b)
section 110, 111, 112, 115 or 116.
108
Power to limit duration
35
(1)
The Commission may determine that operating licences, or a specified class of
operating licence, shall cease to have effect at the end of a specified period
(unless terminated earlier in accordance with section 110, 111, 112 or 116).
(2)
The period specified under subsection (1)—

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Part 5 — Operating Licences
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(a)
in the case of an operating licence issued after the determination, must
begin with the date on which the licence is issued, and
(b)
in the case of an operating licence issued before the determination,
must begin with the date of the determination.
(3)
The Commission—
5
(a)
may determine different periods under subsection (1) for operating
licences authorising different classes of activity (but may not otherwise
determine different periods for different licences),
(b)
may alter a determination under subsection (1) (but an alteration shall
have effect only in relation to licences issued after the alteration), and
10
(c)
may revoke a determination under subsection (1) (in which case the
determination shall cease to have effect in relation to licences already
issued).
(4)
The Commission shall publish any determination under subsection (1) as part
of a statement (or revised statement) under section 23.
15
109
Renewal of licence
(1)
Where an operating licence is subject to a determination under section 108, the
licensee may apply to the Commission for renewal of the licence.
(2)
The provisions of this Part shall apply in relation to an application for renewal
as they apply in relation to an application for a licence—
20
(a)
subject to the provisions of this section, and
(b)
with any other necessary modifications.
(3)
An application for renewal of an operating licence may be made only during
the period which—
(a)
begins three months before the date on which the licence would
25
otherwise expire by virtue of section 108, and
(b)
ends one month before the date on which the licence would otherwise
expire by virtue of that section.
(4)
Where an application for renewal of an operating licence is awaiting
determination on the date when it would expire by virtue of section 108, the
30
licence shall continue to have effect by virtue of this subsection until the
application is determined (unless it ceases to have effect by virtue of section
110, 111, 112, 115 or 116).
(5)
A direction or regulations under this Part which relate to an application for an
operating licence may make—
35
(a)
provision which applies only in the case of an application for renewal;
(b)
provision which does not apply in the case of an application for
renewal;
(c)
different provision in relation to an application for renewal from that
made in relation to an application for an operating licence.
40
(6)
An application for renewal must (in addition to anything required by section
67) be accompanied by—
(a)
the licence to be renewed, or
(b)
a statement explaining why it is not reasonably practicable to submit
the licence to be renewed.
45

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Part 5 — Operating Licences
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(7)
The Commission shall determine the period during which a renewed
operating licence is to have effect (subject to sections 110, 111, 112, 115 and 116);
and the Commission—
(a)
may determine different periods for operating licences authorising
different classes of activity (but may not otherwise determine different
5
periods for different licences),
(b)
may alter a determination (but an alteration shall have effect only in
relation to licences issued after the alteration), and
(c)
shall publish any determination under this subsection as part of a
statement (or revised statement) under section 23.
10
(8)
The Secretary of State may by order amend subsection (3) so as to substitute a
different time for a time specified.
110
Surrender
An operating licence shall cease to have effect if the licensee—
(a)
notifies the Commission of his intention to surrender the licence, and
15
(b)
gives the Commission either—
(i)
the licence, or
(ii)
a written statement explaining why it is not reasonably
practicable to produce the licence.
111
Lapse
20
(1)
In the case of an operating licence issued to an individual, the licence shall
lapse if—
(a)
the licensee dies,
(b)
the licensee becomes, in the opinion of the Commission as notified to
the licensee, incapable of carrying on the licensed activities by reason of
25
mental or physical incapacity,
(c)
the licensee becomes bankrupt (within the meaning of section 381 of the
Insolvency Act 1986 (c. 45)), or
(d)
sequestration of the licensee’s estate is awarded under section 12(1) of
the Bankruptcy (Scotland) Act 1985 (c. 66).
30
(2)
In any other case an operating licence shall lapse if the licensee—
(a)
ceases to exist, or
(b)
goes into liquidation (within the meaning of section 247(2) of the
Insolvency Act 1986.
112
Forfeiture
35
(1)
Where the holder of an operating licence is convicted of a relevant offence by
or before a court in Great Britain the court may order forfeiture of the licence.
(2)
Forfeiture under this section shall be on such terms (which may include terms
as to suspension) as may be specified by—
(a)
the court which orders forfeiture,
40
(b)
a court to which an appeal against the conviction, or against any order
made on the conviction, has been or could be made, or
(c)
the High Court, if hearing proceedings relating to the conviction.