Gambling Bill

House of Commons

Session 2004 - 05
Internet Publications
Other Bills before Parliament

Gambling Bill

Gambling Bill
Part 5 — Operating Licences
52

(3)
Subject to any express provision made under subsection (2), an operating
licence shall cease to have effect on the making of a forfeiture order under
subsection (1).
(4)
The terms on which a forfeiture order is made under this section shall, in
particular, include a requirement that the licensee deliver to the Commission,
5
within such time as the order may specify—
(a)
the licence, or
(b)
a statement explaining why it is not reasonably practicable to produce
the licence.
(5)
As soon as is reasonably practicable after making an order for forfeiture under
10
this section the court shall notify the Commission.
Regulation
113
Review
(1)
The Commission may in relation to operating licences of a particular
description review—
15
(a)
the manner in which licensees carry on licensed activities, and
(b)
in particular, arrangements made by licensees to ensure compliance
with conditions attached under section 73, 75 or 76.
(2)
The Commission may review any matter connected with the provision of
facilities for gambling as authorised by an operating licence if the
20
Commission—
(a)
has reason to suspect that activities may have been carried on in
purported reliance on the licence but not in accordance with a condition
of the licence,
(b)
believes that the licensee, or a person who exercises a function in
25
connection with or is interested in the licensed activities, has acquired
a conviction of a kind mentioned in section 69(1), or
(c)
for any reason—
(i)
suspects that the licensee may be unsuitable to carry on the
licensed activities, or
30
(ii)
thinks that a review would be appropriate.
(3)
For the purposes of subsection (2)(c) a reason—
(a)
may, in particular, relate to the receipt of a complaint about the
licensee’s activities;
(b)
need not relate to any suspicion or belief about the licensee’s activities.
35
(4)
Before commencing a review of an operating licence under subsection (2) the
Commission shall—
(a)
notify the licensee, and
(b)
inform him of the procedure to be followed in the conduct of the
review.
40
(5)
In conducting a review of an operating licence under subsection (2) the
Commission—
(a)
shall give the licensee an opportunity to make representations, and
(b)
may give other persons an opportunity to make representations.

Gambling Bill
Part 5 — Operating Licences
53

114
Regulatory powers
(1)
Following a review under section 113(1) or (2) the Commission may—
(a)
give the holder of an operating licence a warning;
(b)
attach an additional condition to a licence under section 75;
(c)
remove or amend a condition attached to a licence under section 75;
5
(d)
exercise the power under section 115 to suspend a licence;
(e)
exercise the power under section 116 to revoke a licence;
(f)
exercise the power under section 118 to impose a penalty.
(2)
Where the Commission determines to take action under subsection (1) in
respect of a licence it shall as soon as is reasonably practicable notify the
10
licensee of—
(a)
the action, and
(b)
the Commission’s reasons.
(3)
In determining what action to take under subsection (1) following a review the
Commission may have regard to a warning under that subsection given to the
15
licensee following an earlier review (whether or not of that licence).
115
Suspension
(1)
The Commission may suspend an operating licence if following a review
under section 113(1) or (2) the Commission thinks that any of the conditions
specified in section 117(1) applies.
20
(2)
The Commission may suspend an operating licence if at the time of deciding to
conduct a review under section 113(1) or (2), or at any time during the course
of a review, the Commission suspects that any of the conditions specified in
section 117(1) may apply.
(3)
The Commission may suspend an operating licence if it thinks that any of the
25
conditions specified in section 117(2) applies.
(4)
Where the Commission suspends an operating licence it—
(a)
shall specify the time when the suspension takes effect,
(b)
shall specify either—
(i)
a period for which the suspension shall last (which is without
30
prejudice to the re-exercise of the power under subsection (1) on
or after the expiry of that period), or
(ii)
that the suspension shall last until some specified event occurs
(which may be the giving of a notice by the Commission), and
(c)
may make saving or transitional provision (which may, in particular,
35
provide for a licence to continue to have effect in relation to a gaming
machine supplied, or another thing done, before the time when the
suspension takes effect for other purposes).
(5)
An operating licence shall have no effect in respect of anything done while it is
suspended under this section.
40
116
Revocation
(1)
The Commission may revoke an operating licence if following a review under
section 113(1) or (2) the Commission thinks that any of the conditions specified
in section 117(1) applies.

Gambling Bill
Part 5 — Operating Licences
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(2)
The Commission may revoke an operating licence if it thinks that any of the
conditions specified in section 117(2) applies.
(3)
The Commission shall revoke an operating licence if the licensee fails to pay the
annual fee in accordance with section 97; but the Commission may disapply
this subsection if it thinks that a failure to pay is attributable to administrative
5
error.
(4)
Where the Commission revokes an operating licence it—
(a)
shall specify the time when the revocation takes effect, and
(b)
may make saving or transitional provision (which may, in particular,
provide for a licence to continue to have effect in relation to a gaming
10
machine supplied, or another thing done, before the time when the
revocation takes effect for other purposes).
117
Conditions for suspension or revocation
(1)
The conditions referred to in sections 115(1) and (2) and 116(1) are—
(a)
that a licensed activity is being or has been carried on in a manner
15
which is inconsistent with the licensing objectives,
(b)
that a condition of the licence has been breached,
(c)
that the licensee has failed to cooperate with a review under section
113(1) or (2), or
(d)
that the licensee is unsuitable to carry on the licensed activities.
20
(2)
The conditions referred to in sections 115(3) and 116(2) are—
(a)
that the licensee has failed to comply with a requirement of regulations
under section 98, or
(b)
that the licensee has failed to submit the licence to the Commission for
amendment in accordance with section 102.
25
(3)
In considering a licensee’s suitability for the purpose of subsection (1)(d) the
Commission may, in particular, have regard to—
(a)
the integrity of the licensee or of any person who exercises a function in
connection with or is interested in the licensed activities;
(b)
the competence of the licensee, or of any person who exercises a
30
function in connection with the licensed activities, to carry on the
licensed activities in a manner consistent with pursuit of the licensing
objectives;
(c)
the financial and other circumstances of the licensee or of any person
who exercises a function in connection with or is interested in the
35
licensed activities (and, in particular, the resources available for the
purpose of carrying on the licensed activities).
118
Financial penalty
(1)
The Commission may require the holder of an operating licence to pay a
penalty if the Commission thinks that a condition of the licence has been
40
breached.
(2)
Before imposing a requirement on a licensee to pay a penalty under this section
the Commission must notify him—
(a)
that the Commission proposes to require him to pay a penalty,
(b)
of the amount of the proposed penalty,
45

Gambling Bill
Part 5 — Operating Licences
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(c)
of the Commission’s reasons, and
(d)
of a period within which he may make representations to the
Commission.
(3)
The Commission may not give a notice under subsection (2) in respect of the
breach of a condition after the end of the period of two years beginning with—
5
(a)
the day on which the breach occurred or began to occur, or
(b)
if later, the day on which the breach came to the knowledge of the
Commission.
(4)
After the end of the period specified under subsection (2)(d) the Commission
may give the licensee a notice requiring him to pay a penalty under this section.
10
(5)
A penalty imposed by notice under subsection (4)—
(a)
shall be payable by the licensee to the Commission,
(b)
may be enforced as if it were a debt owed by the licensee to the
Commission, and
(c)
on receipt by the Commission shall be paid into the Consolidated Fund
15
after deduction of a sum which represents the direct costs to the
Commission of, and a reasonable share of expenditure by the
Commission which is indirectly referable to—
(i)
the investigation by the Commission of the matter in respect of
which the penalty is imposed (whether by review under section
20
113 or otherwise), or
(ii)
the imposition and enforcement of the penalty.
(6)
The Commission shall—
(a)
prepare a statement setting out the principles to be applied by the
Commission in exercising the powers under this section,
25
(b)
review the statement from time to time,
(c)
revise the statement when the Commission thinks it necessary,
(d)
as soon as is reasonably practicable—
(i)
send the statement and any revision to the Secretary of State,
and
30
(ii)
publish the statement and any revision, and
(e)
have regard to the statement when exercising a power under this
section.
(7)
The statement maintained under subsection (6) must, in particular, require the
Commission in considering the imposition of a penalty under this section or
35
the amount of a penalty to have regard, in particular, to—
(a)
the seriousness of the breach of condition in respect of which the
penalty is proposed,
(b)
whether or not the licensee knew or ought to have known of the breach,
and
40
(c)
the nature of the licensee (including, in particular, his financial
resources).
(8)
Before preparing or revising a statement under subsection (6) the Commission
shall consult—
(a)
the Secretary of State,
45
(b)
the Lord Chancellor, and
(c)
such other persons as the Commission thinks appropriate.