National Lottery Bill

House of Commons

Session 2005 - 06
Internet Publications
Other Bills before Parliament

National Lottery Bill

National Lottery Bill
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National Lottery etc. Act 1993: interpretation
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Meaning of “charitable expenditure”
In section 44(1) of the National Lottery etc. Act 1993 (c. 39) (interpretation) for
the definition of “charitable expenditure” substitute—
““charitable”, in relation to expenditure, means expenditure for a
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charitable, benevolent or philanthropic purpose.”
General
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Repeals
The enactments listed in Schedule 3 are hereby repealed to the extent specified.
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Commencement
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(1)
The preceding provisions of this Act, other than sections 6 and 15 and Schedule
1, shall come into force in accordance with provision made by order of the
Secretary of State under this subsection.
(2)
An order under subsection (1)—
(a)
may make transitional or incidental provision,
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(b)
may make different provision for different purposes, and
(c)
shall be made by statutory instrument.
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Extent
This Act extends to Northern Ireland.
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Short title
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This Act may be cited as the National Lottery Act 2005.

National Lottery Bill
Schedule 1 — National Lottery Licensing
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Schedules
Schedule 1
Section 6

National Lottery Licensing
The National Lottery etc. Act 1993 (c. 39)
1
The National Lottery etc. Act 1993 shall be amended as follows.
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2
For section 1 (the National Lottery) substitute—
“1
The National Lottery
(1)
A lottery forms part of the National Lottery if it is promoted in
accordance with a licence under section 5.
(2)
A reference to the National Lottery is a reference to the lotteries
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forming part of the National Lottery in accordance with subsection
(1).”
3
In section 4(3) (overriding duties) for “the sums that are paid to the Secretary
of State by virtue of section 5(6).” substitute “the sums paid into the National
Lottery Distribution Fund under section 5(2)(c).”
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4
For sections 5 and 6 (licence to run the National Lottery and licence to
promote lottery) substitute—
“5
Licence to promote lottery
(1)
The Commission may by licence authorise a person to promote a
lottery.
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(2)
A licence—
(a)
may make provision about any matter connected with the
promotion of a lottery (including, in particular, arrangements
for advertising, for the sale of tickets, for the distribution of
prizes or for compliance with a provision of this Act),
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(b)
may, in particular, require the licensee to—
(i)
obtain in advance the Commission’s approval of the
rules of a lottery, and
(ii)
pay a fee of such amount as may be prescribed by
regulations made by the Secretary of State in respect
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of an application for approval of the rules of a lottery,
(c)
shall include a condition requiring the licensee to pay into the
National Lottery Distribution Fund sums out of the proceeds
of any lottery promoted in reliance on the licence,
(d)
shall include provision for determining—
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(i)
the amount of payments under paragraph (c), and

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Schedule 1 — National Lottery Licensing
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(ii)
the timing of payments under paragraph (c), and
(e)
may include provision requiring the licensee to make
arrangements (which may include payments to the
Commission) for securing the payment of prizes in certain
circumstances.
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(3)
No more than one licence may be issued in relation to any one
lottery; but—
(a)
a licence may relate to one or more specified lotteries or to
lotteries of a specified description,
(b)
a person may hold more than one licence at a time, and
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(c)
a licence may require or permit the holder to make
arrangements with another person for the performance of
specified functions.
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Section 5 licence: procedure
(1)
The Commission may issue a licence under section 5 to a person only
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if—
(a)
he has applied in writing for the licence,
(b)
he has supplied such information or documents in or with the
application as the Commission directs,
(c)
having considered the application the Commission is
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satisfied that the applicant is a suitable person to promote the
lottery or lotteries to which the licence relates, and
(d)
the Commission has complied with any relevant regulations
under section 6A (but this paragraph is subject to section
6A(3)).
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(2)
For the purposes of subsection (1)(c) the Commission may, in
particular, have regard to—
(a)
the integrity of the applicant or of a person relevant to the
application;
(b)
the competence of the applicant or of any person relevant to
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the application;
(c)
the financial and other circumstances of the applicant or of a
person relevant to the application.
(3)
A person is relevant to an application under section 5 for the
purposes of this section if, in particular—
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(a)
he is likely to exercise a function in connection with the
promotion of a lottery in reliance on the licence applied for,
or
(b)
he is likely to have an interest in a lottery promoted in
reliance on the licence applied for.
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6A
Competition for licences
(1)
The Commission may not issue a licence under section 5 unless it has
complied, in relation to the licence, with regulations of the Secretary
of State about inviting competing applications for licences.
(2)
The regulations shall, in particular, make provision—
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Schedule 1 — National Lottery Licensing
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(a)
about the publication of invitations (including provision as to
the manner and timing of publication and the matters to be
published), and
(b)
about the timing of responses.
(3)
Where an application for a licence under section 5 relates to a lottery
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already licensed the Commission may issue the licence without
complying with the regulations (whether or not compliance has
begun) if the Commission thinks it—
(a)
is likely to be in the interests of compliance with the duty
under section 4(2), or
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(b)
is necessary in order to prevent the lapse of the lottery.
(4)
Where a licence is issued in reliance on subsection (3)(b), the period
specified for the duration of the licence under section 7(1A) shall be
no longer than the Commission thinks necessary to enable a further
licence to be issued having complied with the regulations.
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(5)
This section applies to a variation of a licence which expands the
class of authorised activities as it applies to the issue of a licence.
(6)
Before making regulations under subsection (1) the Secretary of State
shall consult the Commission.”
5     (1)
Section 7 (licensing: supplemental) shall be amended as follows.
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      (2)
For subsections (1) and (1A) substitute—
“(1)
A licence under section 5 must be in writing.
(1A)
A licence under section 5 must specify a period during which it has
effect (unless revoked or suspended)—
(a)
beginning with the date of issue, and
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(b)
not exceeding 15 years.”
      (3)
In subsection (1B) for “section 5 or 6” substitute “section 5”.
      (4)
In subsection (2)—
(a)
for “A licence granted under section 5 or 6” substitute “A licence
under section 5”, and
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(b)
for “by section 5 or 6” substitute “by section 5”.
      (5)
After subsection (3) insert—
“(3A)
Conditions under subsection (2), or requirements under subsection
(2)(c), may, in particular, require the holder of a licence under section
5—
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(a)
to provide information in connection with the licensed
activities to—
(i)
the holder of another licence under section 5,
(ii)
a person who is applying, or considering whether to
apply, for a licence under section 5, or
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(iii)
such other person as the condition or requirement
may specify or may enable the Commission to
specify;
(b)
to make facilities in connection with the licensed activities
available to—
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Schedule 1 — National Lottery Licensing
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(i)
the holder of another licence under section 5,
(ii)
a person who is applying, or considering whether to
apply, for a licence under section 5, or
(iii)
such other person as the condition or requirement
may specify or may enable the Commission to
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specify;
(c)
to co-operate with the holder of another licence under section
5 in a specified matter;
(d)
to participate in or co-operate with arrangements designed
for the purposes of—
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(i)
holders of section 5 licences generally, or
(ii)
a class of holders of section 5 licences generally;
(e)
not to enter into an arrangement of a specified kind that
would or might be harmful to the interests of the holder of
another licence under section 5.”
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      (6)
In subsection (4) for “section 5 or 6” substitute “section 5”.
      (7)
In the heading of the section for “sections 5 and 6” substitute “section 5”.
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In section 7A(1) (annual fee) (inserted by section 5 above) for “section 5 or 6”
substitute “section 5”.
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In section 8 (variation of licence conditions)—
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(a)
in subsection (1) for “section 5 or 6” substitute “section 5”, and
(b)
in subsection (3)(b) omit “in the case of a licence granted under
section 5”.
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In section 9 (enforcement of licence conditions)—
(a)
in subsection (1) for “section 5 or 6” substitute “section 5”, and
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(b)
in subsection (3) for “section 5(6)” substitute “section 5(2)(c)”.
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In section 10 (revocation of licence)—
(a)
in subsection (1) for “a fit and proper body to run the National
Lottery.” substitute “a suitable person to promote the lottery or
lotteries to which the licence relates”,
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(b)
omit subsection (2),
(c)
in subsection (3) for “section 5 or 6” substitute “section 5”, and
(d)
in subsection (3A) for “section 5 or 6” substitute “section 5”.
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In section 10A (financial penalties for breach of licence condition)—
(a)
in subsections (1) and (2)(a) for “section 5 or 6” substitute “section 5”,
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and
(b)
in subsection (2)(b) for “paid to the Secretary of State under section
5(6)” substitute “payable under section 5(2)(c)”.
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In section 10C (annual levy) in subsections (1), (3)(a) and (b) and (4) for
“section 5 or 6” substitute “section 5”.
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12
In section 22 (apportionment of National Lottery Distribution Fund: saving)
for “section 5(6)” substitute “section 5(2)(c)”.
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In section 32 (distribution fund: investment) for “section 5(6)” substitute
“section 5(2)(c)”.

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Schedule 1 — National Lottery Licensing
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In Schedule 3 (revocation of licences) for paragraphs 4 and 5 substitute—
“4    (1)
The licensee is not providing or proposing to provide facilities that
are necessary or desirable in connection with the operation of a
lottery.
      (2)
The licensee is not taking or proposing to take steps that are
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necessary or desirable for preventing the commission of fraud by
participants in a lottery.
      (3)
A person who is exercising a function in connection with the
promotion of a lottery is unsuitable.
      (4)
A person who has an interest in a lottery is unsuitable.”
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Other Acts
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For section 115(5)(d) of the Police Act 1997 (c. 50) (enhanced criminal record
certificates) substitute—
“(d)
a licence under section 5 of the National Lottery etc. Act 1993
(c. 39) (licence to promote lottery);”.
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16    (1)
The Horserace Betting and Olympic Lottery Act 2004 (c. 25) shall be
amended as follows.
      (2)
In section 21 (designation of Olympic Lotteries)—
(a)
in subsection (1) for “section 6” substitute “section 5”, and
(b)
subsections (2) and (3) shall cease to have effect.
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      (3)
In section 22(1) (timing) for “section 6” substitute “section 5”.
      (4)
For section 24(1) (payments into Olympic Lottery Distribution Fund)
substitute—
“(1)
Where a sum is required by virtue of section 5(2)(c) of the National
Lottery etc. Act 1993 (c. 39) to be paid into the National Lottery
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Distribution Fund out of proceeds of lotteries promoted in reliance
on a licence, such proportion of that sum as is attributable to
Olympic Lotteries shall be paid instead into the Olympic Lottery
Distribution Fund.”.
      (5)
In section 26(4)(a) (payments out of Olympic Lottery Distribution Fund) for
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“section 5(6)” substitute “section 5(2)(c)”.
      (6)
In section 28(3)(a) (winding up of Olympic Lottery Distribution Fund) for
“section 5(6)” substitute “section 5(2)(c)”.
      (7)
In section 32(3)(a) (distribution of Olympic Lottery Distributor) for “section
5(6)” substitute “section 5(2)(c)”.
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