Memorandum from the Department for Culture,
Media and Sport
ORDER 2002 (S.I. 2002/637)
ORDER 2002 (S.I. 2002/639)
2002 (S.I. 2002/640)
ORDER 2002 (S.I. 2002/642)
1. This memorandum describes the reasons for the
changes in the fees described in these Orders.
2. The Orders will enable the costs of administering
the controls on gaming and lotteries to be met by income from
fees. The Gaming Board and the Department for Culture, Media and
Sport review fees every year.
3. The Board estimates that the full cost of gaming
and lottery controls in the financial year 2002/2003 will be in
the order of £4.4 million. The figures include a 2.6% inflation
increase. This is 6% higher than predicted income this year.
4. The National Audit Office published a study of
the Gaming Board in June 2000. Its conclusions were endorsed by
the Public Accounts Committee of the House of Commons which published
a report on the Board on 16 November 2000. They called for the
elimination of cross subsidies among various sectors of the gaming
industry and lotteries. The different statutory services must
be treated separately and fees for each are set to recover its
estimated full cost.
5. This was achieved last year and the fees for 2002/2003
have been calculated in line with the NAO and PAC recommendations.
6. The Gaming Act (Variation of Fees) Orders cover
fees for the bingo industry, the casino industry, gaming machines
and registered clubs. The fees in these Orders are calculated
on the basis that each of these sectors will meet its own cost.
There will be an increase in income from all sectors. The largest
sectoral increase is in bingo. Increases in club registration
fees are marginal, giving a reduction in real terms.
7. The fee for the certificate of approval which
the Board issues to staff in the casino, and bingo industries
will rise by 9%. The certificate procedure is designed to ensure
that those who work on the gaming floor and /or manage such employees
are fit and proper to act in that capacity. The fees reflect the
anticipated cost of this work during the financial year 2002/2003.
The National Bingo Game
8. The Gaming (Bingo) Act (Fees) Order 2002 covers
fees payable to the Gaming Board by the organisers of multiple
bingo (often called "the National Game"). The fees are
substantial and are increased this year by 10%.
9. The Lotteries (Gaming Board Fees) Order 2002 covers
fees payable to the Gaming Board by the organisers of charity
and other lotteries (except the National Lottery). The fees pay
for propriety and audit checks by the Board, acting as a guarantee
to the public that lotteries are run properly and fairly.
10. Fees paid by the society lottery sector need
to rise by 16% to cover the costs by the Board. The fee for registration
of a Lottery manager will rise by 61%. This is for the one-off
initial cost to companies of registering with the Board to operate
society and charity lotteries at a profit on their behalf.