BRITISH AMUSEMENT CATERING TRADES ASSOCIATION
(BACTA)
WRITTEN EVIDENCE TO THE JOINT SCRUTINY
COMMITTEE ON THE GAMBLING BILL
10 DECEMBER 2003
1. Introduction
BACTA represents Britain's pay to play gaming and
amusement machine industry and has over 650 members covering the
entire supply chain from manufacturing, through distribution and
including retail premises. There are approximately 410,000 gaming
and amusement machines in the marketplace sited in pubs, clubs,
Bingo Halls, seaside amusements, adult gaming centres, Bookmakers,
casinos and many other premises. The industry employs circa 22,000
people directly and many others indirectly throughout the UK.
BACTA supports the vision for a modern regulatory
system for the gambling industry but cannot fully support the
Bill in its current iteration because it fails to achieve the
necessary balance of safeguards anticipated by "A Safe Bet
for Success", and will not only damage a healthy existing
gaming and entertainment industry, but could also damage the British
economy. Also, many important sections including local government
guidelines and statutory codes of practice are missing.
2. General concerns:
2.1 Fairness and Equity:
"A Safe Bet for Success" stated that "in
the interests of fairness and efficiency" a new system was
required. BACTA welcomes a market driven approach coupled with
the necessary social controls. But we believe that opportunities
and controls should be applied equally between the market sectors
and not, as is currently being proposed, only favour the new emerging
sectors (large casinos and remote gambling). Many of the existing
traditional machine market sectors (seaside amusements, adult
gaming centres, pubs, bingo etc) are facing restrictions relating
to machine numbers, stakes and prizes, whilst the new sectors
(casinos and remote) will be able to offer a multiplicity of gaming
products with virtually unlimited stakes and prizes.
Remedy: see points 2.2(b) to 2.12 below.
2.2 Social and Economic Consequences of the
Bill:
a) Problem Gambling:
The existing gaming industry has evolved successfully
and responsibly over many years and the current measured regime
is key to the relatively low levels of problem gambling experienced
in the UK. The 0.6% to 0.8% quoted in the 2001 prevalence study
is one of the lowest rates in the world.
The Bill imposes insufficient restriction upon the
expansion of the new style casinos producing a very real risk
of over-supply to the market in the short to medium terms. The
recently published NERA Report, based upon research from the USA
and Australia into casino gaming predicts a figure of 1 million
problem gamblers in the UK as a result of the likely increase
in the number of casinos once the Bill becomes law.
b) Economic Impacts:
We make the general observation that the machines
industry is currently subject to a major taxation review the results
of which are not yet available, adding to the uncertainty for
the industry.
Seaside Resorts:
New style casino resort complexes will be so vastly
superior in terms of size, range of product offering etc that
new and existing visitors will naturally gravitate towards these
'emporia', inevitably risking the destruction of much of the existing
seaside economy. Resort and large casinos will be adult gambling
environments providing scant impetus for social and tourism led
regeneration.
Town/city centres:
Casino operators will site the new casinos on the
edge of prosperous towns rather than the areas needing urban regeneration.
These large casinos sited on the outskirts of towns and cities
have the ability to transform the night-time economy of local
town centres. Food, drink, entertainment and several forms of
gambling under one roof (betting, bingo, gaming table and machines)
could herald the demise of city centre businesses including adult
gaming centres, clubs, pubs, restaurants and bingo halls, in exactly
the same way that large out of town supermarkets have damaged
the vibrancy of town centres for retailing.
Remedy: Follow a cautious
approach and allow a phased introduction of a limited number of
new style resort and large casinos within a controlled number
of designated areas where a clear economic and social benefit
is deemed likely. This compromise would allow this exciting new
product to be market tested in the UK without risking the potentially
disastrous social and economic consequences illustrated above.
2.3 Grandfather Rights
The Bill does not include measures reflecting the
assurances given by Lord McIntosh in his speech to the BACTA Convention
2003 that the existing industry would not be endangered. In most
cases the future of these businesses (whether they be seaside
amusements, adult gaming centres or machines being operated in
public houses) could be left to the discretion of Local Authorities
which may unilaterally decide not to grant permits to businesses
that may have been operating for generations and there is no right
of appeal. This would be totally unacceptable to BACTA and we
seek confirmation that the final draft will incorporate these
matters.
Remedy: Grant 'grandfather
rights' to existing businesses in perpetuity, providing
they operate within all relevant legislation and codes of conduct.
2.4 Traditional seaside businesses
FEC's/Category D machines. The Bill allows a discretion
to introduce an age restriction for Category D machines by means
of secondary legislation*. Such a move would appear likely to
'wipe-out' the seaside entertainments industry. There are no grounds
for this measure as our research (ORB) has shown. This potential
change will make future investment in the industry an unrealistic
prospect. This position is totally unacceptable to BACTA as it
will significantly affect many members who have for many years
provided much needed investment into the coastal resorts.
* The draft currently contains wide discretion for
the introduction of many restrictions which would fundamentally
undermine the industry and appear not to be the subject of consultation.
Remedy: Remove the enabling
clause, allowing an age restriction for Category D machines only
through Primary Legislation with full consultation, should evidence
from research prove that change is required.
2.5 Stakes and Prizes
a) The Bill reduces stakes and prizes for Section
34 machines from 30 pence stake/ £8 prize to 10 pence stake/
£5 prize with the exception of cranes (and predominantly
skill ticket redemption machines), which will be allowed to retain
the 30 pence stake. In the case of the latter machines paying
out only non-monetary prizes BACTA believes that it is illogical
to allow the stake to remain at the same level (30p) but reduce
the prize from £8 to £5. This will erode established
customer value. BACTA believes that there is a good case for operating
non-monetary prize machines on a marginally higher stake and prize
tier. The ORB survey shows strong customer support for the existing
Family Entertainment product.
Remedy: Allow Category
D machines paying out non-replayable, non-monetary prizes to operate
on 30 pence stake/ £8 prize.
b) 'Trading Up'. The practice of saving individual
prizes won from, for example, a crane machine and trading them
in/exchanging them for a larger prize is known as 'trading up'.
A test case in the 1990's established it as a legitimate practise.
The DCMS and the Gaming Board have consistently stated that this
issue will not be revisited, but, on page 36 of the Policy document,
paragraph 4.54, crane machines on 30 pence appear to be prohibited
from paying out exchangeable prizes.
Remedy: Amend policy to
allow machines in this category to pay out non-money and non-replayable
prizes and prizes that may be exchangeable (but not for money).
2.6 Pub Machine Numbers and guidelines for
siting
The Bill leaves the pub sector very vulnerable. BACTA
and many other trade associations believe that Pubs should be
allowed a minimum of 4 machines by right so that they are protected
against the uncertain approach of some Local Authority decisions
(as contemplated by "A Safe Bet for Success") but also
so that they can keep pace with development in the market. This
would also avoid the post bill administrative nightmare of some
11,000 pubs currently with 2 to 4 machines having to apply for
special permits. At the present time there are no agreed guidelines
for the siting of machines. There is no evidence of problems currently
existing, and it would therefore be inequitable and unnecessary
for pub customers to be disadvantaged by either a change in the
way in which machines are sited, or a restriction on machine numbers
in Pubs.
The illogicality of just 2 Category 'C' machines
by right in pubs is further demonstrated by the fact that other
premises where alcohol is served and children can be present,
like clubs, are to be allowed 3 Category 'B' jackpot machines.
Remedy: Grant pubs a minimum
of 4 machines by right, and agree sensible guidelines for
machine siting in line with current practices.
2.7 Fixed Odds Betting Machines
Fixed Odds Betting Machines (FOBM's). In a recent
agreement between the Bookmakers, the DCMS and the Gaming Board
betting shops have been given the right to operate up to 4 machines
per shop with stakes of up to £100 and prizes of up £500.
In "A Safe Bet for Success" the DCMS established the
principle that AGC's and Bookmakers should be entitled to operate
the same tier of machine types, either Category B or C. The recent
agreement with FOBM's goes completely against this principle,
and hugely disadvantages AGC's and Bingo Halls.
This agreement gives Bookmakers a massive immediate
and ongoing advantage over the other providers of machine gambling
on the high street, notably AGC's and Bingo Halls. BACTA members
have for the past 18 months adhered to the Gaming Board's repeated
request not to aid the proliferation of FOBM's whilst the Gaming
Board pursued its court case to establish the definition of FOBM's
as gaming machines. Whilst the Gaming Board still state that they
believe FOBM's to be gaming machines they have decided to suspend
their case and clarify the position via the new Gambling Act.
The net effect of this is that the number of FOBM's on the high
street could well double to over 20,000 before the new Bill becomes
law.
Adult Gaming Centres and Bingo Halls sited within
close proximity of bookmakers have seen their machines turnover
decline substantially since the introduction of these machines.
Proliferation at the scale now envisaged could well prove terminal
for some BACTA members.
Remedy: We understand
that the position following the Bill will be that FOBM's will
be defined in the new Act as Category 'B'+ and AGC's, Bingo Halls
and Bookmakers will have the same entitlement to machine numbers,
stakes and prizes. This will achieve the principle of product
parity between these outlets applied within the Government's White
paper.
Pre the Bill becoming law
BACTA has concerns regarding the current situation
and for information purposes we advise the Joint Committee that
we believe this inequality of stake and prize levels should be
addressed in the industry's Triennial Review to reflect the following
stakes and prizes as soon as possible, ie. before the Bill becomes
law:
Stake Prize
Section 34(1) (No changes
until new Act)
Post new Act 10p £5 monetary
prize
30p £8
non-monetary prize
Section 34(5(e)) £1 £50
Section 31 £5 £500
club
£1000
bingo
` £2000
casinos
Section 16 £1 £50
cash prize
Note: The stake prize ratios being proposed are at
a minimum ratio of 50 to 1 which compares with 5:1 for FOBM's.
2.8 Licensing Requirements/Costs
To date we do not know precisely the combination
of licences that will be required in any given outlet (personal,
operating, premises etc), but are deeply concerned that the potential
requirement for excessive categories of personal licenses will
be operationally invidious. Further, the Gaming Board has efficiently
administered the current regulatory regime minimising costs and
we fear that the proposed changes via the Gambling Commission
and Local Authority licenses will represent an inordinate, unwarranted,
and costly bureaucracy.
Remedy : To identify licensing
requirements and costs without delay so that businesses can plan
accordingly and ensure that costs are properly attributed to those
industry sectors benefiting from the new regime.
2.9 Powers of the Secretary of State, Gambling
Commission and Local Authorities
We are seeking to ensure that the present well-structured
and clear operational environment is retained to protect the current
industry and encourage forward investment. The safeguards identified
in "A Safe Bet for Success" (including guidance and
advice which Local Authorities should be obliged to follow) are
enshrined in the new regulatory scheme and to have as much as
possible included in the Act to prevent arbitrary or inconsistent
applications of the legislation. Where there is such a lack of
detail or objective criteria, then those who fall within the legislation
will be uncertain when their action might lead to criminal liability,
infringing the HRA and the ECOHR.
Remedy: To define powers
very precisely, including via the Gambling Commission, the statutory
guidelines and role of the Local Authorities.
2.10 Code of Practice
BACTA has worked with the Gaming Board for many years
in developing voluntary Codes of Practice. We seek confirmation
that the recently updated Codes will form the basis of the proposed
Statutory Codes for machines.
2.11 GICT
BACTA remains concerned that GICT payments, which
are included within its Codes as a condition of membership, should
form a mandatory part of the 'fit and proper' test guidelines
to be passed to Local Authorities.
2.12 Machine Testing
BACTA fully supports the need for new standards of
testing and protocols to be devised for Category 'A' machines.
The draft Bill appears to offer the possibility that the existing
successful testing regime agreed with the Gaming Board for Category
B/C/D machines could also be subject to change, contrary to previous
assurances by The Gaming Board and DCMS. This would be undesirable
as the additional unnecessary bureaucracy could impede investment
in and speed of product innovation and development.
3. Summary/Conclusions:
Whilst welcoming the principle of change to the UK
gambling laws, BACTA has grave concerns regarding some of the
measures proposed in the new Bill and therefore cannot fully support
the Bill in its current iteration. BACTA does not believe that
the Bill treats existing businesses in the market with fairness
and equity and neither does it believe that the Bill, as written,
takes sufficient account of the economic and social consequences
it could trigger.
With so much of the detail of the proposed regulation
yet to be released or to be covered in unwritten secondary legislation,
it is impossible to see the full extent of the Bill and its ramifications.
This severely prejudices the ability to conduct a full and effective
scrutiny process and for BACTA to make complete and thorough comment.
Finally, we are unaware of any Government led independent
study of the social and economic impact of the Bill. BACTA advise
the Joint Committee that it has recently commissioned a significant
piece of market research through the Henley Centre that attempts
to address the economic and social impact of the Bill across the
gambling market. This research (hereby incorporated by reference)
is scheduled to be completed by the end of January when it will
be made available to the Joint Committee.
BACTA would welcome the opportunity to meet with
the Joint Committee to discuss this response, the Henley Centre
Research Study and any other matters at the Joint Committee's
convenience.
Note: BACTA's detailed submission (together
with background information) to be made available to the Joint
Committee prior to 18 December 2003 is hereby incorporated by
reference.
1. ANNOTATED DRAFT GAMBLING BILL -
The Policy
In addition to BACTA's written evidence dated 10th
December 2003 ("Evidence") BACTA wishes to make the
following supplementary observations in respect of documents comprising
the Draft Policy Bill ("the Bill") referring to the
following documents seriatim 1) The Policy, 2) The Bill, 3) Regulatory
Impact Assessment.
Extracts are noted in bold followed as applicable
by BACTA comments, and are made in the order in which they have
been presented rather than in a hierarchy of importance.
THE POLICY
Foreword from the Secretary of State
Pg.2
Gambling machines will not invade normal
social spaces
COMMENT: We submit that 'Grandfather Rights' must
be enshrined in the legislation to avoid injustice to current
businesses. (Evidence para 2.3)
Pg. 3
The Gambling Commission will monitor the social
impact of gambling, advising the Government on the scope for further
liberalisation, or the need for tougher controls.
COMMENT: We submit that the methodology and metrics
for evaluation should be identified to prevent arbitrary exercise
of power. (Evidence para 2.9)
I will publish the remaining clauses early
in 2004,…
COMMENT: We express concern that the scrutiny process
might fail to fully consider the comments of stakeholders with
the concomitant failure to achieve an effective consultation process.
Chapter 1: Summary of proposals
Pg. 5
…arrangements for Scotland
COMMENT: We are concerned that there leaves insufficient
time for consultation
Licensing objectives
COMMENT: We submit that the objectives must not be
drawn so widely that they are incapable of being achieved.
fair and open way
COMMENT: We submit that "fair" should include
promotion of a competitive trading environment for premises dealing
with equivalent consumers.
Licensing gambling
The Commission will issue operating licences for
commercial gambling. It will also issue personal licences to individuals
performing specified functions.
COMMENT: We express concern that it remains unclear
who will require operating and/or personal licences. (Evidence
para 2.8)
..adult gaming centre operators, gaming machine
manufacturers and suppliers..
COMMENT: We seek clarification regarding FEC's, pubs
etc and other outlets with over 18 years machines?
Pg. 6
The Commission will have power to attach conditions
to licences. It will also issue codes of practice that may explain
ways in which conditions might be satisfied
COMMENT: We submit that these are fundamental to
the legislative framework and should be available for scrutiny.
In addition grandfather rights must be protected and the type
and scope of conditions closely defined to prevent injustice by
inconsistent application. (Evidence para 2.3, 2.9, 2.10)
The Bill proposes a modernised set of gambling
offences, including a revised offence of cheating.
COMMENT; Such a fundamental definition requires extensive
consultation and it is not currently available.
Licensing gambling premises
the three objectives
COMMENT: See our previous comments I relation to
licensing objectives.
The Gambling Commission will issue guidance to
local authorities on the exercise of their powers under the Act.
Authorities will be required to have regard to this guidance.
COMMENT: To safeguard arbitrary applications as set
out in "A Safe Bet", this guidance must be unambiguous
and mandatory (Evidence para 2.9)
Where gambling can take place
Regional Planning Bodies
COMMENT: Role and powers should be strictly defined.
We request that limits be placed upon density of gaming premises
within a defined area i.e. limits the number of casinos. (Evidence
para 2.2)
Pg.7
Protecting children and the vulnerable
The Gambling Commission will issue codes of practice
on social responsibility describing ways in which operators may
ensure such provision.
COMMENT: We have negotiated codes of practice in
consultation with DCMS and the Gaming Board and believe that these
codes should become the statutory codes of practice. The legal
status of the codes and compliance must be strictly defined in
terms of remedy for breach and consequences of partial breach.
Some employment of under 18s in gambling premises
will be permitted
COMMENT: It is important that current legal practice
of operators of Family Entertainment Centres allows employment
of under 18's where appropriate.
These powers will be used if the gambling industry
does not contribute sufficient funds to its won charitable trust.
COMMENT: The standards by which "sufficient
funds" will be judged must be clearly specified or a mechanism
defined to establish an appropriate metric. In addition we would
expect the primary beneficiaries of the liberalisation to bear
the costs of any increase in problem gambling. (Evidence para
2.2)
Pg. 8
Gaming machines
Children will only be permitted to use amusement
machines with the lowest stakes and prizes
COMMENT; We note that a 30p stake/£5 prize applies
to cranes, and note our comments in relation to grandfather rights
and redemption. (Evidence para 2.5)
Betting offices, bingo premises and betting tracks
will be permitted to house a limited number of 'Category B' gaming
machines (with prizes up to £500).
COMMENT: How does the presence of Fixed Odds Betting
Machines effect this statement. We assume that premises other
than betting offices will be permitted such machines to prevent
betting offices from having an inequitable competitive advantage.
(Evidence para 2.7)
Pg. 12
Securing economic benefits for their area
COMMENT: We submit that initially there should be
some guidance to ensure that economic regeneration is encouraged
while not undermining traditional businesses.
The Gambling Review Body
It has already taken action on those that that
do not require primary legislation and which can be taken forward
without upsetting the balance of regulation or distorting competition.
COMMENT: We submit that without the safeguards set
out in "A Safe Bet" to control local authority discretion
competition will indeed be distorted. We also note that the current
arrangements in relation to FOBM's has had the effect of precisely
such a distortion. (Evidence para 2.7)
Aims of reform
2.12
The Bill therefore proposes continuing restrictions
on some products and new prohibitions on products that have developed
more recently and present severe risks to the consumer.
COMMENT: How will such risks be monitored and what
safeguards will be set in place to prevent partial or inconsistent
future regulation.
Pg.13
Chapter 3: The new system of regulation
The Gambling Commission
3.2
guided by its three licensing objectives
COMMENT: See our comments previously in relation
to the licensing objectives
3.3
Commission cannot act in an arbitrary
fashion
COMMENT: As noted in "A Safe Bet" clear
guidelines must be set down and must be mandatory to obviate inconsistent
regulation.
3.7
Application fees and annual renewal fees will
be set by the Secretary of State in secondary legislation, and
will vary according to the type of gambling conducted pursuant
to the licence.
COMMENT: We note the discussion regarding the fees
during the passage of the Licensing Bill in the House of Lords
and submit that the fees should be subject to consultation.
Pg 14
3.8
Certain gambling activities….. regulated
entirely by local authorities
COMMENT: We presume that this comment applies to
FEC's without designated areas. We refer to our comments in relation
to local authority discretion. (Evidence para 2.9)
Operating licences
3.11
It is essential that grandfather rights are protected
in perpetuity and any ability to impose additional conditions
is strictly controlled. (Evidence para 2.3)
Pg. 15
3.15
A betting operator wishing to provide bingo would
be in the same position. The draft Bill provides, however, that
in general different types of commercial gambling may not be mixed
on the same premises - the main exception to this is casinos.
COMMENT: We request that AGC's be able to apply for
betting licences to avoid an anti-competitive consequence.
3.18
Commission may determine different lesser periods.
COMMENT: On what basis will such a determination
be made in order to provide certainty there must be clear criteria
for granting, renewing and revocation.
Pg. 16
Flexibility - licence conditions and codes of
practice
3.20
Many of the details of entitlements attaching
to operating licences will be alterable through secondary legislation,
if the need for such amendment arises. The Commission may also
use licence conditions and codes of practice to react to changing
regulatory risks.
COMMENT: What safeguards will be in place to ensure
that grandfather rights are preserved and discretion is regulated
to avoid arbitrary application.
(Evidence para 2.3, 2.9)
3.21
those that apply to a particular licence holder.
On what basis could an individual holder be subject
to individual conditions On what basis should such conditions
be permitted.
3.22
A condition could limit the scope of gambling
that an operator may conduct by, for example, reference to the
number of places that the operator can provide gambling. They
might also concern the type of facilities provided at each place,
the number of staff employed or the financial resources available
for the gambling operation.
COMMENT: We express our deep concern that the clear
mandatory guidelines contemplated by "A Safe Bet" have
not been included. Surely such safeguards and powers are a concatenation
depending upon their mutual existence to be effective.
Pg. 17
3.25
It will be a matter for the Commission's discretion
whether to issue codes of practice.
COMMENT: We seek a clear statement of the legal status
of the codes and the remedy for breech in order that an operator
can understand the penalties for non compliance within the HRA
and ECOHR. (Evidence para 2.10)
3.27
The Secretary of State will set licence fees following
advice from the Commission. Work is presently underway to determine
the likely levels of fees.
COMMENT: We submit that this will fundamentally affect
business decisions and should be the subject of consultation.
Services provided to licensees
3.28
Enforcement action against licensed operators
and personnel in breach of regulations or licence conditions or
against those operating illegal gambling.
COMMENT: Under the principle of "user pays"
this should not form part of the licence fee general regime.
Pg. 18
3.31
The Commission will publish a policy statement
setting out the principles it will apply in exercising its licensing
and regulatory functions.
COMMENT: This is a vital document and should be available
for consultation and scrutiny.
3.32
No person will be granted an operating or personal
licence until s/he has passed this most rigorous assessment.
COMMENT: it is crucial that grandfather rights are
not prejudiced.
(Evidence para 2.3)
3.33
It will make such decisions having regard to the
evidence gathered and the licensing objectives.
COMMENT: The criteria must be clearly set out in
compliance with "A Safe Bet" and HRA/ECOHR.
3.35
and whether general conditions remain sufficient
to achieve the licensing objectives.
COMMENT: What metric will be used to determine whether
a variation is required and how will safeguards be incorporated
to prevent fundamental changes without consultation.
Pg. 19
Enforcement action - sanctions and offences
3.39
The Commission may revoke a licence following
a review if it thinks that a gambling activity is being carried
on in a way that is inconsistent with the licensing objectives.
COMMENT: This is an extremely wide provision and
will be required to be drawn with certainty to avoid infringement
of HRA and ECOHR.
3.41
the draft Bill sets no limit on the amount of
financial penalty that can be imposed.
COMMENT: Will guidance be provided to prevent abuse
of this provision.
Pg. 20
Who will need a personal licence?
Requirements for personal licensing will be incorporated
into conditions of the relevant operating licence.
COMMENT: We seek absolute clarity and provisions
available for consultancy and scrutiny.
Pg. 21
3.49
provides the Secretary of State with power to
prescribe by secondary legislation that certain small gambling
operations will not require personal licences.
This is critical for BACTA members as it could fundamentally
affect the operation of hundreds of businesses. We seek clarification
without delay.
Pg. 22
Gambling Commission accountability
3.58
the appellants would be able to appeal to the
Gambling Appeals Tribunal
COMMENT: Powers of the Commission to grant or withhold
licences must be clear on the face of the legislation.
3.61
There will also be full rights of appeal against
the decisions of local authorities on premises licences.
COMMENT; We assume that full rights refers to appeals
through County and High Courts on matters of law and fact.
Pg. 23
Licensing gambling premises - the role
of local authorities
3.62
The Bill will therefore transfer full responsibility
for licensing of premises to local licensing authorities.
3.64
The Government also believes that it is appropriate
to set some limits on the discretion of local authorities in exercising
their functions under the Act.
We note the clear recommendations contained in "A
Safe Bet" and seek mandatory guidelines for local authorities
to ensure impartial consistent application.
The new system
3.66
Operating licence holders will also be able to
apply to an authority for a provisional statement prior to the
construction of new premises.
This must be a clear commitment to the Licence Holder
to grant a licence if certain works are undertaken if investment
is to be made.
3.67
..Bill limits local authorities to consideration
of the gambling licensing objectives, guidance from the Commission
and its own licensing policy.
We express concern that without clear mandatory guidelines
to local authorities this provision might in effect distort competition
and effect a scheme contrary to the legislative scheme and without
consultation.
3.69
local authorities to publish, every three years
and following appropriate consultation, a statement of licensing
policy and procedures.
What safeguards will be introduced to prevent fundamental
changes How will this work in practice if the new licensing policy
can fundamentally require a change in a business that has operated
completely legally for the previous 3 years?
3.71
Rights of appeal will be available with respect
to all licensing authority decisions.
We assume that the agreed route will be to the High
Court on matters of law and fact.
3.72
The draft Bill gives the Secretary of State (and,
in Scotland, the Scottish Executive) power to set mandatory and
standard conditions to be attached to premises licences. Local
authorities will be permitted to vary standard but not mandatory
conditions.
Again we do not understand why mandatory guidelines
are not imposed on authorities in order to provide certainty to
applicants.
Pg. 27
Chapter 4: Controlling the evolution of gambling
opportunities
4.3
Government has adopted a policy of caution
BACTA agrees with this position and believes that
the Government would usefully adopt measures to ensure that this
is executed in practice in particular by reference to expansion
of resort or large style casinos. (Evidence para 2.2)
4.4
if there is evidence that a particular aspect
of liberalisation has lead to a significant or disproportionately
large increase in the level of problem gambling, or to other negative
effects upon particular communities.
How will such evidence be gathered and how will we
ensure that methodology and results are sufficiently robust to
justify any actions being taken without appropriate consultation.
Pg. 29
4.14
But we think that it will be important, to ensure
that deregulation takes place in a controlled and balanced way,
that casinos (of any size) while free to install gaming machines
with no fixed prize limits, are not able to link them to machines
on other premises to create progressive jackpots.
We submit that a cautious approach should be adopted
as suggested in BACTA's summary paper. We further suggest that
it would be equitable to allow a similar linking of machines in
other adult premises. (Evidence para 2.2)
Pg 31
4.28
interfering with the outcome of an event on which
betting takes place with the intention of securing financial advantage
We note that financial advantage is not the sole
motivation for cheating and suggest that such offence be widely
drafted.
Pg. 32
Fixed odds betting machines
4.34
betting offices will be permitted to install up
to four gaming machines with prizes up to £500.
We submit that the same machine must be available
to other similar environments ie AGC's and Bingo Halls. (Evidence
para 2.7)
Pg. 33
Linked and multiple bingo
4.39
We will remove the limits on linked and multiple
games and the need for a special licence. The standard bingo operating
licence will permit these activities. Bingo premises and casinos
will both be able to operate bingo rollovers, taking money from
players' stakes in one bingo game to add to the prize pool in
another. Rollovers will not be permitted in pubs, clubs, arcades
or other venues.
We note this provision and seek an even playing field
for these other venues.
Bingo in pubs and clubs
4.42
The regulatory arrangements for bingo in pubs
and clubs will be set out in further draft clauses, to be published
as soon as possible.
We express concern that the clauses are not yet available
for comment and ask how the scrutiny process can be said to be
full and effective when the clauses are unavailable.
Pg. 35
Gaming machines
4.52
Commission will take account not only of market
conditions but also of research and other evidence of the potential
effects in terms of problem gambling.
We repeat our previous comments regarding research.
4.53
Over the last decade, the Gaming Board has carried
out a formal review of gaming machine limits every three years.
The Gambling Commission may well wish to reach a similar arrangement,
and the Government would favour that.
COMMENT; It might be that a more frequent review
will be required to take into consideration the changes emanating
from the changes in legislation.
| Category | Location
| Limits |
| A | Casinos only
| Unlimited stakes and prizes - may be linked within the casino to create potential large jackpots
|
| B | Bingo premises, betting offices, adult gaming centres (up to four each), or registered club (up to three each)
| Maximum stake £1; maximum prize £500, or £250 in a registered club
|
| C | Bingo premises, betting offices, adult gaming centres, adult only areas of family entertainment centres, pubs and other premises with an alcohol on-licence
We seek confirmation of how designated areas in motorway services will be treated
| Maximum stake 50p;
Maximum prize £5
|
| D | Family entertainment centres (including seaside arcades, bowling alleys, motorway services and theme parks) and other non-gambling outlets such as cafes, fish and chip shops, takeaways, cab offices, etc
| Maximum stake 10p; maximum prize £5 (Where the machine pays out non-money, non-exchangeable prizes the maximum stake will be 30p - intended to cover 'crane' machines.
COMMENT: Note that this seems to suggest that 'trading up' is not permitted. We seek confirmation that the ability to "trade up" is not affected.
|
Arcades
4.55
Unlicensed Family Entertainment Centres without an adults-only
area will be able to have gaming machines in Category D only.
These machines will require permits from the licensing authority,
but no operating licence or premises licence.
COMMENT: Please confirm which 'permits' will be required from
the licensing authority.
Permits and licences
4.56
The draft Bill requires every gaming machine to be covered
by either a permit or a licence. An operation licence or a premises
licence will cover machines in gambling premises. Gaming machines
in non-gambling premises licence (members' clubs, family entertainment
centres without an adults-only area, cafes, fish and chip shops,
takeaways, etc.) - will require a machine permit issued by local
licensing authorities, of which there will be different types.
COMMENT; What if anything will pubs and Bingo Halls need beyond
their own licences?
Manufacture and supply
4.57
those who carry out any of these activities in relation to
parts of machines that control the gambling function.
COMMENT; We urgently seek clarification of this provision as this
could potentially require every premises to require 4 personal
licences. (Evidence para 2.8)
Chapter 5: The impact of change on the high street
Pg 42
5.9
A café or other business without an alcohol licence
will be able, as now, to have a machine with a top cash prize
of £5 (a Category D machine).
Clarification required in relation to motorway service areas.
Casinos
5.11
Government does not wish to revive any moral objection to gambling
in public policy, it does seem fair that it keeps in mind the
overall character of town centres, and the balance of facilities
available.
See BACTA's general submission. (Evidence para 2.2)
Pg 43
5.16
Regional Planning Bodies will set out planning policies for
leisure developments of regional significance, including casinos,
which identify suitable locations within the region that would
optimise their contribution to tourism and regeneration.
See BACTA's general comments (Evidence para 2.2)
Pg 44
5.18
The Government will bring forward, as soon as possible, an
assessment of the views offered and will make any further development
of its policy. The Government will also publish a supplement to
the Regulatory Impact Assessment published with the draft Bill,
assessing any impact on competition.
COMMENT: We seek clarification regarding methodology for this
assessment.
Chapter 6: Protecting consumers, children and the vulnerable
Pg. 47
Credit and Inducements
6.12
The draft Bill will make provision to continue the prohibition
on the offering of credit at casino and bingo premises. It is
the view of the Government that these prohibitions have been successful.
The Bill will also maintain the prohibition on the use of credit
cards in gaming machines and also lottery vending machines.
COMMENT; We ask for confirmation that the remaining payment method
elements of the deregulation under RRO (machines) will be introduced
in the new Bill for all cash AWP's.
Pg. 49
6.20
Therefore we propose that control of inducements, other than
those prohibited by in the Bill, be addressed by conditions attaching
to operating licences. Commission codes of practice may also address
the issue.
COMMENT: We seek assurance that there will be adequate consultation.
(Evidence para 2.8)
Should the risks to the customers become more immediate, the
Government will retain the option of imposing a general condition
on operating licences that would have the effect of prohibiting
all inducements to gamble. The Government will bring forward draft
clauses on these issues as soon as possible.
COMMENT: We seek clarification of the methodology of making such
assessment and of the metric to be used.
Protecting children
Pg. 50
6.25
The draft Bill proposes, therefore, a general minimum age of
18 employment in relation to the provision of facilities for gambling,
except in relation to lotteries and football pool competitions
where anyone aged 16 or over may be involved in the sale of tickets
or the collection of coupons
6.26
The draft Bill also provides for a number of exceptions with
respect to employment on gambling premises.
Those aged 16 over may be employed in a bingo club (other than
those operating under a club gaming permit) and at a family entertainment
centre.
On any premises, no person under the age of 18 is to have any
access to gaming machines in any category above Category D.
COMMENT: We seek clear provisions and consultation over the employment
of under 18's in Family Entertainment Centres.
Pg. 52
Reserve powers for a statutory levy
Pg. 54
Transfer of licenses
7.7
We intend to strike a reasonable balance between these various
considerations, recognising that the transitional arrangements
must provide for fair competition both as between one sector and
another and as between established businesses and new entrants.
COMMENT: We note this statement that there should be fair competition
between sectors and seek assurance that this will be a priority.
We note the uneven playing field that has been promoted by the
recent agreement in relation to FOBM's and request that action
be taken immediately to remedy this inequality.
Pg. 56
8.5
The Government may also publish a supplement to the regulatory
impact assessment published alongside this document that will
assess the impact on competition of the Government's proposals
in relation to casinos.
COMMENT: We note that the Pion study failed to analyse the efforts
of cannibalisation and we seek assurances that such effects will
be analysed and monitored in the future. (Evidence para 3)
3. Draft Gambling Bill - Regulatory Impact Assessment
Purpose and intended effect
The Objectives
1.5 In delivering the reforms the Government will:
COMMENT: We submit that it should be fundamental that
1. current businesses are not sacrificed to the benefit of
emerging sectors and therefore that 'grandfather rights' be applied
in perpetuity
2. that a fair competitive environment is promoted
3. the safeguards set out in "A Safe Bet" in particular
with reference to local authority discretion are enshrined.
4. That the legislation is transparent and complies with HRA
and ECOHR.
We incorporate by reference our additional comments contained
in the Evidence.
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