Gambling Act 2005
2005 CHAPTER 19
CONTENTS
An Act to make provision about gambling.
[7th April 2005]
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Part 1 Interpretation of Key Concepts
Principal concepts
1 The licensing objectives
In this Act a reference to the licensing objectives is a reference to the objectives of—
(a) preventing gambling from being a source of crime or disorder, being associated with crime or disorder or being used to support crime,
(b) ensuring that gambling is conducted in a fair and open way, and
(c) protecting children and other vulnerable persons from being harmed or exploited by gambling.
2 Licensing authorities
(1) For the purposes of this Act the following are licensing authorities—
(a) in relation to England—
(i) a district council,
(ii) a county council for a county in which there are no district councils,
(iii) a London borough council,
(iv) the Common Council of the City of London, and
(v) the Council of the Isles of Scilly,
(b) in relation to Wales—
(i) a county council, and
(ii) a county borough council, and
(c) in relation to Scotland, a licensing board constituted under section 1 of the Licensing (Scotland) Act 1976 (c. 66).
(2) For the purposes of Schedule 13, the Sub-Treasurer of the Inner Temple and the Under-Treasurer of the Middle Temple are licensing authorities.
3 Gambling
In this Act “gambling” means—
(a) gaming (within the meaning of section 6),
(b) betting (within the meaning of section 9), and
(c) participating in a lottery (within the meaning of section 14 and subject to section 15).
4 Remote gambling
(1) In this Act “remote gambling” means gambling in which persons participate by the use of remote communication.
(2) In this Act “remote communication” means communication using—
(a) the internet,
(b) telephone,
(c) television,
(d) radio, or
(e) any other kind of electronic or other technology for facilitating communication.
(3) The Secretary of State may by regulations provide that a specified system or method of communication is or is not to be treated as a form of remote communication for the purposes of this Act (and subsection (2) is subject to any regulations under this subsection).
5 Facilities for gambling
(1) For the purposes of this Act a person provides facilities for gambling if he—
(a) invites others to gamble in accordance with arrangements made by him,
(b) provides, operates or administers arrangements for gambling by others, or
(c) participates in the operation or administration of gambling by others.
(2) But a person does not provide facilities for gambling for the purposes of this Act by virtue only of—
(a) providing an article other than a gaming machine to a person who intends to use it, or may use it, in the course of any of the activities mentioned in subsection (1)(a) to (c),
(b) providing, otherwise than in the course of providing, operating or administering arrangements for gambling or participating in the operation or administration of gambling, an article to a person who intends to use it, or may use it, for gambling, or
(c) making facilities for remote communication available for use by—
(i) persons carrying on any of those activities, or
(ii) persons gambling in response to or in accordance with any of those activities.
(3) A person provides facilities for gambling (despite subsection (2)(c)) if—
(a) he makes facilities for remote communication available for use,
(b) the facilities are adapted or presented in such a way as to facilitate, or to draw attention to the possibility of, their use for gambling, and
(c) the nature, adaptation or presentation of the facilities is such that—
(i) they cannot reasonably be expected to be used for purposes other than gambling, or
(ii) they are intended to be used wholly or mainly for gambling.
(4) The Secretary of State may by order, for the purposes of subsection (3)(c)—
(a) provide that facilities of a specified nature, or adapted or presented in a specified way, cannot reasonably be expected to be used for purposes other than gambling;
(b) provide that facilities of a specified nature, or adapted or presented in a specified way, can reasonably be expected to be used for purposes other than gambling;
(c) specify criteria by which it is to be determined whether facilities can reasonably be expected to be used for purposes other than gambling;
(d) provide that facilities of a specified nature, or adapted or presented in a specified way, shall be taken as being intended to be used wholly or mainly for gambling;
(e) provide that facilities of a specified nature, or adapted or presented in a specified way, shall be taken as not being intended to be used wholly or mainly for gambling;
(f) specify criteria by which it is to be determined whether facilities are intended to be used wholly or mainly for gambling.
Gaming
6 Gaming & game of chance
(1) In this Act “gaming” means playing a game of chance for a prize.
(2) In this Act “game of chance”—
(a) includes—
(i) a game that involves both an element of chance and an element of skill,
(ii) a game that involves an element of chance that can be eliminated by superlative skill, and
(iii) a game that is presented as involving an element of chance, but
(b) does not include a sport.
(3) For the purposes of this Act a person plays a game of chance if he participates in a game of chance—
(a) whether or not there are other participants in the game, and
(b) whether or not a computer generates images or data taken to represent the actions of other participants in the game.
(4) For the purposes of this Act a person plays a game of chance for a prize—
(a) if he plays a game of chance and thereby acquires a chance of winning a prize, and
(b) whether or not he risks losing anything at the game.
(5) In this Act “prize” in relation to gaming (except in the context of a gaming machine)—
(a) means money or money’s worth, and
(b) includes both a prize provided by a person organising gaming and winnings of money staked.
(6) The Secretary of State may by regulations provide that a specified activity, or an activity carried on in specified circumstances, is or is not to be treated for the purposes of this Act as—
(a) a game;
(b) a game of chance;
(c) a sport.
7 Casino
(1) For the purposes of this Act a casino is an arrangement whereby people are given an opportunity to participate in one or more casino games.
(2) In this Act “casino game” means a game of chance which is not equal chance gaming.
(3) But the Secretary of State may by regulations provide that a specified activity, or an activity carried on in specified circumstances, is to be or not to be treated as a casino game for the purposes of this Act (and subsection (2) is subject to regulations under this subsection).
(4) For the purposes of this section it is immaterial—
(a) whether an arrangement is provided on one set of premises or on more than one;
(b) whether an arrangement is provided wholly or partly by means of remote communication.
(5) The Secretary of State shall make regulations by reference to which any casino may be classified as—
(a) a regional casino,
(b) a large casino,
(c) a small casino, or
(d) below the minimum size for a licensed casino.
(6) Regulations under subsection (5) may make provision by reference to—
(a) the number of gaming tables used or designated for the playing of specified casino games or classes of casino game,
(b) the location of gaming tables used or designated for the playing of specified casino games or classes of casino game,
(c) the concentration of gaming tables used or designated for the playing of specified casino games or classes of casino game,
(d) the floor area used or designated for a specified purpose,
(e) any combination of the matters listed in paragraph (a) to (d), or
(f) any other matter.
(7) Regulations under subsection (5) may—
(a) include provision for determining what floor area is to be treated as being used or designated for a purpose;
(b) include provision for determining what activities do or do not amount to the playing of a specified casino game or class of casino game;
(c) include provision for determining what is or is not to be treated as a gaming table (and, in particular, in what circumstances a number of tables are to be treated as if they were a single gaming table);
(d) provide that a gaming table is to be treated as being used or designated only if specified conditions (which may, in particular, relate to purpose of use, extent of use or circumstances of use) are satisfied.
8 Equal chance gaming
(1) For the purposes of this Act gaming is equal chance gaming if—
(a) it does not involve playing or staking against a bank, and
(b) the chances are equally favourable to all participants.
(2) For the purposes of subsection (1) it is immaterial—
(a) how a bank is described, and
(b) whether or not a bank is controlled or administered by a player.
Betting
9 Betting: general
(1) In this Act “betting” means making or accepting a bet on—
(a) the outcome of a race, competition or other event or process,
(b) the likelihood of anything occurring or not occurring, or
(c) whether anything is or is not true.
(2) A transaction that relates to the outcome of a race, competition or other event or process may be a bet within the meaning of subsection (1) despite the facts that—
(a) the race, competition, event or process has already occurred or been completed, and
(b) one party to the transaction knows the outcome.
(3) A transaction that relates to the likelihood of anything occurring or not occurring may be a bet within the meaning of subsection (1) despite the facts that—
(a) the thing has already occurred or failed to occur, and
(b) one party to the transaction knows that the thing has already occurred or failed to occur.
10 Spread bets, &c.
(1) For the purposes of section 9(1) “bet” does not include a bet the making or accepting of which is a regulated activity within the meaning of section 22 of the Financial Services and Markets Act 2000 (c. 8).
(2) An order under section 22 of that Act which has the effect that a class of bet becomes or ceases to be a regulated activity may, in particular, include transitional provision relating to the application of this Act to that class of bet.
(3) This section is subject to section 38(3).
11 Betting: prize competitions
(1) For the purposes of section 9(1) a person makes a bet (despite the fact that he does not deposit a stake in the normal way of betting) if—
(a) he participates in an arrangement in the course of which participants are required to guess any of the matters specified in section 9(1)(a) to (c),
(b) he is required to pay to participate, and
(c) if his guess is accurate, or more accurate than other guesses, he is to—
(i) win a prize, or
(ii) enter a class among whom one or more prizes are to be allocated (whether or not wholly by chance).
(2) In subsection (1) a reference to guessing includes a reference to predicting using skill or judgment.
(3) Schedule 1 makes further provision about when a person is to be or not to be treated for the purposes of subsection (1)(b) as being required to pay to participate in an arrangement.
(4) In subsection (1)(c) “prize” includes any money, articles or services—
(a) whether or not described as a prize, and
(b) whether or not consisting wholly or partly of money paid, or articles or services provided, by the members of the class among whom the prizes are allocated.
12 Pool betting
(1) For the purposes of this Act betting is pool betting if made on terms that all or part of winnings—
(a) shall be determined by reference to the aggregate of stakes paid or agreed to be paid by the persons betting,
(b) shall be divided among the winners, or
(c) shall or may be something other than money.
(2) For the purposes of this Act pool betting is horse-race pool betting if it relates to horse-racing in Great Britain.
13 Betting intermediary
(1) In this Act “betting intermediary” means a person who provides a service designed to facilitate the making or acceptance of bets between others.
(2) For the purposes of this Act acting as a betting intermediary is providing facilities for betting.
Lottery
14 Lottery
(1) For the purposes of this Act an arrangement is a lottery, irrespective of how it is described, if it satisfies one of the descriptions of lottery in subsections (2) and (3).
(2) An arrangement is a simple lottery if—
(a) persons are required to pay in order to participate in the arrangement,
(b) in the course of the arrangement one or more prizes are allocated to one or more members of a class, and
(c) the prizes are allocated by a process which relies wholly on chance.
(3) An arrangement is a complex lottery if—
(a) persons are required to pay in order to participate in the arrangement,
(b) in the course of the arrangement one or more prizes are allocated to one or more members of a class,
(c) the prizes are allocated by a series of processes, and
(d) the first of those processes relies wholly on chance.
(4) In this Act “prize” in relation to lotteries includes any money, articles or services—
(a) whether or not described as a prize, and
(b) whether or not consisting wholly or partly of money paid, or articles or services provided, by the members of the class among whom the prize is allocated.
(5) A process which requires persons to exercise skill or judgment or to display knowledge shall be treated for the purposes of this section as relying wholly on chance if—
(a) the requirement cannot reasonably be expected to prevent a significant proportion of persons who participate in the arrangement of which the process forms part from receiving a prize, and
(b) the requirement cannot reasonably be expected to prevent a significant proportion of persons who wish to participate in that arrangement from doing so.
(6) Schedule 2 makes further provision about when an arrangement is to be or not to be treated for the purposes of this section as requiring persons to pay.
(7) The Secretary of State may by regulations provide that an arrangement of a specified kind is to be or not to be treated as a lottery for the purposes of this Act; and—
(a) the power in this subsection is not constrained by subsections (1) to (6) or Schedule 2, and
(b) regulations under this subsection may amend other provisions of this section or Schedule 2.
15 National Lottery
(1) Participating in a lottery which forms part of the National Lottery is not gambling for the purposes of this Act (despite section 3(c) but subject to subsections (2) and (3) below).
(2) Participating in a lottery which forms part of the National Lottery is gambling for the purposes of—
(a) section 42, and
(b) section 335.
(3) Where participating in a lottery which forms part of the National Lottery would also constitute gaming within the meaning of section 6, it shall be treated as gaming for the purposes of this Act if and only if a person participating in the lottery is required to participate in, or to be successful in, more than three processes before becoming entitled to a prize.
(4) Participating in a lottery which forms part of the National Lottery shall not be treated as betting for the purposes of this Act where it would—
(a) satisfy the definition of pool betting in section 12, or
(b) satisfy the definition of betting in section 9 by virtue of section 11.
(5) Schedule 3 shall have effect.
Cross-category activities
16 Betting and gaming
(1) This section applies to a transaction which satisfies—
(a) the definition of betting in section 9, and
(b) the definition of gaming in section 6.
(2) A transaction to which this section applies which is pool betting (within the meaning of section 12) shall be treated for the purposes of this Act as betting (and not as gaming).
(3) Any other transaction to which this section applies shall be treated for the purposes of this Act as gaming (and not as betting).
(4) This section is subject to regulations under section 6(6).
17 Lotteries and gaming
(1) This section applies to an arrangement which satisfies—
(a) the definition of a game of chance in section 6, and
(b) the definition of a lottery in section 14.
(2) An arrangement to which this section applies shall be treated for the purposes of this Act as a game of chance (and not as a lottery) if a person who pays in order to join the class amongst whose members prizes are allocated is required to participate in, or to be successful in, more than three processes before becoming entitled to a prize.
(3) An arrangement to which this section applies shall, subject to subsection (2), be treated for the purposes of this Act as a lottery (and not as a game of chance) if—
(a) it satisfies paragraph 1(1)(a) and (b) of Schedule 11,
(b) it satisfies paragraph 10(1)(a) and (b) of Schedule 11,
(c) it satisfies paragraph 11(1)(a) and (b) of Schedule 11,
(d) it satisfies paragraph 12(1)(a) and (b) of Schedule 11,
(e) it satisfies paragraph 20(1)(a) and (b) of Schedule 11,
(f) it satisfies paragraph 30(1)(a) and (b) of Schedule 11, or
(g) it is promoted in reliance on a lottery operating licence.
(4) Any other arrangement to which this section applies shall be treated for the purposes of this Act as a game of chance (and not as a lottery).
(5) This section is subject to regulations under section 6(6) or 14(7).
18 Lotteries and betting
(1) This section applies to a transaction which satisfies the definition of participating in a lottery in section 14 and also—
(a) satisfies the definition of pool betting in section 12, or
(b) satisfies the definition of betting in section 9 by virtue of section 11.
(2) A transaction to which this section applies shall be treated for the purposes of this Act as participating in a lottery (and not as betting) if—
(a) it satisfies paragraph 1(1)(a) and (b) of Schedule 11,
(b) it satisfies paragraph 10(1)(a) and (b) of Schedule 11,
(c) it satisfies paragraph 11(1)(a) and (b) of Schedule 11,
(d) it satisfies paragraph 12(1)(a) and (b) of Schedule 11,
(e) it satisfies paragraph 20(1)(a) and (b) of Schedule 11,
(f) it satisfies paragraph 30(1)(a) and (b) of Schedule 11, or
(g) it is promoted in reliance on a lottery operating licence.
(3) Any other transaction to which this section applies shall be treated for the purposes of this Act as betting (and not as participating in a lottery).
(4) This section is subject to regulations under section 14(7).
Miscellaneous
19 Non-commercial society
(1) For the purposes of this Act a society is non-commercial if it is established and conducted—
(a) for charitable purposes,
(b) for the purpose of enabling participation in, or of supporting, sport, athletics or a cultural activity, or
(c) for any other non-commercial purpose other than that of private gain.
(2) In subsection (1) “charitable purposes” means—
(a) in relation to England and Wales, purposes which are exclusively charitable according to the law of England and Wales, and
(b) in relation to Scotland, purposes which are charitable purposes only (that expression having the same meaning as in the Income Tax Acts).
(3) The provision of a benefit to one or more individuals is not a provision for the purpose of private gain for the purposes of this Act if made in the course of the activities of a society that is a non-commercial society by virtue of subsection (1)(a) or (b).
Part 2 The Gambling Commission
20 Establishment of the Commission
(1) There shall be a body corporate to be known as the Gambling Commission.
(2) Schedule 4 (which makes provision about the constitution and proceedings of the Commission) shall have effect.
21 Gaming Board: transfer to Commission
(1) Section 10 of and Schedule 1 to the Gaming Act 1968 (c. 65) (Gaming Board for Great Britain) shall cease to have effect.
(2) The functions, rights and liabilities of the Gaming Board for Great Britain shall on commencement become functions, rights and liabilities of the Gambling Commission.
(3) The persons who immediately before commencement are the members of the Gaming Board for Great Britain shall be treated as if on commencement they were appointed as commissioners of the Gambling Commission under paragraph 1 of Schedule 4 to this Act.
(4) The person who immediately before commencement is the chairman of the Gaming Board for Great Britain shall be treated as if on commencement he were appointed as the chairman of the Gambling Commission under paragraph 1 of Schedule 4 to this Act.
(5) In this section “commencement” means the coming into force of this section.
(6) Schedule 5 (which makes supplementary provision in relation to the transfer of functions and property from the Gaming Board to the Gambling Commission) shall have effect.
22 Duty to promote the licensing objectives
In exercising its functions under this Act the Commission shall aim—
(a) to pursue, and wherever appropriate to have regard to, the licensing objectives, and
(b) to permit gambling, in so far as the Commission thinks it reasonably consistent with pursuit of the licensing objectives.
23 Statement of principles for licensing and regulation
(1) The Commission shall prepare a statement setting out the principles to be applied by it in exercising its functions under this Act.
(2) The statement under this section shall, in particular, explain how the principles to be applied are expected to assist the Commission in its pursuit of the licensing objectives.
(3) The Commission shall—
(a) review the statement from time to time, and
(b) revise the statement when the Commission thinks it appropriate.
(4) The Commission shall as soon as is reasonably practicable publish—
(a) the statement, and
(b) any revision.
(5) Before issuing or revising a statement under this section the Commission shall consult—
(a) the Secretary of State,
(b) Her Majesty’s Commissioners of Customs and Excise,
(c) one or more persons who appear to the Commission to represent local authorities (including, in Scotland, licensing boards),
(d) one or more persons who appear to the Commission to represent chief constables of police forces,
(e) one or more persons who appear to the Commission to represent the interests of persons carrying on gambling businesses,
(f) one or more persons who appear to the Commission to have knowledge about social problems relating to gambling, and
(g) to such extent and in such manner as the Commission thinks appropriate, members of the public.
24 Codes of practice
(1) The Commission shall issue one or more codes of practice about the manner in which facilities for gambling are provided (whether by the holder of a licence under this Act or by another person).
(2) In particular, a code shall describe arrangements that should be made by a person providing facilities for gambling for the purposes of—
(a) ensuring that gambling is conducted in a fair and open way,
(b) protecting children and other vulnerable persons from being harmed or exploited by gambling, and
(c) making assistance available to persons who are or may be affected by problems related to gambling.
(3) A code may include provision about how facilities for gambling are advertised or described.
(4) A code may be revised or revoked by the Commission.
(5) A code, and any revision, must state when it comes into force.
(6) The Commission shall publish a code and any revision in a manner which the Commission thinks likely to bring it to the attention of those whose activities it concerns.
(7) The Commission may make different provision under this section for different cases or circumstances (whether or not by way of separate codes of practice).
(8) A failure to comply with a provision of a code shall not of itself make a person liable to criminal or civil proceedings; but this subsection is subject to any provision of or by virtue of this Act making an exception to an offence dependent on compliance with a code.
(9) But a code—
(a) shall be admissible in evidence in criminal or civil proceedings,
(b) shall be taken into account by a court or tribunal in any case in which it appears to the court or tribunal to be relevant, and
(c) shall be taken into account by the Commission in the exercise of a function under this Act.
(10) Before issuing or revising a code under this section the Commission shall consult—
(a) the Secretary of State,
(b) Her Majesty’s Commissioners of Customs and Excise,
(c) one or more persons who appear to the Commission to represent the interests of persons who—
(i) carry on gambling businesses, and
(ii) are likely to be affected by the code or revision,
(d) one or more persons who appear to the Commission to have knowledge about social problems relating to gambling, and
(e) in the case of a code including provision by virtue of subsection (3), one or more persons who appear to the Commission to have a relevant responsibility for regulating the advertising industry.
(11) Before issuing or revising a code under this section the Commission shall also consult, if and to the extent that the Commission thinks appropriate having regard to the nature of the code or revision—
(a) one or more persons who appear to the Commission to represent local authorities (including, in Scotland, licensing boards),
(b) one or more persons who appear to the Commission to represent chief constables of police forces,
(c) one or more persons who appear to the Commission to represent the interests of persons carrying on gambling businesses (apart from those consulted under subsection (10)(c)), and
(d) in such manner as the Commission thinks appropriate, members of the public.
25 Guidance to local authorities
(1) The Commission shall from time to time issue guidance as to—
(a) the manner in which local authorities are to exercise their functions under this Act, and
(b) in particular, the principles to be applied by local authorities in exercising functions under this Act.
(2) A local authority shall have regard to guidance issued under subsection (1).
(3) The Commission shall publish guidance issued under subsection (1).
(4) Before issuing guidance under subsection (1) the Commission shall consult—
(a) the Secretary of State,
(b) Her Majesty’s Commissioners of Customs and Excise,
(c) the Scottish Ministers,
(d) one or more persons who appear to the Commission to represent local authorities,
(e) one or more persons who appear to the Commission to represent the interests of persons carrying on gambling businesses, and
(f) one or more persons who appear to the Commission to have knowledge about social problems relating to gambling.
(5) Before issuing guidance under subsection (1) the Commission shall also consult, if and to the extent that the Commission thinks appropriate having regard to the nature of the guidance—
(a) one or more persons who appear to the Commission to represent chief constables of police forces, and
(b) in such manner as the Commission thinks appropriate, members of the public.
(6) In this section “local authority” means—
(a) in relation to England—
(i) a district council,
(ii) a county council for a county in which there are no district councils,
(iii) a London borough council,
(iv) the Common Council of the City of London,
(v) the Sub-Treasurer of the Inner Temple and the Under-Treasurer of the Middle Temple, and
(vi) the Council of the Isles of Scilly,
(b) in relation to Wales—
(i) a county council, and
(ii) a county borough council, and
(c) in relation to Scotland, a licensing board constituted under section 1 of the Licensing (Scotland) Act 1976 (c. 66).
26 Duty to advise Secretary of State
(1) The Commission shall give advice to the Secretary of State about—
(a) the incidence of gambling,
(b) the manner in which gambling is carried on,
(c) the effects of gambling, and
(d) the regulation of gambling.
(2) Advice under this section shall be given—
(a) in response to a request from the Secretary of State, and
(b) on such other occasions as the Commission thinks appropriate.
(3) The Commission shall send a copy of any advice under this section to the Scottish Ministers.
27 Compliance
The Commission may undertake activities for the purpose of assessing—
(a) compliance with provision made by or by virtue of this Act;
(b) whether an offence is being committed under or by virtue of this Act.
28 Investigation and prosecution of offences
(1) The Commission—
(a) may investigate whether an offence has been committed under this Act, and
(b) may institute criminal proceedings in respect of an offence under this Act.
(2) The power in subsection (1)(a) may be exercised whether in response to information received by the Commission or otherwise.
(3) Subsection (1)(b) shall not apply in relation to the institution of proceedings in Scotland.
29 Licensing authority information
(1) The Commission may require a licensing authority to provide information that—
(a) forms part of a register maintained by the authority under this Act, or
(b) is in the possession of the authority in connection with a provision of this Act.
(2) A requirement under subsection (1) may include a requirement for information to be—
(a) compiled or collated in a specified manner;
(b) provided in a specified form.
(3) A licensing authority shall comply with a requirement under this section.
30 Other exchange of information
(1) The Commission may provide information received by it in the exercise of its functions to any of the persons or bodies listed in Schedule 6—
(a) for use in the exercise of the person’s or body’s functions, or
(b) for the purpose of a function of the Commission.
(2) Any of the persons or bodies listed in Part 1 or 2 of Schedule 6 may provide to the Commission, for use in the exercise of its functions, information received by the person or body in the exercise of his or its functions.
(3) The Commission may provide information received by it in the exercise of its functions to the Comptroller and Auditor General for use in the exercise of his functions under Part 2 of the National Audit Act 1983 (c. 44).
(4) The Commission may provide information received by it in the exercise of its functions to a person if the provision is for the purpose of—
(a) a criminal investigation (whether in the United Kingdom or elsewhere), or
(b) criminal proceedings (whether in the United Kingdom or elsewhere).
(5) Note 2 to Schedule 6 shall not apply to the provision of information under subsection (3).
(6) Provision of information in reliance on this section may be subject to conditions (whether as to use, storage, disposal or otherwise).
(7) The Commission may charge a fee for the provision of information under subsection (1)(a).
(8) This section is subject to section 352.
31 Consultation with National Lottery Commission
(1) If in the course of the exercise of its functions the Gambling Commission becomes aware of a matter about which the National Lottery Commission is likely to have an opinion, the Gambling Commission shall consult the National Lottery Commission.
(2) The Gambling Commission shall comply with any direction of the Secretary of State (which may be general or specific) to consult the National Lottery Commission.
32 Consultation with Commissioners of Customs and Excise
(1) If in the course of the exercise of its functions the Gambling Commission becomes aware of a matter about which the Commissioners of Customs and Excise are likely to have an opinion, the Gambling Commission shall consult the Commissioners of Customs and Excise.
(2) The Gambling Commission shall comply with any direction of the Secretary of State (which may be general or specific) to consult the Commissioners of Customs and Excise.
Part 3 General offences
Provision of facilities for gambling
33 Provision of facilities for gambling
(1) A person commits an offence if he provides facilities for gambling unless—
(a) an exception provided for in subsection (2) or (3) applies, or
(b) an exception provided for by any of the following provisions applies—
(i) sections 34 and 35,
(ii) sections 269 and 271 (clubs and miners' welfare institutes),
(iii) section 279 (premises with alcohol licence),
(iv) sections 289 to 292 (prize gaming),
(v) section 296 (private gaming and betting), and
(vi) section 298 (non-commercial gaming).
(2) Subsection (1) does not apply to any activity by a person if—
(a) he holds an operating licence authorising the activity, and
(b) the activity is carried on in accordance with the terms and conditions of the licence.
(3) Subsection (1) does not apply to any activity by a person if—
(a) he acts in the course of a business carried on by a person who holds an operating licence authorising the activity, and
(b) the activity is carried on in accordance with the terms and conditions of the licence.
(4) A person guilty of an offence under this section shall be liable on summary conviction to—
(a) imprisonment for a term not exceeding 51 weeks,
(b) a fine not exceeding level 5 on the standard scale, or
(c) both.
(5) In the application of subsection (4) to Scotland the reference to 51 weeks shall have effect as a reference to six months.
34 Exception: lotteries
Section 33 shall not apply to the provision of facilities for a lottery.
35 Exception: gaming machines
Section 33 shall not apply to making a gaming machine available for use.
36 Territorial application
(1) For the purposes of section 33 it is immaterial whether facilities are provided—
(a) wholly or partly by means of remote communication;
(b) subject to subsections (2) and (3), inside the United Kingdom, outside the United Kingdom, or partly inside and partly outside.
(2) Section 33 applies to the provision of facilities for non-remote gambling only if anything done in the course of the provision of the facilities is done in Great Britain.
(3) Section 33 applies to the provision of facilities for remote gambling only if at least one piece of remote gambling equipment used in the provision of the facilities is situated in Great Britain (but whether or not the facilities are provided for use wholly or partly in the United Kingdom).
(4) In this Act “remote gambling equipment” means, subject to subsection (5), electronic or other equipment used by or on behalf of a person providing facilities for remote gambling—
(a) to store information relating to a person’s participation in the gambling,
(b) to present, to persons who are participating or may participate in the gambling, a virtual game, virtual race or other virtual event or process by reference to which the gambling is conducted,
(c) to determine all or part of a result or of the effect of a result, or
(d) to store information relating to a result.
(5) In this Act “remote gambling equipment” does not include equipment which—
(a) is used by a person to take advantage of remote gambling facilities provided by another person, and
(b) is not provided by that other person.
Use of premises
37 Use of premises
(1) A person commits an offence if he uses premises, or causes or permits premises to be used, to—
(a) operate a casino,
(b) provide facilities for the playing of bingo,
(c) make a gaming machine available for use,
(d) provide other facilities for gaming, or
(e) provide facilities for betting (whether by making or accepting bets, by acting as a betting intermediary or by providing other facilities for the making or accepting of bets).
(2) Subsection (1) does not apply in relation to the use of premises by a person if the use is authorised by a premises licence held by him.
(3) Subsection (1) does not apply in relation to the use of premises by a person if he acts in the course of a business carried on by another person who holds a premises licence authorising the use.
(4) Subsection (1) does not apply in relation to the use of a track by a person for accepting bets if the use is authorised by a premises licence (whether or not held by him).
(5) Subsection (1) does not apply in relation to the use of a casino for the provision of facilities for bingo or betting in accordance with an authorisation under section 174(3).
(6) Subsection (1) does not apply in relation to the use of premises to provide facilities which are to be used only by persons who—
(a) are acting in the course of a business, or
(b) are not on the premises.
(7) Other exceptions to subsection (1) are provided in—
(a) sections 39 and 40,
(b) section 214 (temporary use notice),
(c) sections 247, 248 and 249 (gaming machines),
(d) sections 269, 271 and 273 (clubs and miners' welfare institutes),
(e) sections 279, 282 and 283 (premises with alcohol licence),
(f) section 287 (travelling fairs),
(g) sections 289 to 292 (prize gaming),
(h) section 296 (private gaming and betting), and
(i) section 298 (non-commercial gaming).
(8) A person guilty of an offence under this section shall be liable on summary conviction to—
(a) imprisonment for a term not exceeding 51 weeks,
(b) a fine not exceeding level 5 on the standard scale, or
(c) both.
(9) In the application of subsection (8) to Scotland the reference to 51 weeks shall have effect as a reference to six months.
38 Power to amend section 37
(1) The Secretary of State may by order amend section 37(1) so as to—
(a) add a gambling activity,
(b) remove a gambling activity, or
(c) vary the entry for a gambling activity.
(2) In subsection (1) “gambling activity” means an activity that is—
(a) a kind of gambling, or
(b) the provision of facilities for a kind of gambling.
(3) In particular, an order under subsection (1) may have the effect of applying section 37(1) to betting of the kind referred to in section 10(1) (subject to any specified exceptions).
(4) An order under subsection (1) may, in particular, make consequential amendment of—
(a) section 150;
(b) another provision of Part 8;
(c) any provision of this Act, or of another enactment, that relates to Part 8.
39 Exception: occasional use notice
(1) A person who accepts bets on a track, or who causes or permits premises to be used for the acceptance of bets, does not commit an offence under section 37 if—
(a) a notice has been given under this section in respect of the track, and
(b) the activity is carried on in accordance with the notice.
(2) A notice under this section (an “occasional use notice”) in respect of a track may be given only by a person who is—
(a) responsible for the administration of events on the track, or
(b) an occupier of the track.
(3) An occasional use notice must—
(a) be given in writing to the licensing authority for any area in which the track is wholly or partly situated, and
(b) be copied to either—
(i) in England and Wales, the chief officer of police for any area in which the track is wholly or partly situated, or
(ii) in Scotland, the chief constable of the police force maintained for the police area comprising that area.
(4) An occasional use notice must specify a day on which it has effect.
(5) An occasional use notice may not be given in respect of a track for a day in a calendar year if eight occasional use notices have been given in respect of that track for days in that year.
(6) In this section—
(a) “chief officer of police” has the meaning given by section 101(1) of the Police Act 1996 (c. 16), and
(b) a reference to a chief officer’s area is a reference to the area in respect of which he has responsibility under that Act.
(7) The Secretary of State may by order amend subsection (5) so as to substitute a different maximum number of occasional use notices for a calendar year.
(8) An order under subsection (7) increasing the maximum number of occasional use notices for a calendar year may also make provision prohibiting the giving of a temporary use notice in a calendar year in respect of premises if a specified number of occasional use notices have been given in respect of the premises in that year.
40 Exception: football pools
(1) A person does not commit an offence under section 37 if he uses premises to do anything in accordance with an authorisation under section 93(3).
(2) The Secretary of State may make regulations disapplying subsection (1) to specified classes of premises.
Miscellaneous offences
41 Gambling software
(1) A person commits an offence if in the course of a business he manufactures, supplies, installs or adapts gambling software unless he acts in accordance with an operating licence.
(2) In this Act “gambling software”—
(a) means computer software for use in connection with remote gambling, but
(b) does not include anything for use solely in connection with a gaming machine.
(3) A person does not supply or install gambling software for the purposes of subsection (1) by reason only of the facts that—
(a) he makes facilities for remote communication or non-remote communication available to another person, and
(b) the facilities are used by the other person to supply or install gambling software.
(4) A person guilty of an offence under this section shall be liable on summary conviction to—
(a) imprisonment for a term not exceeding 51 weeks,
(b) a fine not exceeding level 5 on the standard scale, or
(c) both.
(5) In the application of subsection (4) to Scotland the reference to 51 weeks shall have effect as a reference to six months.
42 Cheating
(1) A person commits an offence if he—
(a) cheats at gambling, or
(b) does anything for the purpose of enabling or assisting another person to cheat at gambling.
(2) For the purposes of subsection (1) it is immaterial whether a person who cheats—
(a) improves his chances of winning anything, or
(b) wins anything.
(3) Without prejudice to the generality of subsection (1) cheating at gambling may, in particular, consist of actual or attempted deception or interference in connection with—
(a) the process by which gambling is conducted, or
(b) a real or virtual game, race or other event or process to which gambling relates.
(4) A person guilty of an offence under this section shall be liable—
(a) on conviction on indictment, to imprisonment for a term not exceeding two years, to a fine or to both, or
(b) on summary conviction, to imprisonment for a term not exceeding 51 weeks, to a fine not exceeding the statutory maximum or to both.
(5) In the application of subsection (4) to Scotland the reference to 51 weeks shall have effect as a reference to six months.
(6) Section 17 of the Gaming Act 1845 (c. 109) (winning by cheating) shall cease to have effect.
43 Chain-gift schemes
(1) A person commits an offence if he—
(a) invites another to join a chain-gift scheme, or
(b) knowingly participates in the promotion, administration or management of a chain-gift scheme.
(2) An arrangement is a “chain-gift” scheme if—
(a) in order to participate in the arrangement a person must make a payment to one or more other participants (a “joining fee”), and
(b) each person who participates in the arrangement—
(i) is required or invited to invite others to participate, and
(ii) is encouraged to believe that he will receive the joining fees, or part of the joining fees, of other participants, to an amount in excess of the joining fee paid by him.
(3) For the purposes of subsection (2)—
(a) “payment” means a payment of money or money’s worth, but does not include the provision of goods or services, and
(b) it is immaterial whether a payment is made directly or through a person responsible for managing or administering the scheme.
(4) A person guilty of an offence under this section shall be liable on summary conviction to—
(a) imprisonment for a period not exceeding 51 weeks,
(b) a fine not exceeding level 5 on the standard scale, or
(c) both.
(5) In the application of subsection (4) to Scotland or Northern Ireland the reference to 51 weeks shall have effect as a reference to six months.
44 Provision of unlawful facilities abroad
(1) A person commits an offence if he does anything in Great Britain, or uses remote gambling equipment situated in Great Britain, for the purpose of inviting or enabling a person in a prohibited territory to participate in remote gambling.
(2) In subsection (1) “prohibited territory” means a country or place designated for the purpose of this section by order made by the Secretary of State.
(3) An order under subsection (2) shall prescribe the mode of trial and maximum penalty for an offence under subsection (1).
Part 4 Protection of children and young persons
Interpretation
45 Meaning of “child” and “young person”
(1) In this Act “child” means an individual who is less than 16 years old.
(2) In this Act “young person” means an individual who is not a child but who is less than 18 years old.
Principal offences
46 Invitation to gamble
(1) A person commits an offence if he invites, causes or permits a child or young person to gamble.
(2) But subsection (1) does not apply in relation to—
(a) participation in private or non-commercial gaming,
(b) participation in private or non-commercial betting,
(c) participation in a lottery,
(d) participation in football pools,
(e) the use of a Category D gaming machine,
(f) participation in equal chance gaming in accordance with a prize gaming permit,
(g) participation in equal chance gaming at a licensed family entertainment centre,
(h) participation in prize gaming at a non-licensed family entertainment centre, or
(i) participation in prize gaming at a travelling fair in accordance with section 292.
(3) In subsection (1) a reference to inviting a child or young person to gamble includes, in particular, a reference to intentionally—
(a) sending to a child or young person any document which advertises gambling, or
(b) bringing to the attention of a child or young person information about gambling with a view to encouraging the child or young person to gamble.
(4) If a document which is sent to a child or young person and which advertises gambling gives the name or contact details of a person to whom payment may be made or from whom information may be obtained, that person shall be treated as having committed the offence under subsection (1) unless he proves that the document was sent—
(a) without his consent, and
(b) without his authority.
(5) If information about gambling is brought to the attention of a child or young person and includes the name or contact details of a person to whom payment may be made or from whom information may be obtained, that person (“the advertiser”) shall be treated as having committed the offence under subsection (1) unless he proves that the information was brought to the attention of the child or young person—
(a) without the advertiser’s consent or authority, or
(b) as an incident of the information being brought to the attention of adults and without a view to encouraging the child or young person to gamble.
(6) In subsections (4) and (5) “contact details” means—
(a) an address or other location,
(b) a telephone number,
(c) an internet site, or
(d) an email address.
47 Invitation to enter premises
(1) A person commits an offence if he invites or permits a child or young person to enter premises if—
(a) a casino premises licence has effect in respect of the premises, and
(b) the premises are being used in reliance on that licence when the child or young person is invited or permitted to enter.
(2) But subsection (1) does not apply where—
(a) a child or young person is permitted to enter a part of premises which are being used for a regional casino, and
(b) that part is not being used for the provision of facilities for gambling when the child or young person is permitted to enter.
(3) The Secretary of State may for the purposes of subsection (2) by regulations make provision for—
(a) distinguishing between one part of premises and another;
(b) determining when use is being made of a part of premises.
(4) A person commits an offence if he invites or permits a child or young person to enter premises other than a track if—
(a) a betting premises licence has effect in respect of the premises, and
(b) the premises are being used in reliance on that licence when the child or young person is invited or permitted to enter.
(5) A person commits an offence if he invites or permits a child or young person to enter premises if—
(a) an adult gaming centre premises licence has effect in respect of the premises, and
(b) the premises are being used in reliance on that licence when the child or young person is invited or permitted to enter.
(6) A person commits an offence if he invites or permits a child or young person to enter an area from which children and young persons are required to be excluded by virtue of section 182.
(7) A person commits an offence if he invites or permits a child or young person to enter part of premises if—
(a) the premises are a licensed family entertainment centre,
(b) a person entering that part of the premises has access to a Category C gaming machine, and
(c) at the time when the child or young person is permitted or invited to enter, a Category C gaming machine is being used or is available for use.
48 Gambling
(1) A young person commits an offence if he gambles.
(2) But subsection (1) does not apply to—
(a) participation in private or non-commercial gaming,
(b) participation in private or non-commercial betting,
(c) participation in a lottery,
(d) participation in football pools,
(e) the use of a Category D gaming machine,
(f) participation in equal chance gaming in accordance with a prize gaming permit,
(g) participation in equal chance gaming at a licensed family entertainment centre,
(h) participation in prize gaming at a non-licensed family entertainment centre, or
(i) participation in prize gaming at a travelling fair in accordance with section 292.
49 Entering premises
A young person commits an offence if he enters premises in circumstances where a person would commit an offence under section 47 if he invited or permitted the young person to enter.
50 Provision of facilities for gambling
(1) A young person commits an offence if he provides facilities for gambling.
(2) But subsection (1) does not apply to the provision of facilities in connection with—
(a) private or non-commercial gaming,
(b) private or non-commercial betting,
(c) a lottery,
(d) football pools, or
(e) prize gaming at a travelling fair in accordance with section 292.
Employment offences
51 Employment to provide facilities for gambling
(1) A person commits an offence if he employs a child or young person to provide facilities for gambling.
(2) But subsection (1) does not apply to the provision of facilities in connection with—
(a) private or non-commercial gaming,
(b) private or non-commercial betting,
(c) a lottery,
(d) football pools, or
(e) prize gaming at a travelling fair in accordance with section 292.
52 Employment for lottery or football pools
A person commits an offence if he employs a child to provide facilities for gambling in connection with—
(a) a lottery (other than a lottery which forms part of the National Lottery), or
(b) football pools.
53 Employment on bingo and club premises
A person commits an offence if he employs a child to perform any function on premises where, and at a time when—
(a) facilities are provided for the playing of bingo, or
(b) facilities for gambling are provided in accordance with a club gaming permit or a club machine permit.
54 Employment on premises with gaming machines
(1) A person commits an offence if—
(a) he employs a child or young person to perform any function on premises where a Category A, B, C or D gaming machine is situated, and
(b) the child or young person is or may be required in the course of his employment to perform a function in connection with the gaming machine.
(2) A young person commits an offence if he is employed in contravention of subsection (1).
55 Employment in casino, &c.
(1) A person commits an offence if he employs a child or young person to perform any function on premises in respect of which any of the following have effect—
(a) a casino premises licence,
(b) a betting premises licence, and
(c) an adult gaming centre premises licence.
(2) But subsection (1) does not apply—
(a) to employment at a time when no activity is being carried on in reliance on the premises licence, or
(b) to employment on a part of premises which are being used for a regional casino at a time when that part is not being used for the provision of facilities for gambling.
(3) The Secretary of State may for the purposes of subsection (2) by regulations make provision for—
(a) distinguishing between one part of premises and another;
(b) determining when use is being made of a part of premises.
(4) A young person commits an offence if he is employed in contravention of subsection (1).
Miscellaneous offences
56 Invitation to participate in lottery
(1) A person commits an offence if he invites, causes or permits a child to participate in a lottery other than—
(a) an incidental non-commercial lottery that is exempt for the purposes of section 258 by virtue of Part 1 of Schedule 11,
(b) a private lottery (whether a private society lottery, a work lottery or a residents' lottery) that is exempt for the purposes of section 258 by virtue of Part 2 of Schedule 11, or
(c) a lottery which forms part of the National Lottery.
(2) Subsections (3) to (6) of section 46 shall have effect in relation to subsection (1) of this section as they have effect in relation to subsection (1) of that section; and for that purpose—
(a) references to a child or young person shall be treated as references only to a child, and
(b) references to gambling shall be treated as references to participation in a lottery.
57 Invitation to participate in football pools
(1) A person commits an offence if he invites, causes or permits a child to participate in football pools.
(2) Subsections (3) to (6) of section 46 shall have effect in relation to subsection (1) of this section as they have effect in relation to subsection (1) of that section; and for that purpose—
(a) references to a child or young person shall be treated as references only to a child, and
(b) references to gambling shall be treated as references to participation in football pools.
58 Return of stake
A person commits an offence if without reasonable excuse he fails to comply with a condition attached to an operating licence by virtue of section 83.
59 Age limit for Category D gaming machines
(1) The Secretary of State may by order create an offence of inviting, causing or permitting a child or young person below a specified age to use a Category D gaming machine.
(2) An order under subsection (1) may, in particular—
(a) apply (with modifications) or include provision similar to section 46(3) to (6);
(b) make consequential amendments of this Act.
(3) Before making an order under subsection (1) the Secretary of State shall consult—
(a) the Commission,
(b) one or more persons who appear to the Secretary of State to represent the interests of persons carrying on gambling businesses, and
(c) one or more persons who appear to the Secretary of State to have knowledge about social problems relating to gambling.
(4) An order under subsection (1) may apply to a class of Category D gaming machine determined by reference to—
(a) the nature of the facilities for gambling which are made available on the machine,
(b) the nature or value of a prize offered by the machine,
(c) the manner in which the machine operates, or
(d) any other matter.
General
60 Temporary use notice
(1) For the purposes of this Part—
(a) a temporary use notice in respect of the use of premises to carry on an activity shall be treated as if it were a premises licence authorising that activity, and
(b) an occasional use notice in respect of premises shall be treated as if it were a betting premises licence.
(2) Sections 47(6) and 182 shall apply in relation to a notice treated as a premises licence by virtue of subsection (1) above.
61 Employment
(1) In this Part a reference to employing a person includes a reference to—
(a) employing or engaging the person whether or not under a contract of employment, and
(b) causing or permitting the person to be employed or engaged.
(2) Where a person commits an offence under this Part by employing a person or by being employed, he shall be treated as committing the offence on each day during any part of which the employment continues.
62 Penalty
(1) A person guilty of an offence under this Part shall be liable on summary conviction to—
(a) imprisonment for a term not exceeding 51 weeks,
(b) a fine not exceeding level 5 on the standard scale, or
(c) both.
(2) But in relation to an offence committed by a young person subsection (1) shall have effect as if—
(a) paragraphs (a) and (c) were omitted, and
(b) in paragraph (b) the reference to level 5 were a reference to level 3.
(3) In the application of subsection (1) to Scotland the reference to 51 weeks shall have effect as a reference to six months.
63 Reasonable belief about person’s age
(1) Where a person is charged with an offence under this Part of doing anything in relation to an individual who is a child it is a defence for the person charged to prove that—
(a) he took all reasonable steps to determine the individual’s age, and
(b) he reasonably believed that the individual was not a child.
(2) Where a person is charged with an offence under this Part of doing anything in relation to an individual who is a young person it is a defence for the person charged to prove that—
(a) he took all reasonable steps to determine the individual’s age, and
(b) he reasonably believed that the individual was not a young person.
64 Use of children in enforcement operations
(1) Nothing in this Part renders unlawful—
(a) anything done, in the performance of his functions, by a constable, an enforcement officer or an authorised person, or
(b) anything done by a child or young person at the request of a constable, enforcement officer or authorised person acting in the performance of his functions.
(2) Subsection (1) applies to an order under section 59 as to the provisions of this Part.
Part 5 Operating Licences
Introductory
65 Nature of licence
(1) The Commission may issue operating licences in accordance with the provisions of this Part.
(2) An operating licence is a licence which states that it authorises the licensee—
(a) to operate a casino (a “casino operating licence”),
(b) to provide facilities for playing bingo (a “bingo operating licence”),
(c) to provide facilities for betting other than pool betting (a “general betting operating licence”),
(d) to provide facilities for pool betting (a “pool betting operating licence”),
(e) to act as a betting intermediary (a “betting intermediary operating licence”),
(f) to make gaming machines available for use in an adult gaming centre (a “gaming machine general operating licence” for an adult gaming centre),
(g) to make gaming machines available for use in a family entertainment centre (a “gaming machine general operating licence” for a family entertainment centre),
(h) to manufacture, supply, install, adapt, maintain or repair a gaming machine, or a part of a gaming machine (a “gaming machine technical operating licence”),
(i) to manufacture, supply, install or adapt gambling software (a “gambling software operating licence”), or
(j) to promote a lottery (a “lottery operating licence”).
(3) The issue of an operating licence does not affect the application of section 37.
(4) The Secretary of State may by order amend subsection (2) so as to—
(a) add a kind of operating licence,
(b) remove a kind of operating licence, or
(c) vary a kind of operating licence.
(5) An order under subsection (4) may, in particular, make consequential amendment of this Part (or a provision of this Act or another enactment that relates to this Part).
66 Form of licence
(1) An operating licence must specify—
(a) the person to whom it is issued,
(b) the period during which it is to have effect, and
(c) any condition attached by the Commission under section 75 or 77.
(2) The Secretary of State may by regulations require the Commission to ensure that an operating licence—
(a) is issued in such form as the regulations may specify, and
(b) contains, in addition to the matters specified in subsection (1), such information as the regulations may specify (which may, in particular, include information about conditions attached to the licence by virtue of section 78).
67 Remote gambling
(1) An operating licence is a “remote operating licence” if it authorises activity to be carried on—
(a) in respect of remote gambling, or
(b) by means of remote communication.
(2) A remote operating licence may not also authorise activity which is neither—
(a) in respect of remote gambling, nor
(b) carried on by means of remote communication.
(3) An operating licence must state whether it is a remote operating licence or not.
68 Combined licence
(1) An operating licence may be a licence of more than one of the kinds described in section 65(2).
(2) Subsection (1) is subject to the following provisions of this section.
(3) A casino operating licence authorises the holder, by virtue of this subsection, to provide facilities—
(a) for betting on the outcome of a virtual game, race, competition or other event or process, subject to any exclusion or restriction provided for by way of condition under section 75 or 77;
(b) for any game of chance other than bingo (and this paragraph does not prevent the combination of a casino operating licence and a bingo operating licence in reliance on subsection (1)).
(4) A general betting operating licence authorises the holder, by virtue of this subsection, to provide facilities for betting on the outcome of a virtual race, competition or other event or process other than a game of chance, subject to any exclusion or restriction provided for by way of condition under section 75 or 77.
(5) The following kinds of operating licence authorise the holder, by virtue of this subsection, to make one or more gaming machines within Categories A to D available for use (in addition to authorising the activities specified in accordance with section 65(2))—
(a) a non-remote casino operating licence,
(b) a non-remote bingo operating licence,
(c) a non-remote general betting operating licence, and
(d) a non-remote pool betting operating licence.
(6) No other kind of operating licence (other than a gaming machine general operating licence) may authorise the holder to make a gaming machine available for use.
Issue
69 Application
(1) A person may apply to the Gambling Commission for an operating licence to be issued authorising him to provide facilities for gambling.
(2) An application must—
(a) specify the activities to be authorised by the licence,
(b) specify an address in the United Kingdom at which a document issued under this Act may be served on the applicant,
(c) be made in such form and manner as the Commission may direct,
(d) state whether the applicant has been convicted of a relevant offence,
(e) state whether the applicant has been convicted of any other offence,
(f) contain or be accompanied by such other information or documents as the Commission may direct, and
(g) be accompanied by the prescribed fee.
(3) An application may not be made by—
(a) a child or young person, or
(b) a group that includes a child or young person.
(4) The Secretary of State may by regulations—
(a) require an applicant for an operating licence to notify specified persons within a specified period (which may be wholly or partly before the application is made), and
(b) provide for the consequences of failure to comply with a requirement under paragraph (a) (which may, in particular, include provision for an application to be disregarded or for a licence to lapse).
(5) In subsection (2)(g) “prescribed” means prescribed by regulations made by the Secretary of State; and the regulations may, in particular, make different provision for—
(a) applications for the authorisation of different classes of activity, or
(b) different circumstances.
70 Consideration of application: general principles
(1) In considering an application under section 69 the Commission—
(a) shall have regard to the licensing objectives,
(b) shall form and have regard to an opinion of the applicant’s suitability to carry on the licensed activities,
(c) shall consider the suitability of any gaming machine to be used in connection with the licensed activities, and
(d) may consider the suitability of any other equipment to be used in connection with the licensed activities (by reference, in particular, to any relevant provision of standards established under section 89).
(2) For the purpose of subsection (1)(b) 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 a person relevant to the application to carry on the licensed activities in a manner consistent with pursuit of the licensing objectives;
(c) the financial and other circumstances of the applicant or of a person relevant to the application (and, in particular, the resources likely to be available for the purpose of carrying on the licensed activities).
(3) In considering an application for a non-remote casino operating licence the Commission shall have regard, in addition to the matters specified in subsection (1), to the applicant’s commitment to—
(a) protecting vulnerable persons from being harmed or exploited by gambling, and
(b) making assistance available to persons who are or may be affected by problems related to gambling.
(4) The statement maintained by the Commission under section 23 must specify the principles to be applied by the Commission in considering applications under section 69.
(5) The statement must, in particular, specify the kind of evidence to which the Commission will have regard when assessing integrity, competence and financial or other circumstances; and that evidence may include—
(a) interviews conducted by or on behalf of the Commission;
(b) references provided to the Commission at the request of the applicant;
(c) information or opinions provided to the Commission (whether or not on request) by other persons;
(d) information sought by the Commission as to solvency in general and financial reserves in particular;
(e) the completion of training (whether provided in accordance with arrangements made by the Commission or otherwise);
(f) the possession of qualifications (whether awarded in accordance with arrangements made by the Commission or otherwise).
(6) The statement must also, in particular, specify the kind of evidence to which the Commission will have regard in considering the suitability of a gaming machine or of other equipment; and that evidence may include—
(a) the result of a test carried out by a person at the request of the Commission;
(b) the opinion of any person.
(7) The statement may specify a class of applicant or other person in relation to whom the Commission will or may assume integrity for the purpose of subsection (2)(a).
(8) The statement may specify a class of gaming machine or other equipment in relation to which the Commission will or may assume suitability; and—
(a) a class may, in particular, be defined by reference to standards under section 89 or 96 or by reference to regulations under Part 10, and
(b) subsection (1)(c) and (d) shall not apply to the consideration of an application in so far as it specifies that a gaming machine or other equipment falling within a class specified under this subsection is to be used in connection with the licensed activities.
(9) For the purposes of this section—
(a) in relation to an application, a reference to the licensed activities is a reference to the activities which will be the licensed activities if the application is granted, and
(b) a person is relevant to an application if, in particular, he is likely to exercise a function in connection with, or to have an interest in, the licensed activities.
(10) For the purposes of this section “equipment” includes—
(a) a computer,
(b) a device for the playing of a casino game, and
(c) any other piece of equipment;
(but a gaming machine is not equipment for the purposes of this section).
71 Consideration of application: criminal record
(1) The Commission may refuse an application under section 69 if the applicant or a person relevant to the application has a conviction for a relevant offence.
(2) This section does not prejudice the generality of section 70.
(3) The reference in subsection (1) to a person who is relevant to an application shall be construed in accordance with section 70(9)(b).
72 Consideration of application: demand
In determining whether to grant an operating licence the Commission may not have regard to—
(a) the area in Great Britain within which it is proposed to provide facilities, or
(b) the expected demand for facilities which it is proposed to provide.
73 Procedure
(1) For the purpose of considering an application under section 69 the Commission may—
(a) require the applicant to provide information;
(b) consult, and have regard to information provided by or an opinion stated by, any person.
(2) In subsection (1) “information” and “opinion” mean information or an opinion about—
(a) the applicant,
(b) a person relevant to the application, or
(c) the licensed activities.
(3) In particular, the Commission may require the production of an enhanced criminal record certificate under section 115 of the Police Act 1997 (c. 50) relating to—
(a) the applicant, or
(b) a person relevant to the application.
(4) The statement maintained by the Commission under section 23 must, in particular, specify the Commission’s practice in relation to—
(a) the delegation of functions in relation to applications,
(b) the holding of oral hearings of applications, and
(c) evidence required or accepted in connection with applications.
(5) The Commission may disregard an irregularity or deficiency in or in relation to an application, other than a failure to pay the fee required by section 69(2)(g).
(6) For the purposes of this section a reference to the licensed activities or to a person relevant to an application shall be construed in accordance with section 70(9).
74 Determination of application
(1) On considering an application under section 69 the Commission shall—
(a) grant it,
(b) reject it, or
(c) grant it in respect of one or more of the activities specified in accordance with section 69(2)(a) and reject it in respect of the others.
(2) Where the Commission grants an application in whole or in part it shall as soon as is reasonably practicable—
(a) notify the applicant of the grant, and
(b) issue an operating licence to the applicant.
(3) Where the Commission rejects an application in whole or in part it shall as soon as is reasonably practicable notify the applicant of—
(a) the rejection, and
(b) the reasons for it.
Conditions
75 General conditions imposed by Commission
(1) The Commission may specify conditions to be attached to—
(a) each operating licence, or
(b) each operating licence falling within a specified class.
(2) For the purposes of subsection (1)(b) a class may be defined wholly or partly by reference to—
(a) the nature of the licensed activities;
(b) the circumstances in which the licensed activities are carried on;
(c) the nature or circumstances of the licensee or of another person involved or likely to be involved in the conduct of the licensed activities.
(3) Where the Commission issues an operating licence it shall attach to the licence any condition specified under subsection (1) as a condition to be attached to operating licences of a class within which the licence falls.
76 General conditions: procedure
(1) The Commission may amend or revoke a condition specified under section 75; and a reference in this section to the specification of a condition includes a reference to the amendment or revocation of a condition.
(2) Before specifying a condition the Commission shall consult—
(a) one or more persons who in the Commission’s opinion represent the interests of operating licensees who may be affected by the condition, and
(b) such of the persons specified in section 23(5) as the Commission thinks appropriate (if any).
(3) The Commission shall publish any specification as soon as is reasonably practicable.
(4) Where the Commission proposes to specify a condition—
(a) at least three months before making the specification the Commission shall give notice of it to the holder of each licence which—
(i) has effect at that time, and
(ii) is within a class affected by the specification,
(b) if the Commission issues, after that time but before the specification is made, an operating licence of a class affected by the specification, the Commission shall give the licensee notice of the proposed specification, and
(c) on the making of the specification an existing licence shall by virtue of this paragraph be subject to the condition specified.
(5) If the Commission thinks it necessary by reason of urgency to make a specification without giving the notice required by subsection (4)(a)—
(a) the Commission shall give as much notice as it thinks possible in the circumstances to the persons mentioned in that provision,
(b) subsection (4)(b) shall have effect after the time when notice is given under paragraph (a) above, and
(c) subsection (4)(c) shall have effect.
(6) Subsection (4)(c), in its application to the amendment or revocation of a condition (by virtue of subsection (1)), shall be treated as—
(a) making existing licences subject to the condition as amended, or
(b) relieving existing licences from the condition revoked.
77 Individual condition imposed by Commission
Where the Commission issues an operating licence it may attach a condition to the licence.
78 Condition imposed by Secretary of State
(1) The Secretary of State may by regulations provide for a specified condition to be attached to operating licences falling within a specified description.
(2) Transitional provision of regulations under this section (made by virtue of section 355(1)(c)) may, in particular, apply a condition (with or without modification) to licences issued before the regulations are made (or come into force).
79 Scope of powers to attach conditions
(1) Without prejudice to the generality of the powers conferred by sections 75, 77 and 78, a condition attached under any of those sections may, in particular, do any of the things specified in this section.
(2) A condition may have the effect of restricting the activities that may be carried on in reliance on the licence by reference to—
(a) the nature of the activities,
(b) the circumstances in which they are carried on, or
(c) their extent.
(3) A condition may make provision wholly or partly by reference to—
(a) the nature of the licensed activities;
(b) the circumstances in which the licensed activities are carried on;
(c) the nature or circumstances of the licensee or of another person involved or likely to be involved in the conduct of the licensed activities.
(4) In regulating the licensed activities a condition may make provision about—
(a) the facilities that may or must be provided in connection with the licensed activities;
(b) the manner in which facilities are provided;
(c) the number of persons that may or must be employed in the provision of facilities;
(d) the financial resources available for particular purposes to the person providing facilities;
(e) any other matter.
(5) A condition may relate to the financial circumstances of the licensee or of another person involved or likely to be involved in the conduct of the licensed activities; in particular, a condition may make provision about the maintenance of reserves in respect of potential liabilities.
(6) A condition of a remote operating licence may restrict the methods of communication that may be used in the course of the licensed activities.
(7) A condition may make provision about how facilities for gambling are advertised or described.
(8) A condition may make provision about the provision of assistance to persons who are or may be affected by problems related to gambling.
(9) A condition may make provision about—
(a) establishing the identity of users of facilities;
(b) recording the identity of users of facilities;
(c) restricting facilities to persons registered in respect of the facilities in advance.
80 Requirement for personal licence
(1) The Commission shall use its powers under sections 75 and 77 to ensure that in respect of each operating licence at least one person—
(a) occupies a specified management office in or in respect of the licensee or in connection with the licensed activities, and
(b) holds a personal licence authorising the performance of the functions of the office.
(2) A condition under either of those sections may impose requirements which relate to a management office and are in addition to any required by subsection (1).
(3) A condition attached to an operating licence by virtue of section 75, 77 or 78 may, in particular, provide that if a specified management office is held in or in respect of the licensee or in connection with a licensed activity (whether or not in pursuance of another condition)—
(a) it must be held by an individual who holds a personal licence authorising the performance of the functions of the office, and
(b) anything done in the performance of the functions of the office must be done in accordance with the terms and conditions of the personal licence.
(4) A condition attached to an operating licence by virtue of section 75, 77 or 78 may, in particular, provide that if a specified operational function is performed in connection with a licensed activity it must be performed—
(a) by an individual who holds a personal licence authorising performance of the function, and
(b) in accordance with the terms and conditions of the personal licence.
(5) In this section “management office” in relation to a licensee means—
(a) if the licensee is a company, the office of director,
(b) if the licensee is a partnership (including a limited liability partnership), the office of partner,
(c) if the licensee is an unincorporated association, any office in the association, and
(d) in any case, any position the occupier of which is required, by the terms of his appointment, to take or share responsibility for—
(i) the conduct of a person who performs an operational function in connection with a licensed activity, or
(ii) facilitating or ensuring compliance with terms or conditions of the operating licence.
(6) In this section “operational function” means—
(a) any function which enables the person exercising it to influence the outcome of gambling,
(b) receiving or paying money in connection with gambling, and
(c) manufacturing, supplying, installing, maintaining or repairing a gaming machine.
(7) Provision by virtue of subsection (1) may be general or may relate only to specified—
(a) kinds of operating licence,
(b) cases, or
(c) circumstances.
(8) The Secretary of State may by order amend the definition of “management office” or “operational function” for the purposes of this section.
(9) In relation to a bingo operating licence issued to a members' club, a commercial club or a miners' welfare institute—
(a) subsection (1) shall not apply, and
(b) a condition attached by virtue of section 75, 77 or 78 may not—
(i) require that a person hold a personal licence, or
(ii) operate by reference to whether a person holds a personal licence.
81 Credit and inducements
(1) A condition attached to an operating licence by virtue of section 75, 77 or 78 may, in particular, restrict or otherwise make provision about—
(a) the giving of credit in connection with the licensed activities;
(b) the making of offers designed to induce persons to participate, or to increase their participation, in the licensed activities;
(c) participation in arrangements for inducing, permitting or assisting persons to gamble.
(2) A non-remote casino operating licence or a non-remote bingo operating licence shall by virtue of this subsection be subject to the condition that the licensee may not—
(a) give credit in connection with gambling, or
(b) participate in, arrange, permit or knowingly facilitate the giving of credit in connection with gambling.
(3) But the condition in subsection (2) shall not prevent the licensee from permitting the installation and use on the premises of a machine enabling cash to be obtained on credit from a person (the “credit provider”) provided that—
(a) the licensee has no other commercial connection with the credit provider in relation to gambling,
(b) the licensee neither makes nor receives any payment or reward (whether by way of commission, rent or otherwise) in connection with the machine, and
(c) any conditions about the nature, location or use of the machine attached by virtue of section 75, 77 or 78 are complied with.
(4) In this section “credit” includes—
(a) any form of financial accommodation, and
(b) in particular, the acceptance by way of payment of a fee, charge or stake of anything other than—
(i) cash,
(ii) a cheque which is not post-dated and for which full value is given, or
(iii) a debit card payment which is not post-dated and for which full value is given.
(5) In subsection (4)(b)(iii) “debit card payment” means a payment—
(a) debited against a person’s banking account, and
(b) made by means of a card which is not a credit-token within the meaning of section 14 of the Consumer Credit Act 1974 (c. 39).
82 Compliance with code of practice
(1) An operating licence shall by virtue of this section be subject to the condition that the licensee ensures compliance with any relevant social responsibility provision of a code of practice issued under section 24.
(2) In subsection (1)—
(a) the reference to a licensee includes a reference to anyone employed or engaged by a licensee to perform an operational function within the meaning of section 80, and
(b) the reference to a social responsibility provision of a code is a reference to a provision identified by a code as being included in pursuance of section 24(2).
(3) This section does not prevent compliance with a provision of a code, other than a social responsibility provision, from being made the subject of a condition under section 75, 77 or 78.
83 Return of stakes to children
(1) An operating licence shall by virtue of this section be subject to the condition that if the licensee becomes aware that a child or young person is using or has used facilities for gambling provided in reliance on the licence, the licensee—
(a) must return any money paid in respect of the use of those facilities (whether by way of fee, stake or otherwise) by the child or young person as soon as is reasonably practicable, and
(b) may not give a prize to the child or young person.
(2) But subsection (1) does not apply to—
(a) the use of a Category D gaming machine, or
(b) participation in equal chance gaming at a licensed family entertainment centre.
(3) The condition in subsection (1)—
(a) shall have effect despite any contract or other agreement and despite any rule of law, and
(b) shall not enable a licensee to demand repayment of, and shall not require a child or young person to return, a prize paid before the licensee becomes aware that the participant is a child or young person.
(4) In this section—
(a) a reference to a licensee includes a reference to anyone employed or engaged by a licensee to perform an operational function within the meaning of section 80, and
(b) in relation to participation in a lottery or football pools a reference to a child or young person shall be treated as a reference only to a child.
(5) In this section “prize” includes both a prize provided by a person organising gambling and winnings of money staked.
84 Premises
(1) An operating licence—
(a) may not include a condition (whether attached by virtue of section 75, 77 or 78)—
(i) requiring that the licensed activities be carried on at a specified place or class of place,
(ii) preventing the licensed activities from being carried on at a specified place or class of place, or
(iii) specifying premises on which the licensed activities may be carried on, but
(b) may include a condition about—
(i) the number of sets of premises on which the licensed activities may be carried on;
(ii) the number of persons for whom facilities may be provided on any premises where the licensed activities are carried on.
(2) An operating licence of any kind may authorise activities carried on in more than one place.
85 Equipment
(1) A condition attached to an operating licence by virtue of section 75, 77 or 78 may make provision about equipment used in connection with the licensed activities.
(2) In particular, a condition attached by virtue of this section may—
(a) make provision about the number of pieces of equipment, other than equipment for playing bingo, that may be used to provide facilities for gambling;
(b) make provision about the specification of equipment used to provide facilities for gambling.
(3) For the purposes of this section “equipment” includes—
(a) a computer,
(b) a device for the playing of a casino game, and
(c) any other piece of equipment.
(4) But a gaming machine is not equipment for the purposes of this section.
86 Gaming machines
(1) An operating licence may not include a condition (whether attached by virtue of section 75, 77 or 78)—
(a) about the number or categories of gaming machine that may be made available for use in accordance with the licence,
(b) that contradicts a provision of regulations under section 236, 240 or 241, or
(c) of a kind prohibited by regulations under any of those sections.
(2) An operating licence may be subject to a condition (whether imposed by virtue of section 75, 77 or 78) that a specified gaming machine may not be made available for use in reliance on the licence if the Commission has notified the licensee in writing that the manufacture, supply, installation, adaptation, maintenance or repair of the machine—
(a) was not carried out in reliance on a gaming machine technical operating licence, or
(b) did not comply with standards established under or by virtue of section 96.
87 Membership
An operating licence may not be subject to a condition (whether by virtue of section 75, 77 or 78)—
(a) requiring facilities to be provided by, or used in the course of the activities of, a club or other body with membership, or
(b) restricting the provision or use of facilities wholly or partly by reference to membership of a club or other body.
88 Information
(1) A condition attached to an operating licence by virtue of section 75 or 78 may require the provision of information of a specified kind to—
(a) the Commission, or
(b) another specified person or class of person.
(2) A condition attached by virtue of this section may, in particular—
(a) relate to information about the use made of facilities provided in accordance with the operating licence;
(b) require a person to provide any information that he suspects may—
(i) relate to the commission of an offence under this Act,
(ii) relate to a breach of a rule applied by a sporting or other body, or
(iii) lead to the making of an order under section 336.
Rules for particular kinds of licence
89 Remote operating licence
(1) This section applies to a remote operating licence.
(2) A remote operating licence shall, by virtue of this subsection, be subject to the condition that remote gambling equipment used by the licensee in connection with the licensed activities must be situated in Great Britain.
(3) Where the Commission issues a remote operating licence it may exclude, generally or to a specified extent or for specified purposes, the condition that would otherwise be attached by virtue of subsection (2), if the Commission is satisfied that the exclusion is reasonably consistent with pursuit of the licensing objectives.
(4) The Commission may establish, or provide for the establishment of, standards in respect of—
(a) a system used for the generation of results in a virtual game, virtual race or other virtual event or process used in the course of remote gambling;
(b) any other aspect of the process of remote gambling.
(5) In particular, the Commission may—
(a) provide for the enforcement of standards by the attachment of conditions under section 75 or 77;
(b) make arrangements with any person for the establishment of standards;
(c) make arrangements with any person for the administration of tests of compliance with standards;
(d) for the purpose of considering whether a condition under section section 75 or 77 has been complied with, require the licensee under a remote licence—
(i) to submit to a test in accordance with arrangements made under paragraph (c) above, and
(ii) to produce specified evidence of the result of the test;
(e) for the purpose of considering whether to grant an application under this Part, require a licensee under a remote licence or an applicant for a remote licence—
(i) to submit to a test in accordance with arrangements made under paragraph (c) above, and
(ii) to produce specified evidence of the result of the test.
(6) Standards established under subsection (5) may, in particular, be expressed—
(a) by reference to the opinion of a specified person or class of persons;
(b) by reference to a specified process or piece of equipment.
(7) This section is without prejudice to the generality of sections 75, 77 and 78.
90 Casino operating licence
(1) A casino operating licence may be subject to a condition (whether imposed by virtue of section 75, 77 or 78) restricting the class of casino game that may be made available.
(2) A casino operating licence may be subject to a condition imposed by virtue of section 75 or 77 specifying rules for the playing of—
(a) a casino game;
(b) another game of chance.
91 Bingo operating licence
(1) Regulations under section 78 may provide for the attachment to a bingo operating licence of a condition—
(a) limiting amounts that may be staked;
(b) limiting the amount that may be charged by way of participation fee;
(c) limiting the amount or value of a prize or class of prize;
(d) requiring that at least a specified proportion of stakes be paid out by way of prizes;
(e) imposing requirements that are specific to games of bingo played on more than one set of premises (whether facilities for the game are provided in accordance with one bingo operating licence or more than one).
(2) But subject to subsection (1) a bingo operating licence may not be subject to a condition—
(a) limiting the amount that may be accepted or charged by way of stakes,
(b) limiting the amount that may be charged by way of participation fee,
(c) restricting the nature, amount or value of prizes,
(d) controlling the proportion of stakes paid out by way of prizes,
(e) preventing the provision of prizes funded other than out of stakes,
(f) preventing or limiting an arrangement whereby the fact that a prize is not won or claimed in one game of bingo increases the value of the prizes available in another game of bingo,
(g) requiring a game of bingo to be played entirely on one set of premises, or
(h) imposing requirements that are specific to games of bingo played on more than one set of premises (whether facilities for the game are provided in accordance with one bingo operating licence or more than one).
(3) Regulations by virtue of subsection (1)(b) may, in particular, make different provision for different kinds of fee.
(4) Provision made by virtue of subsection (1)(c) may define a class of prize—
(a) by reference to a game or a number of games,
(b) by reference to a period of time, or
(c) in any other way.
92 General betting operating licence
(1) A general betting operating licence shall, by virtue of this section, be subject to the condition that bets may be accepted on behalf of the licensee only by—
(a) the licensee,
(b) a person employed by the licensee under a written contract of employment, or
(c) the holder of another general betting operating licence.
(2) A general betting operating licence shall, by virtue of this subsection, contain an implied term permitting the use of postal services for the making of bets.
(3) The effect of the term implied by subsection (2) may not be disapplied or restricted by a condition attached under section 75, 77 or 78.
93 Pool betting operating licence
(1) A pool betting operating licence shall, by virtue of this section, be subject to the condition that bets may be accepted on behalf of the licensee only—
(a) by the licensee,
(b) by a person employed by the licensee under a written contract of employment,
(c) by the holder of another pool betting operating licence, or
(d) in accordance with subsection (2) or (3).
(2) A bet is accepted by a person (“the agent”) on behalf of a licensee in accordance with this subsection if—
(a) the agent is authorised by the licensee in writing to accept bets on behalf of the licensee,
(b) the agent is an adult,
(c) at the time of accepting the bet the agent is on a track,
(d) the bet is accepted in reliance on an occasional use notice, and
(e) the bet is in connection with a horse-race or a dog race.
(3) The holder of a pool betting operating licence that authorises (whether expressly or impliedly) the provision of facilities for football pools may in writing authorise an adult or young person—
(a) to make documents or other facilities available in connection with the licensed activities;
(b) to receive entries on behalf of the licensee;
(c) to receive payments on behalf of the licensee;
(d) to make payments of winnings on behalf of the licensee.
(4) An authorisation under subsection (3)—
(a) shall be treated for the purposes of section 33 as if it were a pool betting operating licence, but
(b) shall have no effect in relation to any activity, entry or payment that relates partly to a football pool and partly to another form of gambling.
(5) An authorisation under subsection (3) may be issued on terms and conditions which may, in particular, include—
(a) provision for payment by the person issuing the authorisation;
(b) provision for commission.
(6) A condition of a pool betting operating licence (whether attached by virtue of section 75, 77 or 78) may make provision regulating or restricting the activities of persons authorised under subsection (3).
(7) A pool betting operating licence shall, by virtue of this subsection, contain an implied term permitting the use of postal services for the making of bets.
(8) The effect of the term implied by subsection (7) may not be disapplied or restricted by a condition attached under section 75, 77 or 78.
(9) The Secretary of State may by order—
(a) amend or repeal subsection (2)(e);
(b) amend subsection (3) so as to permit authorisation in relation to betting of a specified kind that relates to a sport but is not a football pool.
94 Horse-race pool betting operating licence
(1) This section applies to a pool betting operating licence which provides for this section to apply.
(2) The holder of a licence to which this section applies may in writing authorise a person to provide facilities for horse-race pool betting.
(3) An authorisation under subsection (2) shall be treated for the purposes of section 33 as if it were a pool betting operating licence authorising the provision of facilities for horse-race pool betting.
(4) An authorisation under subsection (2) may be issued on terms and conditions which may, in particular, include—
(a) provision for payment to or by the person issuing the authorisation;
(b) provision for agency or commission.
(5) A condition of a pool betting operating licence to which this section applies (whether attached by virtue of section 75, 77 or 78) may make provision regulating or restricting the activities of persons authorised under subsection (2).
(6) A pool betting operating licence to which this section applies shall, by virtue of this subsection, contain an implied term permitting the use of postal services for the making of bets.
(7) The effect of the term implied by subsection (6) may not be disapplied or restricted by a condition attached under section 75, 77 or 78.
(8) The Secretary of State may by order repeal this section.
95 Betting on the National Lottery
(1) This section applies to—
(a) a general betting operating licence,
(b) a pool betting operating licence, and
(c) a betting intermediary operating licence.
(2) A licence to which this section applies shall, by virtue of this subsection, be subject to the condition that nothing may be done in reliance on the licence in relation to a bet on the outcome of a lottery which forms part of the National Lottery.
96 Gaming machine technical operating licence: standards
(1) The Commission may establish, or provide for the establishment of, standards in respect of the manufacture, supply, installation, adaptation, maintenance or repair of gaming machines or parts of gaming machines.
(2) Standards under subsection (1)—
(a) may operate by reference to regulations under Part 10, and
(b) may not make provision which is inconsistent with a provision of regulations under Part 10.
(3) Standards under subsection (1) may, in particular, make provision (which may include provision designed to discourage repetitive play or to protect children or other vulnerable persons from harm) about—
(a) the nature of a game that a machine is designed to be used to play;
(b) the way in which the results of a game are to be determined or presented;
(c) the nature of images or information displayed by or on a machine.
(4) In particular, the Commission may—
(a) provide for the enforcement of standards by the attachment of conditions under section 75 or 77;
(b) make arrangements with any person for the establishment of standards;
(c) make arrangements with any person for the administration of tests of compliance with standards;
(d) for the purpose of considering whether a condition under section 75 or 77 has been complied with, require the holder of a gaming machine technical operating licence—
(i) to submit to a test in accordance with arrangements made under paragraph (c) above, and
(ii) to produce specified evidence of the result of the test;
(e) for the purpose of considering whether to grant an application under this Part, require the holder of or an applicant for a gaming machine technical operating licence—
(i) to submit to a test in accordance with arrangements made under paragraph (c) above, and
(ii) to produce specified evidence of the result of the test.
(5) Standards established under subsection (1) may, in particular, be expressed—
(a) by reference to the opinion of a specified person or class of persons;
(b) by reference to a specified process or class of machine.
(6) This section is without prejudice to the generality of sections 75, 77 and 78.
97 Gambling software operating licence: standards
(1) The Commission may establish, or provide for the establishment of, standards in respect of the manufacture, supply, installation or adaptation of gambling software.
(2) In particular, the Commission may—
(a) provide for the enforcement of standards by the attachment of conditions under section 75 or 77;
(b) make arrangements with any person for the establishment of standards;
(c) make arrangements with any person for the administration of tests of compliance with standards;
(d) for the purpose of considering whether a condition under section 75 or 77 has been complied with, require the holder of a gambling software operating licence—
(i) to submit to a test in accordance with arrangements made under paragraph (c) above, and
(ii) to produce specified evidence of the result of the test;
(e) for the purpose of considering whether to grant an application under this Part, require the holder of or an applicant for a gambling software operating licence—
(i) to submit to a test in accordance with arrangements made under paragraph (c) above, and
(ii) to produce specified evidence of the result of the test.
(3) Standards established under subsection (1) may, in particular, be expressed—
(a) by reference to the opinion of a specified person or class of persons;
(b) by reference to a specified process or description of software.
(4) This section is without prejudice to the generality of sections 75, 77 and 78.
98 Lottery operating licences
(1) A lottery operating licence may be issued only to—
(a) a non-commercial society,
(b) a local authority, or
(c) a person proposing to act as external lottery manager on behalf of a non-commercial society or a local authority.
(2) A lottery operating licence may authorise—
(a) promotion generally or only specified promoting activities;
(b) the promotion of lotteries generally or only the promotion of lotteries of a specified kind or in specified circumstances;
(c) action as an external lottery manager (in which case it is known as a “lottery manager’s operating licence”).
(3) In issuing a lottery operating licence to a society or authority the Commission—
(a) may attach a condition under section 75 or 77 requiring that the society or authority ensure that all the arrangements for the lottery are made by the holder of a lottery manager’s operating licence, and
(b) may, if they attach a condition under paragraph (a), issue the lottery licence to the society or authority without consideration of the matters specified in section 70(1)(b).
(4) A lottery operating licence shall, by virtue of this subsection, permit the delivery of lottery tickets by post.
(5) The effect of the term implied by subsection (4) may not be disapplied or restricted by a condition attached under section 75, 77 or 78.
(6) In issuing a lottery operating licence the Commission may attach a condition under section 75 or 77 preventing, restricting or controlling the use of a rollover.
(7) In this section “local authority” means—
(a) in relation to England—
(i) a district council,
(ii) a county council,
(iii) a parish council,
(iv) a London borough council,
(v) the Common Council of the City of London, and
(vi) the Council of the Isles of Scilly,
(b) in relation to Wales—
(i) a county council,
(ii) a county borough council, and
(iii) a community council, and
(c) in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39).
99 Mandatory conditions of lottery operating licence
(1) In issuing a lottery operating licence to a non-commercial society or to a local authority the Commission shall attach conditions under section 75 or 77 for the purpose of achieving the requirements specified in this section.
(2) The first requirement is that at least 20% of the proceeds of any lottery promoted in reliance on the licence are applied—
(a) in the case of a licence issued to a non-commercial society, to a purpose for which the promoting society is conducted, and
(b) in the case of a licence issued to a local authority, for a purpose for which the authority has power to incur expenditure.
(3) The second requirement is that—
(a) the proceeds of any lottery promoted in reliance on the licence may not exceed £2,000,000, and
(b) the aggregate of the proceeds of lotteries promoted wholly or partly in a calendar year in reliance on the licence may not exceed £10,000,000.
(4) The third requirement is that it must not be possible for the purchaser of a ticket in a lottery promoted in reliance on the licence to win by virtue of that ticket (whether in money, money’s worth, or partly the one and partly the other) more than—
(a) £25,000, or
(b) if more, 10% of the proceeds of the lottery;
and any rollover must comply with this subsection.
(5) The fourth requirement is that where a person purchases a lottery ticket in a lottery promoted by a non-commercial society in reliance on the licence he receives a document which—
(a) identifies the promoting society,
(b) states the name and address of a member of the society who is designated, by persons acting on behalf of the society, as having responsibility within the society for the promotion of the lottery, and
(c) either—
(i) states the date of the draw (or each draw) in the lottery, or
(ii) enables the date of the draw (or each draw) in the lottery to be determined.
(6) The fifth requirement is that the price payable for purchasing each ticket in a lottery promoted in reliance on the licence—
(a) must be the same,
(b) must be shown on the ticket or in a document received by the purchaser, and
(c) must be paid to the promoter of the lottery before any person is given a ticket or any right in respect of membership of the class among whom prizes are to be allocated.
(7) For the purpose of subsections (5) and (6) a reference to a person receiving a document includes, in particular, a reference to a message being sent or displayed to him electronically in a manner which enables him, without incurring significant expense or delay, to—
(a) retain the message electronically, or
(b) print it.
(8) The sixth requirement is that membership of the class among whom prizes in any lottery promoted in reliance on the licence are allocated may not be dependent on making any payment (apart from payment of the price of a ticket).
(9) Where—
(a) conditions are attached to a lottery operating licence in accordance with this section, and
(b) the lottery operating licence is also subject to a condition under section 98(3)(a) requiring arrangements for the lottery to be made by the holder of a lottery manager’s operating licence,
the conditions specified in paragraph (a) above shall, by virtue of this subsection, attach to the lottery manager’s operating licence in so far as it is relied upon in pursuance of the condition specified in paragraph (b) above.
(10) Nothing in this section prevents the Commission from attaching a condition to a lottery operating licence of a kind similar to but more onerous than a requirement of this section.
(11) The Secretary of State may by order vary a monetary amount or a percentage in this section.
Maintenance
100 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
(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.
(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 licence on or immediately before which the licence ceases to have effect by virtue of section 111.
101 Change of circumstance
(1) The Secretary of State may make regulations requiring the holder of an operating licence—
(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 66 the notification must be accompanied by—
(a) the prescribed fee, and
(b) either—
(i) the licence, or
(ii) an application to the Commission for the issue of a copy of the licence under section 107.
(3) Where notification is accompanied by the licence, the Commission shall—
(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 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 conviction to a fine not exceeding level 2 on the standard scale.
(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.
102 Change of corporate control
(1) This section applies where the holder of an operating licence is a company 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 113, or
(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,
(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 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 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
(b) after it expires (if the relevant operating licence has not yet been revoked).
103 Section 102: supplemental
(1) The Secretary of State may by regulations provide for section 102 not to apply to the holder of a specified description of operating licence.
(2) An application under section 102(2)(b) must be accompanied by the prescribed fee.
(3) An application may be made under section 102(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 under section 102(2)(b) of—
(a) the Commission’s decision, and
(b) the reasons for it.
(5) In giving a direction under section 102(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
(b) the division of a company.
(7) Revocation of an operating licence under section 102 shall be treated for all purposes (including the application of section 119) as revocation under section 119.
104 Application to vary licence
(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 under section 77.
(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—
(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;
(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 kinds.
(5) An application for variation must (in addition to anything required by section 69) be accompanied by—
(a) a statement of the variation sought, and
(b) either—
(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
(b) may make transitional provision.
105 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 75,
(b) a change notified under section 101,
(c) the grant of an application for variation under section 104,
(d) the attachment of an additional condition, or the amendment of a condition, under section 117,
(e) the grant of an application for renewal under section 112, or
(f) anything done in relation to a personal licence under Part 6.
(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).
(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 76(4)(c).
106 Register of operating licences
(1) The Commission shall—
(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 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 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).
107 Copy of licence
(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 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.
(3) A copy of a licence issued under this section shall be treated as if it were the licence.
108 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 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.
109 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
(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 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 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
110 Indefinite duration
An operating licence shall continue to have effect unless and until it ceases to have effect in accordance with—
(a) a determination under section 111, or
(b) section 113, 114, 115, 118 or 119.
111 Power to limit duration
(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 113, 114, 115 or 119).
(2) The period specified under subsection (1)—
(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—
(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
(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.
112 Renewal of licence
(1) Where an operating licence is subject to a determination under section 111, 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—
(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 otherwise expire by virtue of section 111, 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 111, the 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 113, 114, 115, 118 or 119).
(5) A direction or 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 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.
(6) An application for renewal must (in addition to anything required by section 69) 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.
(7) The Commission shall determine the period during which a renewed operating licence is to have effect (subject to sections 113, 114, 115, 118 and 119); and the Commission—
(a) may determine different periods for operating licences authorising different classes of activity (but may not otherwise determine different 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.
(8) The Secretary of State may by order amend subsection (3) so as to substitute a different time for a time specified.
113 Surrender
An operating licence shall cease to have effect if the licensee—
(a) notifies the Commission of his intention to surrender the licence, and
(b) gives the Commission either—
(i) the licence, or
(ii) a written statement explaining why it is not reasonably practicable to produce the licence.
114 Lapse
(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 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).
(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).
115 Forfeiture
(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,
(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.
(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, 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 this section the court shall notify the Commission.
Regulation
116 Review
(1) The Commission may in relation to operating licences of a particular description review—
(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 75, 77 or 78.
(2) The Commission may review any matter connected with the provision of facilities for gambling as authorised by an operating licence if the 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 connection with or is interested in the licensed activities, has acquired a conviction of a kind mentioned in section 71(1), or
(c) for any reason—
(i) suspects that the licensee may be unsuitable to carry on the licensed activities, or
(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.
(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.
(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.
117 Regulatory powers
(1) Following a review under section 116(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 77;
(c) remove or amend a condition attached to a licence under section 77;
(d) make, amend or remove an exclusion under section 89(3);
(e) exercise the power under section 118 to suspend a licence;
(f) exercise the power under section 119 to revoke a licence;
(g) exercise the power under section 121 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 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 licensee following an earlier review (whether or not of that licence).
118 Suspension
(1) The Commission may suspend an operating licence if following a review under section 116(1) or (2) the Commission thinks that any of the conditions specified in section 120(1) applies.
(2) The Commission may suspend an operating licence if at the time of deciding to conduct a review under section 116(1) or (2), or at any time during the course of a review, the Commission suspects that any of the conditions specified in section 120(1) may apply.
(3) The Commission may suspend an operating licence if it thinks that any of the conditions specified in section 120(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 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, 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.
119 Revocation
(1) The Commission may revoke an operating licence if following a review under section 116(1) or (2) the Commission thinks that any of the conditions specified in section 120(1) applies.
(2) The Commission may revoke an operating licence if it thinks that any of the conditions specified in section 120(2) applies.
(3) The Commission shall revoke an operating licence if the licensee fails to pay the annual fee in accordance with section 100; but the Commission may disapply this subsection if it thinks that a failure to pay is attributable to administrative 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 machine supplied, or another thing done, before the time when the revocation takes effect for other purposes).
120 Conditions for suspension or revocation
(1) The conditions referred to in sections 118(1) and (2) and 119(1) are—
(a) that a licensed activity is being or has been carried on in a manner 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 116(1) or (2), or
(d) that the licensee is unsuitable to carry on the licensed activities.
(2) The conditions referred to in sections 118(3) and 119(2) are—
(a) that the licensee has failed to comply with a requirement of regulations under section 101, or
(b) that the licensee has failed to submit the licence to the Commission for amendment in accordance with section 105.
(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 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 licensed activities (and, in particular, the resources available for the purpose of carrying on the licensed activities).
121 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 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,
(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—
(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.
(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 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 116 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,
(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
(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 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
(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,
(b) the Lord Chancellor, and
(c) such other persons as the Commission thinks appropriate.
122 Information
(1) The holder of an operating licence shall comply with a request of the Commission to—
(a) produce a written or electronic record relating to the licensed activities;
(b) provide a copy of a written or electronic record relating to the licensed activities;
(c) provide information about the licensed activities.
(2) A request under subsection (1) may specify—
(a) the form and manner in which a record or information is to be produced or provided;
(b) the period within which a record or information is to be produced or provided.
(3) The Commission may retain anything provided under subsection (1).
(4) The Commission may exercise a power under this section only for the purpose of—
(a) determining whether activities have been carried on in purported reliance on the licence but not in accordance with a condition of the licence, or
(b) determining the suitability of the licensee to carry on the licensed activities.
(5) A person commits an offence if he fails without reasonable excuse to comply with subsection (1).
(6) A person guilty of an offence under subsection (5) shall be liable on summary conviction to a fine not exceeding level 2 on the standard scale.
General
123 Levy
(1) The Secretary of State may make regulations requiring holders of operating licences to pay an annual levy to the Commission.
(2) The regulations shall, in particular, make provision for—
(a) the amount of the levy;
(b) timing of payment of the levy.
(3) The regulations may, in particular, make provision—
(a) determining the amount of the levy by reference to a percentage of specified receipts of an operating licence holder,
(b) determining the amount of the levy by reference to a percentage of specified profits of an operating licence holder,
(c) determining the amount of the levy by reference to a percentage of the annual fee under section 100,
(d) providing for the determination of the amount of the levy according to a specified formula, or
(e) providing for the determination of the amount of the levy in some other way.
(4) Any sum due by way of levy by virtue of this section shall be treated for the purposes of this Act as if it were due by way of annual fee under section 100.
(5) The Commission shall, with the consent of the Treasury and of the Secretary of State, expend money received by way of levy for purposes related to, or by providing financial assistance for projects related to—
(a) addiction to gambling,
(b) other forms of harm or exploitation associated with gambling, or
(c) any of the licensing objectives.
(6) In subsection (5) the reference to financial assistance is a reference to grants, loans and any other form of financial assistance, which may be made or given on terms or conditions (which may include terms and conditions as to repayment with or without interest).
(7) The Secretary of State shall consult the Commission before making regulations under this section.
124 Directions and requirements
Where the Commission has power under this Part to give a direction or impose a requirement it may give different directions or impose different requirements in relation to different cases or circumstances.
125 Relevant offence: disapplication of rehabilitation
Section 4 of the Rehabilitation of Offenders Act 1974 (c. 53) (effect of rehabilitation) shall not apply for the purposes of or in connection with—
(a) section 69(2)(d), or
(b) section 71(1).
126 Interpretation
(1) In this Part—
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“conviction”—
(a)has the meaning given by section 1(4) of the Rehabilitation of Offenders Act 1974, and
(b)includes, to the extent required by section 125, a spent conviction within the meaning of that Act,
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“holder”, in relation to an operating licence, means the person to whom the licence is issued,
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“the licensed activities” in relation to an operating licence means the activities which it authorises, and
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“licensee”, in relation to an operating licence, means the person to whom the licence is issued.
(2) In this Act “relevant offence” means—
(a) an offence listed in Schedule 7, and
(b) an offence under the law of a country or territory outside the United Kingdom (a “foreign offence”) which prohibits a kind of activity prohibited by an offence listed in that Schedule (a “domestic offence”).
(3) For the purpose of subsection (2)(b) it is immaterial—
(a) whether or not the foreign offence prohibits all the kinds of activity prohibited by the domestic offence, and
(b) whether or not the foreign offence prohibits kinds of activity not prohibited by the domestic offe