Betting and gaming

News: The Gambling Act 2005 and gaming machines in licensed premises

  • Date: 2007/08/10
  • Author/Solicitor: Nick Arron

The full implementation of the Act on 1st September is looming. Fortunately the government has made the conversion of existing gaming machine permits (aka Section 34 permits granted to licensed premises, or AWP permits) into the equivalent Gambling Act permits a relatively painless affair.

If your existing permit expires before 31st August then you should apply to the council as for a new permit. and pay the £32 fee.

Existing permits for gaming machines due to expire after 31st August will continue until they are due to expire, in force until the date as stated on the permit , or if they do not have an expiry date, until 31st August 2010.

The Application

To benefit from continuation rights and grandfather rights (the right to keep the number of machines you have and to continue to operate the machines after the expiry date of the council have not yet determined your application) you must apply in advance of the expiry date to convert the permit. You will either apply for into either a new Licensed Premises Gaming Machine permit, i, if you have 3 or more machines, or notify the council in writing of your intention to have 1 or 2 machines. Application forms for the permits are available from the councils.

Grandfather Rights ensure you keep the same number of machines and Continuation Rights allow you to continue to operate the gaming machines even if your existing permit has expired and the council have yet to make a decision on your new permit application.

Fees

The fee for the conversion of the permit for 3 or more machines is £100 and the fee for notifying the council that you will be having 1 or 2 machines is £50.

There is an annual fee on the Licensed Premises Gaming Machine Permit of £50, due within 30 day of the anniversary of the issue. Non payment will result in the permit being cancelled, so update your diary.

Importantly, there is no annual fee payable until you have converted your existing permit into a new Licensed Premises Gaming Machine Permit. Challenge the council if they do try and demand an annual fee before you have converted.

Rectifying omissions and errors

Frustratingly on conversion the council can demand that you send additional information with the application (this is despite the fact the council can not add conditions to your permit). If you do not include the required documentation, e.g. plans, you will be given 14 days to provide the information or you will lose your continuation rights, which would mean you may have to turn your machines off. You will, however, not lose your grandfather rights.

The same applies to errors in your application. The council will inform you of the error and you will have 14 days to rectify the mistake.

Transfers

These permits can be transferred when if the premises licence is transferred, although if you transfer a premises licence into your name and the premises have 1 or 2 machines you will have to re-notify the council that you will be having 1 or 2 machines and pay the £50 fee.

New gaming machines

If you don't have any gaming machines and plan on installing them or you wish to increase the number of machines you have at your premises you can notify the council or apply for a new permit now, although it will not take effect until 1st September.

The fee for a new permit for 3 or more machines is £150. or iIf you are notifying the council that you will be having 1 or 2 machines the same £50 fee applies. There is an annual fee for the permit for 3 or more machines of £50 but no annual fee for 1 or 2 machines.

On Frustratingly the council can demand that you send additional information with the application. If you do not you will be given 14 days to provide the information.

Both the permits and notifications are unlimited in duration.

Gaming Machine Categories

The new permits allow all cash (max. 50p stake and £35 prize) and lower payout AWP (10p/£5 cash or 30p/£8 non cash) now called Category C and D machines respectively. Children can only play on Category D machines.

The Code of Practice

The Gambling Commission have produced a 'Code of Practice' which relates to supervision and positioning of the machine. The principle provisions are:-

All gaming machines situated on the premises must be located in a place within the premises so that their use can be supervised, either by staff whose duties include such supervision (including bar or floor staff) or by other means.

Permit holders must have in place arrangements for such supervision.

All gaming machines situated on the premises shall be located in a place that requires a customer who wishes to use any ATM made available on the premises to cease gambling at the gaming machine in order to do so. 'ATM' means a machine located on the premises, which enables a person using it to obtain cash by use of a credit or debit card.

Compliance with these provisions is a condition of your permit, and failure to do so could result in revocation of the permit.

The document also contains best practise on preventing underage gambling.

A full version of the Code of Practice is available at:-

http://www.gamblingcommission.gov.uk/UploadDocs/Contents/Documents/Gaming Machine Permits Code of Practice.pdf

For more information about this article please contact Nick Arron