Betting and gaming

News: B&G eNews - Gambling In Pubs And Clubs Under The New Act

The department for Culture Media and Sport (DCMS) has released the proposed limits on gambling in pubs and clubs for consultation.

As usual, these can be viewed in detail on the DCMS website. The closing date for response to the consultation is the 20th April 2007.

The consultation concerns regulations to be published under the Gambling Act 2005 restricting pubs and clubs on the amount that can be staked and won gambling on their premises. (I have deliberately not referred to machines here as they are covered under separate legislation).

Clubs

Firstly, the Act draws a distinction between members clubs and commercial clubs. Members clubs can apply for a club gaming permit which entitles them to play equal chance games for example, the ever popular poker, without limitations. The only limitations relate to bingo.

Alternatively both members clubs and commercial clubs can rely on an exemption which will allow them to have equal chance gaming only (for example, Bridge) without limit as to stake and prize. Having said this there is an expectation that the gaming will be for low stakes. However, poker will be treated differently.

Although it is equal chance gaming, poker is regarded in the consultation as being a different animal and the DCMS have listened to the Gambling Commissions concerns about the rising levels of a "kitty" in the game.

They are therefore proposing limits of stake for a 7 day period of £1,000 and a maximum stake of £200 a day for poker only. The prize which can be won is subject to the same limits.

In addition an individual is limited to a maximum stake of £10 per game.

This is subject to a maximum charge per individual of £1 per day.

The consultation makes it clear that its aim is to largely maintain the status quo which clubs enjoy under the Gaming Act 1968.

It is possible currently for members and commercial clubs to conduct equal chance gaming without limit as to stake or prize including poker. The proposals are therefore a greater restriction on this increasingly popular game.

It is going to be difficult to see how these limits can be enforced, but the consultation summary makes it clear that as a breach is a criminal offence, the Gambling Commission expects the operator to ensure compliance.

Pubs

As we have mentioned in a previous e-News, it is possible under existing law for pubs to provide equal chance gaming other than dominos and cribbage by making an application under the Gaming Act to the local authority.

This has rarely been done in practice.

Poker in particular is becoming increasingly common particularly in various leagues where individuals play for points rather than prizes to take the game outside the current definition of "gaming", and therefore to do it without a licence

It will therefore be an advantage to pubs that the new Act 2005 provides them with an automatic exemption for equal chance gaming, and for the first time prizes can be awarded lawfully without any form of licence.

However, as with clubs there are limits and the first one is that a maximum stake for each person is £pound;5 per game.

In addition, for poker there are limits for each premises (in total stakes or prizes) of £pound;500 in any period of 7 days and £pound;100 on any day.

In essence, in relation to pubs there appears to be an opportunity to allow unlicensed poker but it will be subject to these strict limits ensuring effectively that the poker is ancillary to the main use of the premises.

This is in keeping with the current climate, both in relation to the outcome of the Gutshot case (see earlier e-News) and the Gambling Commission's recent announcement which states as follows:-

"Commercial poker in unregulated premises creates a range of risks and dangers especially when substantial sums of money are invited or involved… we are warning all card rooms in premises where we believe illegal poker is taking place that appropriate action will be taken against those who organise or provide unlawful gaming."

Operators have been warned! It is clear that the Gambling Commission will look to enforce at every available opportunity.

For further information, please do not hesitate to contact me or anyone else in the betting and gaming team.

And finally, congratulations to Manchester, CAP surprised us all.