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Are you taking a punt on the Gambling Act 2005?
26 July 2007
By 1 September 2007 the Gambling Act 2005 will
be fully implemented.
However, it has already made some significant
changes to the way the gambling industry operates and more changes
are on their way in the near future. The new Act introduces three
Licensing Objectives:
- Keeping gambling crime-free
- Making sure that gambling is fair and open
- Protecting children and vulnerable adults
A striking change over the last year results
from one of the Government's primary aims: the removal of Section
34 Permits for Amusements with Prizes (AWPs) from
non-gambling premises such as chip shops and
taxi offices.
To achieve this, no further applications for
the grant or renewal of these Permits for non-gambling premises
have been allowed since 1 August 2006. Existing Permits after that
date continue to have effect until 31 July 2009, or until their
expiry date, whichever occurs first. Once expired, it will not be
possible to renew these Permits.
Section 34 Permits for gambling and/or
alcohol licensed premises
Other premises which hold current Permits
under Section 34 of the Gaming Act 1968 must convert those
permissions before they expire. Since November 2005 all
applications that were traditionally dealt with by the licensing
magistrates in conjunction with the sale of alcohol have been the
responsibility of the licensing authority.
There are numerous transitional provisions
dealing with conversion of Permits, which aim to minimise
disruption to businesses and reassure existing operators of their
rights under the new regime. Continuation rights
will allow operators to continue making machines available whilst
their applications are being resolved. Under certain circumstances,
Grandfather rights will confer on operators a
right to have their existing permission converted into the
equivalent permission under the 2005 Act.
In other cases Grandfather rights may not be
necessary or relevant – this is because pubs and other premises
permitted to sell alcohol receive an automatic entitlement to two
category C or D machines subject to simple notification. Premises
in this situation must notify the licensing authority prior to
expiry of their Section 34 permit and pay the prescribed fee.
Beware: if the fee is missed then the premises forfeit their
automatic entitlement and will be at risk of prosecution for breach
of the Gambling Act 2005.
The various transitional provisions are
detailed in nature and their application depends upon several
factors including:
- The types of licences or permits the premises
currently hold
- The expiry date of those licences and
permits
- Whether the premises intend to make more
machines available in the future
General compliance requirement for all
operators
In addition to ensuring that they have the
correct Licences and Permits, gambling operators must comply with
the Gambling Commission's Licence Conditions and Codes of Practice
and the rules set out in the Schedules to the new Act itself. From
1 September 2007 this will apply to all gambling operators,
including those with old Permits that have yet to expire (for
example, some Section 34 Permits for alcohol licensed premises will
continue until 31 August 2010).
Even premises which hold Permits that have yet
to expire are likely to be legally required to take some action in
order to comply. The Codes include requirements such as:
- Putting into effect policies and procedures
to promote socially responsible gambling
- Ensuring there is sufficient information to
enable players to understand the games and odds they face
- Providing gambling information in other
languages if the operator advertises in other languages
- Following procedures to prevent underage
gambling
- Implementing a code of practice on door
supervision to keep children out of over 18 premises
This brief overview of the Gambling Act 2005
highlights only some of the changes to certain premises. The Act
goes much further and it is important to note that ALL gambling
operators will be affected by the Gambling legislation and
associated Codes. They are detailed and complex and therefore we
strongly urge all gambling operators to seek compliance advice
immediately, particularly as some of the transition dates for
Continuation rights and Grandfather rights have passed and
September 2007 is not so far away!
For more information please contact Fiona
The content of this bulletin is provided for
the purposes of general interest and information. It contains only
brief summaries of aspects of the subject matter and does not
provide comprehensive statements of the law. It does not constitute
legal advice and does not provide a substitute for it.