Gambling Commission welcomes verdict in poker club case

Press release

Date: 3 July 2012

The Gambling Commission and Hackney Council have welcomed a court verdict rejecting an appeal against the removal of a club gaming permit and club premises certificate from a premises offering poker in Hackney.

The International Private Members Club, N1 had appealed the decision of Hackney Council to withdraw their club premises certificate and cancel the associated gaming permit at a licensing hearing in October 2011. Yesterday (2 July), at Thames Magistrates’ Court the appeal was dismissed with costs of £18,000 awarded to Hackney Council.

Welcoming the decision and praising the work of Hackney Council’s licensing enforcement officers and the Metropolitan Police, the Commission’s Director of Regulatory Risk and Analysis, Matthew Hill said:

“We welcome this verdict which confirms that the narrow permission allowing members of genuine members’ clubs to play poker cannot be used to justify the provision of what amounts to a commercial poker club.

“This case, which was diligently led by the Hackney Council, supported by the Gambling Commission and the Metropolitan Police, sends a clear message to club gaming permit holders, who seek to offer poker, that they must operate in accordance with their permit or run the risk of losing it.”

A number of local authorities have tackled or are faced by similar schemes. The Commission issued advice to local authorities to help distinguish between a members’ club and a commercial club in October 2010.

Cllr Sophie Linden, Hackney Council’s Cabinet Member for Crime, Sustainability and Customer Services said: "This verdict sends a strong message that clubs operating with complete disregard for the law will not be tolerated. The Council takes these breaches seriously and we will investigate and seek to remove their permits and certificates whenever necessary.”

Ends

Notes to editors

The Gambling Commission

  • 1. The Gambling Commission (the Commission) regulates gambling in the public interest alongside its co-regulators local licensing authorities. It does so by keeping crime out of gambling, by ensuring that gambling is conducted fairly and openly, and by protecting children and vulnerable people from being harmed or exploited by gambling. The Commission also provides independent advice to government on gambling in Britain.
  • 2. The Commission and licensing authorities are responsible for licensing and regulating all gambling in Great Britain other than the National Lottery and spread betting, which are the responsibility of the National Lottery Commission and the Financial Services Authority (FSA) respectively. 
  • 3. See the terms & conditions section of our website for information on legal advice. 
  • 4. The overall approach to the regulation of gambling set out in the Gambling Act 2005 starts by creating an overarching offence of providing facilities for gambling (at Section 33 of the Act) and then to offer exemptions from that offence under specified circumstances.
     
    There is a set of exemptions that applies in recognition that some gambling is likely to be of lesser concern, even when not conducted by a licensed gambling operator, generally speaking when it is provided at a de minimis level and/or is ancillary to the main purpose of the business. One such exemption is that set out at Section 271 (Club Gaming Permit), which relieves members’ clubs and certain other undertakings of the offence at Section 33, under very limited circumstances.
     
    One effect of this exemption is that gambling – poker for example – provided under the aegis of a club gaming permit is not subject to the licence conditions and codes of practice attached to operating licences. When the gambling is being provided in the very low-level way intended by the legislation it is considered that the risks arising are sufficiently small as to justify the lighter-touch regulation.
     
    In the Commission’s view, the evidence that has been gathered in the case in question indicated that the IPMC was offering gambling in a way that goes beyond the narrow provision of the club gaming permit and appeared to be a commercial operation of some scale. 
  • 5. The International Private Members Club, 53-55 East Road, N1 6AH, applied to Hackney Council for a Club Premises Certificate on 19 March 2008. The application described the venue as a private members club that would allow members to play a range of games such as pool and bridge - there was no mention of poker.
     
    Based on the application, the Club Premises Certificate (CPC) was granted uncontested. Once they held the CPC they were able to have their Club Gaming Permit application fast tracked which meant the Gambling Commission and Police were not able have input or object.
     
    An extensive investigation by the Council's licensing enforcement team with assistance from the Gambling Commission, Metropolitan Police Clubs and Vice Unit and Islington Council; showed that the club has been operating as a large scale Poker venue - contrary to their application. The club was also shown to be breaching a number of conditions set out in both the Gambling Act and Licensing Act.
     
    The full case was presented to the Licensing Sub Committee on 18 October 2011. The panel cancelled the Club Gaming Permit and withdrew the Club Premises Certificate. The International Private Members Club appealed the decision, which were dismissed on 2 July 2012 and costs of £18,000 were awarded to Hackney Council.
  • 6. Further information is available from John Travers on (0121) 230 6700 or (07852) 124624 or communications@gamblingcommission.gov.uk.  Hackney Council press office can be contacted on 020 8356 3736. 

Further information

  1. Further information is available from the Commission's website. Gambling Commission: John Travers on (0121) 230 6700 or communications@gamblingcommission.gov.uk.