Advice and guidance updates
‘Coffee shop gambling venues’ - guidance to LAs on the presentation and function of gambling premises
We have recently worked with operators and LAs to discuss high-street gambling premises that are fitted out to look like ‘relaxed leisure’ premises from both the outside and the inside. These include, for example, premises that have coffee shop facilities available alongside full gambling opportunities such as bingo and category B gaming machines.
In instances where there are only limited indicators that the premises are licensed for gambling, we and LAs have concerns that customers might not be aware that they are actually entering licensed gambling premises. This is because children and vulnerable gamblers might attempt to enter the venues having not realised that gambling facilities would be available.
While provisions such as the Mandatory and Default Premises Licence Conditions outline certain minimum requirements in terms of the structure and layout of gambling premises, there is no provision that explicitly outlines how gambling premises should be presented.
However, where LAs have concerns over the appearance of gambling premises, they should be aware of the following:
Social responsibility code provision 9.1 for betting, bingo and casino premises
Our Licence Conditions and Codes of Practice require that:
- Gaming machines may be made available for use in licensed premises only where there are also substantive facilities for the named non-remote activity available on the premises.
- Facilities for gambling must only be offered in a manner which provides for appropriate supervision of those facilities by staff at all times.
- Licensees must ensure that the function along with the internal and/or external presentation of the premises are such that a customer can reasonably be expected to recognise that it is a premises licensed for the purposes of providing betting, bingo or casino facilities, as per the named activity on the premises licence.
This code supports one of the original principles of the Gambling Act (opens in new tab) (the Act) that non-remote gambling and category B gaming machines should be confined to dedicated gambling premises, which consumers attend for the purpose of gambling, or for whom the prospect of such gambling facilities being available can be reasonably expected.
In short, customers must be aware of the type of gambling premises they are attending so that they can make a deliberate choice whether to enter.
The Act is underpinned by the principle that any non-gambling activity that takes place in licensed gambling premises (foe example, the consumption of alcohol, the provision of refreshments) should be ancillary to the gambling facilities offered. As such, we would regard it as wholly unacceptable for a pub to have a premises licence for bingo or a nightclub to contain a casino.
Guidance to Licensing Authorities (GLA)
In our Guidance to Licensing Authorities (GLA) we advise that licensing authorities are not being asked to impose a ‘one size fits all’ view of how gambling premises should look and function.
Rather, they should be ensuring that premises licensed for the purposes of providing certain types of gambling facilities are operating as such and are not merely a vehicle to offer higher stake and prize gaming machines. Where LAs have specific concerns, they are encouraged to consider the following questions:
Where changes are being made to the presentation, structure or layout of existing licensed premises, did the operator submit a premises licence variation?
An application for a variation will be required where there are ‘material changes’ to the layout of the premises. What constitutes a material change will be a matter for local determination, and it is expected that a common-sense approach will be adopted. However, changes made to gambling premises so that they are less obviously gambling premises - or where non-gambling facilities become a fundamental part of the commercial purpose of the premises - are highly likely to constitute a material change.
A variation application would provide an opportunity for the authority to require certain controls to be put in place by the operator before the application was granted. Conversely, failure to submit an application would provide strong grounds for premises licence review.
Has a local area risk assessment been completed (or updated, in the case of existing premises) to reflect the risks to the licensing objectives posed by the premises?
The ‘coffee shop’ model of gambling premises is ultimately a diversification in commercial offering, aimed at attracting a greater and different type of footfall to gambling. This changes the nature of the risks that the licensee must consider. For example, a LA might require the operator to use its local risk assessment to demonstrate exactly what controls are in place, and at what times of day, to prevent access to the premises by children and vulnerable persons.
3 yearly Statement of Policy review
We have currently received over 200 gambling statements of policy and have written to those who have yet to share their consultation with us, reminding them of the timescales for the 2019-2022 statement. If you have yet to share a copy of your consultation with us, please send it to info@gamblingcommission.gov.uk
In response to a few queries about the timetable for publication, LAs are reminded that the Gambling Act 2005 (Licensing Authority Policy Statement) (First Appointed Day) Order 2006 (opens in new tab) sets out the date that the first Statement came into effect “For the purposes of section 349 of the Act (requirement on licensing authorities to publish a policy statement every three years), the first appointed day shall be 31st January 2007”.
Section 349 of the Gambling Act provides further detail about the policy. Section 349(1) and (2) are specifically worded as to be independent of each other. LAs are under a specific obligation to prepare the statement of principles and publish the statement every 3 years and separately from this, LAs are also under an obligation to review the statement ‘from time to time’ and, if felt necessary, make any changes. Furthermore, the explanatory notes for the Act state that “The policy will have effect for three years, but the authority may review and alter the policy during that period’.
LAs will wish to take their own legal advice but we are of the view that even if the policy is reviewed and altered during that 3 year period, the 3 year period still remains as a standalone period of time which is not reset – the review of the policy needs to be done during the 3 year period, and not in place of a fresh policy being prepared and published every 3 years.
Additionally the Gambling Act 2005 (Licensing Authority Policy Statement)(England and Wales) Regulations 2006 (opens in new tab) and the Gambling Act 2005 (Licensing Authority Policy Statement) (Scotland) Regulations 2006 (opens in new tab) set out some other requirements for the Policy including that the statement must be published at least 4 weeks before the date on which it will come into effect.
Therefore, the current 3-year period (2016-19) requires LAs to prepare and publish their 2019-2022 policy statement by 3 January 2019 at the latest, with it coming into force on 31 January 2019.
Updated - Primary Authority gambling agreements
None of the Primary Authority partnerships have a National Inspection Strategy in place so there are no restrictions on proactive or reactive, intel led test purchasing.
However, anyone wishing to undertake test purchasing in Ladbrokes and Coral or Paddy Power must use the test purchasing protocol and methodology set by the Primary Authority. Details of the current gambling Primary Authorities (PA) agreements signed to date, and the impact on PA have on inspections is available on our website. Officers can access further information, including FAQs, on the Primary Authority Register (opens in new tab) in advance of an inspection of an operator with a primary authority agreement on age verification in place, to order to get the most out of the visit.
Entertainment bingo
In the LA Bulletin November 2017 we drew attention to a new licensed bingo operator who is offering bingo in alcohol licensed premises (normally clubs) particularly targeting a younger audience like students. They are not the only entity to be trading across the country in a similar fashion, this includes festivals or similar events.
Where possible we will contact LAs with further information if an event it is taking place in your locality, however should you have questions or concerns about entertainment bingo please contact your local compliance manager.
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Last updated: 1 December 2023
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