Guidance
Guidance to licensing authorities
The Gambling Commission's guidance for licensing authorities.
Contents
- Changes to the Guidance for Licensing Authorities
- Part 1: General guidance on the role and responsibilities of licensing authorities in gambling regulation
- - Introduction
- - Partnership working between the Commission and licensing authorities – shared regulation
- - Co-ordination and contact
- - Primary legislation
- - Statutory aim to permit gambling
- - The licensing objectives
- - Codes of practice
- - Licensing authority discretion (s.153 of the Act)
- - Local risk assessments
- - Licensing authority policy statement
- - Limits on licensing authority discretion
- - Other powers
- Part 2: The licensing framework
- - Introduction
- - Operating licences
- - How operating licences are granted
- - Operating licence conditions and codes
- - Personal licences
- - Premises licences
- Part 3: The Gambling Commission
- - Introduction
- - Main functions of the Commission
- - Relationship between the Commission and licensing authorities
- Part 4: Licensing authorities
- Part 5: Principles to be applied by licensing authorities
- - Licensing objectives
- - Section 153 principles
- - Codes of practice
- - Good practice in regulation
- - Human Rights Act 1998
- - Other considerations
- Part 6: Licensing authority policy statement
- - Introduction
- - Fundamental principles
- - Form and content
- - Other matters to be considered
- - Local risk assessments
- - Local area profile
- - Declaration by licensing authority
- - Consultation
- - Reviewing and updating the policy statement
- - Advertisement and publication
- - Additional information to be made available
- Part 7: Premises licences
- - Introduction
- - Premises
- - Access to premises
- - Multiple activity premises – layout and access
- - Applications
- - Application for premises variation (s.187): ‘material change’
- - Consideration of planning permission and building regulations
- Part 8: Responsible authorities and interested parties definitions
- Part 9: Premises licence conditions
- - Introduction
- - Conditions and authorisations by virtue of the Act
- - Conditions attached through regulations made by the Secretary of State or Scottish Ministers – all premises
- - Conditions that may not be attached to premises licences by licensing authorities
- Part 10: Review of premises licence by licensing authority
- - Introduction
- - Initiation of review by licensing authority
- - Application for a review
- - Carrying out a review
- Part 11: Provisional statements
- Part 12: Rights of appeal and judicial review
- Part 13: Information exchange
- - Underlying principles
- - Information licensing authorities provide to the Commission
- - Other licensing authority information requirements
- Part 14: Temporary use notices
- Part 15: Occasional use notices
- Part 16: Gaming machines
- - Introduction
- - Categories of gaming machine
- - Age restrictions
- - Maximum number of machines by premises type
- - Multiple activity premises
- - The meaning of ‘available for use’
- - Machines other than gaming machines in gambling premises
- Part 17: Casinos
- - Casino premises
- - Casino games
- - Protection of children and young persons
- - The process for issuing casino premises licences
- - Resolutions not to issue casino licences
- - Converted casinos (with preserved rights under Schedule 18 of the Act)
- - Casino premises licence conditions
- - Mandatory conditions – small casino premises licences
- - Mandatory conditions – converted casino premises licences
- - Default conditions attaching to all casino premises licences
- - Self-exclusion
- Part 18: Bingo
- - Introduction
- - Protection of children and young persons
- - Gaming machines
- - Self-exclusion
- - Bingo in clubs and alcohol-licensed premises
- - Bingo premises licence conditions
- Part 19: Betting premises
- - Introduction
- - Protection of children and young persons
- - Gaming machines
- - Self-exclusion
- - Self-service betting terminals (SSBTs)
- - Betting premises licence conditions
- - Industry codes
- Part 20: Tracks
- - Definition of a track
- - Track premises licences – differences from other premises licences
- - Betting on tracks
- - Licences and other permissions for the provision of betting facilities
- - Betting on event and non-event days
- - Social responsibility considerations for tracks
- - Gaming machines
- - Self-service betting terminals (SSBTs)
- - Applications
- - Licence conditions and requirements
- Part 21: Adult gaming centres
- - Introduction
- - Protection of children and young persons
- - Self-exclusion
- - Gaming machines
- - AGC premises licence conditions
- Part 22: Licensed family entertainment centres
- - Introduction
- - Protection of children and young persons
- - Meaning of premises
- - Licensed FEC premises licence conditions
- Part 23: Introduction to permits
- Part 24: Unlicensed family entertainment centres
- - Introduction
- - Applying for a permit
- - Granting or refusing a permit
- - Lapse, surrender and forfeiture
- - Renewal
- - Maintenance
- Part 25: Clubs
- - Defining clubs
- - Bingo in clubs
- - Betting in clubs
- - Exempt gaming
- - Protection of children and young persons
- - Permits
- - Appeals
- Part 26: Premises licensed to sell alcohol
- - Introduction
- - Automatic entitlement to two machines
- - Licensed premises gaming machine permits
- - Exempt gaming
- - Bingo
- - Betting
- - Commission codes of practice
- - Scotland
- - Protection of children and young persons
- - Prohibited gaming
- Part 27: Prize gaming and prize gaming permits
- Part 28: Non-commercial and private gaming, betting and lotteries
- - Introduction
- - Non-commercial gaming
- - Private gaming
- - Private betting
- - Incidental lotteries
- - Non-commercial ‘casino night’
- - Non-commercial race night
- Part 29: Poker
- - Introduction
- - Poker in casinos
- - Poker as exempt gaming in clubs and alcohol licensed premises
- - Poker as non-commercial gaming
- - Poker as private gaming
- - Advertising
- Part 30: Travelling fairs
- Part 31: Crown immunity and excluded premises
- Part 32: Territorial application of the Gambling Act 2005
- Part 33: Door supervision
- Part 34: Small society lotteries
- - Small society lotteries
- - The status of lotteries under the Act
- - Licensing authority guidance
- - Social responsibility
- - External lottery managers’ licence status
- - Lottery tickets
- - Prizes
- - Specific offences in relation to lotteries
- - Application and registration process for small society lotteries
- - Administration and returns
- Part 35: Chain gift schemes
- Part 36: Compliance and enforcement matters
- - Fees
- - Enforcement officers and authorised persons
- - Powers of entry – England and Wales
- - Powers of entry in Scotland
- - Illegal gambling
- - Test purchasing and age verification
- - Primary Authority
- - Prosecutions
- - Other powers
- - Case law, templates and case studies
- Appendix A: Summary of machine provisions by premises
- Appendix B: Summary of gaming machine categories and entitlements
- Appendix C: Summary of gaming entitlements for clubs and alcohol-licensed premises
- Appendix D: Summary of offences under the Gambling Act 2005
- Appendix E: Summary of statutory application forms and notices
- Appendix F: Inspection powers
- Appendix G: Licensing authority delegations
- Appendix H: Poker games and prizes
- Appendix I: Glossary of terms
6 - Criminal enforcement
This chapter sets out the Commission’s policy in relation to the investigation and prosecution of offences under the Act, including the Commission’s powers, and the relationship between criminal and regulatory investigations.
The prevention of illegal gambling
The general framework set by the Act is that providing facilities for gambling is illegal unless provided:
- in accordance with certain specific exemptions in the Act
- in certain cases, for example machine gaming in pubs and clubs and small scale lotteries, under permits or other arrangements administered by local authorities
- by a person who holds a licence issued by the Commission.
The prevention of illegal gambling is a key priority for the Commission. The Commission’s assessments will set the Commission’s enforcement priorities. Those priorities will alter to meet changes in the assessment of risks and the Commission will allocate enforcement resources to the areas of greatest risk.
Combating illegal gambling also benefits licensed operators, as the provision of illegal unregulated gambling has both a reputational and economic impact on the gambling industry as a whole.
The Commission’s powers to investigate offences under the Act
Under section 27 of the Act (opens in new tab) the Commission may undertake activities for the purpose of assessing compliance with provision made by or by virtue of the Act and whether an offence is being committed under the Act. By virtue of section 28 of the Act (opens in new tab) the Commission has the power to investigate whether an offence has been committed under the Act and may institute criminal proceedings in respect of offences under the Act in England and Wales.
In Scotland, the power to institute criminal proceedings rests solely with the Crown Office and Procurator Fiscal Service (COPFS) (opens in new tab). At the conclusion of an investigation in Scotland, the Commission may prepare a report to COPFS recommending criminal proceedings.
The relationship between regulatory and criminal investigations
As a general rule the Commission will not normally pursue a criminal investigation into a licensed operator, as in most cases the matter under investigation is likely to be capable of being dealt with by the exercise of the Commission’s regulatory powers. However, there might be circumstances where the commencement of a criminal investigation was merited. For example, if a personal licence holder were suspected of cheating under section 42 of the Act (opens in new tab) (which carries the possibility of a longer period of imprisonment, if convicted), or if a licensee knowingly misled or provided false information to the Commission, contrary to section 342 of the Act (opens in new tab).
There may be circumstances where the Commission’s investigations uncover evidence that a serious criminal offence may have been committed, which falls outside the Commission’s jurisdiction to investigate. In such cases the Commission may pass the information it possesses to the police, or another body, for consideration by them.
Deciding whether to institute criminal proceedings
The Commission recognises that there should be a separation of functions between the investigative process and the decision regarding whether or not a criminal prosecution should take place. At the conclusion of a criminal investigation, the case will be thoroughly reviewed before a decision is taken. In Scotland, this review will take place before a decision is taken on whether or not to report a case to COPFS.
The Commission will apply the Code for Crown Prosecutors when deciding whether criminal proceedings should be commenced, which involves a two-stage test:
- first, the evidence will be reviewed and an assessment made about whether there is a realistic prospect of conviction
- secondly, if there is sufficient evidence to mean that there is a realistic prospect of conviction, an assessment will be made about whether it is in the public interest for a prosecution to take place.
The Code for Crown Prosecutors lists a number of common public interest factors which either favour or are against prosecution. A copy of the code can be found on the Crown Prosecution Service’s website (opens in new tab) and in the event that the Code is revised the Commission may need to review its own processes accordingly.
In Scotland the Commission will follow the guidance to Specialist Reporting Agencies in the preparation of reports to COPFS.
Time limits
Section 347 of the Act (opens in new tab) establishes prosecution time limits for offences under the Act and disapplies section 127(1) of the Magistrates Courts Act 1980 (opens in new tab). This means that any information in connection with an offence committed under the Act has to be laid before the Magistrates within the period of 12 months beginning with the date (or last date) on which the offence was alleged to have been committed. Where an offence is continuing in nature then the relevant date is the last date on which the offence was committed.
This time limit does not apply to the offence of cheating, under section 42 of the Act (opens in new tab) as cheating is triable either way. Conviction on indictment also carries the possibility of a longer sentence of imprisonment than other offences under the Act.
Cautions
In appropriate cases, where the Commission has investigated a matter and both the evidential and public interest tests are met, the Commission may decide to issue a caution to the alleged offender rather than pursue a prosecution. Where a caution is administered, details of the caution will be kept on file and may be taken into account in the future if further offences are committed.
Prosecutions in Scotland
The Commission does not have the power to commence criminal proceedings in Scotland, but as a Specialist Reporting Agency can recommend criminal proceedings to the COPFS. Therefore the Commission has the power to carry out investigations in Scotland and where it does so it will investigate the matter in accordance with the requirements of the Scottish legal system and in accordance with the COPFS Guidance to Specialist Reporting Agencies. A case file and/or report will be prepared for submission to the COPFS, who will make the decision on whether or not to prosecute.
The Commission will work towards presenting the file and/or report to the Crown Office Procurator Fiscal Service within six months of the alleged offence or (offences).
The capacity to issue a formal caution for a criminal offence does not exist in Scotland. The COPFS has the power to issue warnings and impose financial penalties as a direct alternative to prosecution.
Proceeds of crime
The Commission is committed to a multi-agency approach to ensuring that crime does not pay.
The Commission is an accredited agency and has powers under the Proceeds of Crime Act 2002 (POCA) (opens in new tab)12. Where the Commission has secured a criminal conviction in respect of an offence under the Act, it will use its powers under POCA and will work with other agencies to take appropriate action to ensure that the proceeds of gambling crime are confiscated.
The Commission is already the supervisory body for the casino industry for the purposes of the money laundering regulations and uses its powers under the Act to exchange information on proceeds of crime issues with the National Crime Agency and other law enforcement partners involved in taking action under the POCA.
References
12 The Commission’s powers under POCA do not extend to Scotland.
Last updated: 23 June 2022
Show updates to this content
Various updates have been made throughout this content following the now closed Consultation on changes and updates to our Licensing, Compliance, and Enforcement Policy.