Guidance

Guidance to licensing authorities

The Gambling Commission's guidance for licensing authorities.

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Published
1 April 2021

Last updated
14 September 2023 - Changes

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Contents

• Guidance to licensing authorities

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• 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
• - Introduction
• - Statutory framework
• - Licensing authority decisions
• 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
• - Introduction
• - Responsible authorities
• - Interested parties
• 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
• - Introduction
• Part 12: Rights of appeal and judicial review
• - Introduction
• - Giving reasons for decisions
• - Permits
• - Temporary use notices
• - 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
• - Introduction
• - Procedure
• - Appeals
• - Endorsement of the notice
• - Large events
• Part 15: Occasional use notices
• - Introduction
• - What constitutes a track
• - Use (and misuse) of OUNs
• - Procedure
• 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
• - Introduction
• 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
• - Prize gaming
• - Application for a 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
• - Introduction
• Part 31: Crown immunity and excluded premises
• - Crown immunity and excluded premises
• Part 32: Territorial application of the Gambling Act 2005
• - Territorial application of the Gambling Act 2005
• Part 33: Door supervision
• - 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
• - Introduction
• - Street collectors selling game cards
• 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

7 - Machines other than gaming machines in gambling premises

Automated roulette

16.27. There are two types of automated casino equipment that are excluded from the definition of a gaming machine in the Act. The first type is those linked to a live game of chance, for example, roulette. These enable the player to gamble on a live game as it happens, without actually being seated at the table, sometimes referred to as ‘electronic roulette’. These are not regulated as gaming machines but as live gaming and there is no limit on the number of items of such equipment.

16.28. The second type is a machine that plays a live game but is fully automated, that is, it operates without any human intervention. For example, a roulette wheel that is electrically or mechanically operated with an air blower to propel the ball around the wheel. Again, these are not regulated as gaming machines, although casinos are bound by controls on the specification and number of player positions using such equipment. This is only the case where the machine is operated in accordance with a casino operating licence – if operated outside of a casino, the exclusion does not apply, and it would be considered a gaming machine. The Act requires that equipment used to play a game of chance, for example, cards, dice and roulette wheels is ‘real’ and not ‘virtual’ if it is not to be classed as a gaming machine. Additionally, the game outcome must not be determined by computer as this would normally be considered virtual.

Self-service betting terminals (SSBTs)

16.29. S.235(2)(c) provides that a machine is not a gaming machine by reason only of the fact that it is designed or adapted for use to bet on future real events. Some betting premises may make available for use machines that accept bets on live events, such as a sporting event, as a substitute for placing a bet over the counter. These SSBTs are not gaming machines and therefore neither count towards the maximum permitted number of gaming machines, nor have to comply with any stake or prize limits. Such betting machines merely replicate and automate the process that can be conducted in person, and therefore do not require regulation as gaming machines. S.181 of the Act contains an express power for licensing authorities to restrict the number of SSBTs, their nature and the circumstances in which they are made available, by attaching a licence condition to a betting premises licence or to a casino premises licence (where betting is permitted in the casino).Part 19 of this guidance provides further details.

Skill games

16.30. The Act does not cover machines that give prizes as a result of the application of skill by players. A skill with prizes machine (SWP) is one in which the winning of a prize is determined only by the player’s skill – any element of chance imparted by the action of the machine would cause it to be a gaming machine. An example of a skill game would be trivia game machines, popular in pubs and clubs, which require the player to answer general knowledge questions to win cash prizes. Many FECs have games that give prizes by redemption of tickets accumulated. Providing these machines give prizes according to the skill of the player, for example getting a high score shooting basketball, they will be exempt.

16.31. Genuine SWPs can be sited without permissions. However, the Commission considers that the higher the pay-out offered by this type of machine, the less likely the machine will be viable as a genuine skill machine simply because of the risk that very skilful players will win the top prize too frequently, making the machine commercially unviable. The Commission has published advice on how to distinguish between these machines and gaming machines in Is a prize machine a gaming machine? and a quick guide on illegal gaming machines (the advice note and quick guide do not form part of the Guidance to licensing authorities).

Lottery ticket vending machines

16.32. Lottery ticket vending machines are generally used to dispense ‘instant win’ lottery tickets, usually scratchcards or ‘pull tab’ tickets in society lotteries and they are mostly prevalent in private society lotteries. The Act defines a private society as ‘any group or society established for a purpose not connected with gambling’. Typically, a private society, such as a sports or social club, will promote a lottery and make lottery tickets available to members of the society or those on the premises of the society as part of a ‘private society lottery’. Some societies buy or rent vending machines to dispense their lottery tickets.

16.33. Such machines are often supplied by licensed gaming machine suppliers but the operation and/or design of the machine must not constitute a gaming machine. Advice on the distinction between lottery ticket vending machines and gaming machines is available in the Commission’s Comparing lottery ticket dispensers and category B3A gaming machines’ a quick guide for licensing officers (this quick guide does not form part of the Guidance to licensing authorities).

16.34. Those who supply, manufacture and/or site lottery ticket vending machines are not required to hold an operating or premises licence or any other permission. Where a lottery ticket vending machine is used to dispense society or private society lottery tickets it is the responsibility of the promoter of the lottery to ensure that it is operated lawfully, and the required information displayed on the dispensed tickets.

Other exclusions

16.35. S.235(2) of the Act sets out a number of exclusions, covering machines that are not considered gaming machines, even though gambling may take place on them, as follows:

• a domestic or dual use computer is not a gaming machine just because it can be used to take part in remote gambling. Regulations define a ‘domestic computer’ as one capable of being used for a purpose not related to gambling that is located in a private dwelling and used only on domestic occasions. A ‘dual use computer’ is also defined as having to be capable of being used for a purpose not related to gambling, but in addition must not be knowingly adapted or presented in such a way as to facilitate or draw attention to the possibility of its use for gambling (SI2007/2082: The Gambling Act 2005 (Gaming Machines)(Definitions) Regulations 2007 (opens in new tab)).
• a telephone or other ‘machine facilitating communication’ that could be used for gambling purposes, for example, a mobile phone via which text message based lotteries can be entered, is not considered to be a gaming machine unless that is its primary purpose. Ordinary mobile phones are therefore exempt from the definition, but telephones designed or adapted for the purpose of enabling gambling would not be.
• some machines that allow the purchase of lottery tickets are not gaming machines. However, this is intended as an exemption for the sale of tickets in a real lottery with other participants (for example a lottery vending machine), and not a virtual scratchcard lottery conducted only by means of the machine. This means, first, that if the results of the lottery are determined by the machine, the machine is not exempt; and, second, if the machine announces the results of the lottery (determined otherwise than by the machine) by display or communication then the interval between the sale of the ticket and the announcement of the result must comply with the minimum period of time specified by regulations (SI20072495: The Gambling (Lottery Machine Interval) Order 2007)(opens in new tab). B3A machines are defined as a lottery style gaming machine and permitted under regulations within members’ clubs and miners’ welfare institutes in limited numbers.
• a machine operated by virtue of a bingo operating licence for the purpose of playing bingo will be exempt provided it complies with any conditions set by the Commission. This covers what are known as mechanised cash bingo and electronic bingo ticket minders.
• also exempted are machines used for the playing of bingo by way of prize gaming in AGCs and FECs, however, the prize gaming regulations must be complied with.

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The meaning of ‘available for use’

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Last updated: 14 September 2023

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