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
RTS 7 – Generation of random outcomes
Applies to:
Gaming (including bingo), lotteries, and betting on virtual events
RTS aim 7
To ensure that games and other virtual events operate fairly.
RTS requirement 7A
Random number generation and game results must be ‘acceptably random’. Acceptably random here means that it is possible to demonstrate to a high degree of confidence that the output of the RNG, game, lottery and virtual event outcomes are random through, for example, statistical analysis using generally accepted tests and methods of analysis. Adaptive behaviour (that is, a compensated game) is not permitted.
Where lotteries use the outcome of other events external to the lottery, to determine the result of the lottery the outcome must be unpredictable and externally verifiable.
RTS implementation guidance 7A
- RNGs should be capable of demonstrating the following qualities:
- the output from the RNG is uniformly distributed over the entire output range and game, lottery, or virtual event outcomes are distributed in accordance with the expected or theoretical probabilities
- the output of the RNG, game, lottery, and virtual event outcomes should be unpredictable, for example, for a software RNG it should be computationally infeasible to predict what the next number will be without complete knowledge of the algorithm and seed value
- random number generation does not reproduce the same output stream (cycle), and that two instances of a RNG do not produce the same stream as each other (synchronise)
- any forms of seeding and re-seeding used do not introduce predictability
- any scaling applied to the output of the random number generator maintains the qualities as detailed
- For lotteries using external events - where it is not practical to demonstrate 7A the events outcomes should be:
- unpredictable, that is, events should be selected only where they may reasonably be assumed to be random events
- unable to be influenced by the lottery operator (or external lottery manager)
- publicly available and externally verifiable, for example, events that are published in local or national press would be acceptable.
- For games or virtual events that use the laws of physics to generate the outcome of the game (mechanical RNGs), the mechanical RNG used should be capable of meeting the requirements in a. where applicable and in addition:
- the mechanical pieces should be constructed of materials to prevent decomposition of any component over time (for example, a ball shall not disintegrate)
- the properties of physical items used to choose the selection should not be altered
- players should not have the ability to interact with, come into physical contact with, or manipulate the mechanics of the game
- Restricting adaptive behaviour prohibits automatic or manual interventions that change the probabilities of game outcomes occurring during play. Restricting adaptive behaviour is not intended to prevent games from offering bonus or special features that implement a different set of rules, if they are based on the occurrence of random events.
RTS requirement 7B
As far as is reasonably possible, games and events must be implemented fairly and in accordance with the rules and prevailing payouts, where applicable, as they are described to the customer.
RTS implementation guidance 7B
- Games should implement the rules as described in the rules available to the customer before play commenced.
- The mapping of the random inputs to game outcomes should be in accordance with prevailing probabilities, pay tables, etc.
- When random numbers, scaled or otherwise, are received, for example, following a game requesting a sequence of random numbers, they are to be used in the order in which they are received and they may not be discarded due to adaptive behaviour.
- Numbers or sequences of numbers are not to be discarded, unless they fall outside the expected range of numbers required by the virtual event – such an occurrence should result in an error being logged and investigated.
RTS requirement 7C
Game designs or features that may reasonably be expected to mislead the customer about the likelihood of particular results occurring are not permitted, including substituting losing events with near-miss losing events and simulations of real devices that do not simulate the real probabilities of the device.
RTS implementation guidance 7C
- Where a virtual event simulates a physical device, the theoretical game probabilities should match the probabilities of the real device (for example, the probability of a coin landing heads must be 0.5 every time the coin is tossed).
- Where multiple physical devices are simulated the probabilities of each outcome should be independent of the other simulated devices.
- Games may not falsely display near-miss results, that is, the event may not substitute one losing outcome with a different losing outcome.
- Where the event requires a pre-determined layout (for example, hidden prizes on a map), the locations of the winning spots should not change during play, except as provided for in the rules of the game.
- Where games involve an element of skill, every outcome described in the virtual event rules or artwork should be possible, that is, the customer should have some chance of achieving an advertised outcome regardless of skill.
- Where a customer contributes to a jackpot pool, that customer should be eligible to win the jackpot whilst they are playing that game, in accordance with the game and jackpot rules.
RTS requirement 7D
The rules, payouts and outcome probabilities of a virtual event or game may not be changed while it is available for gambling, except as provided for in the rules of the game, lottery or virtual event. Such changes must be brought to customer’s attention.
RTS implementation guidance 7D
- Changes to game or event rules, paytables or other parameters that change the way in which a game, lottery, or event works, the winnings paid, or likelihood of winning (except as described in 7Dc), should be conducted with the game or event taken offline or suspended.
- Altered games, lotteries, and events should display a notice that informs customers that the game or event has been changed, for example, ‘rules changed’, ’new odds’, or 'different payouts’. The notice should be displayed on game selection screens and on the events themselves if it is possible for the customer to go straight to the event without using a selection screen.
- This requirement is not intended to prevent games and virtual events where specified changes occur legitimately, in accordance with the game or event rules, for example:
- virtual events, such as virtual racing products where the odds differ from event to event depending on the virtual runners
- virtual games, such as bingo where the odds of winning are dependent on the number of entrants
- games with progressive jackpots, where the amount that can be won changes over time
- games with bonus rounds where different rules apply, so long as these rounds are properly described to the customer
- unspecified changes to rules, paytables or other parameters that change the way in which a game, lottery or event works are not permitted, for example, rules that state ‘game rules may be changed at any time’ would not be acceptable.
RTS requirement 7E
Except in the case of subscription lotteries, the system clearly and accurately display the result of the game or event and the customer’s gamble. The result must be displayed for a length of time that may reasonably be expected to be sufficient for the customer to understand the result of the game or event in the context of their gamble.
RTS implementation guidance 7E
The game artwork and text should be sufficient to provide the customer with all of the information required to determine whether they have lost or won, and the value of any winnings.
Last updated: 7 May 2024
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