Stockton-on-Tees Draft Gambling Statement of Principles

Permits and other authorisations

There are certain activities which do not require a premises licence but must be covered under an appropriate permit, registration or notice. These are:

• Family entertainment centre gaming machine permits
• Family entertainment centre gaming machine permit authorises Category D gaming machines at premises

The applicant must show that the premises will be wholly or mainly used for making gaming machines available for use.

The Authority will expect the applicant to show that there are policies and procedures in place to protect children from harm. Harm in this context is not limited to harm from gambling but includes wider child protection considerations. The efficiency of such policies and procedures will each be considered on their merits, however, they may include appropriate measures and training for staff as regards suspected truant school children on the premises, measures and training covering how staff would deal with unsupervised very young children being on the premises, or children causing perceived problems on and around the premises.

The Authority will expect that applicants, and staff, can demonstrate a full understanding of the maximum stakes and prizes of the gambling that is permissible under a family entertainment centre gaming machine permit.

Entitlement for up to two gaming machines

Premises licensed under the Licensing Act 2003 to sell alcohol for consumption on the premises are entitled to make available up to two gaming machines of Categories C and D. The holder of the premises licence (under the Licensing Act 2003) needs to notify the licensing authority in writing, pay the prescribed fee and comply with any relevant codes of practice.

The licensing authority can remove the automatic authorisation in respect of any particular premises if:

• provision of the machines is not reasonably consistent with the pursuit of the licensing objectives
• gaming has taken place on the premises that breaches a condition of section 282 of the Act (for example, that written notice has been provided to the licensing authority, that a fee has been provided and that any relevant code of practice issued by the Gambling Commission about the location and operation of the machine has been complied with)
• the premises are mainly used for gaming
• an offence under the Gambling Act has been committed on the premises

Licensed Premises Gaming Machine Permit

If the holder of an alcohol-licensed premises (under the Licensing Act 2003) wishes to make available more than 2 machines, they need to apply for a permit and the licensing authority must consider that application based upon the licensing objectives, any guidance issued by the Gambling Commission issued under Section 25 of the Act, and "such matters as they think relevant."

Applications will be decided on a case by case basis but generally there will be regard to the need to protect children and vulnerable persons from harm or being exploited by gambling and will expect the applicant to satisfy the authority that there will be sufficient measures to ensure that under 18 year olds do not have access to the adult only gaming machines.

Measures which will satisfy the authority that there will be no access may include the adult machines being in sight of the bar, or in the sight of staff that can monitor that the machines are not being used by those under 18. Notices and signage may also help. As regards the protection of vulnerable persons, applicants may wish to consider the provision of information leaflets and helpline numbers for organisations such as GamCare.

It is recognised that some alcohol-licensed premises may apply for a premises licence for their non-alcohol licensed areas. Any such application would most likely need to be applied for and dealt with as an Adult Gaming Centre premises licence.

The Authority can decide to grant the application with a smaller number of machines or a different category of machines than that applied for.

The holder of a permit must comply with any Code of Practice issued by the Gambling Commission about the location and operation of the machine.

Prize Gaming Permits

Prize gaming permits authorise the provision of facilities for gaming with prizes on specified premises. The Act defines gaming as prize gaming if the nature and size of the prize is not determined by the number of people playing or the amount paid for or raised by the gaming. Normally the prizes are determined by the operator before play commences.

In applying for a prize gaming permit, the applicant should set out the types of gaming that they are intending to offer and should be able to demonstrate:

• that they understand the limits to stakes and prizes that are set out in Regulations
• that the gaming offered is within the law
• the steps to be taken to protect children from harm

The Act sets out the following conditions which the permit holder must comply with:

• the limits on participation fees, as set out in regulations, must be complied with
• all chances to participate in the gaming must be allocated on the premises on which the gaming is taking place and on one day; the game must be played and completed on the day the chances are allocated; and the result of the game must be made public in the premises on the day that it is played
• the prize for which the game is played must not exceed the amount set out in regulations (if a money prize), or the prescribed value (if non-monetary prize)
• participation in the gaming must not entitle the player to take part in any other gambling

Club Gaming and Club Machine Permits

Members' clubs and miners' welfare institutes may apply for a club gaming permit or a club machine permit. The club gaming permit allows the premises to provide gaming machines (3 machines of Categories B, C or D), equal chance gaming and games of chance as set out in regulations. A club machine permit allows the premises to provide gaming machines (3 machines of Categories B, C or D).

Members' clubs must have at least 25 members and be established and conducted "wholly or mainly" for purposes other than gaming unless the gaming is permitted by separate regulations (for example, bridge and whist). A members' club must be permanent in nature and not established or conducted for commercial enterprise.

Licensing authorities may only refuse an application on the grounds that:

• the applicant does not fulfil the requirements for a members' or commercial club or miners' welfare institute and therefore is not entitled to receive the type of permit for which it has applied
• the applicant's premises are used wholly or mainly by children and young persons
• an offence under the Act or a breach of a permit has been committed by the applicant while providing gaming facilities
• a permit held by the applicant has been cancelled in the previous ten years
• an objection has been lodged by the Commission or the police

The Act prescribes a 'fast-track' procedure for premises which hold a club premises certificate under the Licensing Act 2003. Under the fast-track procedure there is no opportunity for objections to be made by the Gambling Commission or the police, and the grounds upon which the Authority can refuse a permit are:

• that the club is established primarily for gaming, other than gaming prescribed under schedule 12
• that in addition to the prescribed gaming, the applicant provides facilities for other gaming
• that a club gaming permit or club machine permit issued to the applicant in the last ten years has been cancelled

There are statutory conditions on club gaming permits that no child uses a Category B or C machine on the premises and that the holder complies with any relevant provision of a code of practice about the location and operation of gaming machines.

Small Society Lotteries

A lottery generally refers to schemes under which prizes are distributed by chance among entrants who have given some form of value for their chance to take part. Small society lotteries are exempt from registration with the Gambling Commission but are required to be registered with the local authority.

A small society lottery is a lottery promoted on behalf of a non-commercial society as defined in the Act which also meets specific financial requirements set out in the Act. These will be administered by the authority for small societies who have a principal office in Stockton and want to run such lottery.

A lottery is small if the total value of tickets put on sale in a single lottery is £20,000 or less and the aggregate value of the tickets put on sale in a calendar year is £250,000 or less. The arrangements for a small society lottery must ensure that at least 20% of the proceeds of the lottery are applied to a purpose for which the society is conducted. The maximum amount that can be won by a single ticket (whether in money or money's worth) is £25,000.

To be 'non-commercial' a society must be established and conducted:

• for charitable purposes
• for the purpose of enabling participation in, or supporting, sport, athletics or a cultural activity
• for any other non-commercial purpose other than that of private gain

Where a person purchases a lottery ticket, they must receive a document (which can be sent electronically) which contains the following information:

• the promoting society
• the price of the ticket
• the name and address of the promoter (or the external lottery manager)
• the date of the draw or enables the date of the draw to be determined
• the price of each lottery ticket must be the same

The promoting society of a small society lottery must send to the registering local authority a statement containing the matters of the lottery (as listed below) within three months of the draw date.

The statement must be signed by two members of the society who are appointed for the purpose by the society in writing. A copy of that appointment by the society should accompany the statement. The statement should include the following information:

• the dates on which tickets were available for sale or supply
• the dates of any draw
• the arrangements for prizes (including any rollover)
• the proceeds of the lottery
• the amounts deducted in respect of the provision of prizes
• the amounts deducted in respect of costs incurred in organising the lottery
• the amounts applied to a purpose for which the society is conducted
• any other expenses incurred

The other types of exempt lotteries are 'incidental non-commercial lotteries', 'private lotteries' and 'customer lotteries'. This includes raffles held at non-commercial events such as school fetes. If you require guidance on the different categories of lotteries please contact the Licensing Service.

Incidental Lotteries

A lottery is exempt from registration if it is incidental to an event and the lottery is promoted wholly for a purpose other than private gain.

Lottery tickets may only be sold or supplied on the premises on which the event takes place and while the event is taking place. Incidental lotteries must not include a rollover.

Promoters of an incidental lottery may not deduct from the proceeds more than the prescribed amounts in respect of the cost of prizes and the costs incurred in organising the lottery.

Private Lotteries

A lottery is exempt from registration if it is a private society lottery, a work lottery or a residents' lottery.

A private society lottery must be promoted only by authorised members of a society and each member and tickets must be sold must be a member of the society or on premises wholly or mainly used for the society's affairs. A private society lottery may be promoted for any of the purposes for which the society is conducted or for any other purpose other than private gain.

A lottery is a work lottery if the promoters work on a single set of premises and tickets are only sold or supplied to people who also work on the premises.

A lottery is a residents' lottery if the promoters live on a single set of premises and tickets are only sold or supplied to people who also live on the premises.

A work lottery or residents' lottery must be organised in such a way as to ensure that no profits are made or promoted wholly for a purpose other than that of private gain.

The price payable for each ticket in a private lottery must be the same and there can be no rollover.

Customer Lotteries

A lottery is exempt from registration if the promoter occupies premises in the course of a business and tickets are only sold to customers of that business while they are on the premises.

A customer lottery must be organised in such a way to ensure that no profits are made.

Each ticket in a customer lottery must state the name and address of the promoter and must explain the class of persons that can purchase a ticket and also that tickets are not transferable.

The price payable for each ticket in a private lottery must be the same and must be displayed on each ticket. There can also be no rollover.

Temporary Use Notices

Temporary use notices are subject to the limits and procedures set out in Part 9 of the Act. Temporary use notices can be given by the holder of an operating licence to use premises for gambling where there is no premises licence. Premises that might be suitable for a temporary use notice would include hotels, conference centres and sporting venues.

The Licensing Authority can only grant a Temporary Use Notice to a person or company holding a relevant operating licence, for example, a non-remote casino operating licence and may specify a prescribed activity only if the person's operating licence authorises the activity.

Regulations prescribe the activities which may be specified in a temporary use notice as providing facilities for any form of equal chance gaming where those participating in the gaming are taking part in a competition which is intended to produce a single, overall winner (this does not include the use of a gaming machine).

Visit Legislation.gov.uk for further information.

Occasional Use Notices

An occasional use notice allows a person to accept bets on a track, or cause or permit premises to be used for the acceptance of bets.

An occasional use notice may not be given in respect of a track for a day in a calendar year if eight occasional use notices have been given in respect of that track for days in that year.

Travelling Fairs

A 'travelling fair' is a fair held on a day in a calendar year consisting wholly or principally of the provision of amusements and provided by persons who travel from place to place for the purpose of providing fairs. Category D machines and equal chance prize gaming can be provided at a travelling fair without a permit where the facilities for gambling amount together to no more than an ancillary amusement at the fair.

A travelling fair cannot be provided at a place no part of which has been used for the provision of a fair on more than 27 days in a calendar year, it applies to the piece of land on which the fairs are held, regardless of whether it is the same or different travelling fairs occupying the land. This Licensing Authority will work with its neighbouring authorities to ensure that land that crosses our boundaries is monitored so that the statutory limits are not exceeded.