Gambling

The Gambling Act 2005’s licensing objectives, which are different to those of the Licensing Act 2003, are to:

• prevent gambling from being a source of crime and disorder
• ensure that gambling is conducted in a fair and open way
• protect children and other vulnerable persons from being harmed or exploited by gambling.

Any gambling offerings in pubs must remain ancillary to the main purpose of the premises.  Any exemptions or permits held by the pubs are reliant on the premises holding a valid premises licence under the Licensing Act 2003.  In pubs the Designated Premises Supervisor (DPS) is responsible for ensuring that all gambling remains “low level”.

S.279-284 of the Gambling Act 2005 (the Act) set out what forms of gambling can be offered in alcohol licensed premises i.e. premises where there is an ‘on-premises alcohol licence (in England and Wales) or a premises licence under the Licensing (Scotland) Act (in Scotland) – provided that (in the case of Scotland), it is not a licence authorising the sale of alcohol for consumption off the premises only – and that the premises has a bar at which alcohol is served without a requirement that alcohol is served only with food.  This means that any hotel, restaurant or pub that has a bar can offer gambling, but hotels and restaurants that serve alcohol only with food cannot.

Age limits for gambling in pubs

• Category C gaming machines and exempt gaming (bingo, poker) – 18 & over only.
• Category D gaming machines – no minimum age.

Two key offences in pubs in relation to children and young people and gambling:

• It is an offence to invite, cause or permit a child (under 16) or young person (16-17) to gamble (s.46 of the Act) with the exception of the use of a Category D gaming machines.
• It is an offence to employ a child or young person to provide gambling facilities (s 51 of the Act).

A person guilty of either of these offences shall be liable to imprisonment for a maximum of 51 weeks, a fine not exceeding level 5 on the standard scale, or both.

Reviewed and amended by Poppleston Allen Solicitors (November 2024)

Automatic entitlement to two machines

S.282 of the Gambling Act provides an automatic entitlement to alcohol licence holders to make available two gaming machines (of category C or D) for use in alcohol-licensed premises.  The person who holds the on-premises alcohol licence or relevant Scottish licence must give notice to the licensing authority of their intention to make gaming machines available for use and must pay the prescribed fee of £50.  If the person ceases to be the holder of the relevant alcohol licence for the premises, the automatic entitlement to the two gaming machines also ceases.  Whoever applies for the new premises alcohol licence would also need to re-apply to take advantage of the machine entitlement.

A renewal of the automatic entitlement is required only where there is a change in the alcohol licence premises holder (either due to a transfer of licence or application for new licence), not for a change in designated premises supervisor/designated premises manager alone.  As there is no requirement to stipulate whether the alcohol licensed premises intends to site category C or D or one of each category,  a re-notification is not required for a change in the mix of gaming machines made available provided it remains within the automatic entitlement to two machines of either category C or D.

There is no statutory requirement for pubs to display a notice of their automatic entitlement to gaming machines.

An automatic entitlement has no expiry date, and remains in force until there is a change in the alcohol licence premises holder. There is no renewal required, not an annual fee.

Alcohol licensed premises gaming machine permits

Alcohol licensed premises may apply for a licensed premises gaming machine permit for any number of category C or D machines in alcohol licensed premises. Where a permit authorises the making available of a specified number of gaming machines in particular premises, this will effectively replace, and not be in addition to, any automatic entitlement to two machines.  The permit holder can apply to vary the number and category of machines at any time they wish.

The permit holder must keep the permit on the premises and it must be produced on request for inspection by a constable, enforcement officer or local authority officer.  Not to do so is an offence. If the permit is lost, stolen or damaged, the holder may apply to the issuing authority for a copy, accompanied by the prescribed fee.

Code of Practice for gaming machines

Premises with the automatic entitlement of two machines and holders of  licensed premises gaming machine permits are required to comply with a Code of Practice issued by the Gambling Commission on the location and operation of machines. Compliance with the location and supervision of the machines is a condition of the permit/automatic entitlement.

Compliance with this Code is the responsibility of the DPS.

Quick guide on machines in pubs

All machines must be sourced from and maintained by a Gambling Commission licensed supplier. Machines must also display the following:

• Machine category
• Problem gambling resources such as the Gamecare helpline
• Age restriction (category C and above)
• % of return (prize pay-out compared to stakes placed)
• ID plate – serial number (all machines manufactured post 2007)
• Manufacturer/supplier details
• Stake and prize limits

Further information can be found in the Commission’s toolkit, which summarises the key information in relation to siting machines in pubs.

Reviewed and amended by Poppleston Allen Solicitors (November 2024)

Pubs can also offer other forms of gambling, up to certain limits, by virtue of the alcohol licence. This is referred to as “exempt gaming”, as no additional gambling licence or permit is required. However, an alcohol licensed premises can only offer equal chance gaming that does not include staking against a bank. There are daily and weekly stake and prize limits that apply to equal chance gaming.

A fee may not be levied for participation in the equal chance gaming offered by an alcohol-licensed premises under the exempt gaming rules. A compulsory charge, such as charging for a meal, may constitute a participation fee, depending on the particular circumstances.

Exempt gaming includes poker and bingo (up to the daily and weekly stake and prize limits). In all cases no under 18s are permitted to participate in the gambling nor be employed in supervising the games.

Code of practice for equal chance gaming in pubs and clubs

The Commission’s Code of Practice sets out detailed rules on supervision of gaming, prevention of underage gaming and  how the different forms of exempt gaming must be run.

Compliance with this Code is also the responsibility of the DPS.

Reviewed and amended by Poppleston Allen Solicitors (November 2024)

Commercial betting, regardless of the level of stakes, is not permitted in alcohol licensed premises. Those who facilitate such betting in pubs are providing illegal facilities for gambling and are committing an offence. Even where publicans accept bets on behalf of licensed bookmakers, or just facilitate betting through their own telephone betting accounts, they are acting as betting intermediaries and could be prosecuted.

Licensed bookmakers who knowingly accept bets from pub customers through a single account are encouraging illegal gambling and may be in breach of the Act and could risk losing their licence.

Licensed bookmakers with a remote or ancillary licence can accept telephone bets from a customer watching an event in a pub, as long as that customer has an individual account with them. It is illegal for bookmakers or their agents to sit in the pub taking bets themselves.

Further information can be found in the Commissions guide on “facilitating betting in pubs is illegal”.

Reviewed and amended by Poppleston Allen Solicitors (November 2024)

Gaming Machines

The licensing authority can remove the automatic entitlement to 2 machines or cancel the alcohol licensed premises gaming machine permit if:

• the premises fails to comply with the Code of Practice around the location and supervision of the machines
• the provision of the machines is not consistent with the licensing objectives (specifically the protection of children and young persons)
• the premises is mainly or wholly used by children/or young people
• an offence under the Act has been committed on the premises e.g. inviting or permitting a child or young person to gamble or employing a young person to supervise the gaming machines.

Exempt gaming

The licensing authority can remove the automatic entitlement for a pub to offer exempt gaming if:

• provision of gaming is not reasonably consistent with the licensing objectives
• there has been a breach of the stakes and prizes limits, or participation fees were charged
• the premises are used mainly for gaming
• an offence under the Act has been committed on the premises eg employing young persons to supervise the gaming or permitting a young person to play bingo or poker
• an offence under the Gambling Act has been committed on the premises eg inviting or permitting a child or young person to gamble or employing a child or young person to supervise the gaming.

Additionally, as both the automatic entitlement for machines and the ability to offer exempt gaming is ultimately reliant on the alcohol licence, non – compliance may also result in a licensing authority reviewing the alcohol licence.

Reviewed and amended by Poppleston Allen Solicitors (November 2024)