The Regulatory Reform (Gaming Machines) Order 2003

Explanatory Note

(This note is not part of the Order)

This Order is made under section 1 of the Regulatory Reform Act 2001. It reforms the law contained in Part III of the Gaming Act 1968 relating to the use of gaming machines which has the effect of imposing burdens on people carrying out certain activities.

Section 31 of the Gaming Act 1968 imposes restrictions on the methods of payment for using machines to which that section applies and also on the form in which prizes can be delivered by such machines. This Order removes those burdens by amending Part III of the Gaming Act 1968 to allow payment to be made, and prizes to be delivered, in any form which constitutes money or money’s worth. Where payment is made using an object other than cash (such as tokens or a smart card), then it must be redeemable on demand at the premises where the machine is situated at any time when gaming machines are available for use at those premises. Where a machine delivers a prize in a form other than cash, then it must be in a form which enables the person concerned to claim his prize in cash or cheque at the premises where the machine is situated at any time when gaming machines are available for use at those premises.

The Order also amends section 34 of the Gaming Act 1968, except in relation to machines whose maximum prize is determined under section 34 (3), by removing the restriction under which payment of a charge for play can only be made by using a coin or tokens. The effect of removing this restriction is that payment can also be made using banknotes.

Both section 31 and section 34 are amended to provide that where payment is made which is in excess of the value of the highest denomination coin which is legal tender and in general circulation in the part of the United Kingdom in which the premises are situated, the initial amount held to the player’s credit for the purpose of paying the charge for play on the machine is not to exceed the value of the highest denomination coin. No further amount is to be added unless the player takes action in respect of the machine to indicate that he wishes to continue to play.

This Order has been notified to the European Commission and the other Member States in accordance with Directive 98/34/EC of the European Parliament and of the Council (OJ No.L204, 21.7.98, p.37) as amended by Directive 98/48/EC of the European Parliament and of the Council (OJ No.L217, 5.8.98, p.18).