Betting and Gaming Duties Act 1981

Part II U.K. Gaming Duties

Gaming licence duty U.K.

13 Gaming licences. E+W+S

(1) The authority of a licence (to be known as a gaming licence) shall be required for all gaming by way of any games to which this section for the time being applies taking place on any premises at a time when a licence is in force as respects those premises under the M1 Gaming Act 1968.

(2) Subject to the provisions of paragraph 1 of Schedule 2 to this Act, a gaming licence shall be a licence for the period from 1st October in any year to 31st March in the following year, or from 1st April in any year to 30th September in that year (all dates inclusive).

(3) Without prejudice to the following provisions of this section, the games to which this section applies are baccarat, punto banco, big six, blackjack, boule, chemin de fer, chuck-a-luck, craps, crown and anchor, faro, faro bank, hazard, poker dice, pontoon, French roulette, American roulette, trente et quarante, vingt-et-un, and wheel of fortune.

(4) The Treasury may by order add to the games mentioned in subsection (3) above any game not for the time being mentioned in that subsection if it appears to the Treasury proper to do so for the protection of the revenue, having regard to the character of the game and the circumstances in which it is played.

(5) Any reference in this section or in any order under subsection (4) above to a particular game shall include a reference to any game (by whatever name called) which is essentially similar to that game.

Modifications etc. (not altering text)

C1 S. 13 extended (1.4.1995) by S.I. 1995/442, art. 2.

C2 S. 13(3) amended (1.4.1995) by S.I. 1995/442, art. 2.

Marginal Citations

M1 1968 c. 65(12:1).

14 Gaming licence duty. E+W+S

(1) A duty of excise shall be charged on gaming licences and, subject to the provisions of Schedule 2 to this Act, the amount of duty on a licence for any period in respect of the premises specified in the licence shall be—

(a) [F1 £10]payable on application for the licence, plus

(b) a further sum F2 . . . chargeable at the rates specified in the following Table on the gross gaming yield from the premises in that period.

[F3 TABLE

Part of gross gaming yield	R ate
The first £450,000	2½ per cent.
The next £2,250,000	12½ per cent.
The next £2,700,000	25 per cent.
The remainder	33⅓ per cent.]

(2) Subject to subsection (3) below, for the purposes of this section and Schedule 2 to this Act the gross gaming yield from any premises in any period shall consist of—

(a) the receipts in that period from charges made in connection with gaming on the premises by way of any game to which section 13 above for the time being applies, being charges authorised by regulations under section 14(2) of the M2 Gaming Act 1968 but exclusive of value added tax and of any charge the payment of which does no more than entitle a person to admission to the premises; and

(b) where a provider of the premises (or a person acting on his behalf) is banker in relation to any such gaming as aforesaid, the difference between—

(i) the value in money or money’s worth of the stakes staked with the banker in such gaming; and

(ii) the value in money or money’s worth of the winnings paid by the banker to those taking part in such gaming otherwise than on behalf of a provider of the premises.

(3) The Treasury may amend subsection (2) above by order.

Textual Amendments

F1 Words in s. 14(1)(a) substituted by Finance Act 1991 (c. 31, SIF 12:2), s. 6(2)(a)(9) having effect in relation to gaming licences for any period beginning after 30.9.1991

F2 Words in s. 14(1|)(b) repealed by Finance Act 1991 (c. 31, SIF 12:2), ss. 6(2)(b), 123, Sch. 19, Pt. I

F3 Table in s. 14(1) substituted by Finance Act 1991 (c. 31, SIF 12:2), s. 6(3)(9) having effect in relation to gaming licences for any period beginning after 30.9.1991

Marginal Citations

M2 1968 c. 65(12:1).

15 Gaming without duly paid licence. E+W+S

(1) If at any time gaming takes place on any premises as respects which a licence is then in force under the Gaming Act 1968 by way of any game to which section 13 above then applies then, unless a person who is a provider of those premises—

(a) holds a gaming licence which is then in force, and

(b) has paid all amounts of gaming licence duty which are payable (or which he reasonably believes are payable) by him before that time,

every provider of those premises and every person concerned in the organisation or management of the gaming shall be guilty of an offence and liable—

(i) on summary conviction, to a penalty of the prescribed sum or to imprisonment for a term not exceeding six months or to both;

(ii) on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding two years or to both.

(2) If a justice of the peace or, in Scotland, a justice (within the meaning of section 462 of the M3 Criminal Procedure (Scotland) Act 1975) is satisfied on information on oath that there is reasonable ground for suspecting—

(a) that an offence under subsection (1) above is being, has been, or is about to be committed on any premises, or

(b) that evidence of any such offence is to be found there,

he may issue a warrant in writing authorising any officer to enter those premises (if necessary by force) at any time within [F4 one month] from the time of the issue of the warrant and search them.

(3) An officer who enters premises under the authority of such a warrant may—

(a) seize and remove any records, accounts or other documents money or valuable thing, instrument or other thing whatsoever found on the premises which he has reasonable cause to believe may be required as evidence for the purposes of proceedings in respect of such an offence, and

(b) search any person found on the premises whom he has reasonable cause to believe to be concerned in the organisation or management of gaming on the premises.

[F5 (4) In subsection (1)(b) above the reference to amounts of gaming licence duty includes amounts payable in anticipation of gaming licence duty by virtue of regulations under paragraph 3(3)(d) of Schedule 2 to this Act.]

Textual Amendments

F4 Words substituted by Police and Criminal Evidence Act 1984 (c. 60, SIF 95), s. 119, Sch. 6 Pt. II para. 39(a)

F5 S. 15(4) inserted by Finance Act 1991 (c. 31, SIF 12:2), s. 6(4)

Marginal Citations

M3 1975 c. 21(39:1).

16 Supplementary provisions as to gaming licence duty. E+W+S

(1) Schedule 2 to this Act (supplementary provisions as to gaming licence duty) shall have effect.

(2) In sections 13 to 15 above and in Schedule 2 to this Act—

• “premises” includes any place and any means of transport, and

• “provider”, in relation to any premises used for gaming, means any person having a right to control the admission of persons to those premises, whether or not he also has a right to control the admission of persons to the gaming.

(3) In proceedings relating to gaming licence duty under the customs and excise Acts an averment in any process that a particular game is essentially similar to another particular game shall, until the contrary is proved, be sufficient evidence that it is so.

Bingo duty U.K.

Valid from 10/07/2003

20A Combined bingo U.K.

(1) A game of bingo is “combined bingo” if—

(a) it is multiple bingo within the meaning of section 1 of the Gaming (Bingo) Act 1985, or

(b) it is played in more than one place and promoted by more than one person.

(2) Payments made in respect of entitlement to participate in combined bingo shall be treated for the purposes of section 19(1) as bingo receipts only of the first promoter to whom (or at whose direction) they are paid.

(3) Where money representing stakes hazarded at combined bingo is paid in an accounting period by one promoter of the bingo (“the first promoter”) to another (“the second promoter”)—

(a) the money shall not be treated as a bingo receipt of the second promoter for the purposes of section 19(1),

(b) the payment shall be treated as expenditure of the first promoter on bingo winnings for the accounting period for the purposes of section 20(1), and

(c) no subsequent payment of all or part of the money shall be treated as expenditure on bingo winnings for the purposes of section 20(1) (whether paid by the second promoter to another person, by the first promoter having received it from the second promoter, or otherwise).

(4) Subsections (2) and (3) shall apply only where the combined bingo is played entirely in the United Kingdom.

Valid from 10/07/2003

[F6 20B Carrying losses forward U.K.

(1) Where the calculation of a person’s bingo promotion profits for an accounting period results in a negative amount (“the loss”)—

(a) no bingo duty shall be chargeable in respect of that accounting period, and

(b) for the purpose of section 17(3), the amount of the person’s expenditure on bingo winnings for the next accounting period shall be increased by the amount of the loss.

(2) Subsection (1) applies to an accounting period whether or not the loss results wholly or partly from the previous application of that subsection.]

Textual Amendments

F6 Ss. 17-20C substituted (with effect as mentioned in s. 9(10) of the amending Act) for ss. 17-20 by Finance Act 2003 (c. 14), s. 9(1)

Valid from 10/07/2003

20C Supplementary U.K.

(1) Part 2 of Schedule 3 to this Act (bingo duty: supplementary) shall have effect.

(2) In sections 17 to 20B above, this section and Schedule 3—

• “bingo” includes any version of that game, whatever name it is called,

• “licensed bingo” means bingo played at premises licensed under—

  (a)

  the Gaming Act 1968, or

  (b)

  Chapter II of Part III of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985,

• “prize” means anything won at bingo, and

• “United Kingdom” includes the territorial sea of the United Kingdom.

(3) For the purposes of those provisions, except in relation to combined bingo, the promoter of a game of bingo is—

(a) in the case of licensed bingo, the holder of the licence, and

(b) in the case of non-licensed bingo, the person who provides the facilities for the game.

(4) For the purposes of those provisions in relation to combined bingo a person promotes a game of bingo if he is wholly or partly responsible for organising it or for providing facilities for it.

(5) In those provisions a reference to entitlement to participate in a game of bingo includes a reference to an opportunity to participate in a game of bingo in respect of which a charge is made (whether by way of a fee for participation, a stake, or both).

(6) In proceedings relating to bingo duty under the customs and excise Acts an averment in any process that a particular game is a version of bingo shall, until the contrary is proved, be sufficient evidence that it is.

17 Bingo duty. U.K.

(1) A duty of excise, to be known as bingo duty, shall be charged on the playing of bingo in [F7 the United Kingdom] except in the cases specified in Part I of Schedule 3 to this Act.

(2) Bingo duty shall be charged in respect of bingo played in a particular week; and the amount of the duty shall be—

(a) 10 per cent. of the total of the money taken [F8 if any] by or on behalf of the promoter in that week as payment by players for their cards, plus

(b) (subject to section 19(1) below) one ninth of the amount (if any) by which that total, after deduction of the 10 per cent. chargeable under paragraph (a) above, is exceeded by the total value of the prizes won in that week’s bingo.

(3) For the purposes of this section, a player’s “cards” are the sets of numbers or symbols (in whatever form or lay-out) with which he plays bingo, matching them against calls made by the house; and a player pays for a card when he gives money in exchange for, or for the use of, a particular card, whether it is appropriated to a particular game or can be appropriated by the player to a game of his choice.

Textual Amendments

F7 Words substituted by Finance Act 1986 (c. 41, SIF 12:2), s. 6, Sch. 4 para. 5

F8 Words inserted by Finance Act 1982 (c. 39, SIF 12:2), s. 8, Sch. 6 Pt. IV para. 4

18 Payment and recovery of bingo duty. U.K.

(1) Bingo duty shall be paid by the promoter of the bingo.

(2) Bingo duty shall be recoverable jointly and severally from all or any of the following persons—

(a) the promoter;

(b) any person who took money as payment by players for cards or paid prizes to players;

(c) any person who was responsible for the management of the premises on which bingo was played;

(d) where any person within paragraph (a), (b) or (c) above is a company, any director of the company.

19 Play in more than one place. U.K.

(1) Where bingo is promoted at one place and, for the purpose of a particular game, it is combined with bingo played at another place and promoted by another person, so that the players at both places share in the chance of winning a prize contributed partly by one promoter and partly by the other, then for the purposes of the charge to bingo duty under section 17(2)(b) above—

(a) as against the promoter of the bingo at the place where the prize is won there shall be counted so much only of the value of the prize as represents his contribution, and

(b) so much of the value of the prize as represents the contribution of the other promoter shall be counted as a prize won at bingo promoted by him;

and where the prize is provided wholly by or on behalf of one of the promoters concerned, its whole value shall be counted against him under section 17(2)(b), wherever it is won.

(2) It shall not be lawful for a game of bingo, being bingo which is chargeable with bingo duty and is promoted at a place in [F9 the United Kingdom], to be combined as mentioned in subsection (1) above with other bingo played elsewhere than in [F9 the United Kingdom], except where the other bingo is played in . . . F10 the Isle of Man and is chargeable, under an Act of . . . F10 Tynwald, with duty corresponding to bingo duty and at a rate not less than that which is chargeable under section 17 above.

Textual Amendments

F9 Words substituted by Finance Act 1986 (c. 41, SIF 12:2), s. 6, Sch. 4 para. 6(a)

F10 Words repealed by Finance Act 1986 (c. 41, SIF 12:2), ss. 6, 114(6), Sch. 4 para. 6(b), Sch. 23 Pt. III Notes (a)(b)

20 Supplementary provisions as to bingo duty. U.K.

(1) The provisions of Part II of Schedule 3 to this Act (supplementary provisions as to bingo duty) shall have effect.

(2) In sections 17 to 19 above and in Schedule 3 to this Act—

• “bingo” includes any version of that game, by whatever name called;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F11

• “money” includes any token, voucher or other object given by a player in exchange for cards and recognised for the purpose of the exchange to represent a particular sum of money;

• “prize” means anything won or to be won at bingo, whether money or something else having a value, and “value” and “paid”, in relation to prizes, shall be construed accordingly;

• “the promoter”, in relation to bingo, means the person to whom the players look for the payment of prizes, and “promote” and “promotion” shall be construed accordingly: and

• [F12 “United Kingdom” includes the territorial waters of the United Kingdom;]

• “week” means a period of seven days beginning with Monday.

(3) In proceedings relating to bingo duty under the customs and excise Acts an averment in any process that a particular game is a version of bingo shall, until the contrary is proved, be sufficient evidence that it is so.

Textual Amendments

F11 Definition repealed by Finance Act 1986 (c. 41, SIF 12:2), ss. 6, 114(6), Sch. 4 para. 6(b), Sch. 23 Pt. III, Notes (a)(b)

F12 Definition inserted by Finance Act 1986 (c. 41, SIF 12:2), s. 6, Sch. 4 para. 7

Gaming machine licence duty U.K.

[F13 21 Gaming machine licence duty. U.K.

(1) Except in the cases specified in Part I of Schedule 4 to this Act, no gaming machine (other than a two-penny machine) shall be provided for gaming on any premises situated in [F14 the United Kingdom]] unless there is for the time being in force—

(a) a licence granted under this Part of this Act with respect to the premises; or

(b) a licence so granted with respect to the machine.

(2) A licence of either kind granted under this Part of this Act shall be known as a gaming machine licence; and in this Part “ordinary licence” means a licence falling within subsection (1)(a) above and “special licence” means one falling within subsection (1)(b).

[F15 (3) A gaming machine licence may be a whole-year, a half-year or a quarter-year licence and shall be granted for a period of twelve, six or three months beginning with the first day of any month.]

F16 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F13 S. 21 substituted by Finance Act 1984 (c. 43, SIF 12:2), s. 7(1)(2) Sch. 3 Pt. I para. 2

F14 Words substituted by Finance Act 1985 (c. 54, SIF 12:2), s. 8, Sch. 5 Pt. I para. 1(1)

F15 S. 21(3) substituted by Finance Act 1987 (c. 16, SIF 12:2), s. 5(1)

F16 S. 21(4) repealed by Finance Act 1987 (c. 16, SIF 12:2), s. 72(7), Sch. 16 Pt. II Note 3

[F17 21A.— Special licences. U.K.

(1) No special licence shall authorise more than one machine [F18 and no special licence shall authorise a machine which is not a small-prize machine.]]

(2) An application for a special licence shall only be granted if—

(a) the Commissioners are satisfied that at least nine other special licences will be granted to the applicant, for the period to which that application relates, on applications made together with that application; or

(b) at least ten special licences, granted for that period and for the time being in force, are held by the applicant.

(3) A special licence shall be taken not to be in force with respect to a gaming machine at any time when . . . F19 the licence is not displayed in such manner as may be prescribed by regulations made by the Commissioners.

Textual Amendments

F17 S. 21A inserted by Finance Act 1984 (c. 43, SIF 12:2), s. 7(1)(2), Sch. 5 Pt. I para. 3

F18 Words added by Finance Act 1985 (c. 54, SIF 12:2), s. 8, Sch. 5 Pt. I para. 2(1)

F19 Words repealed by Finance Act 1985 (c. 54, SIF 12:2), ss. 8, 98(6), Sch. 5 Pt. I, Sch. 27 Pt. III Note 2

22 Gaming machine licence duty. U.K.

(1) A duty of excise shall be charged on gaming machine licences and the duty on a licence shall be determined by reference—

[F20 (a) in the case of an ordinary licence—

[F21 (i) to whether or not the licence authorises the provision of a small-prize machine, and]

(ii) to the number of machines which it authorises; and

(b) in any case, to whether the licence authorises the provision of machines chargeable at the lower or higher rate.]

[F22 (2) For the purposes of this Act a gaming machine is a small-prize machine if the value or aggregate value of the benefits in money or money’s worth, which any player who is successful in a single game played by means of the machine may receive, cannot exceed [F23 £4.80]

(3) The Commissioners may by order substitute for the sum for the time being mentioned in subsection (2) above such higher sum as may be specified in the order, with effect from a date so specified.]

(5) Subject to subsection (6) below, for the purposes of a gaming machine licence—

(a) a machine is chargeable at the lower rate if it can only be played by the insertion into the machine of a coin or coins of a denomination, or aggregate denomination, not exceeding [F24 5p; and];

(b) a machine is chargeable at the higher rate [F25 in any other case].

(c) . . . F26

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F27

Textual Amendments

F20 S. 22(a)(b) substituted by Finance Act 1984 (c. 54, SIF 12:2), s. 7(1)(2), Sch. 3 Pt. I para. 4

F21 S. 22(1)(a)(i) substituted by Finance Act 1985 (c. 54, SIF 12:2), s. 8, Sch. 5 Pt. I para. 3(1)

F22 S 22(2)(3) substituted for s. 22(2) to (4) by Finance Act 1985 (c. 54, SIF 12:2), s. 8, Sch. 5 Pt. I para. 3(2)

F23 “£4.80” substituted by S.I. 1989/2254, art. 3

F24 Words substituted by Finance Act 1982 (c. 39, SIF 12:2), s. 8, Sch. 6 para. 9(a)

F25 Words substituted for s. 22(5)(b)(i) and (ii) by Finance Act 1982 (c. 39, SIF 12:2), s. 8, Sch. 6 para. 9(b)

F26 S. 22(5)(c) repealed by Finance Act 1982 (c. 39, SIF 12:2), ss. 8, 157, Sch. 6 para. 9(c), Sch. 22 Pt. III Note

F27 S. 22(6) repealed by Finance Act 1982 (c. 39, SIF 12:2), s. 157, Sch. 22 Pt. III Note

23 Amount of duty. U.K.

(1) The duty on a whole-year gaming machine licence shall be in accordance with the following Tables and—

(a) Table A shall apply [F28 to special licences and shall apply to ordinary licences][F29 which authorise the provision only of small-prize machines]; and

(b) Table B shall apply in any other case.

[F30 Table ASmall-prize machines

Description of machines authorised by the licence	Duty on whole-year licence
	£
Chargeable at the lower rate	150 per machine
Chargeable at the higher rate	375 per machine

Table BOther machines

Description of machines authorised by the licence	Duty on whole-year licence
	£
Chargeable at the lower rate	375 per machine
Chargeable at the higher rate	960 per machine]

(2) The duty on a half-year licence shall be eleven-twentieths [F31 , and on a quarter-year licence six-twentieths,] of that which it would have been if the licence were a whole-year, but otherwise identical, licence.

Textual Amendments

F28 Words inserted by Finance Act 1984 (c. 43, SIF 12:2), s. 7(1)(2), Sch. 3 para. 5

F29 Words substituted by Finance Act 1985 (c. 54, SIF 12:2), s. 8, Sch. 5 Pt. I para. 4(1)

F30 Tables substituted by Finance Act 1987 (c. 16, SIF 12:2), s. 4

F31 Words inserted by Finance Act 1982 (c. 39, SIF 12:2), s. 8, Sch. 6 Pt. V para. 11

24 Restrictions on provision of gaming machines. U.K.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F32

(2) No more than one [F33 whole-year ordinary licence, one half-year ordinary licence and one quarter-year] licence shall be in force at any time as respects the gaming machines on any premises except that there may be one [F34 of each such] licence as respects the gaming machines chargeable at one rate, and one [F34 of each such] licence as respects the gaming machines chargeable at another rate.

(3) Gaming machines chargeable at a particular rate shall not be provided on any such premises in excess of the number authorised by the licence [F35 or licences] authorising the provision of gaming machines chargeable at that rate [F36 ; but any gaming machine with respect to which there is in force a special licence shall be disregarded for the purposes of this subsection.].

(4) Where a licence which authorises the provision of gaming machines chargeable at one rate only is in force in respect of any such premises, gaming machines chargeable at any other rate shall not be provided for gaming on those premises unless another licence authorising the provision of gaming machines chargeable at that other rate is also in force in respect of the premises [F37 or there are special licences in force with respect to those machines].

(5) If any gaming machine is provided for gaming on any premises in contravention of [F38 section 21(1) above or] this section, any person who at the time when it is so provided—

(a) is the owner, lessee or occupier of the premises, or

(b) is for the time being responsible to the owner, lessee or occupier for the management of the premises, or

(c) is a person responsible for issuing or exchanging coins or tokens for use in playing any gaming machine on the premises, or otherwise for controlling the use of any such machine, or

(d) is for the time being responsible for controlling the admission of persons to the premises or for providing persons resorting thereto with any goods or services, or

(e) is the owner or hirer of the machine, or

(f) is a party to any contract under which a gaming machine may, or is required to, be on the premises at that time,

shall be guilty of an offence and liable on summary conviction to [F39 a penalty of level 5 on the standard scale.]

(6) If any gaming machine is provided for gaming on any premises in contravention of [F38 section 21(1) above or] this section and any such person as is mentioned in subsection (5) above knowingly or recklessly brought about the contravention or took any steps with a view to procuring it he shall be guilty of an offence and liable—

[F40 (a) on summary conviction to a penalty—

(i) of the prescribed sum, or

(ii) of an amount equal to three times the amount of duty payable on a whole-year [F41 ordinary] licence for those premises and that machine or, where more than one machine has been provided on those premises in contravention of this section, those machines (whether or not the duty has been paid),

whichever is the greater, or to imprisonment for a term not exceeding six months or to both such penalty and imprisonment;]

(b) on conviction on indictment to a penalty of any amount or to imprisonment for a term not exceeding two years or to both.

Textual Amendments

F32 S. 24(1) repealed by Finance Act 1984 (c. 43, SIF 12:2), ss. 7(1)(2), 128(6), Sch. 3 Pt. I para. 6(a), Sch. 23 Pt. II Note

F33 Words substituted by Finance Act 1984 (c. 43, SIF 12:2), s. 7(1)(2), Sch. 3 para. 6(b)

F34 Words inserted by Finance Act 1984 (c. 43, SIF 12:2), s. 7(1)(2), Sch. 3 para. 6(b)

F35 Words inserted by Finance Act 1984 (c. 43, SIF 12:2), s. 7(1)(2), Sch. 3 para. 6(c)

F36 Words added by Finance Act 1984 (c. 43, SIF 12:2), s. 7(1)(2), Sch. 3 para. 6(c)

F37 Words added by Finance Act 1984 (c. 43, SIF 12:2), s. 7(1)(2), Sch. 3 para. 6(d)

F38 Words inserted by Finance Act 1984 (c. 43, SIF 12:2), s. 7(1)(2), Sch. 3 para. 6(e)

F39 Words substituted by Finance Act 1985 (c. 54, SIF 12:2), s. 8, Sch. 5 Pt. I para. 5

F40 S. 24(6)(a) substituted by Finance Act 1982 (c. 39, SIF 12:2), s. 8, Sch. 6 Pt. V para. 12

F41 Words substituted by Finance Act 1984 (c. 43, SIF 12:2), s. 7(1)(2), Sch. 3 para. 6(f)

Valid from 28/07/2000

[F42 24A Unlicensed machines: duty chargeable. U.K.

Schedule 4A to this Act (which provides for the recovery of amusement machine licence duty in relation to unlawfully unlicensed machines) shall have effect.]

Textual Amendments

F42 S. 24A inserted (28.7.2000 with effect as mentioned in Sch. 2 para. 7(1) of the amending Act) by 2000 c. 17, s. 17, Sch. 2 p26.ara. 9

25 Meaning of “gaming machine”. U.K.

(1) Subject to subsection (3) below, a machine is a gaming machine for the purposes of this Act if it is of the following description—

(a) it is constructed or adapted for playing a game of chance by means of it;

(b) a player pays to play the machine (except where he has an opportunity to play without payment as the result of having previously played successfully), either by inserting a coin or token into the machine or in some other way; and

(c) the outcome of the game is determined by the chances inherent in the action of the machine, whether or not provision is made for manipulation of the machine by a player.

(2) In subsection (1) above, “game of chance” includes a game of chance and skill combined and a pretended game of chance or of chance and skill combined; and the fact that a game contains an element of skill shall not prevent it being treated as a game of chance if nothing but superlative skill can overcome the element of chance.

(3) A machine shall not be treated as a gaming machine for the purposes of this Act if either—

(a) it is constructed or adapted so that a person playing it once and successfully receives nothing except an opportunity, afforded by the automatic action of the machine, to play again (once or more often) without paying, or

(b) it is constructed or adapted so that, where a person plays it once and successfully, that which he receives is determined by the automatic action of the machine and is either—

(i) a money prize not greater than the amount payable to play the machine once, or

(ii) a token which is, or two or more tokens which in the aggregate are, exchangeable only for such a money prize.

(4) For the purposes of determining whether a machine is a gaming machine, it is immaterial whether it is capable of being played by only one person at a time, or is capable of being played by more than one person; but for the purposes of sections 21 to 24 above a machine [F43 other than a 2-penny machine] which two or more persons can play simultaneously (whether or not participating with one another in the same game) shall, instead of being treated as one machine, be treated—

(a) in the case of a machine which no player can play except by the insertion into the machine of a coin or coins of a denomination, or aggregate denomination not exceeding [F44 5p], as a number of machines, all chargeable at the lower rate, equal to the number of persons who can play the machine simultaneously; and

(b) [F45 in a case not falling within paragraph (a) above;] as a number of machines, all chargeable at the higher rate, equal to that number of persons; . . . F46

(c) . . . F46

and the number of persons who can play a particular machine simultaneously shall be determined by reference to the number of individual playing positions provided on the machine.

Textual Amendments

F43 Words inserted by Finance Act 1982 (c. 39, SIF 12:2), s. 8, Sch. 6 para. 13(a)

F44 Words substituted by Finance Act 1982 (c. 39, SIF 12:2), s. 8, Sch. 6 para. 13(b)

F45 Words substituted by Finance Act 1982 (c. 39, SIF 12:2), s. 8, Sch. 6 para. 13(c)

F46 S. 25(4)(c) and the word “and” at the end of para. (b) repealed by Finance Act 1982 (c. 39, SIF 12:2), ss. 8, 157(6), Sch. 6 para. 13(d), Sch. 22 Pt. III Note

Valid from 01/05/1995

25A Power to modify definition of “amusement machine”. U.K.

(1) The Treasury may by order modify the provisions of section 25 above—

(a) by adding to the machines for the time being specified in subsection (1)(e) of that section any description of machines which it appears to them, having regard to the use to which the machines are put, to be appropriate for the protection of the revenue so to add to those machines; or

(b) by deleting any description of machines for the time being so specified.

(2) An order under this section may make such incidental, consequential or transitional provision as the Treasury think fit, including provision modifying section 21 or section 25(5A) above for the purpose of—

(a) specifying the circumstances (if any) in which a machine added to section 25(1)(e) above is to be an excepted machine for the purposes of section 21 above; or

(b) determining the number which, in the case of a machine so added, is to be taken into account for the purposes of section 25(5) above.

26 Supplementary provisions as to gaming machine licence duty. U.K.

(1) The provisions of Part II of Schedule 4 to this Act (supplementary provisions as to gaming machine licence duty) shall have effect.

(2) In sections 21 to 25 above and in Schedule 4 to this Act—

• “coin” means coin lawfully current in the United Kingdom;

• [F47 “United Kingdom” includes the territorial waters of the United Kingdom;

• “small-prize machine” has the meaning given by section 22(2) above.]

• [F48 “two-penny machine” means a gaming machine which can only be played by the insertion into the machine of a coin or coins of a denomination, or aggregate denomination, not exceeding 2p] and

• “premises” includes any place whatsoever and any means of transport.

(3) A machine is provided for gaming on any premises if it is made available on those premises in such a way that persons resorting to them can play it; and [F49 subject to subsection (3A) below] where on any premises one or more gaming machines are so made available, any such machine anywhere on the premises shall be treated as provided for gaming on those premises, notwithstanding that it is not so made available or is not in a state in which it can be played.

[F50 (3A) The Commissioners may by regulations make provision for the purpose of enabling spare gaming machines to be kept on premises for use in the case of the breakdown of other gaming machines on those premises: and such regulations may provide that, in such circumstances and subject to such conditions as may be specified in the regulations, a gaming machine on any premises which is not made available as mentioned in subsection (3) above, or is not in a state in which it can be played, shall not be treated by virtue of that subsection as provided for gaming on those premises.]

[F51 (4) Where the game playable by means of a gaming machine can be played more than once for the insertion of a coin or coins of a denomination, or aggregate denomination, exceeding any sum in pence mentioned in section 22(5) or subsection (2) above, the machine is to be treated for the purposes of those provisions as if it can only be played by the insertion into it of a coin of a denomination not exceeding that sum if, in effect, the amount payable to play the game once does not exceed that sum or, where the machine provides differing numbers of games in differing circumstances, cannot exceed that sum.]

Textual Amendments

F47 Entries substituted for entry relating to “Great Britain” by Finance Act 1985 (c. 54, SIF 12:2), s. 8, Sch. 5 Pt. I para. 6

F48 Definition substituted for definition “penny machine” by Finance Act 1982 (c. 39, SIF 12:2), s. 8, Sch. 6 Pt. V para. 14(1)

F49 Words inserted by Finance Act 1987 (c. 16, SIF 12:2), s. 5(2)

F50 S. 26(3A) inserted by Finance Act 1987 (c. 16, SIF 12:2), s. 5(3)

F51 S. 26(4) inserted by Finance Act 1982 (c. 49, SIF 12:2), s. 8, Sch. 6 Pt. V para. 14(2)

Valid from 10/07/2003

F52 26A Amounts in currencies other than sterling U.K.

(1) Any reference in this Part of this Act to a amount in sterling, in the context of—

(a) the cost of playing a game, or

(b) the amount of the prize for a game,

includes a reference to the equivalent amount in another currency.

(2) The equivalent amount in another currency, in relation to any day, shall be determined by reference to the London closing exchange rate for the previous day.

(3) For the purposes of determining what duty is payable on an amusement machine licence in a case where this section applies, the equivalent in another currency of an amount in sterling shall be taken to be its equivalent on the day on which the application for the licence is received by the Commissioners, or the due date in the case of a default licence.

(4) In subsection (3) above—

• “default licence” means a licence granted under paragraph 3(1) of Schedule 4A to this Act;

• “due date” has the meaning given by paragraph 2(4) of that Schedule.

Textual Amendments

F52 S. 26A renumbered (with effect as mentioned in s. 8(2) of the amending Act) as s. 26N by Finance Act 2007 (c. 11), s. 8, Sch. 1 para. 1; S.I. 2007/2172, art. 2

Valid from 19/07/2007

[F53 Remote gaming duty U.K.

Textual Amendments

F53 Ss. 26A-26M and cross-heading inserted (with effect as mentioned in s. 8(2) of the amending Act) by Finance Act 2007 (c. 11), s. 8, Sch. 1 para. 2; S.I. 2007/2172, art. 2

26B The duty U.K.

A duty of excise to be known as remote gaming duty shall be charged on the provision of facilities for remote gaming if—

(a) the facilities are provided in reliance on a remote operating licence, or

(b) at least one piece of remote gambling equipment used in the provision of the facilities is situated in the United Kingdom (whether or not the facilities are provided for use wholly or partly in the United Kingdom).

26C The rate U.K.

(1) Remote gaming duty is chargeable at the rate of 15% of P's remote gaming profits for an accounting period.

(2) P's remote gaming profits for an accounting period are—

(a) the amount of P's remote gaming receipts for the period (calculated in accordance with section 26E), minus

(b) the amount of P's expenditure for the period on remote gaming winnings (calculated in accordance with section 26F).

26D Accounting periods U.K.

(1) The following are accounting periods for the purposes of remote gaming duty—

(a) the period of three months beginning with 1st January,

(b) the period of three months beginning with 1st April,

(c) the period of three months beginning with 1st July, and

(d) the period of three months beginning with 1st October.

(2) The Commissioners may agree with P for specified periods to be treated as accounting periods, instead of those described in subsection (1), for purposes of remote gaming duty relating to P.

(3) The Commissioners may by direction make transitional arrangements for the periods to be treated as accounting periods where—

(a) P becomes registered, or ceases to be registered, under section 26J, or

(b) an agreement under subsection (2) begins or ends.

26E Remote gaming receipts U.K.

(1) The amount of P's remote gaming receipts for an accounting period is the aggregate of—

(a) amounts falling due to P in that period in respect of entitlement to use facilities for remote gaming provided by P, and

(b) amounts staked, or falling due to be paid, in that period by a user of facilities for remote gaming provided by P, if or in so far as responsibility for paying any amount won by the user falls on P (or a person with whom P is connected or has made arrangements).

(2) Amounts in respect of VAT shall be ignored for the purposes of subsection (1).

(3) The Treasury may by order provide that where a person who uses facilities (U) relies on an offer which waives payment or permits payment of less than the amount which would have been required to be paid without the offer, U is to be treated for the purposes of this section as having paid that amount.

26F Remote gaming winnings U.K.

(1) The amount of P's expenditure on remote gaming winnings for an accounting period is the aggregate of the value of prizes provided by P in that period which have been won (at any time) by persons using facilities for remote gaming provided by P.

(2) Prizes provided by P to one user on behalf of another are not to be treated as prizes provided by P.

(3) A reference to providing a prize to a user (U) includes a reference to crediting money in respect of gaming winnings by U to an account if U is notified that—

(a) the money is being held in the account, and

(b) U is entitled to withdraw it on demand.

(4) The return of a stake is to be treated as the provision of a prize.

(5) Where P participates in arrangements under which a number of persons who provide facilities for remote gaming contribute towards a fund which is wholly used to provide prizes in connection with the use of those facilities (sometimes described as arrangements for “linked progressive jackpot games ”)—

(a) the making by P of a contribution which relates to the provision by P of facilities for remote gaming shall be treated as the provision of a prize, and

(b) the award of a prize from the fund shall not be treated as the provision of a prize by P.

(6) Where P credits the account of a user of facilities provided by P (otherwise than as described in subsection (3)), the credit shall be treated as the provision of a prize; but the Commissioners may direct that this subsection shall not apply in a specified case or class of cases.

(7) Subsections (2) to (6) of section 20 shall apply (with any necessary modifications) for the purpose of remote gaming duty as for the purpose of bingo duty.

26G Losses U.K.

Where the calculation of P's remote gaming profits for an accounting period produces a negative amount, it may be carried forward in reduction of the profits of one or more later accounting periods.

26H Exemptions U.K.

(1) Remote gaming duty shall not be charged in respect of the provision of facilities for remote gaming if and in so far as—

(a) the provision is charged with another gambling tax, or

(b) the use of the facilities is charged with another gambling tax.

(2) Remote gaming duty shall not be charged in respect of the provision of facilities for remote gaming if and in so far as—

(a) the provision would be charged with another gambling tax but for an express exception, or

(b) the use of the facilities would be charged with another gambling tax but for an express exception.

(3) In this section “gambling tax” means—

(a) amusement machine licence duty,

(b) bingo duty,

(c) gaming duty,

(d) general betting duty,

(e) lottery duty, and

(f) pool betting duty.

(4) The Treasury may by order—

(a) confer an exemption from remote gaming duty, or

(b) remove or vary (whether or not by textual amendment) an exemption under this section.

(5) In calculating P's remote gaming profits for an accounting period, no account shall be taken of amounts or prizes if, or in so far as, they relate to the provision of facilities to which an exemption applies under or by virtue of this section.

26I Liability to pay U.K.

(1) P is liable for any remote gaming duty charged on P's remote gaming profits for an accounting period.

(2) If P is a body corporate, P and P's directors are jointly and severally liable for any remote gaming duty charged on P's remote gaming profits for an accounting period.

(3) The Commissioners may make regulations about payment of remote gaming duty; and the regulations may, in particular, make provision about—

(a) timing;

(b) instalments;

(c) methods of payment;

(d) when payment is to be treated as made;

(e) the process and effect of assessments by the Commissioners of amounts due.

(4) Subject to regulations under subsection (3), section 12 of the Finance Act 1994 (assessment) shall apply in relation to liability to pay remote gaming duty.

26J Registration U.K.

(1) The Commissioners shall maintain a register of persons who provide facilities for remote gaming in respect of which remote gaming duty may be chargeable.

(2) A person may not provide facilities for remote gaming in respect of which remote gaming duty may be chargeable without being registered.

(3) The Commissioners may make regulations about registration; in particular, the regulations may include provision (which may include provision conferring a discretion on the Commissioners) about—

(a) the procedure for applying for registration;

(b) the timing of applications;

(c) the information to be provided;

(d) notification of changes;

(e) de-registration;

(f) re-registration after a person ceases to be registered.

(4) The regulations may require a registered person to give notice to the Commissioners before applying for a remote operating licence.

(5) The regulations may permit the Commissioners to make registration, or continued registration, of a foreign person conditional; and the regulations may, in particular, permit the Commissioners to require—

(a) the provision of security for payment of remote gaming duty;

(b) the appointment of a United Kingdom representative with responsibility for discharging liability to remote gaming duty.

(6) In subsection (5) “foreign person” means a person who—

(a) in the case of an individual, is not usually resident in the United Kingdom,

(b) in the case of a body corporate, does not have an established place of business in the United Kingdom, and

(c) in any other case, does not include an individual who is usually resident in the United Kingdom.

(7) The regulations may include provision for the registration of groups of persons; and may provide for the modification of the provisions of this Part about remote gaming duty in their application to groups.

(8) The regulations—

(a) may make provision which applies generally or only for specified purposes, and

(b) may make different provision for different purposes.

26K Returns U.K.

(1) The Commissioners may make regulations requiring persons who provide facilities for remote gaming in respect of which remote gaming duty may be chargeable to make returns to the Commissioners in respect of their activities.

(2) The regulations may, in particular, make provision about—

(a) liability to make a return;

(b) timing;

(c) form;

(d) content;

(e) method of making;

(f) declarations;

(g) authentication;

(h) when a return is to be treated as made.

(3) The regulations—

(a) may make provision which applies generally or only for specified purposes, and

(b) may make different provision for different purposes.

26L Enforcement U.K.

(1) Contravention of a provision made by or by virtue of sections 26I to 26K—

(a) is conduct to which section 9 of the Finance Act 1994 applies (penalties), and

(b) attracts daily penalties under that section.

(2) A person who is knowingly concerned in, or in taking steps with a view to, the fraudulent evasion of remote gaming duty commits an offence.

(3) A person guilty of an offence under subsection (2) shall be liable on summary conviction to—

(a) a penalty of—

(i) the statutory maximum, or

(ii) if greater, three times the duty which is unpaid or the payment of which is sought to be avoided,

(b) imprisonment for a term not exceeding six months, or

(c) both.

(4) A person guilty of an offence under subsection (2) shall be liable on conviction on indictment to—

(a) a penalty of any amount,

(b) imprisonment for a term not exceeding seven years, or

(c) both.

26M Review and appeal U.K.

(1) Sections 14 to 16 of the Finance Act 1994 (review and appeal) shall apply in relation to liability to pay remote gaming duty.

(2) Sections 14 to 16 of that Act shall also apply to the decisions listed in subsection (3) below.

(3) Those decisions are—

(a) a decision to refuse a request for an agreement under section 26D(2),

(b) a decision to give a direction under section 26D(3),

(c) a decision not to give a direction under section 26D(3),

(d) a decision to direct that section 26F(6) shall not apply in a specified case,

(e) a decision under regulations by virtue of section 26J(3), and

(f) a decision about security by virtue of section 26J(5)(a).

(4) A decision of a kind specified in subsection (3) shall be treated as an ancillary matter for the purposes of sections 14 to 16 of the Finance Act 1994.]

Valid from 19/07/2007

[F54 General] U.K.

Textual Amendments

F54 Cross-heading preceding s. 26N inserted (with effect as mentioned in s. 8(2) of the amending Act) by Finance Act 2007 (c. 11), s. 8, Sch. 1 para. 3; S.I. 2007/2172, art. 2

[F55 26N] Amounts in currencies other than sterling U.K.

(1) Any reference in this Part of this Act to a amount in sterling, in the context of—

(a) the cost of playing a game, or

(b) the amount of the prize for a game,

includes a reference to the equivalent amount in another currency.

(2) The equivalent amount in another currency, in relation to any day, shall be determined by reference to the London closing exchange rate for the previous day.

(3) For the purposes of determining what duty is payable on an amusement machine licence in a case where this section applies, the equivalent in another currency of an amount in sterling shall be taken to be its equivalent on the day on which the application for the licence is received by the Commissioners, or the due date in the case of a default licence.

(4) In subsection (3) above—

• “default licence” means a licence granted under paragraph 3(1) of Schedule 4A to this Act;

• “due date” has the meaning given by paragraph 2(4) of that Schedule.

Textual Amendments

F55 S. 26A inserted (10.7.2003) by Finance Act 2003 (c. 14), s. 11(2) (with s. 11(3))