SCHEDULES
SCHEDULE 4 Gaming Machine Licence duty
Part I Exemptions from requirement of Excise Licence
Charitable entertainments, etc.
1
1
A gaming machine licence shall not be required in order to authorise the provision of a gaming machine at an entertainment (whether limited to one day or extending over two or more days), being a bazaar, sale of work, fête, dinner, dance, sporting or athletic event or other entertainment of a similar character, where the conditions of this paragraph are complied with in relation to the entertainment.
2
The conditions of this paragraph are that—
a
the whole proceeds of the entertainment (including the proceeds of gaming by means of any machine) after deducting the expenses of the entertainment, including any expenses incurred in connection with the provision of gaming machines and of prizes to successful players of the machines will be devoted to purposes other than private gain; and
b
the opportunity to win prizes by playing the machine (or that machine and any other provided for gaming at the entertainment) does not constitute the only, or the only substantial, inducement for persons to attend the entertainment.
F73
In construing sub-paragraph (2)(a) above, proceeds of an entertainment promoted on behalf of a society falling within this sub-paragraph which are applied for any purpose calculated to benefit the society as a whole shall not be held to be applied for purposes of private gain by reason only that their application for that purpose results in benefit to any person as an individual.
4
A society falls within sub-paragraph (3) above if it is established and conducted either—
a
wholly for purposes other than purposes of any commercial undertaking, or
b
wholly or mainly for the purpose of participation in or support of athletic sports or athletic games;
and in this paragraph “society” includes any club, institution, organisation or association of persons, by whatever name called, and any separate branch or section of such a club, institution, organisation or association.
Pleasure fairs
2
1
A gaming machine licence shall not be required in order to authorise the provision of a gaming machine at a pleasure fair, consisting wholly or mainly of amusements provided by travelling showmen, which is held on any day of a year on premises not previously used in that year for more than twenty-seven days for the holding of such a pleasure fair, where the conditions of this paragraph are complied with in relation to the machine.
2
The conditions of this paragraph are that—
C1a
the amount payable to play the machine once does not exceed 10p;
C2b
a person playing the machine once and successfully does not receive any thing other than one of the following prizes or combinations of prizes:—
i
a money prize not exceeding £1 or a token which is, or two or more tokens which in the aggregate are, exchangeable only for such a money prize;
ii
a non-monetary prize or prizes of a value or aggregate value not exceeding £2 or a token exchangeable only for such a non-monetary prize or such non-monetary prizes;
iii
a money prize not exceeding £1 together with a non-monetary prize of a value which does not exceed £2 less the amount of the money prize;
iv
one or more tokens which can be exchanged for a non-monetary prize or non-monetary prizes at the appropriate rate; and
c
the opportunity to play the machine (or that machine and any other provided for gaming at the fair) does not constitute the only, or the only substantial, inducement for persons to attend the fair.
C33
In sub-paragraph (2)(b) above, “non-monetary prize”, in relation to a machine, means a prize which does not consist of or include any money and does not consist of or include any token which can be exchanged for money or money’s worth or be used for playing the machine; and, for the purposes of sub-paragraph (2)(b)(iv), a token or tokens shall be taken to be exchanged for a non-monetary prize or prizes at the appropriate rate if either—
a
the value or aggregate value of the prize or prizes does not exceed £2 and the token or tokens exchanged represent the maximum number of tokens which can be won by playing the machine once, or
b
in any other case, the value or aggregate value of the prize or prizes does not exceed £2 and bears to £2 a proportion not exceeding that which the number of tokens exchanged bears to the maximum number of tokens which can be won by playing the machine once.
C44
The condition specified in sub-paragraph (2)(b) above shall not, in relation to a machine, be taken to be contravened by reason only that a successful player of the machine receives an opportunity to play again (once or more often) without paying, so long as the most which he can receive if he wins each time he plays again is a money prize or money prizes of an amount, or aggregate amount, of £1 or less.
3
The Commissioners may by order provide that any provision of paragraph 2 above which is specified in the order and which mentions a sum shall have effect, as from a date so specified, as if for that sum there were substituted such larger sum as may be specified in the order.
F1Seasonal licences
F84
1
If at any time during March of any year there has previously been granted a seasonal licence for that year authorising the provision of any number of small-prize machines on any premises and that licence has not been surrendered, it shall be treated for the purposes of this Act as authorising the provision at that time of that number of small-prize machines on the premises.
2
Where a seasonal licence is granted for any year authorising the provision of any number of small-prize machines on any premises, and the licence is not surrendered, it shall be treated for the purposes of this Act as authorising during October of that year the provision of that number of small-prize machines on the premises.
3
Subject to sub-paragraph (4) below, in this Schedule “seasonal licence”, in relation to any year, means a gaming machine licence expressed to authorise only the provision of small-prize machines on any premises for the period of six months beginning with 1st April in that year.
C54
A licence in respect of any premises is not a seasonal licence in relation to any year if any gaming machine licence has been granted in respect of those premises for any period which includes the whole or any part of the preceding winter period.
5
If in relation to any year—
a
a seasonal licence is granted in respect of any premises, and
C5b
another gaming machine licence is granted (whether before or after the grant of the seasonal licence or after the surrender of the seasonal licence) in respect of those premises for any period which includes the whole or any part of the following winter period (and does not include the whole or any part of the preceding winter period),
there shall (unless an amount has already become payable under this sub-paragraph in respect of the seasonal licence) be payable on the seasonal licence on the relevant date an additional amount of duty.
6
The additional amount is the difference between the duty payable (apart from this paragraph) on that licence at the time it was granted and the amount that would have been so payable if the licence had been granted for a period of eight months or, in a case where the seasonal licence has been surrendered before the beginning of September, seven months.
7
In sub-paragraph (5) above, the “relevant date” means—
a
the date on which the seasonal licence is granted, or
b
the date on which the other licence is granted,
whichever is the later.
8
In this paragraph “winter period” means November to February.
Part II Supplementary provisions
General administration
5
The duty on gaming machine licences shall be under the care and management of the Commissioners, who may (without prejudice to any other provision of this Schedule) make regulations providing for any matter for which provision appears to them to be necessary for the administration or enforcement of the duty, or for the protection of the revenue in respect thereof; and in this Schedule—
a
“regulations” means regulations of the Commissioners made thereunder; and
b
“prescribed” means prescribed by regulations.
Applications for and duration of licence
F96
An application for a gaming machine licence shall be made to the Commissioners in such form and manner as they may require.
F107
The period for which a gaming machine licence is granted shall begin with the day on which application for the licence is received by the Commissioners or, if a later day is specified for that purpose in the application, with that day; and the licence shall expire at the end of that period.
F3 Payment of duty by instalments
Crossheading inserted (1.5.1995) by 1995 c. 4, s. 14, Sch. 3 para. 11(5).
F27A
1
The Commissioners may make and publish arrangements setting out the circumstances in which, and the conditions subject to which, a person to whom an amusement machine licence is granted for a period of twelve months may, at his request and if the Commissioners think fit, be permitted to pay the duty on that licence by regular instalments during the period of the licence, instead of at the time when it is granted.
2
Arrangements under this paragraph shall provide for the amount of each instalment to be such that the aggregate amount of all the instalments to be paid in respect of any licence is an amount equal to 105 per cent. of what would have been the duty on that licence apart from this paragraph.
3
Sub-paragraph (4) below applies if a person who has been permitted, in accordance with arrangements under this paragraph, to pay the duty on any amusement machine licence by instalments—
a
fails to pay any instalment at the time when it becomes due in accordance with the arrangements; and
b
does not make good that failure within seven days of being required to do so by notice given by the Commissioners.
4
Where this sub-paragraph applies—
a
the licence shall be treated as having ceased to be in force as from the time when the instalment became due;
b
the person to whom the licence was granted shall become liable to any unpaid duty to which he would have been liable under paragraph 11(1C) below if he had surrendered the licence at that time; and
c
any amusement machines found on the premises to which the licence related shall be liable to forfeiture.
5
Sections 14 to 16 of the M1Finance Act 1994 (review and appeals) shall have effect in relation to any decision of the Commissioners refusing an application for permission to pay duty by instalments in accordance with arrangements under this paragraph as if that decision were a decision of a description specified in Schedule 5 to that Act.
Transfer of licence
8
1
The proper officer may, in such manner as the Commissioners may direct, and without any additional payment,
F11a
transfer an ordinary licence in respect of any premises to a successor in title to the interest in those premises of the person to whom the licence was granted; and
b
where—
i
a person holding special licences so requests; and
ii
the proper officer is satisfied that it is appropriate to do so and will not result in any person holding any number of special licences less than ten,
transfer such number of special licences to such other person, as may be specified in the request.
2
Where the holder of a gaming machine licence . . . F12dies, the proper officer may transfer the licence, in such manner as the Commissioners may direct and without any additional payment, to some other person for the remainder of the period for which the licence was granted.
Amendment of licence
F49
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F510
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Surrender of licence
C611
F131
The holder of a gaming machine licence may surrender it to the proper officer at any time.
1A
On the surrender of the licence the holder shall be entitled to repayment of duty of the following amount.
1B
That amount is the difference between—
a
the amount of duty actually paid on the licence, and
b
the amount (if less) that would have been paid if the period for which the licence was granted had been reduced by the number of complete months in that period which have not expired,
and for the purposes of this paragraph a seasonal licence is to be treated as granted for the period of eight months beginning with 1st March
2
A special licence shall not be surrendered unless the Commissoners are satisfied that, if it is surrendered, its holder will (having regard to any other licences surrendered at the same time) hold at least ten, or cease to hold any, special licences.
3
F14Sub-paragraph (1) above shall not apply if any person has been convicted of an offence under section 24 of this Act in respect of a contravention of F14section 21(1) or 24 of this Act which occurred between the grant of the licence and the date of surrender; and where at the date of surrender proceedings for such an offence are pending against any person, the right to repayment under this paragraph shall not arise until the proceedings are terminated, nor unless every person charged in those proceedings with such an offence has been acquitted thereof.
Reduction of duty in certain cases
F611A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Requirements to be observed by licence-holder
12
The holder of F15, an ordinary licence in respect of any premises shall secure that the licence is displayed on the premises at such times and in such manner as may be prescribed, and shall on demand by an officer at any time produce the licence for the officer’s inspection.
F1613
1
Regulations may make provision with respect to the labelling or marking of—
a
gaming machines provided on any premises in respect of which an ordinary licence is in force, and
b
gaming machines in respect of which special licences are in force,
with a view to enabling any such machine to be identified as falling within one of the categories mentioned in sub-paragraph (2) below.
2
The categories referred to in sub-paragraph (1) above are—
a
two-penny machines;
b
machines which are both small-prize machines and five-penny machines;
c
machines which are small-prize machines but not five-penny machines;
d
machines which are not small-prize machines but are five-penny machines;
e
machines which are not small-prize machines and are not five-penny machines.
3
The regulations may include provision as to the size and description of labels or marks to be applied to machines, as to the cases in which they are required to be, or are prohibited from being, applied and as to the manner of the application.
Power to enter premises and obtain information
14
Any officer may (without payment) enter on any premises on which he knows or has reasonable cause to suspect that gaming machines are or have been provided for gaming and inspect those premises and require any person who is concerned in the management of the premises, or who is on the premises and appears to the officer to have any responsibility whatsoever in respect of their management or of the control of the admission of persons thereto—
a
to produce or secure the production of any gaming machine licence for the time being in force in respect of the premises, or
b
to provide information with respect to any use to which the premises are or have been put, or to any machine which is or has been on the premises and any game which may have been played by means of such a machine or to the way in which the machine works, or to the amount which is or has been payable to play it.
Registers of permits, etc.
15
1
The clerk to the appropriate authority shall keep a register in the prescribed form and containing the prescribed particulars of—
a
all permits issued by the authority for the purposes of section 16 of the M2Lotteries and Amusements Act 1976 (permitted gaming in the form of amusements with prizes),
b
all permits so issued for the purposes of section 34 of the M3Gaming Act 1968 (conditions under which gaming may be carried on by means of machines), and
c
all directions given by the authority under section 32 of the Gaming Act 1968 (approval for provision of more than two gaming machines);
and any such register shall be open during reasonable hours for inspection by any officer.
2
In sub-paragraph (1) above, “the appropriate authority”—
a
in relation to permits issued for the purposes of section 16 of the Lotteries and Amusements Act 1976, means the local authority within the meaning of Schedule 3 to that Act,
b
in relation to permits issued for the purposes of section 34 of the Gaming Act 1968, has the same meaning as in Schedule 9 to that Act, and
c
in relation to directions under section 32 of the Gaming Act 1968, means the licensing authority under that Act.
Enforcement
16
1
If any person contravenes or fails to comply with any provision of this Part of this Schedule or regulations, or fails or refuses to comply with any requirement lawfully made of him under this Part of this Schedule or regulations, he shall be guilty of an offence and be liable on summary conviction to F17a penalty of level 5 on the standard scale.
2
Where a person is convicted of an offence under this paragraph consisting in a failure to comply with any provision of this Part of this Schedule or of regulations, and the failure continues after the conviction, he shall be guilty of a further offence under this paragraph and may on conviction be punished accordingly.
17
1
If a justice of the peace or, in Scotland, a justice (within the meaning of section 462 of the M4Criminal Procedure (Scotland) Act) is satisfied on information on oath that there is reasonable ground for suspecting that gaming machines are or have been, or are to be, provided for gaming on any premises in contravention of F18section 21(1) or 24 of this Act, he may issue a warrant in writing authorising an officer to enter the premises (if necessary by force) at any time within F19one month of the issue of the warrant and search them.
2
An officer who enters premises under the authority of such a warrant may—
a
seize and remove any records, accounts or other documents, or any gaming machine (including any machine appearing to the officer to be constructed or adapted, or to be capable of use, for playing a game of chance by means of it), or any tokens 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 an offence under section 24 of this Act or paragraph 16 above;
b
search any person found on the premises whom he has reasonable cause to believe to be or have been concerned with the provision of gaming machines on the premises, or with the management of the premises, or to be or have been responsible for controlling the admission of persons to the premises.
18
Where an officer finds gaming machines provided on any premises in such circumstances that a gaming machine licence is required so as to authorise them so to be provided and F20the officer is satisfied, having regard to the number and description of—
a
those machines which are authorised by the ordinary licence or licences produced to him; and
b
those machines displaying special licences;
that there has been a contravention of section 21(1) or 24 of this Act, all gaming machines found on the premises shall be liable to forfeiture.
Crossheading substituted (3.5.1994 with effect in relation to gaming machine licences granted for the period of six months beginning with 1.4.1994) by 1994 c. 9, s. 6, Sch. 3 para. 4(1)(4).