For section 21(3AA) to (3E) of the Betting and Gaming Duties Act 1981 (c. 63) (special licences and excepted machines) substitute—

“(4)

A special amusement machine licence shall be granted only—

(a)

for a small prize machine,

(b)

if conditions prescribed by the Commissioners by regulations are satisfied in relation to the application for the licence, the applicant and the machine, and

(c)

for a period of twelve months.

(5)

The following are excepted machines—

(a)

machines that are not gaming machines,

(b)

a gaming machine in respect of which—

(i)

the cost of a single game does not exceed 30p,

(ii)

the maximum value of the prize for winning a single game does not exceed £8, and

(iii)

the maximum cash component of the prize for winning a single game does not exceed £5,

(c)

a gaming machine in respect of which—

(i)

the cost of a single game does not exceed 10p, and

(ii)

the maximum value of the prize for winning a single game does not exceed £5, and

(d)

two-penny machines.”

For section 23(2) and (3) of that Act (rates) substitute—

“(2)

The appropriate amount for each machine shall be determined in accordance with the following Table by reference to—

(a)

the period for which the licence is granted, and

(b)

the machine's category determined in accordance with subsection (3).

(1)	(2)	(3)	(4)	(5)	(6)	(7)
Months for which licence granted	Category A	Category B1	Category B2	Category B3	Category B4	Category C
1	£435	£220	£170	£170	£155	£65
2	£875	£435	£345	£345	£310	£130
3	£1310	£655	£515	£515	£465	£195
4	£1750	£875	£690	£690	£625	£255
5	£2185	£1095	£860	£860	£780	£320
6	£2625	£1310	£1030	£1030	£935	£385
7	£3060	£1530	£1205	£1205	£1090	£450
8	£3500	£1750	£1375	£1375	£1245	£515
9	£3935	£1970	£1545	£1545	£1400	£580
10	£4375	£2185	£1720	£1720	£1555	£645
11	£4810	£2405	£1890	£1890	£1715	£705
12	£5000	£2500	£1965	£1965	£1780	£735

(3)

The categories of gaming machine are as follows—

Category A – a gaming machine which is not within another category.

Category B1 – a gaming machine which is not within a lower category and in respect of which—

(i)

the cost of a single game does not exceed £2, and

(ii)

the maximum value of the prize for winning a single game does not exceed £4,000.

Category B2 – a gaming machine which is not within a lower category and in respect of which—

(i)

the cost of a single game does not exceed £100, and

(ii)

the maximum value of the prize for winning a single game does not exceed £500.

Category B3 – a gaming machine which is not within a lower category and in respect of which—

(i)

the cost of a single game does not exceed £1, and

(ii)

the maximum value of the prize for winning a single game does not exceed £500.

Category B4 – a gaming machine which is not within a lower category and in respect of which—

(i)

the cost of a single game does not exceed £1, and

(ii)

the maximum value of the prize for winning a single game does not exceed £250.

Category C—

(i)

a gaming machine in respect of which the cost of a single game does not exceed 5p, and

(ii)

a gaming machine in respect of which—

(a)

the cost of a single game does not exceed 50p, and

(b)

the maximum value of the prize for winning a single game does not exceed £25.

(4)

Where a machine offers more than one class of game, it falls within a category only if it satisfies the requirements of that category in respect of each class.

(5)

Where a prize is anything other than money its value for the purposes of this section is—

(a)

in the case of a voucher or token that may be exchanged for, or used in place of, an amount of money, that amount,

(b)

in the case of a voucher or token that does not fall within paragraph (a) and that may be exchanged for something other than money, the cost that the person providing the machine would incur in obtaining that thing from a person not connected with him (within the meaning of section 839 of the Income and Corporation Taxes Act 1988), and

(c)

in any other case, the cost that the person providing the machine would incur in obtaining the prize from a person not connected with him (within that meaning).

(6)

For the purposes of subsection (3) Category A is the highest category and Category C is the lowest.”

For section 25(4) to (7) of the Betting and Gaming Duties Act 1981 (c. 63) substitute—

“(4)

A machine which has a number of individual playing positions allowing persons to play simultaneously (whether or not participating in the same game) shall be treated for the purposes of sections 21 to 24 as that number of separate machines.”