The Act comprehensively updates existing gambling laws that are several decades old, providing new powers and protections for both new and old forms of gambling. Some 90% of the Act is about new protections.
The Act has three clear objectives:
- Keeping gambling crime free
- Making sure that gambling is fair and open
- Protecting children and vulnerable adults
These are underpinned by:
- Social responsibility and protection of the public, especially children and the vulnerable. This remains the top priority.
- Creating a new regime, which has at its heart firm but fair regulation allowing people to enjoy gambling responsibly, encourages an important industry to thrive by behaving responsibly, and protects the vulnerable. A robust regime is good for players, providers and investors.
- Close, open and consultative working with all stakeholders – the industry; faith, belief and community groups; researchers; those dealing day to day with problem gamblers.
The Act covers two main activities:
- Providing facilities for gambling
- Using premises for gambling
In either case, you must hold the appropriate permission. Permission may come from a licence, permit, or registration granted according to the Act, or from an exemption given by the Act.
The Act introduces a new, unified regulator for gambling in Great Britain – the Gambling Commission – and a new licensing regime for commercial gambling (operated and regulated by the Commission or by licensing authorities, depending on what is being licensed).
Licensing | New rules and offences | Casinos |
The future of gambling | Other new regulations
The Act repeals the Betting, Gaming and Lotteries Act 1963, the Gaming Act 1968 and the Lotteries and Amusements Act 1976.
The Office of Public Sector Information has also published the full text of the Gambling Act 2005 as well as detailed explanatory notes to the Act.
The Gambling Commission
The Gambling Commission is a powerful new regulator with new powers to enforce strict codes of responsibility. It will regulate all commercial gambling in Great Britain, except:
The Gambling Commission takes over from the old Gaming Board for Great Britain in regulating gaming and certain lotteries. It will also be responsible for regulating betting and remote gaming in Great Britain from September 2007.
Three objectives underpin all the work of the Commission and licensing authorities, and are central to the new regulatory regime:
- Keeping gambling crime free
- Making sure that gambling is fair and open
- Protecting children and vulnerable adults from being harmed or exploited by gambling (see Responsible gambling)
The Act provides protection for children and vulnerable adults from the effects of harmful gambling through a number of specific offences that will prevent children and young people from being given access to inappropriate or harmful gambling opportunities.
In particular, it will be an offence to invite or permit a child or a young person to gamble contrary to the provisions of the Act.
The Commission is required to promote socially responsible gambling through licence conditions and codes of practice directed at those providing facilities for gambling.
The Commission will share, with local licensing authorities, responsibility for granting gaming and betting permissions.
The Act also provides powers for the Commission to void bets that are unfair, for example due to cheating.
A Gambling Appeals Tribunal is being established to hear appeals against decisions made by the Commission. Magistrates' Courts will hear appeals against decisions made by the licensing authority.
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Licensing
Authority to provide facilities for gambling will be subject to varying degrees of regulation, depending on:
- Type of gambling
- Means by which it is conducted
- People by whom and to whom it is offered
The Act removes from licensing justices all responsibility for granting gaming and betting permissions. Instead, the Gambling Commission and licensing authorities will between them assume responsibility for all those matters previously regulated by licensing justices.
In England and Wales, local authorities will have new powers to license gambling premises within their area, as well as undertaking functions in relation to lower stake gaming machines and clubs and miners' welfare institutes. In Scotland, these powers are given to licensing boards.
The Commission will be responsible for granting operating and personal licences to commercial gambling operators and personnel working in the industry. It will also regulate certain lottery managers and promoters.
The Act sets out different types of operating licence that cover the full range of commercial gambling activities conducted in Great Britain. It also makes provision for the Commission to have powers of entry and inspection to regulate gambling, with safeguards for those subject to the powers.
A Gambling Appeals Tribunal is being established to hear appeals against decisions made by the Commission. Magistrates' Courts will hear appeals against decisions made by the licensing authority.
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New rules and offences
The Act revises the law on gambling. For example:
- Commercial bingo premises and casinos will no longer have to operate as clubs with a 24-hour membership rule (the general public will now have access to them)
- A new class of betting intermediary operating licence has also been introduced, to cater for the development of betting exchanges
Regulation of gambling in Great Britain will be achieved through a variety of measures. These include:
- Secondary legislation
- Conditions on licences
- Codes of practice
- Guidance
There will be a new system of temporary use notices. These will authorise premises that are not licensed generally for gambling purposes to be used for certain types of gambling for limited periods.
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Casinos
The Act makes significant changes to the regime for casinos.
- It removes certain regulatory controls which existed under the Gaming Act 1968 (for example, "permitted" areas and the demand test)
- Commercial bingo premises and casinos will no longer have to operate as clubs with a 24-hour membership rule (the general public will now have access to them)
Three categories of casino are introduced – regional, large and small. These are defined according to a casino's size, and affect what forms of gambling can be provided at the casino. For example, a casino's gaming machine entitlement will depend on its category.
The Act establishes a minimum size limit for new casinos.
The Act imposes an initial limit of one regional casino, and 8 small and 8 large casinos, to be licensed under the Act. There are powers to amend these limits or remove them entirely, subject to appropriate Parliamentary approval.
Casinos which are in operation – or which can lawfully be operated – immediately before the casino provisions of the Act come into force will be allowed to continue to operate. This will be provided for by means of transitional provisions.
A power is provided for licensing authorities to pass resolutions not to license any new casinos premises in their area.
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New technology and the future of gambling
The Act recognises and accommodates the significant technological changes in the last 40 years. For the first time it provides for specific licences for remote gambling.
Operators based in the UK must obtain an operating licence to authorise the provision of gambling via remote communication e.g. via interactive television or the Internet.
The new licensing system has also been designed to keep pace with technological developments, so that, subject to appropriate Parliamentary approval, gambling delivered by new, unforeseen methods can be regulated in the future.
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Other new regulations
The Act introduces a new regime for gaming machines. A new definition of gaming machine is provided, together with power to prescribe categories. The Act provides certain entitlements for commercial operators to use specified numbers and categories of machines in consequence of their licences. It also establishes permit procedures for authorising use of lower-stake gaming machines in specific locations.
A revised regime for the law of lotteries is contained in the Act, building upon that contained in the Lotteries and Amusements Act 1976, which the Act repeals. The Act regulates lotteries in two ways: either as exempt lotteries, or as licensable lotteries.
The Act makes provision for the advertising of gambling, creating new offences relating to the advertising of unlawful gambling and providing reserve powers for the Secretary of State to make regulations controlling the content of gambling advertisements.
The Act establishes a series of authorisations for private and non-commercial gambling in the UK. This includes authorisations for domestic gaming and betting, and provisions for gaming and lotteries at non-commercial events.
