Betting and Gaming Duties Act 1981

Part I U.K. Betting Duties

General betting dutyU.K.

[F1F21 The dutyU.K.

A duty of excise to be known as general betting duty shall be charged in accordance with sections 2 to 5D.

F32 Bookmakers: general betsU.K.

(1)General betting duty shall be charged on a bet made with a bookmaker who is in the United Kingdom.

(2)Subsection (1) does not apply to—

(a)an on-course bet,

(b)a spread bet,

(c)a bet made by way of pool betting, or

(d)a bet made by way of coupon betting.

(3)The amount of duty charged in respect of bets made with a bookmaker in an accounting period shall be 15 per cent. of the amount of his net stake receipts for that period.

F43 Bookmakers: spread betsU.K.

(1)General betting duty shall be charged on a spread bet made with a bookmaker who—

(a)is in the United Kingdom, and

(b)holds a bookmaker’s permit.

(2)A bet is a spread bet if it constitutes a contract to which section 63 of the Financial Services Act 1986 applies by virtue of paragraphs 9 and 12 of Schedule 1 to that Act (gaming contracts: investments).

(3)The amount of duty charged under subsection (1) in respect of spread bets made with a bookmaker in an accounting period shall be—

(a)3 per cent. of the amount of his net stake receipts in respect of financial spread bets for that period (if any), plus

(b)10 per cent. of the amount of his net stake receipts in respect of other spread bets for that period (if any).

(4)A “financial spread bet” is a spread bet the subject of which is a financial matter.

(5)The Commissioners may by order provide that a specified matter—

(a)shall be treated as a financial matter for the purpose of subsection (4), or

(b)shall not be treated as a financial matter for that purpose.

F54 Other bettingU.K.

(1)General betting duty shall be charged on sponsored pool betting.

(2)General betting duty shall be charged on a bet made by means of facilities provided by the Horserace Totalisator Board.

(3)General betting duty shall be charged on a bet made on an event on a track falling within subsection (4) if the bet is made—

(a)by means of a totalisator which operates on that track, and

(b)on the day of the event.

(4)A track falls within this subsection if—

(a)a track betting licence is in force for the track under Schedule 3 to the Betting, Gaming and Lotteries Act 1963,

(b)a track betting licence is in force for the track under Article 37 of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985, or

(c)the Commissioners designate the track for the purposes of this subsection.

(5)The amount of duty charged under subsections (1) to (3) in respect of bets made by means of facilities provided by a person in an accounting period shall be 15 per cent. of the amount of his net stake receipts for that period.

(6)Subsections (1) to (3) do not apply to—

(a)on-course bets, or

(b)coupon betting.

F65 Net stake receiptsU.K.

(1)For the purposes of a charge under a provision of sections 2 to 4 in respect of the class of bets to which the provision applies, the amount of a person’s net stake receipts for an accounting period is X minus Y, where—

(a)X is the aggregate of amounts which fall due to that person in the accounting period in respect of bets of that class made with him, and

(b)Y is the aggregate of amounts paid by the person in that period by way of winnings to persons who made bets of that class with him (irrespective of when the bets were made or determined).

(2)Where—

(a)a person makes a bet other than a spread bet, and

(b)the sum which he will lose if unsuccessful is known when the bet is made,

that sum shall be treated for the purposes of subsection (1)(a) as falling due when the bet is made (irrespective of when it is actually paid or required to be paid).

(3)Where the amount of a person’s net stake receipts is zero or a negative amount, it shall be disregarded for the purposes of sections 2 to 4.

(4)In calculating an amount due to a person in respect of a bet, no deduction shall be made in respect of—

(a)any other benefit secured by the person who makes the bet as a result of paying the money,

(b)a person’s expenses, whether in paying duty or otherwise, or

(c)any other matter.

(5)Where a person makes a bet in pursuance of an offer which permits him to pay nothing or less than the amount which he would have been required to pay without the offer, he shall be treated for the purposes of this section as being due to pay that amount—

(a)to the person with whom the bet is made, and

(b)at the time when the bet is made.

(6)For the purpose of subsection (1)(b)—

(a)the reference to paying an amount to a person includes a reference to holding it in an account if the person is notified that the amount is being held for him in the account and that he is entitled to withdraw it on demand,

(b)the return of a stake shall be treated as a payment by way of winnings, and

(c)only payments of money shall be taken into account.

(7)In the application of this section to a charge under section 4(1) to (3), a reference to bets made with a person shall be treated as a reference to bets made by means of facilities provided by him.

F95A Multiple betsU.K.

(1)Subject to subsection (3), this section applies where—

(a)a person bets on more than one contingency, and

(b)he bets on terms that if his bet in respect of one contingency is successful the stake or winnings will be carried forward as the stake in respect of another contingency.

(2)Where this section applies—

(a)the person mentioned in subsection (1)(a) shall be treated for the purposes of sections 2 to 4 as making a separate bet on each contingency, and

(b)each bet which depends on the result of an earlier bet shall be treated as being made at the time of that result.

(3)This section does not apply where a person bets on more than one contingency if—

(a)the betting takes the form of a single bet or of bets placed at a single time, and

(b)the terms mentioned in subsection (1) do not permit the arrangement for carrying forward to be varied or terminated.

(4)In subsection (1)(b) the reference to “the stake or winnings” includes a reference to—

(a)any part of the stake,

(b)any part of the winnings, and

(c)any combination of stake and winnings.

F105B Liability to payU.K.

(1)At the end of each accounting period all general betting duty chargeable in respect of bets made in the period shall become due.

(2)In the case of bets made with a bookmaker in an accounting period the general betting duty shall be paid—

(a)when it becomes due, and

(b)by the bookmaker.

(3)But general betting duty which is due to be paid by a bookmaker in respect of bets may be recovered from the following persons as if they and the bookmaker were jointly and severally liable to pay the duty—

(a)the holder of a bookmaker’s permit for the business in the course of which the bets were made;

(b)a person responsible for the management of that business;

(c)where the bookmaker is a company, a director.

(4)In the case of bets made in an accounting period by means of facilities provided by a person as described in section 4(1) to (3) the general betting duty shall be paid—

(a)when it becomes due, and

(b)by the person who provides the facilities.

(5)This section is without prejudice to paragraph 2 of Schedule 1 to this Act or regulations made under it.

F115C Bet-brokersU.K.

(1)This section applies where—

(a)one person (the “bettor”) makes a bet with another person (the “bet-taker”) using facilities provided in the course of a business by a third person (the “bet-broker”), or

(b)one person (the “bet-broker”) in the course of a business makes a bet with another person (the “bet-taker”) as the agent of a third person (the “bettor”) (whether the bettor is a disclosed principal or an undisclosed principal).

(2)For the purposes of sections 2 to 5B—

(a)the bet shall be treated as if it were made by the bettor with the bet-broker and not with the bet-taker,

(b)the bet-broker shall be treated as a bookmaker in respect of the bet,

(c)the aggregate of amounts due to be paid by the bettor in respect of the bet shall be treated as being due to the bet-broker, and

(d)a sum paid by the bet-taker by way of winnings in respect of the bet shall be treated as having been paid by the bet-broker at that time and for that purpose.

(3)But subsection (2) does not apply to a bet if—

(a)the bet-taker holds a bookmaker’s permit, and

(b)the bet would not be an on-course bet if the bet-broker were making the bet with the bet-taker as principal.

(4)In the case of a bet which is excluded from subsection (2) by virtue of subsection (3), for the purposes of sections 2 to 5B—

(a)the bet shall be treated as if it were made separately by the bettor with the bet-broker and by the bet-broker with the bet-taker,

(b)the bet-broker shall be treated as a bookmaker in respect of the bet,

(c)the aggregate of amounts due to be paid by the bettor in respect of the bet shall be treated as being due separately to the bet-broker and to the bet-taker (and any amount due to be paid by the bet-broker to the bet-taker shall be disregarded), and

(d)a sum paid by the bet-taker by way of winnings in respect of the bet shall be treated as having been paid separately by the bet-taker and by the bet-broker at that time and for that purpose (and any sum paid by the bet-broker shall be disregarded).

(5)This section does not apply—

(a)to bets made by way of pool betting, or

(b)to bets made using facilities provided by a person holding (and relying on) a betting agency permit (within the meaning of section 9(2)(c)(ii) of the Betting, Gaming and Lotteries Act 1963).

(6)Where there is any doubt as to which of two persons is the bettor and which the bet-taker for the purposes of subsection (1)(a), whichever of the two was the first to use the facilities of the bet-broker to offer the bet shall be treated as the bet-taker.

F125D Accounting periodU.K.

(1)For the purposes of sections 2 to 5C—

(a)each calendar month is an accounting period, but

(b)the Commissioners may provide in regulations under paragraph 2 of Schedule 1 to this Act for some other specified period to be an accounting period.

(2)Regulations made by virtue of subsection (1)(b) may—

(a)make provision which applies generally or only in relation to a specified person or class of person;

(b)make different provision for different purposes;

(c)make transitional provision.

Pool betting dutyU.K.

Valid from 31/03/2002

7A Calculating net pool betting receiptsU.K.

For the purposes of section 7, the amount of a person’s net pool betting receipts for an accounting period is—

where—

S is the aggregate of amounts falling due to the person in the accounting period in respect of dutiable pool bets,

E is the aggregate of expenses and profits falling within section 7E(2) that are attributable to the accounting period, and

W is the aggregate of amounts paid by the person in the accounting period by way of winnings on dutiable pool bets (irrespective of when the bets were made or determined).

Textual Amendments

F1Cross-heading and ss. 1-5D substituted (6.10.2001 with effect as mentioned in art. 2 of the commencing S.I.) for ss. 1-5 by 2001 c. 9, s. 6, Sch. 1; S.I. 2001/3089, art. 2

F13Ss. 6-8C and preceding cross-heading substituted for ss. 6-8 (24.7.2002 for specified purposes and otherwise retrospective to 31.3.2002 with effect as mentioned in s. 12(3) of the amending Act) by Finance Act 2002 (c. 23), s. 12, Sch. 4 Pt. 1 para. 2

F156 Pool betting duty.U.K.

(1)There shall be charged a duty of excise, to be known as pool betting duty—

(a)subject to subsection (2) below, on all bets made by way of pool betting, wherever made, and

(b)on all bets made at fixed odds with the Horserace Totalisator Board or a bookmaker in [F16the United Kingdom] by way of coupon betting,

not being bets made by way of sponsored pool betting or made as mentioned in [F17section 4(3)].

(2)Bets made by way of pool betting are chargeable with pool betting duty only if—

(a)in the case of bets made by means of a totalisator, the totalisator is situated in [F16the United Kingdom];

(b)in the case of bets made otherwise than by means of a totalisator, the promoter of the betting is in [F16the United Kingdom].

(3)For the purposes of this section and sections 7 and 8 below (except in their application to coupon betting)—

(a)subject to paragraph (b) and section 12(3) below, where payments are made for the chance of winning any money or money’s worth on terms under which the persons making the payments have a power of selection which may (directly or indirectly) determine the winner, those payments shall be treated as bets notwithstanding that the power is not exercised;

[F18(b)“bet” does not include the taking of a ticket or chance in a lottery.]

F19(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

F207 Amount of pool betting duty.U.K.

(1)The amount of the pool betting duty shall be equal . . . F21 to [F2217.50 per cent.] of the aggregate of—

(a)the amount of the stake money paid, and

(b)the expenses and profits described in subsection (4) below (but subject to subsection (5) below).

(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F23

(3)For the purposes of pool betting duty, any payment which entitles a person to make a bet by way of pool betting or coupon betting shall, if he makes the bet, be treated as stake money on the bet; and this subsection shall apply to any payment entitling a person to take part in a transaction which is, on his part, only not a bet made by way of pool betting or coupon betting by reason of his not in fact making any stake as if the transaction were such a bet, and the transaction shall accordingly be treated as a bet for the purposes of pool betting duty.

(4)The expenses and profits referred to in subsection (1)(b) above are the expenses and profits of the promoter of the betting or any other person concerned with or benefiting from the promotion of the betting so far as they are not provided for out of the stake money and are not shown to be referable to matters other than the promotion and management of the betting and activities ancillary thereto or connected therewith; and all payments made for or on account of or in connection with any bets made by way of pool betting or coupon betting in addition to the stake money by the persons making the bets shall be treated as representing amounts on which duty is (subject to subsection (5) below) chargeable by virtue of subsection (1)(b) above except in so far as the promoter of the betting proves the contrary.

(5)There shall be excepted from any charge to duty under this section the amount of any benefit accruing from the betting to a society established and conducted for charitable purposes only or to a society established and conducted wholly or mainly for the support of athletic sports or athletic games and not established or conducted for purposes of private gain, if the benefit is provided by means of payments made by persons making bets and those persons know, when making the payments, that their purpose is to provide the benefit.

In this subsection “society” includes any club, institution, organisation or association of persons, by whatever name called.

F248 Payment and recovery of pool betting duty.U.K.

(1)Pool betting duty shall be paid—

(a)in the case of bets made by means of totalisator, by the operator and,

(b)in the case of other bets, by the promoter.

(2)The pool betting duty chargeable on any bet shall be recoverable jointly and severally from all or any of the following persons—

(a)the conductor of the dutiable betting by way of which the bet was made;

(b)any other person responsible for the management of any premises or totalisator in respect of which that conductor has made entry or given notice in accordance with paragraph 4(2) or (4) of Schedule 1 to this Act;

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

(3)In this section—

• “conductor of dutiable betting” means a person carrying on a business the carrying on of which involves or may involve any sums becoming payable by him by way of pool betting duty;

• “dutiable betting” means betting by way of pool betting or coupon betting.

GeneralU.K.

9 Prohibitions for protection of revenue.U.K.

(1)Any person who—

(a)conducts in [F25the United Kingdom] any business or agency for the negotiation, receipt or transmission of bets to which this section applies, or

(b)knowingly issues, circulates or distributes in [F25the United Kingdom], or has in his possession for that purpose, any advertisement or other document inviting or otherwise relating to the making of such bets, or

(c)being a bookmaker in [F25the United Kingdom], makes or offers to make any such bet with a bookmaker outside [F25the United Kingdom],

shall be guilty of an offence.

(2)Except as mentioned in subsection (3) below, this section applies to—

(a)all bets made by way of pool betting or coupon betting unless—

(i)in the case of bets made by means of a totalisator, the totalisator is situated in [F25the United Kingdom],

(ii)in the case of bets made otherwise than by means of a totalisator, the promoter of the betting is in [F25the United Kingdom]; and

(b)all bets made with a bookmaker outside [F25the United Kingdom] (whether or not made by way of pool betting or coupon betting).

(3)This section does not apply—

[F26(a)to any bet which is made by way of pool betting or coupon betting if—

(i)the bet is not made by means of a totalisator,

(ii)the promoter is in the Isle of Man,

(iii)the bet is chargeable with a duty imposed by or under an Act of Tynwald which corresponds to pool betting duty, and

(iv)the duty mentioned in sub-paragraph (iii) is chargeable on the bet at a rate not less than the appropriate rate of pool betting duty; or

(aa)to any bet which is made with a bookmaker if—

(i)it is not made by way of pool betting or coupon betting,

(ii)the bookmaker is in the Isle of Man,

(iii)a duty is imposed by or under an Act of Tynwald in respect of bookmaker’s receipts from bets of that kind, and

(iv)the rates and method of calculation of that duty result in no less duty being charged in respect of bets of that kind than is charged by way of general betting duty in respect of bets of that kind; or]

(b)to any bet made by means of a totalisator situated in a country outside [F25the United Kingdom] on a horse race taking place in that country; or

(c)to any bet in respect of an event taking place outside [F25the United Kingdom] made by a bookmaker in [F25the United Kingdom]—

(i)by means of a totalisator situated outside [F25the United Kingdom], or

(ii)with a bookmaker outside [F25the United Kingdom],

if it is shown that bets in respect of that event have been made in [F25the United Kingdom] with the first-mentioned bookmaker by other persons.

(4)A person guilty of an offence under this section shall be liable—

(a)on summary conviction to a penalty of the prescribed sum or, in the case of a second or subsequent conviction, to a penalty of the prescribed sum or to imprisonment for a term not exceeding three months or to both, or

(b)on conviction on indictment to a penalty of any amount or, in the case of a second or subsequent conviction, to a penalty of any amount or to imprisonment for a term not exceeding one year or to both.

(5)A person who makes or tries to make a bet, or who gets or tries to get any advertisement or other document given or sent to him, shall not be guilty of an offence by reason of his thereby procuring or inciting some other person to commit, or aiding or abetting the commission of, an offence under this section.

(6)Section 6(3) above shall have effect for the purposes for subsections (2)(a) and (5) above (except in their application to coupon betting) as it has effect for the purposes of sections 6 to 8 above.

10 Definition of pool betting.U.K.

(1)For the purposes of this Part of this Act, a bet shall be deemed to be made by way of pool betting unless it is a bet at fixed odds, and, in particular, bets shall be held to be made by way of pool betting wherever a number of persons make bets—

(a)on terms that the winnings of such of those persons as are winners shall be, or be a share of, or be determined by reference to, the stake money paid or agreed to be paid by those persons, whether the bets are made by means of a totalisator, or by filling up and returning coupons or other printed or written forms, or in any other way, or

(b)on terms that the winnings of such of those persons as are winners shall be, or shall include, an amount (not determined by reference to the stake money paid or agreed to be paid by those persons) which is divisible in any proportions among such of those persons as are winners, or

(c)on the basis that the winners or their winnings shall, to any extent, be at the discretion of the promoter or some other person.

(2)A bet is a bet at fixed odds within the meaning of this section only if each of the persons making it knows or can know, at the time he makes it, the amount he will win, except in so far as that amount is to depend on the result of the event or events betted on, or on any such event taking place or producing a result, or on the numbers taking part in any such event, or on the starting prices or totalisator odds for any such event, or on there being totalisator odds on any such event, or on the time when his bet is received by any person with or through whom it is made.

• In this subsection—

• “starting prices” means, in relation to any event, the odds ruling at the scene of the event immediately before the start, and

• “totalisator odds” means—

  (a)

  in relation to a race which is a recognised horse race within the meaning of section 55(1) of the M1Betting, Gaming and Lotteries Act 1963, the odds paid on bets on that race made by way of sponsored pool betting, and

  (b)

  in relation to any other event, the odds paid on bets made by means of a totalisator at the scene of the event.

(3)A bet made with or through a person carrying on a business of receiving or negotiating bets, being a bet made in the course of that business, shall be deemed not to be a bet at fixed odds within the meaning of this section if the winnings of the person by whom it is so made consist or may consist wholly or in part of something other than money.

(4)Where a person carries on a business of receiving or negotiating bets and there is or has been issued in connection with that business any advertisement or other publication calculated to encourage in persons making bets of any description with or through him a belief that the bets are made on the basis mentioned in subsection (1)(c) above, then any bets of that description subsequently made with or through him in the course of that business shall be deemed for the purposes of this section to be made on that basis.

11 Definition of coupon betting.U.K.

—For the purposes of this Part of this Act, bets shall be deemed to be made by way of coupon betting where they are made in pursuance of an invitation which offers stated odds for a choice of bets, being bets of a description not commonly made without such an invitation, unless made by way of pool betting, and not of a description commonly made by means of a totalisator.

12 Supplementary provisions.U.K.

(1)Where particulars of an intended bet on which general betting duty or pool betting duty would be chargeable and the stake on that bet are collected for transmission to the person by whom that duty would fall to be paid by some other person, whether or not a bookmaker, who holds himself out as available for so collecting and transmitting them, but are in fact not so transmitted, the bet shall be deemed to have been made but the duty in respect of it shall be paid by that other person.

(2)The provisions of Schedule 1 to this Act (supplementary provisions as to betting duties) shall have effect.

(3)In sections 1 to 10 above (except in sections 6, 7, 8, 9(2)(a) and 9(5) in their application to coupon betting), in subsection (1) above and in paragraph 10 of Schedule 1 to this Act, “bet” does not include any bet made or stake hazarded in the course of, or incidentally to, any gaming.

(4)In this Part of this Act—

• [F29“betting office licence”—

(a)in Great Britain, has the meaning given by section 9(1) of the M2Betting, Gaming and Lotteries Act 1963, and

(b)in Northern Ireland, means a bookmaking office licence as defined in Article 2(2) of the M3Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985;

• “bookmaker”—

(a)in Great Britain, has the meaning given by section 55(1) of the said Act of 1963, and

(b)in Northern Ireland has the meaning given by Article 2(2) of the said Order of 1985;

and (in either case) the expression “bookmaking” shall be construed accordingly;

• “bookmaker’s permit”—

(a)in Great Britain, has the meaning given by section 2(1) of the said Act of 1963, and

(b)in Northern Ireland, means a bookmaker’s licence as defined in Article 2(2) of the said Order of 1985;]

• “meeting” means any occasion on any one day on which events take place on any track;

• “on-course bet” means a bet made in the course of a meeting, either by means of a totalisator situated on premises forming part of the track or with a bookmaker present at the meeting, where—

(a)the person making the bet (that is to say, the person originating the bet and not any agent or intermediary) is present at the meeting, or

(b)the bet is made by a person carrying on a bookmaking business acting as principal (and not acting as agent for, or on behalf of, some other person);

• “operator”, in relation to bets made by means of a totalisator, means the person who, as principal, operates the totalisator;

• “promoter”, in relation to any betting, means the person to whom the persons making the bets look for the payment of their winnings, if any;

• [F30“sponsored pool, betting” has the meaning given by section 55(1) of the said Act of 1963;

• “totalisator” has the meaning given by section 55(1) of the said Act of 1963 and Article 2(2) of the said Order of 1985;

• “track”—

(a)in Great Britain, has the meaning given by section 55(1) of the said Act of 1963, and

(b)in Northern Ireland, has the meaning given by Article 2(2) of the said Order of 1985;]

• “winnings” includes winnings of any kind, and references to amount and to payment in relation to winnings shall be construed accordingly;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F31

(5)In this Part of this Act references to this Part of this Act include Schedule 1 to this Act.

Part II U.K. Gaming Duties

Gaming licence dutyU.K.

F3213. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

F3314. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

F3415. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

F3516. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

Bingo dutyU.K.

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 [F37the 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 [F38if 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.

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 [F39the United Kingdom], to be combined as mentioned in subsection (1) above with other bingo played elsewhere than in [F39the United Kingdom], except where the other bingo is played in . . . F40 the Isle of Man and is chargeable, under an Act of . . . F40 Tynwald, with duty corresponding to bingo duty and at a rate not less than that which is chargeable under section 17 above.

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;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F41

• “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

• [F42“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.

Gaming machine licence dutyU.K.

[F4321 Gaming machine licence duty.U.K.

(1)Except in the cases specified in Part I of Schedule 4 to this Act, no [F44amusement machine]] (other than [F45an excepted machine]) shall be provided [F46for play] on any premises situated in [F47the United Kingdom] unless there is for the time being in force [F48a licence granted under this Part of this Act with respect to the premises [F49or the machine].

(2)Such a licence shall be known as [F50an amusement machine licence][F51and, if it is granted with respect to a machine, rather than with respect to premises, as a special amusement machine licence.]]

[F52(3)[F53An amusement machine licence]may be granted for a period of a month, or of any number of months not exceeding twelve, beginning on any day of any month]

[F54(3AA)A special amusement machine licence shall not be granted except where—

(a)the machine with respect to which it is granted is of a description of machine for which special amusement machine licences are available;

(b)such conditions as may be prescribed by regulations made by the Commissioners are satisfied in relation to the application for the licence, the machine and the person by whom the application is made; and

(c)the licence is for twelve months.

(3AB)Special amusement machine licences shall be available for amusement machines of each of the following descriptions—

(a)machines that are not gaming machines; and

(b)small prize machines.]

[F55(3A)For the purposes of this section an excepted machine is—

(a)a two-penny machine, or

[F56(b)a [F57ten-penny machine]] which is a small prize machine; or

(c)a thirty-five-penny machine which is not a prize machine or which, if it is a prize machine, is not a gaming machine[F58; or

(d)an excepted video machine.]]

[F59(3B)For the purposes of this section an amusement machine is an excepted video machine if—

(a)it is a video machine which is not a prize machine;

(b)it is a machine on which a game can be played solo;

(c)the price for a solo game on the machine does not exceed 35p; and

(d)the price to participate in a game on the machine for two or more players does not exceed 50p.

(3C)For the purposes of this section the price for a solo game on a machine does not exceed 35p if the denomination or aggregate denomination of the coin or coins that must be inserted into the machine to play the game solo does not or, where the machine provides differing numbers of games in different circumstances, cannot exceed 35p for each time the game is played.

(3D)For the purposes of this section the price to participate in a game on the machine for two or more players does not exceed 50p if the denomination or aggregate denomination of the coin or coins that must be inserted into the machine to play the game simultaneously with more than one player does not exceed or, where the machine provides differing numbers of games in different circumstances, cannot exceed 50p per player for each time the game is played.

(3E)For the purposes of this section a game is played solo if it is played by one person at a time (whether or not against a previous player).]

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

F6021A.—. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

22 Gaming machine licence duty.U.K.

(1)A duty of excise shall be charged on [F61amusement machine] licences and the duty on a licence shall be determined [F62in accordance with section 23 below]

[F63(2)For the purposes of this Act

[F64(a)][F65an amusement machine is a small-prize machine if it is a prize machine and] 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 [F66£8]

[F67(b)an amusement machine is a medium-prize machine if it is a prize machine and 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, can exceed £8 but cannot exceed £15.]

(3)The Commissioners may by order substitute for [F68a 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.]

F69(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F70

[F7123 Amount of duty.U.K.

(1)The amount of duty payable on [F72an amusement machine licence]] shall be—

(a)the appropriate amount for the machine which it authorises, or

(b)if it authorises two or more machines, the aggregate of the appropriate amounts for each of those machines.

(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)whether the machine falls within [F73Category A, Category B, Category C, Category D or Category E],

and references in this Part to a rate of [F74amusement] machine licence duty are references to [F75the rate for the category of machine in question in column 2, 3, 4, 5 or 6 of the Table]

[F77(3)The machines comprised in each category referred to in this section are as follows—

Category A: any machine which is not a gaming machine;

Category B: any gaming machine which is a small-prize machine or five-penny machine;

Category C: any gaming machine which is a medium-prize machine, unless it is also a five-penny machine;

Category D: any gaming machine which is a ten-penny machine, unless it is also—

(a)a five-penny machine,

(b)a small-prize machine, or

(c)a medium-prize machine;

Category E: any machine which is not in any other category.]

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

(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F78

F79(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)[F80Amusement machines] chargeable at a particular rate shall not be provided on any F81. . . premises in excess of the number authorised by the licence [F82or licences] authorising the provision of [F83amusement machines] chargeable at that rate F84. . ..

(4)Where a licence which authorises the provision of [F83amusement machines] chargeable at one rate only is in force in respect of any F81. . . premises, [F83amusement machines] chargeable at any other rate shall not be provided [F85for play] on those premises unless another licence authorising the provision of [F83amusement machines] chargeable at that other rate is also in force in respect of the premises [F86or there are special licences in force with respect to those machines][F87or the machines].

(5)If any [F88amusement machine] is provided for gaming on any premises in contravention of [F89section 21(1) above or] this section, [F90the provision of the machine shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) and, for the purposes of the application of that section to the conduct attracting the penalty, the provision of the machine shall be treated as the conduct of each of the persons who, at the time when the [F88amusement machine] is 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 [F91an][F88amusement machine] may, or is required to, be on the premises at that time,

F92. . .

(6)If any [F88amusement machine] is provided [F85for play] on any premises in contravention of [F89section 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—

[F93(a)on summary conviction to a penalty—

(i)of the prescribed sum, F94. . ., 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.

[F9524A 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.]

25 Meaning of “gaming machine”.U.K.

[F96(1)A machine is an amusement machine for the purposes of this Act if—

(a)the machine is constructed or adapted for the playing of any game (whether a game of chance, a game of skill or a game of chance and skill combined);

(b)the game is one played by means of the machine (whether automatically or by the operation of the machine by the player or players);

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

(d)the machine automatically—

(i)applies some or all of the rules of the game or displays or records scores in the game; and

(ii)determines when a player who has paid to play a game by means of the machine can no longer play without paying again;

and

(e)the machine is a gaming machine, a video machine or a pinball machine.

(1A)A machine constructed or adapted for the playing of a game is a gaming machine for the purposes of this Act if—

(a)it is a prize machine;

(b)the game which is played by means of the machine is a game of chance, a game of chance and skill combined or a pretended game of chance or of chance and skill combined; 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;

and for the purposes of this subsection a game in which the elements of chance can be overcome by skill shall be treated as a game of chance and skill combined if there is an element of chance in the game that cannot be overcome except by superlative skill.

(1B)A machine constructed or adapted for the playing of a game is a video machine for the purposes of this Act if—

(a)a micro-processor is used to control some or all of the machine’s functions; and

(b)the playing of the game involves information or images being communicated or displayed to the player or players by means of any description of screen F97. . ..

(1C)For the purposes of this Act an amusement machine is a prize machine unless it is constructed or adapted so that a person playing it once and successfully either receives nothing or receives only—

(a)an opportunity, afforded by the automatic action of the machine, to play again (once or more often) without paying, or

(b)a prize, determined by the automatic action of the machine and consisting in either—

(i)money of an amount not exceeding the sum payable to play the machine once, or

(ii)a token which is, or two or more tokens which in the aggregate are, exchangeable for money of an amount not exceeding that sum.]

[F98(4)Subject to subsection (5) below, for the purposes of determining whether a machine is [F99a machine of any description]][F100other than an excepted video machine falling within section 21(3A)(d) above] 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.

[F101(5)For the purposes of sections 21 to 24 above a machine (the actual machine) in relation to which the number determined in accordance with subsection (5A) below is more than one shall be treated (instead of as one machine) as if it were a number of machines (accountable machines) equal to the number so determined.

(5A)That number is—

(a)except where paragraph (b) below applies, the number of individual playing positions provided on the machine for persons to play simultaneously (whether or not while participating in the same game); and

(b)where—

(i)that machine is a video machine but not a gaming machine, and

(ii)the number of such playing positions is more than the number of different screens used for the communication or display of information or images to any person or persons playing a game by means of the machine,

the number of such screens.

(6)Subsection (5) above does not apply [F102for the purpose of determining whether a machine is an excepted video machine falling within section 21(3A)(d) above, or in the case of a pinball machine or a machine that is an excepted machine]].

(7)Any question whether the accountable machines are, or are not, machines falling within any of the following descriptions, that is to say—

(a)gaming machines,

(b)prize machines,

(c)small-prize machines, F103. . .

[F104(cc)medium-prize machines,

(cd)ten-penny machines, or]

(d)five-penny machines,

shall be determined according to whether or not the actual machine is a machine of that description, with the accountable machines being taken to be machines of the same description as the actual machine.

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 [F105amusement 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;

• [F106“United Kingdom” includes the territorial waters of the United Kingdom;

• [F107“video machine” has the meaning given by section 25(1B) above;

• “prize machine” has the meaning given by section 25(1C) above;]

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

• [F108“two-penny machine” means [F109an amusement 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]

• [F110“five-penny machine” means [F109an amusement 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 5p; and]

• [F111“ten-penny machine” means an amusement machine which can only be played by the insertion into the machine of coins of a denomination, or aggregate denomination, not exceeding 10p;.]

• [F112“thirty-five-penny machine” means an amusement machine which can only be played by the insertion into the machine of coins of an aggregate denomination not exceeding 35p;]

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

[F113(2A)References in sections 21 to 25 above and in this section and Schedule 4 to this Act to a game, in relation to any machine, include references to a game in the nature of a quiz or puzzle and to a game which is played solely by way of a pastime or against the machine, as well as one played wholly or partly against one or more contemporaneous or previous players.]

(3)A machine is provided [F114for play]on any premises if it is made available on those premises in such a way that persons resorting to them can play it; and [F115subject to subsection (3A) below] where on any premises one or more [F116amusement machines] are so made available, any such machine anywhere on the premises shall be treated as provided [F114for play] on those premises, notwithstanding that it is not so made available or is not in a state in which it can be played.

[F117(3A)The Commissioners may by regulations make provision for the purpose of enabling spare [F116amusement machines] to be kept on premises for use in the case of the breakdown of other [F116amusement 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, [F109an amusement 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 [F114for play] on those premises.]

[F118(4) Where the game playable by means of [F109an amusement 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 F119. . . subsection (2) above, the machine is to be treated for the purposes of [F120that provision] 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.]

Part III U.K. General

27 Offences by bodies corporate.U.K.

—Where an offence under section F125. . . 24 above, paragraph 13(1) or (3) or 14(1) of Schedule 1, F125. . . paragraph 16 of Schedule 3 or paragraph 16 of Schedule 4 to this Act has been committed by a body corporate, every person who at the date of the commission of the offence was a director, general manager, secretary or other similar officer of the body corporate, or was purporting to act in any such capacity, shall be deemed to be guilty of that offence unless he proves—

(a)that the offence was committed without his consent or connivance, and

(b)that he exercised all such diligence to prevent the commission of the offence as he ought to have exercised having regard to the nature of his functions in that capacity and in all the circumstances.

27 Offences by bodies corporate.E+W+S

—Where an offence under section 15 or 24 above, paragraph 13(1) or (3) or 14(1) of Schedule 1, paragraph 7 of Schedule 2, paragraph 16 of Schedule 3 or paragraph 16 of Schedule 4 to this Act has been committed by a body corporate, every person who at the date of the commission of the offence was a director, general manager, secretary or other similar officer of the body corporate, or was purporting to act in any such capacity, shall be deemed to be guilty of that offence unless he proves—

(a)that the offence was committed without his consent or connivance, and

(b)that he exercised all such diligence to prevent the commission of the offence as he ought to have exercised having regard to the nature of his functions in that capacity and in all the circumstances.

F12628. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+N.I.

F12729. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

[F12829A Evidence by certificate, etc.U.K.

(1)A certificate of the Commissioners—

(a)that any notice required by or under this Act to be given to them had or had not been given at any date, or

(b)that any permit, licence or authority required by or under this Act had or had not been issued at any date, or

(c)that any return required by or under this Act had not been made at any date, or

(d)that any duty shown as due in any return [F129made in pursuance of this Act or in any assessment made under section 12 of the Finance Act 1994]] had not been paid at any date,

shall be sufficient evidence of that fact until the contrary is proved.

(2)A photograph of any document furnished to the Commissioners for the purposes of this Act and certified by them to be such a photograph shall be admissible in any proceedings, whether civil or criminal, to the same extent as the document itself.

(3)Any document purporting to be a certificate under subsection (1) or (2) above shall be deemed to be such a certificate until the contrary is proved.

30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F130E+W+S

31 Protection of officers.U.K.

Where an officer takes any action in pursuance of instructions of the Commissioners or a Collector of Customs and Excise given in connection with the enforcement of the enactments relating to general betting duty, bingo duty or the duty on F131. . . [F132amusement machine licences] and, apart from the provisions of this section, the officer would in taking that action be committing an offence under the enactments relating to betting or gaming, he shall not be guilty of that offence.

32 Orders and regulations.U.K.

(1)Any power conferred by any provision of this Act to make an order or regulations shall be exercisable by statutory instrument.

(2)F133. . ., any statutory instrument made under any power conferred by this Act shall be subject to annulment in pursuance of a resolution of the House of Commons.

F133(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33 Interpretation.U.K.

(1)In this Act—

• “the Commissioners” means the Commissioners of Customs and Excise;

• “gaming” F135. . . has the same meaning as in section 52 of the M4Gaming Act 1968;

• “the prescribed sum” in relation to the penalty provided for an offence, means—

(a)if the offence was committed in England or Wales, the prescribed sum within the meaning of section 32 of the M5Magistrates’ Courts Act 1980 (£1,000 or other sum substituted by order under section 143(1) of that Act); and

(b)if the offence was committed in Scotland, the prescribed sum within the meaning of [F136subsection (8) of section 225 of the Criminal Procedure (Scotland) Act 1995 (£5,000 or other sum substituted by order under subsection (4) of that section)]. [F137and

(c)if the offence was committed in Northern Ireland, the prescribed sum within the meaning of Article 4 of the M6Fines and Penalties (Northern Ireland) Order 1984.]

(2)For the avoidance of doubt it is hereby declared that the imposition by this Act of general betting duty, pool betting duty, bingo duty or the duty on [F138amusement machine licences] does not make lawful anything which is unlawful apart from this Act.

34 Consequential and transitional provisions and repeals.U.K.

(1) Schedule 5 (consequential amendments) and Schedule 6 (transitional and saving provisions) to this Act shall have effect, but without prejudice to the operation of sections 15 to 17 of the M7Interpretation Act 1978 (which relate to the effect of repeals).

(2)The enactments specified in Schedule 7 to this Act are hereby repealed to the extent mentioned in the third column of that Schedule

35 Short title, construction, commencement and extent.U.K.

(1)This Act may be cited as the Betting and Gaming Duties Act 1981.

(2)This Act shall be construed as one with the M8Customs and Excise Management Act 1979.

[F139(3)The following provisions of this Act do not extend to Northern Ireland—

F140(a). . .

(b)sections 29 and 30;

F140(c). . .

(d)paragraph 15 of Schedule 4;

F141. . .]

(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F142