Betting and Gaming Duties Act 1981

Valid from 10/07/2003

[F7[F85AARelief for lossesU.K.

(1)This section applies where the amount of a person’s net stake receipts for an accounting period in respect of a class of bets (calculated in accordance with section 5(1)) is a negative amount.

(2)That amount shall be carried forward to the following accounting period and, to the extent that it does not exceed it, deducted from the amount of the person’s net stake receipts in respect of the same class of bets for that period.

(3)If the amount of those net stake receipts for that following accounting period—

(a)is not a positive amount, or

(b)is less than the amount carried forward,

the amount carried forward or, as the case may be, the balance of it shall be treated for the purposes of this section as if it were a negative amount of net stake receipts for that period in respect of the same class of bets.

Valid from 10/07/2003

[F95ABBetting exchangesU.K.

(1)This section applies where—

(a)one person makes a bet with another person using facilities provided by a third person in the course of a business, and

(b)that business is one that does not involve the provision of premises for use by persons making or taking bets.

(2)General betting duty shall be charged on the amounts (“commission charges”) that the parties to the bet are charged, whether by deduction from winnings or otherwise, for using those facilities.

(3)No deductions shall be allowed from commission charges.

(4)The amount of duty charged under this section in respect of bets determined in an accounting period shall be 15 per cent of the commission charges relating to those bets.

(5)For the purposes of this section, and section 5B(4) so far as relating to this section, a person who arranges for facilities relating to a bet to be provided by another person shall be treated as providing them himself (and the other person shall not).]]

Valid from 06/10/2001

F105A 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.

Valid from 06/10/2001

F115B 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.

Valid from 06/10/2001

F125C 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.

Valid from 06/10/2001

F135D 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.

Valid from 10/07/2003

[F14[F157ZARelief for lossesU.K.

(1)This section applies where the amount of a person’s net pool betting receipts for an accounting period is a negative amount.

(2)That amount shall be carried forward to the following accounting period and, to the extent that it does not exceed it, deducted from the amount of the person’s net pool betting receipts for that period.

(3)If the amount of the net pool betting receipts for that following accounting period—

(a)is not a positive amount, or

(b)is less than the amount carried forward,

the amount carried forward or, as the case may be, the balance of it shall be treated for the purposes of this section as if it were a negative amount of net pool betting receipts for that period.]

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—

Valid from 31/03/2002

7B Net pool betting receipts: meaning of “dutiable pool bet”U.K.

(1)For the purposes of a calculation under section 7A of the amount of a person’s net pool betting receipts for any accounting period, a bet (wherever made) is a “dutiable pool bet” if—

(a)the bet is made by way of pool betting, and

(b)the following conditions are satisfied.

(2)The first condition is that—

(a)the bet is made by means of a totalisator situated in the United Kingdom and that person is the operator, or

(b)the bet is made otherwise than by means of a totalisator and that person is the promoter and is in the United Kingdom.

(3)The second condition is that the bet is not—

(a)made by way of sponsored pool betting,

(b)made as mentioned in section 4(3), or

(c)made for community benefit.

(4)The third condition is that if the bet was made before 31st March 2002, at least one event to which it relates takes place on or after that date.

Valid from 31/03/2002

7C Net pool betting receipts: calculating stake moneyU.K.

(1)This section applies for the purpose of calculating S in a calculation under section 7A.

(2)Any payment that entitles a person to make a bet shall, if he makes the bet, be treated as stake money on the bet.

(3)All payments made—

(a)for or on account of or in connection with bets that are dutiable pool bets for the purposes of the calculation,

(b)in addition to the stake money, and

(c)by the persons making the bets,

shall be treated as amounts due in respect of the bets except in so far as the contrary is proved by the person whose net pool betting receipts are being calculated.

Valid from 31/03/2002

7D Net pool betting receipts: when stakes etc fall dueU.K.

(1)Subsections (2) to (5) apply for the purpose of calculating S in a calculation under section 7A but have effect subject to any regulations under subsection (6).

(2)Where—

(a)a person makes a bet, and

(b)the bet relates to a single event, or to two or more events all taking place on the same day,

any sum due to a person in respect of the bet shall be treated as falling due on the day on which the event or events take place.

(3)Where—

(a)a person makes a bet, and

(b)subsection (2) does not apply,

any sum due to a person in respect of the bet shall (subject to subsection (5)) be treated as falling due when the bet is made.

(4)Subsections (2) and (3) have effect in relation to a sum irrespective of when it is actually paid or required to be paid (even where a sum that those subsections require to be treated as falling due on or after 31st March 2002 was actually paid, or required to be paid, before that date).

(5)As respects a bet made before 31st March 2002 that relates to events at least one of which takes place before that date and at least one of which takes place on or after that date, any sum paid on or after that date in respect of the bet shall be treated as falling due when it is paid.

(6)The Commissioners may by regulations make provision as to when any sum due to a person in respect of a bet is to be treated as falling due for the purpose of calculating S in a calculation under section 7A.

(7)Provision made by regulations under subsection (6) may not provide for a sum due to a person in respect of a bet to be treated as falling due—

(a)earlier than when the bet is made, or

(b)later than when the bet is determined.

(8)Regulations made under subsection (6) may—

(a)make provision that applies generally or only in relation to a specified description of bet;

(b)make different provision for different purposes;

(c)make provision relating to bets made before the regulations are made (including bets made before the passing of the Finance Act 2002);

(d)make transitional provision.

Valid from 31/03/2002

7E Net pool betting receipts: expenses and profitsU.K.

(1)Subsections (2) and (3) apply for the purpose of calculating E in a calculation under section 7A.

(2)The expenses and profits falling within this subsection are (subject to subsection (3))—

(a)those of the person whose net pool betting receipts are being calculated, and

(b)those of any other person concerned with or benefiting from the promotion of the betting concerned.

(3)Expenses and profits do not fall within subsection (2) so far as they are—

(a)provided out of amounts due, in respect of bets that are dutiable pool bets for the purposes of the calculation, to the person whose net pool betting receipts are being calculated, or

(b)referable to matters other than—

(i)the promotion or management of the betting concerned, or

(ii)activities ancillary to, or connected with, such promotion or management.

(4)The Commissioners may by regulations make provision as to the accounting period to which expenses and profits falling within subsection (2) are to be treated as attributable for the purpose of calculating E in a calculation under section 7A.

(5)Regulations made under subsection (4) may—

(a)make provision that applies generally or only in relation to a specified description of bet;

(b)make different provision for different purposes;

(c)make provision applying in respect of expenses incurred, and profits accruing, before the regulations are made (including any incurred or accruing before the passing of the Finance Act 2002);

(d)make transitional provision.

Valid from 31/03/2002

7F Net pool betting receipts: calculating winningsU.K.

(1)Subsections (2) to (5) apply for the purpose of calculating W in a calculation under section 7A.

(2)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.

(3)The return of a stake shall be treated as a payment by way of winnings.

(4)Only payments of money shall be taken into account.

(5)Where a bet made before 31st March 2002 relates to events at least one of which takes place before that date and at least one of which takes place on or after that date, no account shall be taken of any payment by way of winnings on the bet.

(6)The Commissioners may by regulations make provision as to when amounts paid by way of winnings are to be treated as being paid for the purposes of calculating W in a calculation under section 7A.

(7)Regulations made under subsection (6) may—

(a)make provision that applies generally or only in relation to a specified description of bet;

(b)make different provision for different purposes;

(c)make provision applying in respect of amounts paid before the regulations are made (including amounts paid before the passing of the Finance Act 2002);

(d)make transitional provision.

Valid from 31/03/2002

8A Meaning of “bet made for community benefit" in sections 6 to 8U.K.

(1)For the purposes of sections 6 to 8 (but subject to any direction under subsection (3)), a bet is made “for community benefit” if—

(a)the promoter of the betting concerned is a community society or is bound to pay all benefits accruing from the betting to such a society, and

(b)the person making the bet knows, when making it, that the purpose of the betting is to benefit such a society.

(2)In the case of a bet made by means of a totalisator, the reference in subsection (1) to the promoter of the betting concerned is a reference to the operator.

(3)The Commissioners may direct that any bet specified by the direction, or of a description so specified, is not a bet made for community benefit.

(4)The power conferred by subsection (3) may not be exercised unless the Commissioners consider that an unreasonably large part of the amounts paid in respect of the bets concerned will, or may, be applied otherwise than—

(a)in the payment of winnings, or

(b)for the benefit of a community society.

(5)In this section “community society” means—

(a)a society established and conducted for charitable purposes only, or

(b)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.

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

Valid from 31/03/2002

8B Meaning of “accounting period" in sections 6 to 8U.K.

(1)For the purposes of sections 6 to 8—

(a)each period that ends with the last Saturday in a calendar month, and begins with the Sunday immediately following the previous such Saturday, is an accounting period, but

(b)the Commissioners may by regulations make provision for some other specified period to be an accounting period.

(2)Regulations made under subsection (1)(b) may—

(a)make provision that 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.

Valid from 31/03/2002

8C Meaning of “bet" in sections 6 to 8AU.K.

(1)For the purposes of sections 6 to 8A, “bet” does not include the taking of a ticket or chance in a lottery.

(2)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 that may (directly or indirectly) determine the winner, those payments shall be treated as bets for the purposes of sections 6 to 8A notwithstanding that the power is not exercised.

(3)Subsection (2) has effect subject to section 12(3).

(4)Where any payment entitles a person to take part in a transaction that is, on his part only, not a bet made by way of pool betting by reason of his not in fact making any stake as if the transaction were such a bet, the transaction shall be treated as such a bet for the purposes of pool betting duty (and section 7C(3) shall apply to any such payment).]]

Valid from 25/07/2002

[F259A Further prohibitions for protection of revenue: overseas bet-brokersU.K.

(1)A person shall be guilty of an offence if—

(a)he knowingly issues, circulates or distributes in the United Kingdom, or has in his possession for that purpose, any advertisement or other document inviting the use of or otherwise relating to bet-broking services, and

(b)any person providing any of the bet-broking services concerned—

(i)is outside the United Kingdom, and

(ii)provides them in the course of a business.

(2)In this section “bet-broking services” means—

(a)facilities provided by a person that may be used by other persons in making bets with third persons, or

(b)a person’s services of acting as agent for other persons in making bets on their behalf with third parties (whether the persons on whose behalf the bets are made are disclosed principals or undisclosed principals).

(3)In subsection (2) “bet” means a bet other than one made by way of pool betting.

(4)A person 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.]

Valid from 24/07/2002

[F269B Offences under sections 9 and 9A: penaltiesU.K.

(1)This section applies where a person is guilty of an offence under section 9 or 9A (a “relevant offence”).

(2)In the case of the person’s first conviction for a relevant offence, he is liable—

(a)on summary conviction to a penalty of the prescribed sum, or

(b)on conviction on indictment to a penalty of any amount.

(3)In the case of a second or subsequent conviction of the person for a relevant offence, he is liable—

(a)on summary 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 to imprisonment for a term not exceeding one year or to both.]