Betting and Gaming Duties Act 1981

Part II U.K. Gaming Duties

Gaming licence dutyU.K.

F113. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

F214. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

F315. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

F416. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

U.K.

[F517Bingo dutyU.K.

(1)A duty of excise, to be known as bingo duty, shall be charged—

(a)on the playing of bingo in the United Kingdom, and

(b)at the rate of 15 per cent of a person’s bingo promotion profits for an accounting period.

(2)Subsection (1) is subject to the exemptions specified in Part 1 of Schedule 3 to this Act.

(3)The amount of a person’s bingo promotion profits for an accounting period is—

(a)the amount of the person’s bingo receipts for the period (calculated in accordance with section 19), minus

(b)the amount of his expenditure on bingo winnings for the period (calculated in accordance with section 20).

(4)Bingo duty charged in respect of a person’s bingo promotion profits shall be paid by him.

(5)Where the amount that would be charged in respect of a person’s bingo promotion profits for an accounting period is less than £1, no duty shall be charged.

18Accounting periodU.K.

(1)For the purposes of section 17 an accounting period ends, and another begins, at the end of the last Sunday in each calendar month.

(2)But regulations under paragraph 9 of Schedule 3 to this Act may make provision in place of subsection (1) for the purposes of the application of section 17 to specified persons or in specified circumstances.

(3)Regulations made by virtue of subsection (2) may make transitional provision.

19Bingo receiptsU.K.

(1)A person has bingo receipts for an accounting period if payments fall due in the period in respect of entitlement to participate in bingo promoted by him.

(2)The amount of the person’s bingo receipts for the accounting period is the aggregate of those payments.

(3)For the purposes of subsections (1) and (2)—

(a)an amount in respect of entitlement to participate in a game of bingo is to be treated as falling due in the accounting period in which the game is played,

(b)where a payment relates to a supply of services on which value added tax is chargeable, the amount of value added tax chargeable shall be disregarded (irrespective of whether or not that amount is paid by way of value added tax),

(c)it is immaterial whether an amount falls due to be paid to the promoter or to another person,

(d)it is immaterial whether an amount is described as a fee for participation, as a stake, or partly as one and partly as the other, and

(e)where a sum is paid partly in respect of entitlement to participate in a game of bingo and partly in respect of another matter—

(i)such part of the sum as is applied to, or properly attributable to, entitlement to participate in the game shall be treated as an amount falling due in respect of entitlement to participate in the game, and

(ii)the remainder shall be disregarded.

20Expenditure on bingo winningsU.K.

(1)A person’s expenditure on bingo winnings for an accounting period is the aggregate of the values of prizes provided by him in that period by way of winnings at bingo promoted by him.

(2)Where a prize is obtained by the promoter from a person not connected with him, the cost to the promoter shall be treated as the value of the prize for the purpose of subsection (1).

(3)Where a prize is a voucher which—

(a)may be used in place of money as whole or partial payment for benefits of a specified kind obtained from a specified person,

(b)specifies an amount as the sum or maximum sum in place of which the voucher may be used, and

(c)does not fall within subsection (2),

the specified amount is the value of the voucher for the purpose of subsection (1).

(4)Where a prize is a voucher (whether or not it falls within subsection (2)) it shall be treated as having no value for the purpose of subsection (1) if—

(a)it does not satisfy subsection (3)(a) and (b), or

(b)its use as described in subsection (3)(a) is subject to a specified restriction, condition or limitation which may make the value of the voucher to the recipient significantly less than the amount mentioned in subsection (3)(b).

(5)In the case of a prize which—

(a)is neither money nor a voucher, and

(b)does not fall within subsection (2),

the value of the prize for the purpose of subsection (1) is—

(i)the amount which the prize would cost the promoter if obtained from a person not connected with him, or

(ii)where no amount can reasonably be determined in accordance with sub-paragraph (i), nil.

(6)For the purpose of this section—

(a)a reference to connection between two persons shall be construed in accordance with section 839 of the Income and Corporation Taxes Act 1988 (connected persons), and

(b)an amount paid by way of value added tax on the acquisition of a thing shall be treated as part of its cost (irrespective of whether or not the amount is taken into account for the purpose of a credit or refund).

20ACombined bingoU.K.

(1)A game of bingo is “combined bingo” if—

(a)it is multiple bingo within the meaning of section 1 of the Gaming (Bingo) Act 1985, or

(b)it is played in more than one place and promoted by more than one person.

(2)Payments made in respect of entitlement to participate in combined bingo shall be treated for the purposes of section 19(1) as bingo receipts only of the first promoter to whom (or at whose direction) they are paid.

(3)Where money representing stakes hazarded at combined bingo is paid in an accounting period by one promoter of the bingo (“the first promoter”) to another (“the second promoter”)—

(a)the money shall not be treated as a bingo receipt of the second promoter for the purposes of section 19(1),

(b)the payment shall be treated as expenditure of the first promoter on bingo winnings for the accounting period for the purposes of section 20(1), and

(c)no subsequent payment of all or part of the money shall be treated as expenditure on bingo winnings for the purposes of section 20(1) (whether paid by the second promoter to another person, by the first promoter having received it from the second promoter, or otherwise).

(4)Subsections (2) and (3) shall apply only where the combined bingo is played entirely in the United Kingdom.

20BCarrying losses forwardU.K.

(1)Where the calculation of a person’s bingo promotion profits for an accounting period results in a negative amount (“the loss”)—

(a)no bingo duty shall be chargeable in respect of that accounting period, and

(b)for the purpose of section 17(3), the amount of the person’s expenditure on bingo winnings for the next accounting period shall be increased by the amount of the loss.

(2)Subsection (1) applies to an accounting period whether or not the loss results wholly or partly from the previous application of that subsection.]

20CSupplementaryU.K.

(1)Part 2 of Schedule 3 to this Act (bingo duty: supplementary) shall have effect.

(2)In sections 17 to 20B above, this section and Schedule 3—

• “bingo” includes any version of that game, whatever name it is called,

• “licensed bingo” means bingo played at premises licensed under—

  (a)

  the Gaming Act 1968, or

  (b)

  Chapter II of Part III of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985,

• “prize” means anything won at bingo, and

• “United Kingdom” includes the territorial sea of the United Kingdom.

(3)For the purposes of those provisions, except in relation to combined bingo, the promoter of a game of bingo is—

(a)in the case of licensed bingo, the holder of the licence, and

(b)in the case of non-licensed bingo, the person who provides the facilities for the game.

(4)For the purposes of those provisions in relation to combined bingo a person promotes a game of bingo if he is wholly or partly responsible for organising it or for providing facilities for it.

(5)In those provisions a reference to entitlement to participate in a game of bingo includes a reference to an opportunity to participate in a game of bingo in respect of which a charge is made (whether by way of a fee for participation, a stake, or both).

(6)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.

Gaming machine licence dutyU.K.

[F621 Gaming machine licence duty.U.K.

(1)Except in the cases specified in Part I of Schedule 4 to this Act, no [F7amusement machine]] (other than [F8an excepted machine]) shall be provided [F9for play] on any premises situated in [F10the United Kingdom] unless there is for the time being in force [F11a licence granted under this Part of this Act with respect to the premises [F12or the machine].

(2)Such a licence shall be known as [F13an amusement machine licence][F14and, if it is granted with respect to a machine, rather than with respect to premises, as a special amusement machine licence.]]

[F15(3)[F16An 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]

[F17(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.]

[F18(3A)For the purposes of this section an excepted machine is—

(a)a two-penny machine, or

[F19F20(b)a [F21ten-penny machine]] which is a small prize machine; or

[F19(c)a fifty-penny machine that is not a gaming machine.]]

[F22[F23(3B)For the purposes of this section an amusement machine is a “fifty-penny machine” if, and only if—

(a)where it is a machine on which a game can be played solo, the cost for each time the game is played on it solo—

(i)does not exceed 50p, or

(ii)where the machine provides differing numbers of games in different circumstances, cannot exceed 50p;

and

(b)where it is a machine on which a game can be played by more than one person at a time, the cost per player for each time the game is played on it simultaneously by more than one player—

(i)does not exceed 50p, or

(ii)where the machine provides differing numbers of games in different circumstances, cannot exceed 50p.]]

(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). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2421A.—. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

22 Gaming machine licence duty.U.K.

(1)A duty of excise shall be charged on [F25amusement machine] licences and the duty on a licence shall be determined [F26in accordance with section 23 below]

[F27(2)For the purposes of this Act

[F28(a)][F29an 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 [F30£8]

[F31(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 [F32£25].]

(3)The Commissioners may by order substitute for [F33a 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.]

F34(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F35

[F3623 Amount of duty.U.K.

(1)The amount of duty payable on [F37an 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 [F38Category A, Category B, Category C, Category D or Category E],

and references in this Part to a rate of [F39amusement] machine licence duty are references to [F40the rate for the category of machine in question in column 2, 3, 4, 5 or 6 of the Table]

[F43(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). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F44

F45(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)[F46Amusement machines] chargeable at a particular rate shall not be provided on any F47. . . premises in excess of the number authorised by the licence [F48or licences] authorising the provision of [F49amusement machines] chargeable at that rate F50. . ..

(4)Where a licence which authorises the provision of [F49amusement machines] chargeable at one rate only is in force in respect of any F47. . . premises, [F49amusement machines] chargeable at any other rate shall not be provided [F51for play] on those premises unless another licence authorising the provision of [F49amusement machines] chargeable at that other rate is also in force in respect of the premises [F52or there are special licences in force with respect to those machines][F53or the machines].

(5)If any [F54amusement machine] is provided for gaming on any premises in contravention of [F55section 21(1) above or] this section, [F56the 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 [F54amusement 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

[F57(c)is a person responsible for controlling the use of any amusement machine on the premises, 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 [F58an][F54amusement machine] may, or is required to, be on the premises at that time,

F59. . .

(6)If any [F54amusement machine] is provided [F51for play] on any premises in contravention of [F55section 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—

[F60(a)on summary conviction to a penalty—

(i)of the prescribed sum, F61. . ., 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.

[F6224A 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.

[F63(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 [F64coin, token or other thing] 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 F65. . ..

(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.]

[F66(4)Subject to subsection (5) below, for the purposes of determining whether a machine is [F67a machine of any description]][F68other than [F69a fifty-penny machine within section 21(3B) 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.

[F70(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 [F71for the purpose of determining whether a machine is [F69a fifty-penny machine within section 21(3B) 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, F72. . .

[F73(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 [F74amusement machine licence duty]) shall have effect.

(2)In sections 21 to 25 above and in Schedule 4 to this Act—

• F75. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• [F76“United Kingdom” includes the territorial waters of the United Kingdom;

• [F77“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.]

• [F78 “two-penny machine” means an amusement machine in relation to which the cost for each time a game is played on it—

  (a)

  does not exceed 2p, or

  (b)

  where the machine provides differing numbers of games in different circumstances, cannot exceed 2p,

  and “five-penny machine” and “ten-penny machine” have a corresponding meaning;]

• F79. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

[F80(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 [F81for 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 [F82subject to subsection (3A) below] where on any premises one or more [F83amusement machines] are so made available, any such machine anywhere on the premises shall be treated as provided [F81for play] on those premises, notwithstanding that it is not so made available or is not in a state in which it can be played.

[F84(3A)The Commissioners may by regulations make provision for the purpose of enabling spare [F83amusement machines] to be kept on premises for use in the case of the breakdown of other [F83amusement 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, [F85an 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 [F81for play] on those premises.]

[F86(4)F87. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

F8826AAmounts in currencies other than sterlingU.K.

(1)Any reference in this Part of this Act to a amount in sterling, in the context of—

(a)the cost of playing a game, or

(b)the amount of the prize for a game,

includes a reference to the equivalent amount in another currency.

(2)The equivalent amount in another currency, in relation to any day, shall be determined by reference to the London closing exchange rate for the previous day.

(3)For the purposes of determining what duty is payable on an amusement machine licence in a case where this section applies, the equivalent in another currency of an amount in sterling shall be taken to be its equivalent on the day on which the application for the licence is received by the Commissioners, or the due date in the case of a default licence.

(4)In subsection (3) above—

• “default licence” means a licence granted under paragraph 3(1) of Schedule 4A to this Act;

• “due date” has the meaning given by paragraph 2(4) of that Schedule.