where—

A is the total of any amounts that will be paid to the licensee by way of stakes in the relevant period in connection with the activities authorised by the licence,

• B is the total of any amounts (exclusive of value added tax) that will otherwise accrue to the licensee in the relevant period directly in connection with the activities authorised by the licence, and

• C is the total of any amounts that will be deducted by the licensee in respect of the provision of prizes or winnings in the relevant period in connection with the activities authorised by the licence; or

(ii)the value of annual gross sales, which is the total amount in money or money’s worth that will accrue to the licensee from sales of goods and services authorised by the licence in the relevant period;

(b)in relation to a non-remote existing casino operating licence the annual gross gaming yield, which is the gross gaming yield within the meaning of section 11(8) of the Finance Act 1997(1) to be generated in the relevant period from the premises on which gaming authorised by the licence takes place;

(c)in relation to a lottery operating licence the annual proceeds, which is the aggregate of the proceeds of lotteries authorised by the licence to be promoted wholly or partly in the relevant period;

(d)in relation to a non-remote general betting (limited) operating licence the number of working days, which is the maximum number of days in the relevant period on which the licence will authorise the licensee to undertake the activity authorised by that licence; and

(e)in relation to a non-remote general betting (standard) operating licence the number of licensed premises, which is the maximum number of sets of premises on which the licence will authorise the licensee to carry on the activities authorised by the licence in the relevant period.

(3) In paragraph (2)—

(a)a reference to anything authorised by, or that will happen pursuant to a licence includes, for the purpose of determining an application fee for that licence, anything included in the application as something to be authorised by the licence; and

(b)“relevant period” in relation to a licence means the period of 12 months beginning—

(i)where that paragraph is applied for the purpose of determining the amount of an application fee, on the day on which the licence would, if issued, take effect;

(ii)where that paragraph is applied for the purpose of determining the amount of a first annual fee, on the effective date;

(iii)where that paragraph is applied for the purpose of determining the amount of an annual fee, on the anniversary of the effective date that occurs on, or is the next to occur after, the date on which the fee becomes payable.

(4) In paragraph (3)(b) “effective date”, in relation to a licence in respect of which an annual fee or first annual fee is prescribed, means the day on which the licence took effect.