Isle of Wight Council

Gambling Act 2005

Frequently Asked Questions for this Service

Question: Can I hold a casino night?

Answer: Casino gaming includes games like roulette and blackjack where players compete against the "house" or a banker, rather than against one another on equal terms.

Organisations that wish to provide casino games for charitable or other non-commercial purposes (e.g. to raise funds for a club or society) may do so under the prize gaming provisions in Part 14 of the Act.

Non-commercial gaming of this kind may only take place at events where none of the proceeds from the event itself are used for private gain. For these purposes, the proceeds of an event constitute the sums raised by its organisers (including sums raised by way of participation fees, sponsorship, commission from traders, or otherwise) minus the costs reasonably incurred in organising the event.

However, sums raised by other persons will not form part of the proceeds of the event and so may be appropriated for private gain. An example would be refreshments provided at the event by an independent third party.

The players participating in non-commercial gaming must also be told what "good cause" is to benefit from the profits from the gaming.

There are, no statutory limits on stakes, prizes, participation fees or other charges for this type of non-commercial gaming. No licence, permit or other form of permission is required to operate this kind of gaming provided that the statutory conditions are complied with.


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Question: Can I organise a casino night at which proceeds go to charity?

Answer: For many years, commercial organisations have offered to provide equipment and gaming staff to persons organising non-commercial casino nights.

Organisers will not require a licence or a temporary use notice for these events provided that the event is a non-commercial event as defined in s297 of the Gambling Act 2005. The organiser can provide non-commercial prize gaming and non-commercial equal chance gaming provided that the conditions set out in s299 and s 300 of the Act are met.

An event is non-commercial when no part of the proceeds are appropriated for private gain.

Proceeds are defined as: The sums raised by the organisers (whether by way of fees for entrance or for participation, by way of sponsorship, by way of commission from traders or otherwise), minus the amounts deducted by the organisers in respect of costs reasonably incurred in organising the event.

If you are unsure about the status of your event please see the guidance on commercial casino nights. If any doubt exists you should seek legal advice.


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Question: Can I organise a commercial casino night?

Answer: For many years, commercial organisations have offered to provide equipment and gaming staff to persons organising casino nights.

From 1 September 2007, under the Gambling Act 2005, it will be illegal to organise a commercial casino night outside of a licensed casino.

Holders of a valid Non-Remote Casino Operating Licence can apply to a Local Authority for a Temporary use notice to offer equal chance gaming on a commercial basis.

Non-commercial gaming can take place at a non-commercial event as long as none of the proceeds are appropriated for private gain.

If you are unsure about the status of your proposed event please see the guidance on non-commercial casino nights. If any doubt exists, you should seek legal advice.


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Question: Can I run a 'race night' for charity?

Answer: "Race nights" are events in which participants stake money on the outcome of recorded or virtual races, where the selection is totally dependent on chance, and where no "odds" or "form" are available to assist the selection.

As a general principle, "race nights" may only take place at events where none of the proceeds from the event itself are used for private gain, and all participants must be told what "good cause" is to benefit from the profits from the gaming. No licence, permit or other form of permission is required to operate this kind of gaming provided that the statutory conditions are complied with.

If the prizes are put up in advance, and are not dependent on the number of players taking part or the amount of money staked then the gaming will be covered by section 299 of the Act. There are, however, no statutory limits on stakes, prizes, participation fees or other charges for this type of non-commercial gaming, which may be an incidental activity or the only or principal purpose of the event

Where the prizes awarded are dependent on the number of players taking part, or on the amount of money staked on a race, the non-commercial equal chance gaming provisions in section 300 of the Act apply.

The gaming may be either an incidental activity or the only or principal purpose of the event, provided that none of the proceeds are used for private gain. However, for this type of gaming there are limits on the amounts that players may be charged to take part, and on the amount or value of the prizes. The maximum amount that a player may be charged is £8 per day (and this includes entrance or participation fees, stakes and any other payments in relation to the gaming). The total amount paid out in prizes may not exceed £600, although where an event is the final one of a series in which all of the players have previously taken part, a higher prize fund of up to £900 is permitted.


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Question: Can I run a bingo without obtaining a licence?

Answer: From September 1, under the Gambling Act 2005, Bingo can be played in pubs and clubs provided that total stakes or prizes do not exceed £2,000 in any 7 day period (e.g. 7 lots of £285). Clubs can also register for a club gaming permit to offer Bingo, however they would need to apply for a bingo operating licence and satisfy the application criteria if the stakes or prizes exceeded £2000 in any 7 day period, and they intended to exceed this amount again.

An organiser could provide bingo at a non-commercial event, such as a fundraising event. Section 297 of the Gambling Act defines non-commercial gaming.

An event is non-commercial if the arrangements for the event are such that no part of the proceeds are to be appropriated for private gain. The whole proceeds of the event, after deducting reasonable expenses, must be devoted to purposes other than private gain.


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Question: Can I run a poker night for charity?

Answer: Organisations that wish to provide poker for charitable or other non-commercial purposes (e.g. to raise funds for a club or society) may do so under the prize gaming provisions in Part 14 (section 300) of the Act.

Non-commercial gaming of this kind may only take place at events where none of the proceeds from the event itself are used for private gain. For these purposes, the proceeds of an event constitute the sums raised by its organisers (including sums raised by way of participation fees, sponsorship, commission from traders, or otherwise) minus the costs reasonably incurred in organising the event.

However, sums raised by other persons will not form part of the proceeds of the event and so may be appropriated for private gain. An example would be refreshments provided at the event by an independent third party.

The players participating in non-commercial gaming must also be told what "good cause" is to benefit from the profits from the gaming.

There are, no statutory limits on stakes, prizes, participation fees or other charges for this type of non-commercial gaming. No licence, permit or other form of permission is required to operate this kind of gaming provided that the statutory conditions are complied with.


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Question: Can I set up a poker club or poker games in a private members club?

Answer: The Gambling Act 2005 allows equal chance gaming (including poker), but introduces strict conditions for any gaming, including limits on stakes and prizes, and provides licensing authorities with powers to take action against individual premises in a range of circumstances.

In a members club which holds a club gaming permit, there are no limits on the stakes and prizes provided that the club meets the requirements set out in the Act.

In a commercial club, or a members club with a club gaming machine permit, the regulations set a fixed limit of £10 per person per game on the amount that may be staked by a player in any type of equal chance gaming. There is also a limit on prizes of £250 per day and £1000 per week.


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Question: Can I set up a prize competition or free draw?

Answer: The current law is unclear on the distinction between lotteries, prize competitions and free draws. The new Gambling Act seeks to clarify the distinction between lotteries on the one hand and competitions and free draws on the other. The Commission has consulted over the implications of these provisions and has published guidance which sets out our opinion of the implications of the provisions in the 2005 Act relating to lotteries, competitions and draws and in particular where the boundaries lie between the three.

From September 2007 the Commission will be expected to monitor the boundary between lotteries, and competitions and draws and to ensure that those organising lotteries are properly licensed to do so. Details of how to apply for a licence are available here. The Commission has no statutory responsibility for competitions or free prize draws. Anyone wishing to set up and run such a scheme is advised to seek their own independent legal advice before proceeding.



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Question: Can social clubs hold bingo games for their members?

Answer: Under the new Act clubs can offer bingo and other equal chance gaming without a permit or a licence provided that:

the club abides by limits to be set in regulations for the amounts which may be deducted from sums staked or won (unless a club gaming permit is held);
the participation fee is no more than the regulations allow (expected to be £1 per person per day, or £3 where a club gaming permit is held);
games are held on the premises;
games are not linked with games held on other premises;
games are only open to club members and guests (unless your club is a commercial club); and/or
the total stakes or prizes for bingo games played in any seven day period does not exceed £2,000 more than once in 12 months.
You will need to apply for a bingo operating licence if you operate bingo on your club premises with total stakes or prizes that go above £2,000 a week and you plan to do so again at any time during the following twelve months. After the first week of high turnover bingo the club will commit an offence if high turnover bingo is played again in the following twelve months, unless a bingo operating licence has been obtained.

If your total stakes or prizes for bingo reach £2,000 in any seven day period without an operating licence you must notify the Gambling Commission.

Provided conditions outlined in the new Act are complied with you do not need a premises licence


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Question: Can we play poker in our local pub?

Answer: The Gambling Act 2005 allows equal chance gaming (including poker), but introduces strict conditions for any gaming, including limits on stakes and prizes, and provides licensing authorities with powers to take action against individual premises in a range of circumstances.

The regulations set a fixed limit of £5 per game on the amount that may be staked by a player in any type of equal chance gaming in pubs and other premises with a bar. There is also a limit on prizes of £100 per day.


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Question: Can we set up a poker tournament?

Answer: Poker tournaments can be run in clubs and pubs provided that the regulations and code of practice on equal chance gaming are adhered to.

Games in your own home, between friends, which are run on a non-commercial basis, are perfectly legal.



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Question: I am a publican and would like to play bingo on the premises for the benefit of my customers.

Answer: You don't need a operating licence if you provide bingo in premises with an on-premises alcohol licence containing a bar at which alcohol is served otherwise than only with food. The games must be for adults only, must not be linked with games played on other premises, are subject to restrictions on stakes and prizes, a prohibition on levies on stakes or prizes and on participation fees and the bingo must not be "high turnover"*. Section 279-281.

(For prize gaming in pubs and clubs, Section 281 of the Act sets out the limits for high turnover bingo)



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Question: I run a small lottery for a local golf club, do I need a licence?

Answer: If you run what is known as a ‘small society lottery' you are required to register with your local authority and pay an annual fee. The definition of a small society lottery is where you expect that the proceeds of the lottery will be less than £20,000 in a single lottery, and £250,000 in separate lotteries in one calendar year. In these circumstances you are currently required to register with your local authority.

Any small lottery which is required to pay its triennial fee between 1 January 2007 and 31 August 2007 should do so in the normal way. From 1 September 2007 this registration will be automatically converted into a registration under the Gambling Act 2005.


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Question: I would like to run a lottery. Can I?

Answer: Lotteries can only be run in support of good causes, not for private or commercial gain.

Under the 2005 Act a Lottery can be either a simple lottery or a Complex lottery. An arrangement is a simple lottery if:

persons are required to pay to participate in the arrangement;
in the course of the arrangement one or more prizes are allocated to one or more members of a class;and
the prizes are allocated by a process which relies wholly on chance. 2.2
An arrangement is a complex lottery if:

persons are required to pay to participate in the arrangement;
in the course of the arrangement one or more prizes are allocated to one or more members of a class;
the prizes are allocated by a series of processes; and the first of those processes relies wholly on chance.
Exempt Lotteries
Exempt lotteries do not require a licence from the Gambling Commission, although small society lotteries are required to register with their local authority.

In addition to small society lotteries, exempt lotteries include:

incidental non-commercial lotteries - commonly held at charity fund raising events;
private society lotteries - only members of the society and those on society premises can participate in the lottery;
work lotteries - only people who work together on the same premises may participate;
residents' lotteries - only people who live at the same premises may participate;
and

customer lotteries - only customers at the business premises may participate.
Operators of Lotteries
If you intend to operate a lottery or raffle with such that ticket sales from it may exceed £20,000 in a single society lottery or proceeds of previous lotteries in the same calendar year have already reached or may, taking into account that lottery in question, reach £250,000 in one calendar year then the lottery is a large lottery and may only be run under a lottery operating licence issued by the Commission.

Further guidance on Lotteries under the Gambling Act 2005 is available in our Lotteries and the Law (Gambling Act 2005) publication.


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Question: Is there a minimum percentage payout for a gaming machine?

Answer: Since 1 September 2007, under the Gambling Act 2005, there is no statutory minimum percentage payout for gaming machines but all machines will be required to clearly display the percentage return to players.

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Question: My arcades business includes adult gaming centres and family entertainment centres, who issues my licences?

Answer: For your adult gaming centres you need to apply to the Gambling Commission for a gaming machine general operating licence.

If in your family entertainment centres you have category D and category C gaming machines you will need to apply to the Commission for a gaming machine general operating licence. However, if you have only Category D machines you will need to obtain a gaming machine permit from your local authority.

The categories are determined by the maximum amount of the stake and the maximum prize as shown in Table 1 below Current proposals for the different categories are as shown in the table below but are subject to future change.


Category of Machine Maximum stake Maximum prize
A Unlimited Unlimited
B1 £2 £4,000
B2 Maximum single stake £15, maximum multiple stake £100 per game £500
B3 £1 £500
B4 £1 £250
C 50p £35
D 10p
30p when non-monetary prize £5 cash
£8 non-monetary prize


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Question: What are the three licensing objectives?

Answer: The Gambling Act 2005 contains three licensing objectives which underpin the functions that the Commission and licensing authorities will perform. These objectives are central to the new regulatory regime created by the Act. They are:

To prevent gambling from being a source of crime or disorder, being associated with crime or disorder or being used to support crime;
To ensure that gambling is conducted in a fair and open way, and
To protect children and other vulnerable persons from being harmed or exploited by gambling.
The Commission has an overriding duty to pursue and have regard to these objectives, and to permit gambling in so far as it thinks is reasonably consistent with them.


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Question: What is a 'free draw'?

Answer: The current law is unclear on the distinction between lotteries, prize competitions and free draws. The new Gambling Act seeks to clarify the distinction between lotteries on the one hand and competitions and free draws on the other. The Commission has consulted over the implications of these provisions and has published guidance which sets out our opinion of the implications of the provisions in the 2005 Act relating to lotteries, competitions and draws and in particular where the boundaries lie between the three.

From September 2007 the Commission will be expected to monitor the boundary between lotteries, and competitions and draws and to ensure that those organising lotteries are properly licensed to do so. Details of how to apply for a licence are available here. The Commission has no statutory responsibility for competitions or free prize draws.

There are no licensing or registration requirements or any restriction on who can run a prize competition or 'free draw'.

The rules and conduct of the competition or 'free draw' are solely the responsibility of those running the promotion.

These schemes are of course subject to the more general laws on fraud, theft, deception, etc., and those intending to run such a promotion are advised to seek independent legal advice before proceeding.

Anyone wishing to set up and run such a scheme is advised to seek their own independent legal advice before proceeding.



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Question: What is a prize competition?

Answer: Prize competitions are competitions in which success depends to a substantial degree on the exercise of skill. If a competition does not involve skill it may be considered a lottery and could be unlawful. Competitions requiring the exercise of skill may involve the answering of questions, solving puzzles, tie-breakers etc.

The Commission has published a document that combines the responses to the paper on prize competitions and free draws and subsequent letter to respondents on ‘payment to enter'. The document also includes a revised version of the issues paper so that those organising competitions and draws have some guidance available on what the Commission considers is needed to avoid breaches of the Gambling Act 2005.



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Question: When did the Gambling act 2005 come into force?

Answer: The Gambling Act 2005 received Royal Assent in April 2005.

The Department for Culture, Media and Sport (DCMS) is responsible for developing regulations under the Act and bringing these and sections of the Act into force as necessary. The Gambling Act 2005 came fully into force on 1 September 2007.



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Question: When do section 34 permit holders (for amusements with prizes machines, issued under the Gaming Act 1968) apply for their new permit under the Gambling Act 2005?

Answer: Existing permit holders do not need to take action until their permit is due to expire. If an existing permit expires prior to 1 September 2007, then the permit holder must apply to their local licensing authority for the renewal of the existing permit. Where existing permits expire after 1 September 2007, two options are open to the permit holder:

if they wish to offer up to two category C or D gaming machines (which is an automatic entitlement created through the 2005 Gambling Act by virtue of holding an alcohol licence) the permit holder must notify their licensing authority ahead of the expiry date; or
if they wish to offer more than two gaming machines, the permit holder must apply to the licensing authority for a gaming machines permit that will specify the number of machines allowed, which must be done at least 2 months before the expiry date of the section 34 permit.

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Question: When is my First Annual Fee due?

Answer: Your first annual fee must be paid in full within 30 days of your licence being issued.

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