Licensing D-Day and AWP's

Hosts will do well to remember their AWPs

It is likely that amid all the fuss and bother of complying with the transition provisions, many licensees will not have given a second thought to their gaming machine (AWP) permit.

In a number of cases, they have little to do with it anyway. The supplier often takes responsibility for ensuring it is in place.

It only really comes to light at the time of transfer, when the applicant is instructed to ask the justices for the section 34 permit - and often forgets!

All this will change next month when the new Licensing Act comes into force. The responsibility for these permits is being moved from justices to the licensing authorities.

This is a preliminary step in a complete change for gambling laws which is scheduled to take place in the next two or three years. But tucked away at the back of the Licensing Act 2003 are amendments to the Gaming Act 1968, which will have effect from 24 November.

The DCMS has also issued regulations covering both gaming and gaming machines on licensed premises.

Permits will run out

Machine permits last for three years from the date of grant so there are bound to be some running out over the next few weeks. There are special provisions for dealing with these. But most licensees will want to know what happens to their permits at the time of changeover.

The simple answer is: nothing. If there is an existing permit in the name or names of the current holders of the justices licence, this by virtue of the regulations will continue in force, even though the name on the premises licence may be different.

For example, where the operating company has taken over the actual premises licence, and the licensees have consented to this on a form during transition, it does not invalidate the permit. It will continue in force until it becomes due for renewal, at which time the name or names can be changed.

The same is true of a permit which may have been granted by justices on transfer this year, even after the end of the transition period. That permit will be valid for the full three-year period (or until the new Gambling Act takes effect) in the name or names for which it was granted. Nothing needs to be done on the second appointed day.

In fact, any change of licensee or permit holder is to be handled by the justices right up until 23 November. Council licensing departments have no power to grant AWP permits and if you sent an application to them they would have to turn it down or retain it until the 24th, when they would be empowered to process it.

Take a look at your permit as soon as possible. If it expires between 24 November 2005 and 8 January 2006, then you have the option of applying now to the justices in advance of the expiry date or waiting and applying to the local authority. Once you have made the application, the permit will not expire until the renewal has been determined, so you will not lose out.

Send it in good time

Any type of application which has not actually been resolved by the justices on 24th November will be handed over to the licensing authority anyway. They will also send you the fee back for re-submission.

So the advice is to send it to them in good time, and in any event at least one month before it is due to expire, so you benefit from the continuation concession. What do you send? Well, there's the rub. There are no application forms and DCMS has not created any! Previously, most licensees applied in person before the justices and their solicitor or representative merely indicated a section 34 permit was in existence. It was a simple scheme and it worked pretty well.

The forms and fees

From now on, each local authority will have its own set of application forms, similar to the ones it already uses for other types of permit premises.

I understand consultation has taken place between LACORS, representing local authorities, the British Beer & Pub Association for the industry and BACTA for the machine suppliers, to devise a standard type of form. This will only be available from your own licensing authority and I expect many councils may put them on their websites for downloading.

The fee for the permit will continue to be £32 and must be sent with the application to the relevant authority (remember that transition applications were turned down because the fee was wrong or not sent).

The DCMS has recommended that new permits should be issued for the traditional three-year period which the justices used. Unlike the premises licence, they will not last indefinitely. No reminders about the date of expiry will be sent, so this is another thing the licensee needs to keep posted up somewhere.

Due diligence needed

One interesting change as far as machines are concerned is that there is in future no requirement for all-cash machines to be located in a bar. They should be positioned where they can be supervised, but this can be anywhere in the premises. However, eventually the law will be changed to prohibit under-18s from playing machines with a maximum prize of more than £8, so due diligence is required.

Local authorities have been reminded that they cannot legally impose conditions on machine permits. All they can do is accept or reject the application, and they need a good reason to do so. They cannot use the 'licensing objectives' to do this. Appeal against refusal is to the crown court, not magistrates.

One issue as yet unresolved is what happens when there is a sudden change of the holder of the premises licence. Although there's provision in the Licensing Act 2003 for a transfer to have 'immediate effect', there does not appear to be a similar provision for the permit. It is hoped the existing paperwork can be deemed to continue in force until the new application is received and determined. It would be harsh for the permit to lapse in such circumstances.