Legal advice: New rules on gambling

The guidance for the Gambling Act 2005 is now out. What will the changes to the law mean for your pub?

By David Clifton of thePublican.com's team of legal experts from London solicitors Joelson Wilson.​

On February 2 the Department for Culture, Media and Sport (DCMS) published its proposals for the transitional arrangements under the Gambling Act 2005. That Act is due to come into full force and effect on September 1, 2007. It introduces new arrangements for the licensing of gaming machines in pubs and other alcohol licensed premises. As you know, responsibility for such licensing in England and Wales was transferred from the licensing justices' to licensing authorities in November of last year. The licensing authorities will still have this responsibility under the 2005 Act.

The new Act will herald the following changes:

• A new code of practice on the location and operation of machines will be published by the Gambling Commission and will be widely publicised before it comes into effect on September 1, 2007.
• Section 34 permits will be replaced by two new permissions:
  • Up to two machines:​ Pubs and other alcohol licensed premises (with a bar authorised to serve drinks without food) will be automatically entitled to up to two gaming machines (category C or D), which in practice means machines with the same stake and prize limits as presently apply.
  • More than two machines:​ Premises which wish to offer more than two of the above types of gaming machine will need to apply to their licensing authority for a licensed premises gaming machine permit at least two months before their existing Section 34 permit expires.

Special grandfather rights will apply to pubs with existing Section 34 permits. They will be entitled to a new permit (under the 2005 Act) for the same number of machines as are authorised by the Section 34 permit. However, an existing permit holder (with two or more machines already) who wishes to increase the number will need to apply for a new licensed premises gaming machine permit.

The following arrangements in relation to permits for AWP machines in pubs are proposed in the DCMS consultation paper:

• Existing Section 34 permits that expire before September 1, 2007​

These permits should be reviewed in the normal way under the existing legislation, that is, by way of application to the licensing authority. From September 1, 2007, existing permits will be automatically converted into appropriate permits under the 2005 Act, which will expire on the same date as the existing permits.

Existing Section 34 permits that expire after September 1, 2007​

From September 1, 2007, the automatic conversion process described above will apply to all existing permits. However, it will be essential that all applications for a new appropriate permit are made to the licensing authority at least two months before the expiry date.

New Section 34 permits to take effect before September 1, 2007​

Application for these permits should be made in the normal way under the existing legislation. The same principles as mentioned in the paragraph above will then apply.

New Section 34 permits to take effect from September 1, 2007​

Application for these permits should be made to the licensing authority for the new appropriate permission under the 2005 Act.

You have until May 2 to pass your comments on to the DCMS. Email tnzoyvat@phygher.tbi.hx​.