Don't pay £50 gaming fee until you have to, advises Peter Coulson

On 1 September this year, in less than two months' time, the new gambling laws stagger into operation.

I say "stagger" because that appears to be exactly what is happening - hardly able to stand on their feet and lurching from side to side. Once again, the Department for Culture, Media & Sport (DCMS) is running to catch up, applications for new licences and permits are running at an all-time low and the clear indication is that compliance with the new system will be impossible on day one.

What was apparently meant as a fairly easy ride for the licensed trade has, however, become rather bumpy in recent weeks, with conflicting reports from local councils on what they want pubs to do. It is very important that you know in good time what should not happen.

Firstly, the vast majority of pubs currently hold a permit for up to two machines under the Gaming Act 1968, granted by the local justices, or latterly by the local council. It has an expiry date on it. If you have one of these and it expires after 1 September, you need do nothing, and pay nothing.

Secondly, a small proportion of pubs - about 6,000 - do have a permit which allows for more than two machines These will also continue in force until their expiry date, which may be well beyond this September. Again, nothing needs to be done by the holder prior to or on 1 September: both types of permit will automatically carry forward into the new regime, although in different ways.

The majority of pubs gain what is called "automatic entitlement" for up to two machines. The entitlement is for the premises licence holder. If you want to continue with the same number of machines, your existing permit will operate right up to its expiry date. No fee is payable.

Some councils are suggesting that pubs need to notify them about their machines now and pay a set fee of £50. This is not correct: the notification only needs to be made just before the existing permit expires.

Although many permits were issued for three years, some have been issued for longer - up to 25 years in some cases. In any event, all permits of long duration will expire on 31 August 2010.

So at some stage - but not earlier than near the time of expiry of your existing permit - you will need to notify the council and pay them £50. After that, you do not owe them anything - not even an annual fee - and the authority for up to two machines lasts indefinitely.

Presumably, if someone else takes over the pub, they will have to notify and pay the fee in the same way. There is no transfer system for this entitlement.

Pubs with more than two machines will have to apply eventually for a new-style licensed premises gaming-machine permit - but not yet. They can also wait until their existing permit expires: councils can't insist they "lose" the right for which they have already paid or need to apply now, just because a new system is in place.

So my advice to licensees who are approached by a council officer with a form to complete about their machines is:

l Look at your existing permit and make a careful note of the expiry date

l Don't sign a notification form at this stage

l Don't pay a fee of £50

l Send the notification and fee just before your permit is due to expire - and in any event before 31 August 2010.

If you have any questions or are given different information, you know where to find me.