Betting in pubs: Try not to gamble your licence away

All bets are off: Commercial betting in pubs is illegal

This is a great year for sport. The Euro 2012 football tournament has begun, Australia and South Africa are coming to test our cricketers (the West Indies are already here), and of course, the crowning glory is the Olympic Games.

It’s also the time of year we receive queries on betting in pubs during Royal Ascot. An appropriate occasion, then, to remind licensees of the law on betting in pubs.

The law is simple. Commercial betting in pubs is illegal. Both the bookie and the licensee will be committing an offence if the bookie takes bets from punters. The bookie risks his or her licence, a fine or imprisonment. The licensee or designated premises supervisor (DPS) risks prosecution if they cause or permit premises to be used to provide facilities for betting.

There are also circumstances where the pub may act as an illegal betting intermediary. If the DPS or a member of staff collects betting slips and delivers them to the betting shop on behalf of customers, or accepts stakes on behalf of bookmakers, they would be committing an offence. Similarly it is not legal for an agent of a bookmaker to take bets in a pub or the licensee to ring through customer bets on his or her own account with a bookmaker.

There is evidence of a problem. The Gambling Commission reported that, during this year’s Cheltenham Festival, evidence of commercial betting was found in premises in Hertfordshire, York and Hull and last year there were a number of prosecutions where not only were the bookmakers convicted and fined but the pub landlords too, after allowing premises to be used to provide facilities for betting. We have dealt with a handful of these prosecutions and they can be lengthy, stressful and time-consuming.

The commission has issued formal warnings to a number of licensed bookmakers for accepting bets in pubs and many outlets have been warned about betting activity by the commission and by local authorities. In practice a warning is most likely. However, if the activity is significant or continues following a warning, a prosecution may follow.

This could lead to up to 51 weeks’ imprisonment in England and Wales, or six months in Scotland and/or a fine of up to £5,000 for each offence.

Local authorities, or the police, do have another option that is easier to instigate and has a lower evidential burden. They could apply for a review of the alcohol premises licence under the crime and disorder objective. This could lead to additional conditions being added to the alcohol licence, removal of the DPS, suspension or even, in the worst case, revocation of the licence.

So what is allowed? Customers can place bets via their mobiles or laptops but they can do so only on their own account.

You can have betting slips in pubs but customers should complete the slips and take them to the betting office themselves. You can run a sweepstake or free competition. You could also run an event with a charity.

There are bookmakers suggesting that you could use an occasional use notice (OUN). These permit tracks and sporting venues to allow bookies on to premises to take bets. They have been used in pubs but this concerned the Gambling Commission and local authorities. There are risks. The commission has said a sporting event that is televised at a premises does not constitute a sporting event taking place and an OUN may not be obtained on that basis.

If you are approached over the use of an OUN I suggest you obtain legal advice.