Gambling report highlights issues relevant to pubs
by David Clifton, one of thePublican.com's legal team of experts from solicitors Joelson Wilson
The Government response to the Budd Committee's Gambling Review Report recommendations was published at the end of last month.
Under the title "A Safe Bet For Success", the culture secretary Tessa Jowell has said that controls on gambling are to be brought into the 21st century. About time too.
She has also said that the proposals would "revolutionise the £42bn gambling industry in the UK", while protecting the young and those vulnerable to problem gambling. Jolly good stuff, but what about the effect on the pub industry?
Here's a quick rundown of the issues with direct relevance to pubs.
Betting
As the Budd Committee concluded, the DCMS takes the view that harder gambling products should, as a general principle, be confined to premises in which gambling is the principal activity. As a result, it is not permitting betting in pubs.
However, a glimmer of hope exists in that it wants the proposed regulatory body (to be called the Gambling Commission) to keep this under review.
Gaming Machines
The DCMS adopts a slightly more liberal approach than the Budd Committee by recognising that there is a legitimate demand for gaming machines in other types of adult leisure venues than dedicated gambling venues. It proposes pub licences should automatically entitle an operator to install two gaming machines with a maximum prize of £25 for a 50p stake.
However, local authorities, exercising their powers as licensing authorities under proposed licencing reform, should have a discretion to allow more in appropriate cases. This is better news than had been feared and probably reflects the views expressed in the 457 letters the DCMS received on the subject.
AWP machines
Under the new proposals AWP machines will be classified as machines with a maximum stake of 10p and maximum prize of £5. It is proposed that premises licensed for the sale of alcohol (or bona fide members clubs) should be able to install these machines.
Jackpot machines
The government's more liberal stance does not extend to allowing jackpot machines in pubs.
However, members' clubs will not lose their existing entitlement to machines with a jackpot of £250, subject to more stringent regulatory arrangements than exist at the moment.
Machine stakes and prizes
The Budd Committee recommended that stakes and prizes should be reviewed and adjusted to take account of inflation only.
However, the government is again taking a more relaxed view, proposing that three yearly reviews of gaming machine prizes and stakes should take into account other factors, such as changes in the overall gambling market and potential issues of problem gambling and consumer protection. This should be contrasted with their view in relation to AWPs, whose proposed 10p maximum stake and £5 prize they say should be frozen "for the indefinite future".
Machines and children
The Budd Committee highlighted concerns about features of machines that can lead to repetitive and compulsive play, in particular among children.
The government has picked up on these concerns by proposing a regulatory framework that will provide better protection for children and other vulnerable persons.
The DCMS response acknowledges the liquor and entertainment White Paper proposals that would make it easier for parents to bring children into pubs, but says that this will mean that licensees wanting to allow this will not be able to site gaming machines where they wish.
Instead they will have to be installed in an effectively controlled and clearly identified area. By way of contrast, it is proposed that AWP machines (under the new definition) should be capable of installation without such restriction.
Online lotteries
There has been a recent growth in online lotteries. The government is proposing that there should be no restriction on the kinds of premises (including pubs) on which lottery terminals may be located.
However, they want limits on the frequency of draws (no more than one per day) and effective safeguards in place (including payment controls) to prevent children under 16 from using them.
Local authority as licensing authority
The government's very clearly stated intention to transfer all liquor-licensing responsibilities from the magistrates to local authorities was influential in the Budd Committee's conclusion that the gaming licensing function currently with magistrates should similarly be transferred.
Any lingering hope that the government may yet change its mind as far as liquor licensing is concerned appears to me to be extinguished by the statements in the DCMS response.
So what happens next?
The government wants feedback by May 3. It will then bring the required primary legislation before parliament "as soon as time permits", with a number of interim changes introduced where possible by deregulation over the next year.
So, all in all, as much as, and possibly a little more than, the pub industry could realistically have hoped for.