What does the new licensing regime mean for those pubs and bars with gaming machines?
By Piers Warne of thePublican.com's team of legal experts from London solicitor Joelson Wilson.
Transition from the Licensing Act 1968 to the Licensing Act 2003 left a gaping hole where fruit machines are concerned.
The intention was to transfer responsibility for amusement with prizes (AWP) machines to licensing committees in local authorities, but until now how this would be done appears to have been overlooked. This issue has now been clarified by the Department for Culture, Media & Sport (DCMS).
Section 34 permits under the Gaming Acts 1968 require renewal of AWP licences at least every three years or whenever the justices' on-licence was transferred.
Under Gaming Circular 13 of October 10, 2005, responsibility for AWP applications will, like licensing functions themselves, come under the control of licensing authorities from the Second Appointed Day (November 24, 2005). Until then, any new applications under the Gaming Act or renewals of permits will continue to be applied for and renewed before licensing justices and the new functions of licensing authorities will only take effect for applications made on or after November 24.
Passed to local authorities
Any applications that are unresolved by the justices on November 24 will be passed to the appropriate local authority for consideration.
Special arrangements have been introduced for existing permits due to expire between November 24 and January 8, 2006. In these circumstances the applicant will have a choice of where to apply to renew the permit, although the DCMS recommends that the renewal take place before the licensing authority rather than before the magistrates.
Where does this leave premises with existing certificates in the names of the current justices' on-licence holders after November 24? The DCMS has indicated that existing Section 34 permits will not require a transfer application, as is the case for premises licences.
As premises licences are no longer necessarily to be held in the names of the current licensees of the premises, any name change as a result of conversion on November 24 will be dealt with administratively when the permit comes up for renewal.
However, if in the interim the business is sold or the premises licence is transferred, an application for a new permit will be required. The upshot of this, therefore, is that there should be fewer permit applications for the local authorities to deal with unless a premises licence is transferred. There will be no need for new permits to be applied for and dealt with as when justices' on-licences are transferred. There will, for instance, be no need to apply for a new AWP permit when applying for a major variation of a premises licence, or when applying to change the designated premises supervisor.
The DCMS has said it will not be issuing application forms for permits for local authorities to use. This is because local authorities have experience of dealing with applications by late-night cafés or taxi ranks for AWP machines and will have their own templates available that can be adapted.
But LACORS will assist (in consultation with the British Beer & Pub Association and the British Amusement Catering Trade Association) in developing a template for local authorities, should they want one.
So the main points to remember with regard to your AWPs are:
- if you require a new permit or renewal of a permit prior to November 24 you must still apply to your local magistrates' court
- for those permits due for renewal from November 24 to January 8, 2006, you can apply for renewal at either the magistrates' court or local authority
- all permits currently issued and valid will continue to be valid without any need to transfer them on or after November 24 until they are due for renewal or your premises licence is transferred.
The DCMS has also indicated to local authorities that they should be aware of the current Justices' Clerks' Society's good practice guide for licensing justices which recommends authorities dispense with a hearing if the application is for no more than two machines. This does not mean there has to be a hearing if there are applications for more than two machines. The authorities will decide on a case-by-case basis.
Under the Gambling Act 2005, however, premises licensed for the sale of alcohol will automatically be entitled to two gaming machines, provided they comply with the simple notification procedure set out in the legislation.
With regard to AWPs, the procedure adopted is the simplest and the most effective, allowing premises to continue to hold their current entitlement to machines under the Section 34 permit, with changes only necessary when the certificates require renewal or there is a transfer of the premises licence.
One point to note from this, though, is that those premises that do regularly transfer justices' on-licences, thereby extending the period for their AWP permit, will need to make a note of the date for renewal of their permit or they will lose it and have to apply for a fresh one.