Licensing

Licensed premises

The responsibility for issuing Section 34 permits to pubs and other alcohol licensed premises was transferred to local authorities in November 2005 as a result of changes made by the Licensing Act 2003.

As from 1 September 2007 Medway Council continues to be responsible for dealing with gaming machines in licensed premises under the Gambling Act 2005.

Please note that a lot of licensees are confused with the HM Revenue and Customs permit issued for Gaming Machines. You are required to hold both a current permit issued by Customs and a permit issued by Medway Council. Failure to hold both may result in prosecution and/or seizures of the machines.

From 1 September 2007

Your existing Section 34 permit will be treated as if it were a licensed premises gaming machine permit issued under the Gambling Act, unless you have made a transfer to change the name of the premises licence holder under the Licensing Act Premises Licence since November 2005.

If you have made no transfer then your Section 34 permit will expire on the date on which your current permit is due to expire or 31 August 2010, whichever is sooner.

When it expires depending on the number of gaming machines you wish to offer will depend on the two procedures.

Transfer the Premises Licence Holder under the Licensing Act

If at any time you change the premises licence holder at the premises you will also need to apply for a permit for the gaming machines. Depending on the number of machines you wish to offer will depend on two procedures.

If the previous owners have already applied and have got a licensed premises gaming machine permit you will need to put in for a transfer of that permit.

If the previous owners had a notification of two or less machines then you will still need to re-apply for a new notification (as these are one-off relevant to the the premises licence holder only).

Procedure 1

Notification of two or less Gaming Machines

For one or two machines you should notify Medway Council Licensing Unit that you intend to take advantage of the automatic entitlement under the Gambling Act. You will need to:

• complete an application form;
• send a one off fee of £50 (no annual fees).

Procedure 2

Licensed Premises Gaming Machine Permit

For three or more machines you will need to apply to Medway Council Licensing Unit for a licensed premises gaming machine permit at least two months before the date on which your permit is due to expire.

Where an application is made at least two months before the expiry of your existing permit, continuation rights will apply. You will need to:

• complete an application form;
• send a fee of £100 (annual fees will be made. The first one will be required 30 days after the initial grant date of the permit).

Duration of a Gaming Machine Permit

This will be of unlimited duration. Once you have it, you will not need to apply again, unless your circumstances change.

Failure to pay the annual fee may result in cancellation of the permit and any future applications will be as a new operator.

Renewal Procedure

If your Section 34 permit is due to expiry you will need to submit the following:

• application form;
• relevant fee (depending on Procedure 1 or 2);
• your existing permit.

If you require an application form please contact the licensing unit or download the application from the Department of Culture and Media. The form is used for the conversion of existing Section 34 permits, notification for two or less machines, for a new application, variation or transfer of ownership.

Requirements

The premises must be licensed under the Licensing Act 2003 to sell alcohol for consumption on the premises, without the requirement that alcohol is served only with food and there must be a bar for serving alcohol to customers on the premises. The gaming machines must be sited within the licensed area.

The Gambling Act 2005 provides for two types of gaming machines which can be located in alcohol licensed premises These are:

• Category C – Maximum Stake = 50 pence / Maximum Prize = £35;
• Category D – Maximum Stake = 10 pence or 30 pence non-monetary / Maximum Prize = £5 cash or £8 non-monetary.

All alcohol licensed premises that provide gaming machines for use on the premises must comply with any relevant Code of Practice www.gamblingcommission.gov.uk/Upload issued by the Gambling Commission under Section 24 of the Gambling Act 2005.  

Variation of a Section 34 Permit

You can apply to vary (three or more machines) the number of machines on your premises by applying for a Licensed Premises Gaming Machine Permit. You will need to complete an application form and provide a fee of £100. Annual fees will be required.

New application for Licensed Premises Gaming Machine Permit

As a new operator you will need to complete an application form and provide a fee of £150. Annual fees will be required.

Transfer of a Gaming Machine Permit

Whenever the Premises Licence Holder (who holds the Premises Licence under the Licensing Act 2003) changes, you will need to apply to transfer the Licensed Premises Gaming Machine Permit. You will need to complete an application form and pay a fee of £25.

Making sure Gaming Machines are fair and open

All machine manufactures, suppliers etc. are required to comply with the Commission’s Technical Standards.

As part of those standards:

• Machines must display information about help available to problem gamblers.
• Customers will only be able to play one game at a time and the speed of play on any game will be restricted.
• Manufacturers must not make machines (other than category D machines) specifically attractive to children and young people.
• Gaming machines must display information on the machine, including the nature of the machine, stake and prize levels and percentage return to the player.  
• In the case of a dispute between the operator and a customer, gaming machines must allow the operator to track the history of previous games played on the machine.
• Gaming machines will be required to undergo certain tests to ensure that they are fair and open before they are put on the market. The nature of these tests will vary according to the category of the machine.

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