Article from the Institute of Licensing Journal
New Guidance on gambling for
local authorities covers key issues
The Gambling Commission has issued new Guidance on how local authorities and operators
can best work together under the 2005 Gambling Act. The Commission’s Rob Burkitt explains
the most important points that will need addressing
The last few years have given both licensing authorities
and the Gambling Commission a great deal of invaluable
experience in making the Gambling Act 2005 work as a system
of shared regulation. Version five of the Guidance to Licensing
Authorities (GLA) sets out the major strands of that learning.
Firstly, the Act gives local regulators very broad discretion
to manage local gambling provision, including discretion as
to the level of fees set to cover the cost of administering the
local system of regulation. It sets out some boundaries to
that discretion, consistent with the recognition of gambling
as a mainstream leisure activity.
The Act also provides scope for the Commission to act to set
an overall direction at national level, while leaving licensing
authorities in the lead locally, with appropriate support from
the Commission.
In the Commission’s view, the statutory duty to aim to
permit gambling, subject to reasonable consistency with the
licensing objectives, is best delivered through partnership
working between industry and regulator, including licensing
authorities. Licensing authorities should aim to work with
local businesses to reduce the risk to the licensing objectives
to acceptable levels. The Act does not envisage regulation by
either the Commission or licensing authorities being aimed
at preventing legitimate gambling.
Key issues
The cornerstone of the principles to be applied by licensing
authorities in regulating gambling are set out at s 153 of the
Act. They are as follows:
(1) In exercising their functions under this Part a licensing
authority shall aim to permit the use of premises for
gambling in so far as the authority think it—
(a) in accordance with any relevant code of practice under
section 24,
(b) in accordance with any relevant guidance issued by the
Commission under section 25,
(c) reasonably consistent with the licensing objectives
(subject to paragraphs (a) and (b)), and
(d) in accordance with the statement published by the
authority under section 349 (subject to paragraphs (a) to
(c)).
(2) In determining whether to grant a premises licence a
licensing authority may not have regard to the expected
demand for the facilities which it is proposed to provide.
(3) This section is subject to section 166. (Section 166 relates
to a resolution not to issue a casino licence)
As the fifth edition of the GLA makes clear, licensing
authorities have therefore got broad discretion in exercising
their functions under the Act. While, as with the Commission
there is a presumption of aiming to permit gambling, this is
within a framework which requires a licensing authority to
consider the four issues as set out at s 153.
In a similar way to the Commission, which is financed by
operator licence fees, so the licensing authority is financed
by premises and permit fees. Section 212(2)(d) of the Act
specifically states that licensing authorities “shall aim to
ensure that the income from fees… as nearly as possible
equates to the costs of providing the service to which the fees
relate”. Furthermore DCMS Guidance to licensing authorities
on setting premises licence fees states: “‘The annual fee will
cover the reasonable costs of compliance and enforcement
work, including the cost of dealing with illegal gambling in a
licensing authority’s area”. 1
Significantly, three of the four matters set out at s 153
(the codes of practice, the GLA and the local authorities’
statements of policy (SOP)) are currently subject to change,
which makes the coming months particularly important
for the local regulation of gambling. Earlier this year the
Commission completed a consultation on revisions to the
Licence Conditions and Codes of Practice (LCCP). Many of the
changes relate to the social responsibility requirements on
operators, both in the form of licence conditions and codes
of practice. They include changes to the codes on such issues
as gambling management tools and responsible gambling
1
In Scotland fees are set by Scottish Ministers but again are
designed to cover the cost of compliance and enforcement work.
New Guidance on gambling for local authorities covers key issues
information, customer interaction and self-exclusion. While
the majority of changes came into force on 8 May 2015,
critically for licensing authorities one requirement, the
drafting of a local risk assessment, does not come into force
until 6 April 2016.2 The social responsibility code states:
1) Licensees must assess the local risks to the licensing
objectives posed by the provision of gambling facilities at
each of their premises, and have policies, procedures and
control measures to mitigate those risks. In making risk
assessments, licensees must take into account relevant
matters identified in the licensing authority’s statement of
licensing policy.
2) Licensees must review (and update as necessary) their
local risk assessments:
a) to take account of significant changes in local
circumstances, including those identified in a licensing
authority’s statement of licensing policy;
b) when there are significant changes at a licensee’s
premises that may affect their mitigation of local risks;
c) when applying for a variation of a premises licence; and
d) in any case, undertake a local risk assessment when
applying for a new premises licence.
The ordinary code provision3 states:
Licensees should share their risk assessment with licensing
authorities when applying for a premises licence or
applying for a variation to existing licensed premises, or
otherwise on request.
The reason for this different timeframe is to allow operators
to refer to the local authorities’ own revised SOP. The SOP
should set out what the expectations of the local authority
are in relation to their local operators; this may include
information about the local “landscape” and any particular
risks that should be taken into account. As regards the
SOP, it is safe to say that this tool has, hitherto, not been
used as effectively as it might be. The vast majority have
used a standard template derived from the early days of
the Act’s implementation. It has not been tailored to reflect
local concerns and circumstances. For example, the policy
approach of a seaside resort which depends on promoting
itself as a safe, family-friendly destination for day trippers is
likely to have different priorities to an inner city borough.
The Commission’s aim in requiring operators to produce
2
The requirement applies to both existing premises license
holders as well as new ones.
3
Ordinary code provisions do not have the status of operator
licence condi ons but set out good prac ce. Ordinary codes of
prac ce are admissible in evidence in criminal or civil proceedings.
a local risk assessment and in encouraging local authorities
to provide a clear framework setting out local priorities
is to enable operators and local authorities to engage
in constructive dialogue at an early stage, reducing the
likelihood of costly enforcement action at a later date. While
there is no statutory requirement for licensees to share their
risk assessments with responsible authorities or interested
parties, it can save considerable time and expense if they do
so, as well as increase the confidence of those agencies as to
the operator’s awareness of their obligations. Inevitably, as
with any new process, there will be much to learn about how
the system works best and how to avoid it becoming simply a
bureaucratic exercise in form filling or a token gesture without
real value. The Commission will be working closely with local
authorities over the coming months to share learning and
ensure that this new process leads to real improvements in
the dialogue between authorities and operators.
One subject that both local authorities and operators
have raised recently relates to risk and what constitutes a
local risk. The view has been expressed that if very few or
no complaints concerning gambling are received, there are
therefore no gambling issues to be addressed. But complaints
are only one means by which one might assess risk, and are
perhaps not a particularly telling one. Unlike, say, alcoholrelated harm, gambling tends to be a lot less visible and is,
at least potentially, much less subject to complaints and
reporting. Furthermore, risk is not necessarily related to an
event that has happened. Risk is related to the probability
of an event happening and the likely impact of that event in this instance on the licensing objectives. The central issue
is therefore to identify local risk factors and to ensure that
operators are taking sufficient steps to mitigate that risk.
(To consider the matter from a different perspective, an
insurance policy is more helpful before, rather than after, the
burglary.)
The focus on local risk raises the question of what
constitutes evidence, particularly for those local authorities
which have decided to develop a local area profile. Section
157 of the 2005 Act defines responsible authorities to include
the following in relation to premises:
(a) a licensing authority in England and Wales in whose
area the premises are wholly or partly situated,
(b) the Commission,
(c) either—
(i) in England and Wales, the chief officer of police for a
police area in which the premises are wholly or partly
situated, or
(ii) in Scotland, the chief constable of the police force
maintained for a police area in which the premises are
wholly or partly situated,
New Guidance on gambling for local authorities covers key issues
(g) an authority which has functions by virtue of an
enactment in respect of minimising or preventing the
risk of pollution of the environment or of harm to human
health in an area in which the premises are wholly or partly
situated,
(h) a body which is
designated in writing
for the purposes of
this paragraph, by the
licensing authority for
an area in which the
premises are wholly
or partly situated, as
competent to advise
the authority about the
protection of children
from harm,
It is probably safe to
say that agencies such
as public health and
safeguarding boards have
been less involved in
gambling than might be
ideal. Undoubtedly given
the resourcing issues that
local authorities face, such
cross-departmental
cooperation and information
sharing will present a
significant
challenge.
However, in terms of
protecting the young
and vulnerable, they are
potentially able to make a
significant contribution to
the local area profile and
to ensuring that the SOP
is reflective of local issues.
Premises licence
conditions
authorities will, as it was put to us, “pick and mix” licence
conditions without due consideration as to whether they
are necessary and appropriate. Sections 167 -169 of the Act
address the issue of mandatory and default conditions as
well as those conditions imposed
or excluded by a licensing
authority. As with other issues,
conditions on a premises licence
should be designed purposively in
order to address risk. For example,
a number of betting operators
have been granted permission to
vary their default conditions for
opening hours (extending them)
as the local authority decided
that such an extension did not
increase risk to the licensing
objectives. Equally, additional
conditions should be applied in
the same manner. The sharing of
information between operators
and local authorities at an early
stage - improving the dialogue
between both parties, agreeing
what local risks are relevant and
should be mitigated - should
reduce the need for additional
licence conditions. Responsible
operators will want to put in place
the risk mitigation measures that
avoid the necessity of additional
conditions.
“It is probably safe to say
that agencies such as public
health and safeguarding
boards have been less
involved in gambling
than might be ideal.
Undoubtedly given the
resourcing issues that local
authorities face, such crossdepartmental co-operation
and information sharing
will present a significant
challenge. However, in terms
of protecting the young
and vulnerable, they are
potentially able to make a
significant contribution to
the local area profile and
The other major issue
which has caused a degree
of concern is premises
licence conditions. On
the one hand it has been
suggested that the Commission draw up a set of model
conditions and on the other a perceived risk that local
to ensuring that the SOP is
reflective of local issues.”
The iterative process that the
Commission, operators and local
authorities are participating in
may at times be challenging. But
it is ultimately to the benefit of
all parties - in particular those
who are young and vulnerable that we work together to protect
the licensing objectives, and also
create public confidence in the
gambling industry’s ability to
protect those groups in order for it
to develop further as a legitimate
and well regulated industry.
Rob Burkitt
Policy Development Manager, The Gambling Commission
This article was first published by the Institute of Licensing in issue 13 of the Journal of Licensing (November
2015). Written permission is needed from the Institute of Licensing before copies (hard or electronic) are made
and distributed.