14.1 The Act introduces a range of permits for gambling that are granted by the authority, Permits are required where premises provide a gambling facility and either the stakes or prizes are very low, or gambling is not the main function of the premises.

14.2 Permits issued by the Licensing Partnership will regulate gambling and the use of gaming machines in a specific premises. The various permits the Partnership is responsible for issuing are:

• Family Entertainment Centre (FEC) Gaming Machine Permits
• Club Gaming Permits and Club Machine Permits
• Alcohol Licensed Premises Gaming Machine Permits
• Prize Gaming Permits

14.3 Holders of permits for gaming machines (except unlicensed FEC’s) will be required to comply with codes of practice, drawn up by the Commission on the location and operation of machines.

14.4 The Licensing Partnership may only grant or reject an application for a permit. The Partnership understands that no conditions may be attached to a permit. The Partnership may however vary the number of machines sought in respect of applications for an Alcohol Licensed Premises Gaming Machine Permit (see paragraph 14.23 below).

Family Entertainment Centre (FEC) Gaming Machine Permits

14.5 Family entertainment centres (FECs) cater for families, including unaccompanied children and young persons. There are two types of FECs, licensed and unlicensed.

14.6 To be classified as ‘licensed’ a FEC will need both an operating licence from the Commission and a premises licence from the Council. A licensed FEC is able to offer Category C and D gaming machines and in accordance with Section 290 of the Act is able to provide any type of prize gaming.

14.7 FECs that offer only category D gaming machines need only secure a gaming machine permit from the Council, therefore they will be ‘unlicensed’. Unlicensed FECs that have the benefit of a gaming machine permit will be able to offer equal chance prize gaming without the need for a prize gaming permit.

14.8 The Licensing Partnership will specify the form and manner in which applications for a FEC Gaming Machine Permit should be made, and in doing so, as the premises will particularly appeal to children and young persons, will give weight to child protection issues and have regard to the Commissions Guidance.

14.9 An unlicensed family entertainment centre is only entitled to make category D machines available. This is reflected by the very light touch form of regulation provided by the uFEC permit. The entity making machines available on the premises (the arcade operator) does not need a Gambling Commission operating licence. However, the entity supplying machines to the business (the machine supplier) must be licensed by the Gambling Commission.

14.10 A licensed family entertainment centre is entitled to make both category C and D machines available. It is subject to similar controls to many other gambling businesses – the premises need a full premises licence from the licensing authority and the entity making machines available on the premises requires a Gambling Commission operating licence, as does the supplier of the machines.

14.11 Only premises that are wholly or mainly used for making gaming machines available may hold an uFEC gaming machine permit or an FEC premises licence. Both a licensed FEC and an uFEC are classified as premises.

14.12 As a result, it is generally not permissible for such premises to correspond to an entire shopping centre, airport, motorway service station or similar. Typically, the machines would be in a designated, enclosed area. A more detailed explanation of what constitutes ‘a premises’ can be found in Guidance to licensing authorities (issued by the Gambling Commission).

Gaming machines, which should be contained within the uFEC or FEC premises, should not be located in corridors and walkways which form part of the larger building.

Issuing uFEC permits and FEC premises licences

14.13 We may check with applicants that the operator has made suitable arrangements to source machines from licensed suppliers. Details of all licence holders are available on the Gambling Commission website and we may advise them if we have concerns about possible unlicensed suppliers.

Supervision requirements

14.14 You should satisfy yourself that any risk to the licensing objectives, particularly in relation to the protection of children and other vulnerable people is being suitably managed. It is not sufficient if there are no dedicated staff supervising the FEC area, whether using a premises licence or permit. Placing responsibility on security or cleaning staff associated with the wider development (e.g. shopping centre) is unlikely to be adequate.

Club Gaming Permits and Club Machine Permits

14.15 The Council may grant members’ clubs and miners’ welfare institutes (but not commercial clubs) a Club Gaming Permit that authorises the establishment to provide gaming machines (no more than 3 machines of categories B, C or D), equal chance gaming and games of chance as prescribed in regulations.

14.16 Members clubs must have at least 25 members and be established and conducted “wholly or mainly” for purposes other than gaming, unless the gaming is permitted by separate regulations. A members’ club must be permanent in nature, not established to make commercial profit, and controlled by its members equally.

14.17 The Council may grant Club Machine Permits to members’ clubs who do not wish to have the full range of facilities permitted by a Club Gaming Permit and to commercial clubs not permitted to provide non-machine gaming (other than exempt gaming under section 269 of the Act). Club Machine Permits authorise the holder to have up to three gaming machines of categories B4, C and D.

14.18 Regulations will set out the requirements in relation to applications for Club Gaming Permits and Club Machine Permits.

Alcohol Licensed Premises Gaming Machine Permits

14.19 The Act provides an automatic entitlement for premises licensed to sell alcohol for consumption on the premises to have up to two category C or D gaming machines. The holder of the licence that authorises the sale of alcohol for consumption on the premises must give notice to the Council of their intention to make gaming machines available and must pay a prescribed fee. They must also comply with any relevant codes of practice about the location and operation of a gaming machine.

14.20 The Council has no discretion to consider any notification of this automatic entitlement or turn it down, however the Council may, by making an order under section 284 of the Act removing the automatic entitlement if:

• provision of the machines is not reasonably consistent with the pursuit of the licensing objectives
• gaming has taken place on the premises that breaches a condition of section
• 282 of the Act (i.e. that written notice has been provided to the licensing authority, that a fee has been provided and that any relevant code of practice issued by the Gambling Commission about the location and operation of the machine has been complied with)
• the premises are mainly used for gaming, or
• an offence under the Gambling Act has been committed on the premises

14.21 If the holder of premises licences that authorises the sale of alcohol for consumption on the premises wants to have more than two gaming machines on the premises, they must apply to the Council for an Alcohol Licensed Premises Gaming Machine Permit. An application may not however be made if a premises licence issued under the Gambling Act has effect.

14.22 The Council will specify the form and manner in which applications for an Alcohol Licensed Premises Gaming Machine Permit are made.

14.23 In determining applications for an Alcohol Licensed Premises Gaming Machine Permit the Council will have regard to the licensing objectives, any guidance issued by the Commission under section 25 of the Act and any other matter which is considered relevant to the application. The Council may grant or refuse an application, and in granting an application may vary the number and category of gaming machines authorised by the permit.

Prize Gaming Permits

14.24 A Prize Gaming Permit will be required on specified premises if the nature and size of the prize is not determined by the number of people playing or the amount paid for or raised by the game. That is when the operator determines prizes before play commences. The Council will be responsible for the issue of such permits. An application for a Prize Gaming Permit cannot be made if a premises licence or club gaming permit issued under the Act is in effect for the same premises.

14.25 The Council will specify the form and manner in which applications for a Prize Gaming Permit should be made, and in doing so will give weight to child protection issues and have regard to the Commission’s Guidance.

Complaints and disputes

All permit holders

1. Permit holders should put into effect a written procedure for handling customer complaints and disputes regarding the use of gaming machines on their premises.
2. A ‘complaint’ means a complaint about any aspect of the permit holder’s conduct of their permissible activities, and a ‘dispute’ is any complaint which:
   a) is not resolved at the first stage of the complaints procedure, and
   b) Relates to the outcome of the complainant’s gambling transaction.
3. Permit holders should ensure that:
   • customers are told the name and status of the person to contact about their complaint
   • customers are given a copy of the complaints procedure on request or on making a complaint
   • all complaints are handled in accordance with the procedure.