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Use (and misuse) of OUNs

15.4 The Commission is aware of some instances of the apparent misuse of OUNs, by the arrangement of a contrived sporting event at a premises solely in order to apply for an OUN and to permit betting on premises where it would not normally be allowed.

30The Secretary of State has the power to increase or decrease the number of occasional use notices that an operating licence holder could apply for each calendar year. ‘Day’ is defined as midnight to midnight, so an event that starts on one calendar day and ends on the following day would count as two days

31The point to point and hunter race chase calendar lists each fixture, and is a useful tool for licensing authorities to check that they are being notified of all possible OUNs

Whilst the Commission has not introduced a new licence condition limiting the betting to bets on the outcomes of a race, competition or other sporting event taking place at the track in question whilst the OUN is in force, the situation will be kept under review.

15.5 OUNs may not be relied upon for more than eight days in a calendar year, which relates to a calendar year starting 1 January and not to any period of 12 months. The Secretary of State has the power to increase or decrease the number of OUNs that are permitted, but there are currently no plans to use this power.

15.6 Non-commercial, fund raising race nights can be run as betting events at sporting venues under the authority of an OUN, whether or not the sporting event on which the bets are taken is held at that venue. The sporting event on which the bets are or will be taken also need not be taking place at the same time as the betting under the OUN.

Procedure

15.7 Licensing authorities and track operators and occupiers should note that the processes set out in the Act for applying for an OUN are different to those for Temporary Use Notices (TUNs).

15.8 The notice must be served on the licensing authority and copied to the chief officer of police for the area in which the track is wholly or partly located. The notice must specify the day on which it has effect. Notices may be given in relation to consecutive days, so long as the overall limit of 8 days is not exceeded in the calendar year.

15.9 Provided that the notice will not result in betting facilities being available for more than 8 days in a calendar year, there is no provision for counter-notices or objections to be submitted.

15.10 The Act does not require the applicant or the licensing authority to notify the Commission that an OUN has been given. However the Commission does require licensing authorities to submit returns showing how many OUNs were received during each year (see also Part 13).

15.11 It should be noted that betting operators cannot provide gaming machines at tracks by virtue of an OUN.

Part 16: Gaming machines

16.1 This part of the Guidance describes the categories of gaming machine and the number of such machines that may be permitted in each type of gambling premises as set out in the Act. Licensing authorities should note that the term ‘gaming machine’ now covers all machines on which people can gamble – subject to the exceptions below – and the term has been preserved in the Act, because it is one that is readily understood.

16.2 S.235(1) of the Act sets out the definition of a gaming machine. The definition is wider than those included in previous gambling legislation and covers all types of gambling activity that can take place on a machine, including betting on virtual events. However, the following should be noted:

• there remains a distinction between skill machines and gaming machines, in that skill machines are unregulated

• S.235(2) contains important exemptions for equipment that is not to be

considered a gaming machine, even when gambling can be performed on it – for example, a home PC is not classed as a gaming machine, even though

someone could access remote gambling facilities on a home PC.

16.3 Specific guidance on machines that are exempt is set out later in this part of the Guidance, although licensing authorities should take legal advice or contact the Commission directly if they have concerns about the precise legal status of equipment being used on premises.

16.4 The Commission is responsible for licensing manufacturers and suppliers of gaming machines and advises operators to obtain machines from Commission-licensed suppliers. Similarly, permit holders and those applying for permits for clubs, alcohol-licensed premises or family entertainment centres will also be advised through

Commission guidance to obtain gaming machines from Commission-licensed suppliers.

16.5 The Commission has set Gaming Machine Technical Standards relating to the way in which each category of machine will operate32. The Commission has also set out a testing strategy that details the testing arrangements for each category of machine33. The Commission has the power to test gaming machines, both before they are supplied and when in operation in premises, to ensure that they are operating as advertised.

16.6 In order for a premise to site gaming machines some form of authorisation is normally required. Typically this is:

• an operating licence from the Commission and a gambling premises licence from a licensing authority or

• an alcohol premises licence from a licensing authority or

• a gaming machine permit from a licensing authority.

16.7 Depending on the authorisation, there are limits placed on the category of machines that can be sited and, in some cases, on the number of machines that can be made available for use.

16.8 If a licensing authority has concerns relating to the manufacture, supply, installation, maintenance or repair of gaming machines, or the manner in which they are operating, it should contact the Commission. Plea

[email protected],

32 The Gaming Machine Technical Standards is available from www.gamblingcommission.gov.uk

33The Gaming Machine testing strategy is available from www.gamblingcommission.gov.uk

16.9 S.172 of the Act prescribes the number and category of gaming machines that are permitted in each type of gambling premises licensed by authorities. Neither the Commission nor licensing authorities have the power to set different limits or further expand or restrict the categories of machine that are permitted. The exception to this is alcohol-licensed premises that hold gaming machine permits, where licensing

authorities have discretion to specify the number of permitted gaming machines. In addition, limits are set separately in the Act for certain types of permit issued by licensing authorities. Machine limits are summarised at Appendix A of this Guidance.

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