3 - Poker as exempt gaming in clubs and alcohol licensed premises
29.10. Exempt gaming
is equal chance gaming generally permissible 1️⃣ in any club or alcohol licensed premises.
Such gaming should be ancillary to the purposes of the premises. This provision 1️⃣ is
automatically available to all such premises but is subject to statutory stakes and
prize limits determined by the Secretary 1️⃣ of State.
29.11. A fee may not be levied for
participation in poker offered by alcohol-licensed premises under the exempt gaming
1️⃣ rules. A compulsory charge, such as charging for a meal, may constitute a participation
fee, depending on the particular circumstances. 1️⃣ However, clubs may charge a
participation fee. The amount they may charge is as prescribed in regulations (SI No
1944/2007: 1️⃣ The Gambling Act 2005 (Exempt Gaming in Clubs) Regulations 2007) (opens in
new tab). See Appendix C for further details.
29.12. 1️⃣ In order for the poker to qualify
as exempt gaming, clubs and alcohol licensed premises may not charge a fee 1️⃣ on games or
levy or deduct an amount from stakes or winnings. The gaming should also be supervised
by a 1️⃣ nominated gaming supervisor and comply with any code of practice issued by the
Commission under s.24 of the Act.
29.13. Poker 1️⃣ clubs established primarily for the
purpose of providing poker or other gaming require Commission operating licences and
premises licences. Further 1️⃣ information is available in the Commission’s quick guides
Poker in pubs (opens in new tab) (PDF) and Poker in clubs 1️⃣ (opens in new tab)
(PDF).
Removal of exemption for alcohol licensed premises
29.14. Licensing authorities
can remove the automatic authorisation for exempt 1️⃣ gaming in respect of any particular
alcohol licensed premises by making an order under s.284 of the Act (see also 1️⃣ Part 26).
That section provides for the licensing authority to make such an order if:
provision
of the gaming is not 1️⃣ reasonably consistent with the pursuit of the licensing
objectives
gaming has taken place on the premises that breaches a condition of 1️⃣ s.279 –
for example, the gaming does not abide by the prescribed limits for stakes and prizes,
a participation fee 1️⃣ is charged for the gaming, or an amount is deducted or levied from
sums staked or won
the premises are mainly 1️⃣ used for gaming
an offence under the Act has
been committed on the premises.
29.15. Such an order could be used by 1️⃣ a licensing
authorities where, for example, they discover that poker is being offered in alcohol
licensed premises that consistently breaches 1️⃣ the prescribed limits on stakes and
prizes, participation fees are being charged for the poker, amounts are deducted from
stakes 1️⃣ or winnings, or poker (and other gaming) is the main activity offered on the
premises.
Code of practice for exempt equal 1️⃣ chance gaming
29.16. The Commission has
issued a code of practice under s.24 of the Act in respect of exempt equal 1️⃣ chance
gaming.
29.17. The code of practice requires owners, licensees, clubs and welfare
institutes to adopt good practice measures for the 1️⃣ provision of gaming in general, and
poker in particular. The code also sets out the stakes and prizes limits and 1️⃣ the limits
on participation fees (for clubs) laid out in regulations.
Poker in alcohol licensed
premises
29.18. The Commission actively engages with 1️⃣ the larger national and regional
organisers of poker leagues to remind them of the limited exemptions that apply to
poker 1️⃣ being offered in pubs. Infringements of such requirements as stake and prize
limits which are localised are normally best managed 1️⃣ by the local authority responsible
for issuing the alcohol premises licence. Template letters published on the
Commission’s website have proved 1️⃣ effective in assisting management of such
cases.
29.19. Gaming is only covered by the Act if it is played for prizes 1️⃣ of money or
money’s worth. A number of poker tournaments and leagues have been established in
alcohol licensed premises based 1️⃣ on playing for points. In some leagues the organisers
offer ‘prizes’ at the end of a series of weekly games 1️⃣ for the players with the most
points.
29.20. It is likely that the association of a prize with a monetary value 1️⃣ with
a game or series of games constitutes gaming, certainly by the latter stages of the
competition. If the eventual 1️⃣ prize is worth more than the maximum prize set out in
regulations, then it could be unlawful gaming. For example, 1️⃣ if a tournament simply
involves a series of straightforward ‘knockout’ qualifying rounds, culminating in a
'final’ game, then the winner’s 1️⃣ prize in the final – whether it comprises the stakes
laid in that game, a separate prize provided by the 1️⃣ organiser, or a combination of the
two – must not exceed £100. The regulations set a limit of £100 on 1️⃣ a prize that may be
won in any game of poker (in a pub). In a knockout tournament, the overall 1️⃣ prize is
clearly winnable in a single game (the ‘final’) and is therefore won in a game of poker
and 1️⃣ subject to the prize limit. The stake and prize limits must also, of course, be
applied to each game in 1️⃣ the tournament.
29.21. Alternatively, the prize competed for
may be the opportunity to play in ‘invitational cash tournaments’. Notwithstanding that
these 1️⃣ ‘prizes’ may be of an uncertain value, and are likely to be held in mainstream
gaming venues under regulated conditions, 1️⃣ usually a casino, the Act prohibits gaming in
alcohol licensed premises being linked to gaming in any other premises. Players
1️⃣ competing across premises for a ‘prize’ are likely to be engaged in linked gaming,
which is unlawful (s.269(5) of the 1️⃣ Act). Consequently, organisers should not host
events where players are competing against players in other premises for a
prize.
29.22. In 1️⃣ some types of tournaments there will be no single ‘final’ game in
which it can be said with certainty that 1️⃣ the player won the overall prize. In such
circumstances, one should look to the individual games played by the overall 1️⃣ winner and
ensure that the overall prize does not cause any of those individual games to exceed
the maximum £100 1️⃣ prize limit per game and the maximum stake of £100 per day.
29.23. For
examples of poker tournament, league and competitions 1️⃣ games and prize and stake
examples see Appendix H.
Poker under a club gaming permit
29.24. A club gaming permit
can only 1️⃣ be granted to a members’ club (including a miners’ welfare institute), but
cannot be granted to a commercial club or 1️⃣ other alcohol licensed premises.
29.25. Other
than in the case of clubs established to provide facilities for gaming of a prescribed
1️⃣ kind (currently bridge and whist), clubs seeking club gaming permits must be
established ‘wholly or mainly’ for purposes other than 1️⃣ gaming. When a club gaming
permit is granted, there are no limits on the stakes and prizes associated with
poker.
29.26. 1️⃣ If a club established to provide facilities for gaming of a prescribed
kind (currently bridge and whist) has a club 1️⃣ gaming permit, it may not offer any other
gaming besides bridge and whist. If such a club does not have 1️⃣ a permit, it may provide
exempt gaming provided it is not established to function for a limited period of time
1️⃣ and it has at least 25 members. If it wishes to offer other non-exempt gaming, it will
require a Commission 1️⃣ casino operating licence and any relevant personal
licences.
29.27. The poker which a club gaming permit allows is subject to
conditions:
(a) 1️⃣ in respect of equal chance gaming:
the club must not deduct money from
sums staked or won
the participation fee must not 1️⃣ exceed the amount prescribed in
regulations
the game takes place on the premises and must not be linked with a game 1️⃣ on
another set of premises.
Two games are linked if:
the result of one game is, or may be,
wholly or partly 1️⃣ determined by reference to the result of the other game or
the amount
of winnings available in one game is wholly 1️⃣ or partly determined by reference to the
amount of participation in the other game, and a game which is split 1️⃣ so that part is
played on one site and another part is played elsewhere is treated as two linked
games
only 1️⃣ club members and their genuine guests participate.
(b) in respect of other
games of chance:
the games must be pontoon and chemin 1️⃣ de fer only
no participation fee
may be charged otherwise than in accordance with the regulations
no amount may be
deducted from 1️⃣ sums staked or won otherwise than in accordance with the
regulations.
29.28. A 48-hour rule applies in respect of all three 1️⃣ types of gaming, so
that the games may only be played by people who have been members of the club 1️⃣ for at
least 48-hours or have applied or been nominated for membership or are genuine guests
of a member.
29.29. More 1️⃣ information about club gaming permits can be found in Part 25
of this guidance.
29.30. Private clubs with a club gaming 1️⃣ permit cannot run the
premises wholly or mainly for the purposes of gaming, nor can the club make a profit 1️⃣ as
all funds must be applied for the benefit of members. Experience indicates that illegal
clubs will go to considerable 1️⃣ lengths to disguise the true nature of their activities.
Consequently, building the evidence required to review and rescind the permit 1️⃣ can be
time consuming and resource intensive. It is therefore essential that licensing
authorities scrutinise applications for club gaming permits 1️⃣ carefully. The applicant
should be asked for as much information as required (such as a business plan) in order
to 1️⃣ satisfy the licensing authority that it is a bone fide club whose main activity will
not be gambling. The Commission 1️⃣ are in a position to assist in sharing intelligence on
individuals or organisations in circumstances where a licensing authority has 1️⃣ doubts as
to the credentials of an applicant.
29.31. There is now a considerable body of
knowledge and experience as to 1️⃣ how a gaming permit can be withdrawn. This may include
using other legislation such as the Proceeds of Crime Act 1️⃣ (opens in new tab) which was
used by a licensing authority to prosecute and imprison one club owner.
29.32. On
occasion 1️⃣ licensing authorities may consider that, as they have not received complaints
about a club, there is no requirement for them 1️⃣ to act. In these circumstances it is
worth bearing in mind that they are very unlikely to receive complaints about 1️⃣ such
clubs, unless it is issues such as local noise and nuisance. The people attending the
club do so from 1️⃣ choice. Secondly, the club is effectively operating as an illegal
casino and none of the protections afforded in a casino 1️⃣ are in place, such as personal
licence holders and anti-money laundering safeguards.
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Poker as non-commercial gaming
