Intellectual Property Law

The U.K. Gambling Act 2005, Part I

By IBLS Editor

The United Kingdom (U.K.) Parliament enacted the Gambling Act 2005 to regulate three major gambling categories: gaming, betting, and lottery. This Act, among others, establishes the Gambling Commission; sets license requirements, including operating, personal, and premises licenses; identifies gambling offenses; sets rules for the protection of children and young persons; regulates gambling advertising; and addresses the legality and enforceability of gambling contracts. This article informs about the foundation of this Act, licensing authorities and the Gambling Commission, the definition of gambling and remote gambling, what constitutes gaming, betting, and lottery under the Gambling Act.

U.K. Gambling Act 2005 (The Gambling Act) is based on the premise that the government must license gambling activities. The licensing objectives include (1) preventing gambling from being a source of disorder that could enable or support crime; (2) ensuring that gambling is conducted in a fair and open manner; and (3) protecting children and other vulnerable persons from being harmed or exploited by gambling. Part 1, 1.

The Gambling Act establishes the licensing authorities and the Gambling Commission.  The licensing authorities for England are (1) a district council, (2) a county council when there is no district council, (3) a London borough council, (4) a Common Council of the City of London, and (5) and the Council of the Isles of Scilly.  The licensing authorities for Wales are (1) a country council, and (2) a county borough council. Part 1, 2.  The Gambling Act establishes a Gambling Commission whose duties are to promote the licensing objectives and permit gambling within the parameter of the licensing objectives. Part 2, 22.  Other duties of the Gambling Commission include setting out the principles to be applied by it in the exercise of its functions, issuing one or more code of practice for gambling facilities, issuing guidance for local authorities involved with gambling licenses, giving and advising the Secretary of State about gambling activities, setting compliance rules, and investigating and prosecuting gambling offenses.  Part 2, 22-28.

Gambling, under the Gambling Act, includes three categories: gaming, betting, and lottery. Part 1, 3. The Gambling Act also addresses the issue of ?remote gambling.? Remote gambling is defined as any gambling in which persons participate by the use of remote communication.  This includes the Internet, television, telephone, radio, or any other kind of electronic or technology for facilitating communication.

Under the Gambling Act, gaming means playing a game of chance for a prize. Gaming includes games of chance, casinos, and equal chance gaming. A game of chance does not include a sport; it may include (1) a game that involves an element of chance and an element of skill, (2) a game that involves an element of chance that can be eliminated by superlative skill, and (3) a game presented as involving an element of chance.  Prizes may include money or money?s worth.  Casinos are defined as arrangements whereby people are given the opportunity to participate in casino games. Casino games are games of chance not including equal chance games. Casinos may be classified in four categories: Regional, Large, Small, and below the minimal size. Lastly, gaming is equal chance gaming if ?it does not involve playing or staking against a bank,? and ?the chances are equally favorable to all participants.?

In the Gambling Act, betting means making or accepting a bet on (1) the outcome of a race, event or process; (2) the likelihood of anything occurring or not occurring; (3) whether anything is or is not true. 

The Gambling Act defines both simple and complex lottery. An arrangement is a simple lottery if the following three elements are found: (1) people is required to pay to participate, (2) one or more prizes are allocated to one or more members of a class, and (3) prizes are allocated by a process that relies wholly on chance.   An arrangement is a complex lottery if the three above-mentioned elements are found and if the prizes are allocated by a series of processes. In the case of lotteries, prizes may include money, services, or articles.

Full post as published by IBLS Internet Law Blog on September 20, 2009 (boomark / email).