On-Line Gambling
There has been a huge expansion of internet-based gambling over recent years with an estimated 1,800 websites devoted to on-line gambling. Although on-line gambling still tends to attract a small percentage of overall gamblers, there is evidence that it is becoming more mainstream, and may well be luring some traditional pub AWP gamers. The Gambling Act 2005 allows internet casinos (previously outlawed) to be based in Great Britain for the first time.
Expansion Of Casino Facilities
The Gambling Act 2005 allows for an increase in the number of UK casinos. (There were 140 casinos operating in 2006.) New legislation allows for the introduction of regional casinos, which could be up to 10 times the size of many existing casinos, along with a further 8 large and 8 small casinos.
Although figures for 2004 show that casino gambling is undertaken by a small percentage of the population (3% of men and 1% of women had played table games in a casino over the last 12 months:
Gambling Commission website ), changes in legislation in 2005, allowing casinos to operate without membership restrictions and increases in machine payouts, have caused an upsurge in casino attendance. The full impact on pub gaming machine income is yet to be predicted.
Amusement Machine Licence Duty (Amld)
Requirement For LicencesAll amusement machines, including gaming, video, pinball and quiz machines, provided for play on any premises in the UK need a licence,
unless they fall within the list of exempt machines. Licences are issued by HM Revenue and Customs and you are legally required to display your licence prominently in the premises where your machines are located. If you are renting your machines, your supplier will normally make the application for your licence.
Payment Of Amusement Machine Licence Duty
Amusement Machine Licence Duty (AMLD) is payable to HM Revenue and Customs for certain types of machines. There are five bands (A – E) of duty which apply according to the type of machine and the effective cost of play.
- A – Video machines, pinball tables and prize video machines (the commonest examples being quiz machines with a cost per play exceeding 50 pence).
- B – Small-prize machines where the maximum payout per play does not exceed £ 8 (in money or tokens) and where cost per play is more than 10 pence. – Medium-prize machines where the maximum payout per play exceeds £ 8 but does not exceed £ 25 (in money or tokens), and where the cost per play is not more than 5 pence.– Jackpot gaming machines where the maximum payout per play exceeds £ 25 (in money or tokens), and where cost per play is 3–5 pence.
- C – Medium-prize machines where the maximum payout per play exceeds £ 8 but does not exceed £ 25 (in money or tokens) and where the cost per play is more than 5 pence.
- D – Jackpot machines where the maximum payout per play exceeds £ 25 (in money or tokens), and where cost per play is 10 pence.
- E – Jackpot machines where the maximum payout per play exceeds £ 25 (in money or tokens), where cost per play is greater than 10 pence.
(Note: You are not permitted to install category ‘D’ or ‘E’ machines in public houses – see section, ‘Permits’ above.)
At the time of writing (2006), the annual rates of duty for each machine category were as follows:
Your machine supplier normally collects a proportion of AMLD each time they empty their machines and pays this to HM Revenue and Customs. They normally deduct this from the machine takings, together with their rental, before paying you your machine income. If you own a machine which is liable for AMLD, you will be responsible for making these payments to HM Revenue and Customs yourself.