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3 - Poker as exempt gaming in clubs and alcohol licensed premises

29.10. Exempt gaming

is equal chance gaming generally permissible 🍊 in any club or alcohol licensed premises.

Such gaming should be ancillary to the purposes of the premises. This provision 🍊 is

automatically available to all such premises but is subject to statutory stakes and

prize limits determined by the Secretary 🍊 of State.

29.11. A fee may not be levied for

participation in poker offered by alcohol-licensed premises under the exempt gaming

🍊 rules. A compulsory charge, such as charging for a meal, may constitute a participation

fee, depending on the particular circumstances. 🍊 However, clubs may charge a

participation fee. The amount they may charge is as prescribed in regulations (SI No

1944/2007: 🍊 The Gambling Act 2005 (Exempt Gaming in Clubs) Regulations 2007) (opens in

new tab). See Appendix C for further details.

29.12. 🍊 In order for the poker to qualify

as exempt gaming, clubs and alcohol licensed premises may not charge a fee 🍊 on games or

levy or deduct an amount from stakes or winnings. The gaming should also be supervised

by a 🍊 nominated gaming supervisor and comply with any code of practice issued by the

Commission under s.24 of the Act.

29.13. Poker 🍊 clubs established primarily for the

purpose of providing poker or other gaming require Commission operating licences and

premises licences. Further 🍊 information is available in the Commission’s quick guides

Poker in pubs (opens in new tab) (PDF) and Poker in clubs 🍊 (opens in new tab)

(PDF).

Removal of exemption for alcohol licensed premises

29.14. Licensing authorities

can remove the automatic authorisation for exempt 🍊 gaming in respect of any particular

alcohol licensed premises by making an order under s.284 of the Act (see also 🍊 Part 26).

That section provides for the licensing authority to make such an order if:

provision

of the gaming is not 🍊 reasonably consistent with the pursuit of the licensing

objectives

gaming has taken place on the premises that breaches a condition of 🍊 s.279 –

for example, the gaming does not abide by the prescribed limits for stakes and prizes,

a participation fee 🍊 is charged for the gaming, or an amount is deducted or levied from

sums staked or won

the premises are mainly 🍊 used for gaming

an offence under the Act has

been committed on the premises.

29.15. Such an order could be used by 🍊 a licensing

authorities where, for example, they discover that poker is being offered in alcohol

licensed premises that consistently breaches 🍊 the prescribed limits on stakes and

prizes, participation fees are being charged for the poker, amounts are deducted from

stakes 🍊 or winnings, or poker (and other gaming) is the main activity offered on the

premises.

Code of practice for exempt equal 🍊 chance gaming

29.16. The Commission has

issued a code of practice under s.24 of the Act in respect of exempt equal 🍊 chance

gaming.

29.17. The code of practice requires owners, licensees, clubs and welfare

institutes to adopt good practice measures for the 🍊 provision of gaming in general, and

poker in particular. The code also sets out the stakes and prizes limits and 🍊 the limits

on participation fees (for clubs) laid out in regulations.

Poker in alcohol licensed

premises

29.18. The Commission actively engages with 🍊 the larger national and regional

organisers of poker leagues to remind them of the limited exemptions that apply to

poker 🍊 being offered in pubs. Infringements of such requirements as stake and prize

limits which are localised are normally best managed 🍊 by the local authority responsible

for issuing the alcohol premises licence. Template letters published on the

Commission’s website have proved 🍊 effective in assisting management of such

cases.

29.19. Gaming is only covered by the Act if it is played for prizes 🍊 of money or

money’s worth. A number of poker tournaments and leagues have been established in

alcohol licensed premises based 🍊 on playing for points. In some leagues the organisers

offer ‘prizes’ at the end of a series of weekly games 🍊 for the players with the most

points.

29.20. It is likely that the association of a prize with a monetary value 🍊 with

a game or series of games constitutes gaming, certainly by the latter stages of the

competition. If the eventual 🍊 prize is worth more than the maximum prize set out in

regulations, then it could be unlawful gaming. For example, 🍊 if a tournament simply

involves a series of straightforward ‘knockout’ qualifying rounds, culminating in a

'final’ game, then the winner’s 🍊 prize in the final – whether it comprises the stakes

laid in that game, a separate prize provided by the 🍊 organiser, or a combination of the

two – must not exceed £100. The regulations set a limit of £100 on 🍊 a prize that may be

won in any game of poker (in a pub). In a knockout tournament, the overall 🍊 prize is

clearly winnable in a single game (the ‘final’) and is therefore won in a game of poker

and 🍊 subject to the prize limit. The stake and prize limits must also, of course, be

applied to each game in 🍊 the tournament.

29.21. Alternatively, the prize competed for

may be the opportunity to play in ‘invitational cash tournaments’. Notwithstanding that

these 🍊 ‘prizes’ may be of an uncertain value, and are likely to be held in mainstream

gaming venues under regulated conditions, 🍊 usually a casino, the Act prohibits gaming in

alcohol licensed premises being linked to gaming in any other premises. Players

🍊 competing across premises for a ‘prize’ are likely to be engaged in linked gaming,

which is unlawful (s.269(5) of the 🍊 Act). Consequently, organisers should not host

events where players are competing against players in other premises for a

prize.

29.22. In 🍊 some types of tournaments there will be no single ‘final’ game in

which it can be said with certainty that 🍊 the player won the overall prize. In such

circumstances, one should look to the individual games played by the overall 🍊 winner and

ensure that the overall prize does not cause any of those individual games to exceed

the maximum £100 🍊 prize limit per game and the maximum stake of £100 per day.

29.23. For

examples of poker tournament, league and competitions 🍊 games and prize and stake

examples see Appendix H.

Poker under a club gaming permit

29.24. A club gaming permit

can only 🍊 be granted to a members’ club (including a miners’ welfare institute), but

cannot be granted to a commercial club or 🍊 other alcohol licensed premises.

29.25. Other

than in the case of clubs established to provide facilities for gaming of a prescribed

🍊 kind (currently bridge and whist), clubs seeking club gaming permits must be

established ‘wholly or mainly’ for purposes other than 🍊 gaming. When a club gaming

permit is granted, there are no limits on the stakes and prizes associated with

poker.

29.26. 🍊 If a club established to provide facilities for gaming of a prescribed

kind (currently bridge and whist) has a club 🍊 gaming permit, it may not offer any other

gaming besides bridge and whist. If such a club does not have 🍊 a permit, it may provide

exempt gaming provided it is not established to function for a limited period of time

🍊 and it has at least 25 members. If it wishes to offer other non-exempt gaming, it will

require a Commission 🍊 casino operating licence and any relevant personal

licences.

29.27. The poker which a club gaming permit allows is subject to

conditions:

(a) 🍊 in respect of equal chance gaming:

the club must not deduct money from

sums staked or won

the participation fee must not 🍊 exceed the amount prescribed in

regulations

the game takes place on the premises and must not be linked with a game 🍊 on

another set of premises.

Two games are linked if:

the result of one game is, or may be,

wholly or partly 🍊 determined by reference to the result of the other game or

the amount

of winnings available in one game is wholly 🍊 or partly determined by reference to the

amount of participation in the other game, and a game which is split 🍊 so that part is

played on one site and another part is played elsewhere is treated as two linked

games

only 🍊 club members and their genuine guests participate.

(b) in respect of other

games of chance:

the games must be pontoon and chemin 🍊 de fer only

no participation fee

may be charged otherwise than in accordance with the regulations

no amount may be

deducted from 🍊 sums staked or won otherwise than in accordance with the

regulations.

29.28. A 48-hour rule applies in respect of all three 🍊 types of gaming, so

that the games may only be played by people who have been members of the club 🍊 for at

least 48-hours or have applied or been nominated for membership or are genuine guests

of a member.

29.29. More 🍊 information about club gaming permits can be found in Part 25

of this guidance.

29.30. Private clubs with a club gaming 🍊 permit cannot run the

premises wholly or mainly for the purposes of gaming, nor can the club make a profit 🍊 as

all funds must be applied for the benefit of members. Experience indicates that illegal

clubs will go to considerable 🍊 lengths to disguise the true nature of their activities.

Consequently, building the evidence required to review and rescind the permit 🍊 can be

time consuming and resource intensive. It is therefore essential that licensing

authorities scrutinise applications for club gaming permits 🍊 carefully. The applicant

should be asked for as much information as required (such as a business plan) in order

to 🍊 satisfy the licensing authority that it is a bone fide club whose main activity will

not be gambling. The Commission 🍊 are in a position to assist in sharing intelligence on

individuals or organisations in circumstances where a licensing authority has 🍊 doubts as

to the credentials of an applicant.

29.31. There is now a considerable body of

knowledge and experience as to 🍊 how a gaming permit can be withdrawn. This may include

using other legislation such as the Proceeds of Crime Act 🍊 (opens in new tab) which was

used by a licensing authority to prosecute and imprison one club owner.

29.32. On

occasion 🍊 licensing authorities may consider that, as they have not received complaints

about a club, there is no requirement for them 🍊 to act. In these circumstances it is

worth bearing in mind that they are very unlikely to receive complaints about 🍊 such

clubs, unless it is issues such as local noise and nuisance. The people attending the

club do so from 🍊 choice. Secondly, the club is effectively operating as an illegal

casino and none of the protections afforded in a casino 🍊 are in place, such as personal

licence holders and anti-money laundering safeguards.

Previous section

Poker in

casinos

Next section

Poker as non-commercial gaming

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