REPORT GAMBLING (2010 FEES) (JERSEY) REGULATIONS 200-
PROPOSITION
THE STATES are asked to decide whether they are of opinion to consider raising the fees in respect of the grant or renewal of an amusement premises licence, betting office licence, credit betting office licence, bookmaker’s licence, track licence, occasional bookmakers licence, social gambling permits and registrations.
The increases are contained in the Gambling (Licensing Provisions) (Jersey) Regulations 1965, as amended and in the Gambling (Betting) (Jersey) Regulations 1965, as amended. The proposed increases are as follows –
- Amusement Premises Licence from £1,290 to £5,000 per annum;
- Betting Office/Credit Betting Licence from £1,290 to £5,000 per annum;
- Bookmaker's Licence from £258 to £500 per annum;
- Track Licence from £387 to £500 per annum;
- Occasional Bookmaker's Licence from £96.75 per day plus £250 deposit to £150 per day plus £250 deposit.
It is relevant to note that machine fee increases are dealt by the proposed amendments to the Gambling (Gaming and Lotteries) (Jersey) Regulations 1965 which will follow in due course and not by this proposition.
Social Permits and Registrations increases are as follows –
- Bingo Certificate of Registration from £10 per annum to £20 per annum
- Cinema Racing Certificate of Registration from £10 per annum to £20 per annum
- Lottery Certificate from £10 per annum to £20 per annum
- Amusement With Prizes Permit (Amusement Premises) from £220 per annum to £1,000 per annum
- Amusement With Prizes Permit (Commercial Event) from £55 per event to £110 per event
- Bingo Permit (Private) from £10 per annum to £50 per annum
- Bingo Permit (Public) from £5 per event to £10 per event
- Cinema Racing Permit from £28 per event to £50 per event
- Crown and Anchor Permit from £55 per table per event to £110 per table per event
- Gaming at an Event Permit from £15 per event to £50 per event
- Lottery Permit from £10 per lottery to £20 per lottery
REPORT
Background
In 2000 a proposition was taken to the States to amend the Gambling (Licensing Provisions) (Jersey) Regulations 2000 to increase the gambling licence fees. Amendment No 12 of these Regulations came into force on the 1st January 2001, and since then, licence fees have remained static.
The level of regulation required to ensure that the Island is compliant with international best practice has increased, most notably due to the effect of the Gambling (Disaster Recovery) (Jersey) Regulations 2008 and the concomitant increase in general levels of club, society and charitable gambling.
The current level of income from fees and charges stands at approximately £131,000 which includes the fees of 3 non-executive Board Members who will become the statutory regulatory body in 2010 when the States will be asked to pass the draft Gambling Commission (Jersey) Law 200*. Allied to this the department has had to invest significant resource into providing various software applications to ensure probity and due diligence enquiries as well as attend international regulators meetings in order to both benefit from and influence the development of regulatory co-operation in this sector.
The Minister proposes to raise all fees and charges in line with the States ‘user pays’ policy in order to maintain the Island’s international reputation as a well regulated jurisdiction. Recognising that the proposed increases are in excess of the RPI , the Treasury and Resources Minister has granted permission to raise fees above the currently agreed level in order to offset the now unsustainable disconnect between the cost of regulation and the fees currently paid, in large part, by the commercial industry.
EDD’s Business Plan has been thoroughly reviewed across all sections and the regulation of gambling was identified as part of that review as requiring immediate readjustment to ensure that there is a phased process of eliminating any cross subsidy from the public.
Licence Fees
The Economic Development Minister proposes to increase gambling licence fees for 2010 onward in line with the “user pays” principles detailed in Financial Direction No 4.1. The increases would apply to the 29 betting offices, the 10 bookmaker’s licences and other consequential areas as detailed below:
LICENCES (Unchanged since 1st January, 2001)
Type | Current fee | Proposed fee |
Amusement Premises Licence | £1,290 per annum | £5,000 per annum |
Betting Office/Credit Betting Licence | £1,290 per annum | £5,000 per annum |
Bookmaker's Licence | £258 per annum | £500 per annum |
Occasional Bookmaker's Licence | £96.75 per day plus £250 deposit | £150 per day plus £250 deposit |
Track Licence | £387 per annum | £500 per annum |
Gaming Machines* | £2,000 per machine per annum | £4,000 per machine per annum |
Gaming Machine* Type 2 (to be approved by the States in September 2009 | Not presently in service | £4,000 per machine per annum |
* NOTE: Machine fee increases are included in the above table to provide an illustration of the “user pays” principles. However, machine fee increases are dealt by the proposed amendments to the Gambling (Gaming and Lotteries) (Jersey) Regulations 1965. These will be lodged in due course.
PERMITS (Unchanged since 1st January, 1998)
Type | Current fee | Proposed fee |
Amusement With Prizes Permit (Amusement Premises) | £220 per annum | £1,000 per annum |
Amusement With Prizes Permit (Commercial Event) | £55 per event | £110 per event |
Bingo Permit (Private) | £10 per annum | £50 per annum |
Bingo Permit (Public) | £5 per event | £10 per event |
Cinema Racing Permit | £28 per event | £50 per event |
Crown and Anchor Permit | £55 per table per event | £110 per table per event |
Gaming at an Event Permit | £15 per event | £50 per event |
Lottery Permit | £10 per lottery | £20 per lottery |
REGISTRATIONS(Unchanged since 1st January, 1998)
Type | Current fee | Proposed fee |
Bingo Certificate of Registration | £10 per calendar year | £20 per calendar year |
Cinema Racing Certificate of Registration | £10 per calendar year | £20 per calendar year |
Lottery Certificate of Registration | £10 per calendar year | £20 per calendar year |
It is recognised that these increases are above RPI and it has been calculated that cumulative RPI would have raised fees to circa £155,000, meaning this proposal is some £78,000 over RPI. However, the fees were never originally designed to cover costs effectively and were artificially low. The Minister recognises that he cannot inflict full cost recovery on the industry immediately, but still has to increase beyond the RPI figure. A doubling of the fees seems reasonable, therefore, as part of a transition to full cost recovery.
The Minister will bring forward legislation after the summer to create a new Gambling Commission and the Commission will be expected to finish the modernisation programme and bring fees fully into line with costs. This stepped process is proportionate; the alternative would be to force commercial operators to shoulder the full increase immediately. This will naturally be much harder for them to manage and indeed detrimental to their business, than the staged process outlined in this report.
Financial and manpower statement
There are no manpower implications. Financially, the effect of introducing these regulations will increase revenue to the States.