REPORT GAMBLING (MACHINE 2010 FEES) (JERSEY) REGULATIONS 200-
REPORT
Background
In 2002 a proposition, P 19/2002 was taken to the States to amend the Gambling (Gaming and Lotteries) (Jersey) Regulations 1998 to enable the provision in licensed betting offices of gaming machines. The Regulations introduced a scheme for the licensing of such premises and made provision for the regulation of gaming machines. Amendment No 14 of these Regulations came into force on the 14th March 2002, and since then, both licence fees and conditions governing gaming machines, including stake, prize and manner of play have remained static. This proposition introduces a broader definition which takes into account technical changes in machines and removes those mechanical provisions that anchor the gaming machine to what is swiftly becoming a redundant device.
The definition permits machines which differ from reflective or random AWPs in that they are purely software driven terminals. Users may bet on a variety of events the outcome of which is driven by a random number generator which may be operated by an independent third party and located remotely. The terminal accepts a customer’s bet and displays the event and result on-screen in a format that varies in accordance with the type of event chosen.
To a minor degree server based gaming is already offered in LBOs in the form of virtual racing events; however bets are transacted over the counter and the event is open to all wishing to gamble on the outcome but the result is still based on a result generated remotely.
The amendment mandates the Minister to produce written controls in the form of guidance, codes of practice and technical standards; compliance will be a licence condition and cancellation of the licence understood to be a penalty for failure to comply. The Codes of Practice will detail a limitation on the number of machines, stakes and prizes and, amongst other requirements set pay out percentages, play cycles and play processes.
Any terminal or machine offered for play by an operator shall be connected to a monitoring system capable of recording, retaining and replaying information regarding all game play on the machine including all interaction as well as ‘significant events’ such as power failures and so on. This monitoring system shall be fully open and accessible to the Minister and designated officials and the Minister shall have the right to determine the type of monitoring system that operators must install and use.
It will be a requirement for random number communication to be independently audited by a third party. All gaming/betting products offered by the gaming machine must be certificated by an approved independent software testing house. The Minister will approve testing houses / laboratories for this purpose and publish technical standards.
Suppliers of these products must be registered with and therefore approved by the Minister. LBOs cannot offer these products from a supplier who is not registered. Suppliers will enter into an undertaking to guarantee compliance with Codes of Practice, technical standards and further guidance. It will be a licence condition that an LBO cannot offer events/games from an unregistered supplier, equally a registered supplier who breaches the terms of the undertaking and regulatory requirements must cease supply.
In line with the statement of key licensing principles, operators will adhere to a responsible gambling code and ensure information must be present on all machines including contact information for help providers. The Code will insist warnings of excessive gambling must also be displayed. The machines should also provide help pages accessed by use of icon or button. These pages must be accessible at all times. Responsible gambling and literature from approved help providers must be prominently displayed adjacent to these machines. Promotional material for these terminals may only be internally displayed and the content of which should in no way encourage excessive play.
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 all betting offices that have gaming machines as detailed below and reflect the increased regulatory requirement occasioned by the publication of operational principles, technical standards and industry compliance with the same:
LICENCES (Unchanged since 14th March 2002)
Type | Current fee | Proposed fee |
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 |
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. The Commission will assess gaming machine fees on an annual period and keep all publications pertinent to gaming machines under constant review.
Finance and manpower implications.
There are no manpower implications. Financially, the effect of introducing these regulations will increase revenue to the States by approximately £124,000.