Gambling Act 2005 Explanatory Notes

Sections 240 & 241: Use and supply of machines

591.The Secretary of State can make regulations about the way in which gaming machines can operate. It will be an offence to make a gaming machine available for use if the machine does not comply with such regulations.

592.Under subsection (2), the regulations may provide, in particular, for rules about:

  • The method by which payment may be made for use of machine (i.e. whether coins, banknotes, smartcards, tokens or other methods can be used). It is a separate offence, under this Part, to supply, install or make a machine available which can be paid for by a credit card;

  • The nature of, and arrangements, for receiving or claiming prizes;

  • The rollover of stakes or prizes (i.e. the carry over of amounts paid or won to a subsequent use of the machine);

  • The proportion of stakes or sums paid for use which must be returned as prizes;

  • The display of information on or around the machine (e.g. information on minimum age of use); or

  • Any other matter relating to the way that the machine works (e.g. whether it must operate randomly or not).

593.The Secretary of State may also make regulations about the supply, installation, adaptation, maintenance or repair of a gaming machine.

594.The penalty for making a machine available for use, in breach of these regulations, is a maximum term of imprisonment of 51 weeks in England and Wales, or 6 months in Scotland, or a fine up to level 5, or both.

595.Regulatory steps taken by the Commission, and any licence conditions it sets, must not conflict with these regulations. The Secretary of State can also identify matters about which licence conditions cannot be made in relation to machines. The Commission is empowered in Part 5 to set standards for gaming machines under section 96, and regulation of gaming machines is therefore a dual function of both the Secretary of State, and the Commission.

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