2. Group 4 of Schedule 9 to the Value Added Tax Act 1994(1) (exemption: betting, gaming and lotteries) is amended as follows—
(a)in item 1 (exemptions in relation to betting and gaming), for “or the playing of any games of chance” substitute “or for the playing of any games of chance for a prize”;
(b)in Note (1)(d) (matters not included in item 1), for “a gaming machine” substitute “anything which is a gaming machine for the purposes of section 23”;
(c)for Notes (2) to (8) substitute—
“(2) ”Game of chance”—
(a)includes—
(i)a game that involves both an element of chance and an element of skill,
(ii)a game that involves an element of chance that can be eliminated by superlative skill, and
(iii)a game that is presented as involving an element of chance, but
(b)does not include a sport.
(3) A person plays a game of chance if he participates in a game of chance—
(a)whether or not there are other participants in the game, and
(b)whether or not a computer generates images or data taken to represent the actions of other participants in the game.
(4) ”Prize” does not include the opportunity to play the game again.”.
Note (3) to Group 4 was substituted (by Notes (3) to (8)) by S.I. 2005/3328.