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104.—(1) Where—
(a)a person makes an application for a prize gaming permit which meets the conditions in paragraphs (a) to (c) of paragraph 102(1), and
(b)the section 16 permit by virtue of which he qualifies as an existing operator is cancelled,
the licensing authority must reject the application.
(2) Where despite sub-paragraph (1) the licensing authority purport to grant the prize gaming permit in respect of which the application is made, the permit is to be of no effect.
(3) Where the section 16 permit is cancelled after the licensing authority have issued the prize gaming permit in pursuance of paragraph 102(1), the permit is to lapse on the date on which the section 16 permit is cancelled.
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