Scottish Government

Links to responses below

Fees consultation response 159001

Fees consultation response 159002

Fees consultation response 159003

Fees consultation response 159004

Fees consultation response 159006

Fees consultation response 159007

Fees consultation response 159008

Fees consultation response 159009

Fees consultation response 159010

Fees consultation response 159013

CONSULTATION ON THE GAMBLING ACT 2005 PREMISES LICENCES AND PERMITS FEES

Analysis of Consultation Responses and Scottish Executive Response

Introduction

1. The Gambling Act 2005, which will be fully implemented with effect from 1 September 2007, replaces most of the existing law about gambling in Great Britain and aims to put in place an improved, more comprehensive structure of gambling regulation. The Act modernises 40-year-old gambling laws and makes licensing authorities (Licensing Boards in Scotland) responsible for the licensing and regulating of gambling premises. The costs of these responsibilities will be met by gambling operators through fees for premises licences and permits. The fees will apply to the various categories of premises, i.e. casinos, bingo etc. and miscellaneous permits, such as gaming machine permissions for pubs and clubs.

2. Department for Culture, Media and Sport (DCMS) Ministers decided in 2004 that in England and Wales licensing authorities will determine their own fees for gambling premises licences but that the Secretary of State will prescribe the maximum fee payable for each category of licence. When determining the fees they will charge, each licensing authority will be limited to recovery of the costs of carrying out their functions under the Act. Fees for miscellaneous permits will be set centrally by DCMS Ministers. The policy in Scotland is that all fees for Licensing Boards will be set centrally by Scottish Ministers with a flat rate for each premises/permit category, aimed at cost recovery. (Permit fees will be covered separately, the remainder of this paper deals with premises licence fees only.)

3. The costs of determining and issuing premises licences and other associated functions (such as inspection, enforcement, hearings and appeals) will be met through a one-off application fee and annual fees. The fees payable for gambling premises licences aim to provide fairness and value for money for the gambling industry. The statutory instrument on the fees will provide a consistent approach to fee-setting in Scotland and the industry will continue to pay a standard fee, irrespective of where in Scotland they are located.

Consultation Exercise

4. The policy proposals underlying this instrument and proposed fee levels issued for consultation on 8 December 2006 to 200 interested parties including local authorities, Licensing Boards, the police, those involved in the provision of gambling, their trade associations, legal interests, club associations, faith groups and gambling help/charity groups. The consultation paper was also posted on the Scottish Executive's consultation website and copies were placed in SPICe. The Executive received 13 responses as at the closing date of 2 February 2007, which can be categorised as follows:

Faith groups 1

Gambling operators/trade associations 6

Police associations 1

Leisure interests 1

Licensing Boards 3

Individuals 1

5. Annex A to this paper lists the 10 respondents that were content for their responses to be made public and the individual responses can be viewed on the Executive's website. Copies of the responses will be available to the public in hard copy at the Scottish Executive Library, K Spur, Saughton House, Broomhouse Drive, Edinburgh, EH11 3XD (0131 244 4565).

6. Of the 13 responses received, 3 respondents were generally content with the proposed fee levels though some raised points of detail. 8 respondents did not agree with the levels, with many providing detailed comments. 2 respondents gave no opinion on the proposed fee levels. The Executive is grateful to those bodies and individuals that responded to this consultation exercise. The main issues raised by respondents followed by the Executive's response (in bold) are set out below.

Main Issues Raised

7. Overall the respondents did not agree with the rationale/methodology used. Many also felt the proposed fee levels were inordinately high and would more than cover Licensing Boards' costs under the new regulatory regime.

The Executive accepts that the way in which the proposed fees were set had some limitations. This was partly due to the fact that the existing and new regulatory regimes are quite different, so estimates had to be made of the greater costs involved in undertaking the full range of new functions under the Gambling Act. Considering the existing and proposed fees together was thus not comparing 'like with like'. Also, the Executive takes the view that some existing fees are unrealistically low and do not currently provide for cost-recovery.

In the light of the consultation responses and having considered all other available information, the Executive has reconsidered the original proposals and the revised fee levels are set out in Annex B. Figures for casinos are largely unchanged from the consultation exercise proposals (apart from for provisional statements), the transitional fast-track fee has gone up but most of the others have been reduced, with the biggest decreases affecting the smaller gambling operators. For instance, the proposed annual fees for licensed betting offices and family entertainment centres have both been reduced by some 30% from the figures set out in the consultation paper.

8. Several respondents commented on the proposals for the first annual fee payable.

In line with the DCMS position, the Scottish regulations require that, where a licence comes into effect on the date on which it is issued, the first annual fee shall be paid within 30 days after that date. Where a licence specifies that it is to come into force on a date after the issue date, the first annual fee shall be paid either within 30 days after the date of coming into force, or within 12 months of the issue date, whichever is the sooner. As proposed in the consultation paper, the first annual fee for new applications will be 25% lower than the subsequent annual fees.

9. Most respondents thought the fee levels should be subject to periodic review, with mixed views on the frequency of review. Many of these respondents felt an independent review was needed to test the robustness of the fee levels.

The Executive agrees that there should be an independent review of the fee levels. This should benefit both the industry and Licensing Boards alike in allowing an independent and transparent assessment of whether the fee levels do indeed provide actual cost-recovery under the new regulatory regime. The Gambling Act will be fully implemented on 1 September 2007 and the fees charged in 2007-08 are likely to be atypical as transitional arrangements will apply. The Executive considers therefore that an independent review of the fee levels should be carried out in Autumn 2008, with a view to any agreed, recommended changes being made to the fee levels for 2009-10.

Conclusion

10. The Executive considers that the regulations will provide a consistent approach to fee-setting in Scotland and the industry will continue to pay a standard fee (irrespective of where they are located), which represents a very small proportion of business costs. The fee levels seek to cover the full costs of administering the premises licensing process. The regulations have therefore been finalised and laid before the Scottish Parliament with a view to coming into effect on 21 May 2007.

Scottish Executive

March 2007

ANNEX A

LIST OF RESPONDENTS

North Lanarkshire Licensing Board

Scottish Independent Bookmakers Association

Association of Chief Police officers in Scotland

British Casino Association

Carlton Bingo

Association of British Bookmakers Ltd

Methodist Church and Salvation Army

Business in Sport and Leisure

South Ayrshire Council

British Holiday & Home Parks Association, Scotland

ANNEX B