The British Amusement Catering Trade Association (BACTA) has released new advice for pubs and clubs in the UK. Designed to help you understand your entitlements and legal responsibilities, we are urging all our clients to check out this handy guide.
What are a pub’s amusement machine entitlements?
The guide details the entitlements to pubs. Qualifying alcohol licensed premises are entitled to provide two gaming machines Category C or D after notifying your local authority. This is known as Automatic Entitlement. Category C machines are often called fruit machines, one armed bandits or AWPs (amusement with prize machines). Most pubs have category C machines in place.
Machines are usually sited on a rental or profit share basis under contractual agreements with machine suppliers. In order to site more than two machines in the above categories you must apply for a Gaming Machine Permit from your local authority. The Local Authority will consider the application and issue a permit. The permit authorises the total number of machines allowed and is not in addition to the automatic entitlement.
You can only site category C or D gaming machines. Any change in the category of machines sited must be notified to the local authority.
How to stay within the law
- All machines must be sourced and maintained by a Gambling Commission licensed supplier.
- If you are approached to site a gaming machine obtain the machine suppliers full details and their operating licence number.
- Maintenance and repairs can only be carried out by licenced suppliers
- You can contact the Gambling Commission or visit the Register of licence holders to check on licensed machine suppliers. The Register is available to view on the Gambling Commission website
- Machines supplied by an unlicensed supplier or in excess of your entitlement can affect your alcohol licence and lead to prosecution. It is an offence to make gaming machines available to the public without a licence.
BACTA has also offered advice on machine games duty/VAT on machine income.
Machine Games Duty
Machine Games Duty (MGD) is the taxation system for gaming and SWP machines. For pubs MGD will apply to fruit machines / AWP (Category C and Category D machines) and skill with prize machines (SWPs and quiz machines)
- MGD on Category C machines is charged at 20%
- MGD on Category D machines is charged at 5%
- MGD is not payable on Category D machines such as crane grabbers that pay out prizes, the takings are instead liable to VAT
In managed pubs it is the operating company who must register for MGD. In leased pubs or freehouses it is the responsibility of the lessee/ tenant or freeholder. You need to register for MGD with HMRC and they will supply you with a PIN / activation code if you are filing online and a Machine Games Duty Registration Certificate.
Machine suppliers can explain how to register and are likely to ask to see your MGD registration confirmation or will check the HMRC on-line register before supplying you with machines.
You can authorise a MGD Agent to register and complete your returns on your behalf. This could be your machine supplier or an independent accountant. You remain responsible for the tax liability and you need authorisation from HMRC for an Agent to act on your behalf; this is dealt with during the registration process.
Social Responsibility
Finally, the guide offers tips on helping pubs and clubs do their part for society by helping keep crime out of gambling, protecting vulnerable people and ensuring fair and enjoyable experiences.
Comments are closed.