Gaming Machines - 'Crane machines' - Commission Guidance issued

In July article 'Gaming machines and the possible re-designation of 'crane machines'' we reported on the possible re-designation of crane machines following the briefing by BACTA, full details of which can be viewed here 

The Gambling Commission have now produced a document to reinforce the message that certain types of machine currently operated as skills with prizes (SWPs), with a maximum stake of £1 and £50 non-monetary prize, should be correctly labelled as category D non-complex crane grab machines. 

Albeit the majority of machines of this nature are operated as cranes within adult gaming and family entertainment centres under the category D stake and prize limits, the Commission have noted that there has been a recent trend whereby they are being offered to the public, particularly children, purporting to be a skill machine as opposed to a gaming machine without the necessary permissions to do so. This occurs in pubs, shopping centres, motorway service stations and other similar venues. 

Machines which are capable of being used as a gaming machine, whether or not they are currently operating as a gaming machine, are classified as a gaming machine. 

For example, a machine fitted with a compensator, which allows it to be converted from a skill machine to a gaming machine, is classified under the Gambling Act 2005 (s 235) as a gaming machine. Machines utilising a mechanical arm, or similar device to select a prize and which employ a compensator unit to determine the percentage pay-out of the machine, need to be clearly marked as a gaming machine (skill and chance combined). In addition they may only be operated in premises where the necessary permissions are in force. 

Timetable

Anyone wishing to make such machines available to the public should obtain the necessary permissions and where required adjust the stake and/or prizes available accordingly. 

• Where a new permit or a variation to an existing permit is required from the local licensing authority as a result of the clarification referred to above, then the process must be underway by 31 August 2015 and the permit or premises licence must be granted and in place by 31 December 2015.
• Similarly, an operator, that is currently supplying or maintaining these types of machine on the assumption they were SWPs, must apply for an operator’s licence by 31 August 2015.
• Where there is no possibility that the permission will be granted the machine(s) should be removed from site immediately

Finally, when the appropriate authorisations have been obtained, the only requirement needed to make existing crane grab machines compliant with the regulation and the Commissions technical standards would be to include a display notice on the machine stating that it is a category D gaming machine with the proviso that the stake/prize does not exceed the statutory limits of £1/£50 respectively and that prizes are totally non-monetary.

The full Gambling Commission document which includes examples of crane-type machines can be viewed here.

We again stress the deadline for the process to have commenced is 31st August 2015. If you require any further information in respect of the above or require assistance in obtaining the appropriate authroistations please do not hesitate to contact one of our solicitors.