Scotland - Gambling: Fixed Odds Betting Terminals

The Scottish Parliament has commenced an inquiry to consider the level of control of Fixed Odds Betting Terminals (‘FOBTs’) as proposed in the Scotland Bill 2015, which could have huge repercussions upon the gambling industry in Scotland.

The current position is that betting, gaming and lotteries are all matters reserved to Westminster. However, Clause 45 of the Scotland Bill proposes devolving legislative competence in relation to gaming machines authorised by a betting premises licence where the maximum charge for a single play is more than £10. The effect would be that the Gambling Act 2005 would be amended so that Scottish Ministers would be able to vary the number of machines allowed on betting premises. The power, as it is currently proposed, will only apply to applications for new premises.

The call for evidence on inquiry on Fixed Odds Betting Terminals can be viewed here.

A copy of the Scottish Government’s Response is available on the Devolution (Further Powers) Committee on the Smith Commission webpage (see pages 18 and 57) can be viewed here.

However, The Scottish Government is lodging amendments to the Scotland Bill 2015 and in particular it should be noted that Clause 45 of the Bill does not fully deliver the Smith Commission Recommendation 74: “The Scottish Parliament will have the power to prevent the proliferation of Fixed-Odds Betting Terminals”. It fails to do so for two key reasons:

• The powers it provides to Scottish Ministers are limited to betting premises licences only; and
• The powers would only apply to future applications for a betting premises licence.

The Scottish Government’s proposed alternative clause replaces the references to betting premises with a more general reference to gambling premises, thus giving effect to the Smith Recommendation 74. Accordingly, all premises licensed under the Gambling Act in Scotland would be affected including those in Bingo premises, Casinos and Adult Gaming Centres.

Further, the alternative clause does not limit the exercise of the power to new licence applications, therefore, existing premises could be affected and not just new licences.

The closing date for receipt of submissions is 17.00 on Friday 28 August 2015.