Joint Committee on Statutory Instruments Twenty-Fifth Report


APPENDIX 2

Memorandum from the Department for Culture, Media and Sport

GAMING ACT (VARIATION OF FEES) (ENGLAND AND WALES) ORDER 2002 (S.I. 2002/637)
LOTTERIES (GAMING BOARD FEES) ORDER 2002 (S.I. 2002/639)
GAMING (BINGO) ACT (FEES) (AMENDMENT) ORDER 2002 (S.I. 2002/640)
GAMING ACT (VARIATION OF FEES) (ENGLAND AND WALES AND SCOTLAND) ORDER 2002 (S.I. 2002/642)

1. This memorandum describes the reasons for the changes in the fees described in these Orders.

2. The Orders will enable the costs of administering the controls on gaming and lotteries to be met by income from fees. The Gaming Board and the Department for Culture, Media and Sport review fees every year.

3. The Board estimates that the full cost of gaming and lottery controls in the financial year 2002/2003 will be in the order of £4.4 million. The figures include a 2.6% inflation increase. This is 6% higher than predicted income this year.

4. The National Audit Office published a study of the Gaming Board in June 2000. Its conclusions were endorsed by the Public Accounts Committee of the House of Commons which published a report on the Board on 16 November 2000. They called for the elimination of cross subsidies among various sectors of the gaming industry and lotteries. The different statutory services must be treated separately and fees for each are set to recover its estimated full cost.

5. This was achieved last year and the fees for 2002/2003 have been calculated in line with the NAO and PAC recommendations.

Gaming Fees

6. The Gaming Act (Variation of Fees) Orders cover fees for the bingo industry, the casino industry, gaming machines and registered clubs. The fees in these Orders are calculated on the basis that each of these sectors will meet its own cost. There will be an increase in income from all sectors. The largest sectoral increase is in bingo. Increases in club registration fees are marginal, giving a reduction in real terms.

7. The fee for the certificate of approval which the Board issues to staff in the casino, and bingo industries will rise by 9%. The certificate procedure is designed to ensure that those who work on the gaming floor and /or manage such employees are fit and proper to act in that capacity. The fees reflect the anticipated cost of this work during the financial year 2002/2003.

The National Bingo Game

8. The Gaming (Bingo) Act (Fees) Order 2002 covers fees payable to the Gaming Board by the organisers of multiple bingo (often called "the National Game"). The fees are substantial and are increased this year by 10%.

Lotteries

9. The Lotteries (Gaming Board Fees) Order 2002 covers fees payable to the Gaming Board by the organisers of charity and other lotteries (except the National Lottery). The fees pay for propriety and audit checks by the Board, acting as a guarantee to the public that lotteries are run properly and fairly.

10. Fees paid by the society lottery sector need to rise by 16% to cover the costs by the Board. The fee for registration of a Lottery manager will rise by 61%. This is for the one-off initial cost to companies of registering with the Board to operate society and charity lotteries at a profit on their behalf.

March 2002


 
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