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Poker is a game of chance. In 2005 R v Kelly [2008] was held in a landmark case that
poker is gambling and not a game of skill. Court of Appeal upheld that view and
specifically rejected any reliance on poker decisions from the United States.
When
organising an event which would breach the limits prescribed for pubs, such as a
regional or national final, and this is held at a venue other than a licensed casino,
care should be taken that the premises has the appropriate permits and permissions and
conducts gaming in accordance with the regulations.
No charge may be made for
participation in a game of poker. This includes such things as a compulsory charge for
a meal or a ‘voluntary’ contribution for playing.
In pubs, the maximum stake is £5 per
player per game of poker and the combined stakes may not exceed £100 per day. The
maximum prize is £100 per game.
Linked gaming is not permissible. Games of poker are
linked if players are competing in the same game of poker across more than one premises
and the winner of the game gets a prize. Alternatively it is linked gaming if the
amount of the prize is determined by the number of people playing in different games of
poker in different premises.
Poker toolkit - case studies
Commercial poker club
generating huge profits
A commercial poker club in Enfield was regularly generating
weekly profits in the thousands of pounds, and sometimes in excess of £10,000 per week.
Enfield Council prosecuted the club owner under the Proceeds of Crime Act 2002 (opens
in a new tab) which resulted in a conviction for five counts of money laundering and a
15 month jail sentence.
Success in this case was due in part to the early involvement
of all the key participants: officers, local authority lawyers and counsel. That meant
that from the outset of the court proceedings there was a coherent strategy that
everyone understood and could work towards.
The advantage of focusing on the financial
aspects of the case was twofold: it meant, firstly, that the scale of the operation
could be reflected in the sentence imposed; and secondly that the confiscation
investigation could proceed more smoothly. Further details on Enfield Council's
website, including the relevant documents for this hearing.
Sticking to prize limits
for poker in pubs
A joint visit to a pub in Blackburn found two poker tables and
briefcases of poker chips. Players bought in for £5 and player numbers ensured that
prize limits were regularly breached.
The man in charge of the poker, husband of the
designated premises supervisor, confirmed breaches in poker prizes on the premises. The
man was provided with advice regarding poker in pubs and the designated premises
supervisor subsequently received a warning letter from the council
Voluntary
contributions and members of a club
Local authorities working in five different areas
achieved great success in closing down a chain of allegedly illegal poker clubs which
appeared, initially in one local authority area, and then spread to four more, namely
Basingstoke, Southampton, Bournemouth, Slough and Reading.
The poker organiser
initially claimed that these were members’ clubs (and therefore entitled to club gaming
permits allowing unlimited stakes and prizes poker), and then later claimed that it was
offering poker as private gaming and was therefore exempt from the licensing provisions
of the Gambling Act 2005 (opens in a new tab).
The local authorities worked together,
with expert advice and support from the Gambling Commission, to deter the operation and
as a result, the clubs in all five areas closed down. The case raises two important
issues:
the status of ‘voluntary’ contributions in private gaming
the meaning of
private versus public in the context of private gaming played by members of an
allegedly private club.
People joining a club to attend and take part in a ‘private’
event are likely to remain members of the public, particularly if ‘club membership’ is
acquired only a short time before, and in order to, attend the event. The courts will
not readily allow ‘membership’ status to be abused in order to circumvent the law in
this way.
Withdrawal of a club premises certificate and cancellation of a club gaming
permit
A joint visit, involving the police, the local authority and the Gambling
Commission, to a club where illegal poker was allegedly taking place identified
customers who were not members, poker only being played on the premises and rakes being
taken by the house.
The local authority decided to revoke the club premises
certificate, which also allowed the club gaming permit to be revoked and the premises
were closed.
The first decision was to cancel the permit under paragraph 21(1) of s12
to the Gambling Act 2005 (opens in a new tab). Under paragraph 21(4), this does not
have effect until the time for appealing has expired, 21 days after notice of the
decision is given.
The second decision was to withdraw the club premises certificate
under section 90 of the Licensing Act 2003. Although there is a right of appeal under
s181 and schedule 5 part 2 paragraphs 14 and 15 of the Licensing Act 2003, there is no
provision for the certificate to be effectively re-instated pending the appeal. The
decision therefore takes effect once the notice is given to the club.
The consequence
of that is that paragraph 17(2)(c) of schedule 12 to the Gambling Act (opens in a new
tab) comes into effect and this provides that because the club gaming permit was
granted under paragraph 10 (the fast track procedure), it "shall lapse if the club
premises certificate on which the application relied ceases to have effect."
Two months
later those involved in the previous club tried to apply for new permission under a new
name to re-open the club but the local authority refused the application on the basis
of their previous behaviour.
Multi-agency operation to close illegal poker den being
run in a high street shop
Rother District Council, accompanied by officers from Sussex
Police and the Gambling Commission, made an unannounced evening visit to a shop in
Bexhill’s High Street where it was suspected illegal poker was taking place.
Three
poker tables were in use with 19 people playing. There was a £250 gaming machine,
snacks were available on a side counter, and there was also a small counter with a
computer display screen indicating a £20 jackpot prize.
Police identified the owner of
the premises as the same person in charge of the poker that evening, but when
interviewed he claimed he was conducting private gaming on private premises, as no
participation fee was charged, nor did he charge for the food. However, the police and
district council spoke to the other players and their comments did not support the
owner’s account. The owner of the shop was also in breach of a number of other
licensing and premises conditions. The shop owner closed and vacated the premises the
following week.
Poker organisers ordered to pay £32,000 after council prosecution
Two
men have been ordered to pay over £32,000 in fines and legal costs to Kingston Council
following a crackdown on illegal gambling at a London private members’ club. Nicholas
Clark and Luke Flack pleaded guilty to gambling offences at Kingston Crown Court on
Friday 29 April. The offence involved the running of unlawful poker tournaments at the
venue for over a year from November 2013 to December 2014.
The Commission supported
Kingston Council during the investigation Rob Burkitt, the Commission lead for shared
regulation, said “Supporting our partners in the regulation of gambling, preventing
illegal activity and protecting consumers is a vital part of what we do. “We are
pleased with the outcome of this case and hope that it sends the very clear message
that the Commission and our local authority partners will work very closely to prevent
crime in gambling and protect the young and vulnerable.”
Further details are available
in Kingston Council’s press release.
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