12 Cash Transactions
12.1 Gambling Act 2005
This adds detail to the guidelines for Mechanised Cash Bingo (MCB) in the Operator’s Handbook, to the extent that
12.1.1
It is unlawful for a proprietor or any employee to give or arrange credit for gambling purposes, either to finance future gaming or to pay prior gambling losses. It is acceptable, however, to give cash (or tokens, e.g. bingo books) in exchange for a cheque or debit card transaction. Certain formalities must be observed and these are set out below.
12.1.2
Automated Teller Machines (“ATMs”) may be located in licensed bingo clubs and can undertake debit card transactions subject to the formalities set out below. ATMs must not be located in close proximity to the gambling or the gaming machines. They must be so located as to require players to break from the gambling in order to use them.
12.2 Gambling Act 2005 Part 5 Section 81: Credit and Inducements
12.2.1
This section concerns restrictions on the offering of credit and inducements by operating licence holders. Subsection (1) provides that a condition may be attached by the Commission to an operating licence relating to:
a) the giving of credit in relation to the licensed gambling activities;
b) making offers or inducements designed to induce participation in the licensed gambling activities; or
c) being party to arrangements for inducing, permitting or assisting a person to gamble.
12.2.2
In addition to this general condition-making power, subsection (2) provides that holders of non-remote bingo operating licences may not themselves give any form of credit to people using their facilities. Nor may they arrange, permit or knowingly facilitate credit in connection with their gambling facilities. This means that credit cards cannot be used to pay for gambling offered by casino or bingo operators.
12.2.3
Subsection (3) allows cash-withdrawal machines (ATMs) accepting debit cards to be used by bingo operators, provided that:
a) the nature and location of the machines complies with any relevant licence conditions; and
b) the provider of the machine and the gambling operator are unconnected, and no payment is made or received in connection with the machine.
12.2.3.1
Section 255 (4) defines “credit” to include any form of financial accommodation and the acceptance of payment of a fee, charge, or stake in anything other than cash, cheque or debit card payment is considered credit.
12.3 Payment Services
In the 31st October 2016 LCCP release, licence condition (5.1.1) was modified in regard to payment services (see below). The modification highlighted the implementation, review and effectiveness of the appropriate premises policies and procedures and now included digital currencies.
Licence condition 5.1.1
Cash and cash equivalents
- Licensees, as part of their internal controls and financial accounting systems, must implement appropriate policies and procedures concerning the usage of cash and cash equivalents (e.g. bankers drafts, cheques and debit cards and digital currencies) by customers, designed to minimise the risk of crimes such as money laundering, to avoid the giving of illicit credit to customers and to provide assurance that gambling activities are being conducted in a manner which promotes the licensing objectives.
- Licensees must ensure that such policies and procedures are implemented effectively, kept under review, and revised appropriately to ensure that they remain effective, and take into account any applicable learning or guidelines published by the Gambling Commission from time to time.
12.4 Debit Card Transactions
12.4.1
Nothing in the Act obliges proprietors to offer a debit card facility to members. Whether to provide this service or not remains a matter of company policy.
12.4.2
To prevent crime, the operator should ensure that customers wishing to pay by debit card must have:
a) a valid and current debit card which has not been tampered with;
b) a relevant club membership card, if a membership system is in operation; or
c) some form of identification containing a photograph of the customer.
12.4.3
The debit card payment should be authorised by the service provider (e.g. Maestro or Visa). Should a debit card transaction be refused by the bank, the proprietor should not allow the cardholder to write a cheque backed by the card during the same gaming day.
12.5 ATMs (Automated Teller Machines) Transactions
This Code applies to Automated Teller Machines (‘ATMs’), that is automated cash dispensing machines, sited on licensed bingo premises. ATMs must be so positioned within licensed bingo premises that a customer has to physically leave the bingo game or gaming machine in order to use them.
12.5.1
Cash dispensed in an ATM transaction must not exceed the cardholder’s daily limit of cash withdrawals authorised by the card issuing institution. For security reasons, it is advisable that the ATM should be set to prevent more than £1,000 being withdrawn in any single transaction.
12.5.2
It is permissible to charge the customer a fee for providing the debit card facility. Gambling Act 2005 S.81 (3)
12.5.3
Should it become apparent that a customer has been refused an ATM transaction; the proprietor should not accept in exchange for cash a cheque from the same person during the same gaming day.
12.5.4
A notice must be displayed in a prominent position on or near the face of an ATM giving the phone number of a help line for those experiencing difficulty with controlling their gambling.
12.5.5
The Gambling Commission has agreed that a casino or bingo club may use its own funds to stock an ATM that accepts debit cards only.
12.5.6
A standard transaction slip should be available from the ATM at the time of use. The transaction data should be stored by the relevant service provider at the time the transaction takes place. Confirmation of the amount of the day’s transactions should be given automatically the following day by each service provider for the purpose of reconciliation. The actual transfer of funds must occur no later than two banking days after the transaction date.
12.5.7
A transaction statement should be provided to the customer on request at the time of the transaction.
12.6 The Use of Credit Cards
12.6.1
From April 14th 2020 it is illegal for Operators to allow a consumer to use a credit card for gambling purposes. This ban applies to ALL remote and non-remote gambling products, with the exception of non-remote lotteries.