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'Skill with Prizes' machines - update

Following our news item - 'Skill with Prizes' machines - a 'developing issue'? – published on 02 February 2010, HMRC have recently announced of a review to be undertaken of SWP machines and the games played on them.  As the announcement (which is copied below) indicates that the review is without prejudice to the previous announcement querying the status of certain SWPs where that they are ‘presented as involving an element of chance’, it would seem that currently the position as set out in that statement (of 14 December 2009) still stands (see 'Skill with Prizes' machines).

Statement

Following recent discussions with the gambling industry regarding machines commonly referred to as 'skill with prize' (SWP) machines, the Treasury and HM Revenue & Customs (HMRC), in consultation with the Gambling Commission and the Department for Culture, Media and Sport, will undertake a review of SWP machines and the games played on them for the purposes of amusement machine licence duty (AMLD). In this context the review will also consider the issue of tax arrears applicable to some machines.

When will it report?

The review will report to Ministers in four months, to allow time for discussion with the gambling industry and other interested parties.

Further information

The review is not expected to affect the Gambling Commission’s interpretation of the law in respect of games presented as involving an element of chance, where its focus for regulatory purposes will continue to be games based on gambling themes.

The review is without prejudice to the existing Joint Statement issued by HMRC and the Gambling Commission on 14 December 2009 or to decisions already communicated to the industry on specific games or machines. During the period of the review customers must continue to pay tax and to comply with gaming regulation as usual.

Guidance will follow shortly to waive arrears of Amusement Machine Licence Duty on quiz machines.

26 February 2010 

John Gaunt