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When is gambling commission advice, not advice?

The Gambling Commission recently launched (without any fanfare) some further “guidance” regarding the SWP issue currently facing the industry.

The advice entitled “Is a prize machine a gaming machine?” has an extremely encouraging title but little after the title is either new or encouraging.

The present “working” definition of a “gaming machine” is based upon a convention formed between the machine manufacturers and the Gambling Commission over several years and links back to the Gaming Board. The premises operators who, in good faith, took possession of these now disputed machines having been told they were not “gaming machines” are now caught in the middle of an issue, not of their making; which could have serious financial ramifications.

The guidance differs from the hard line adopted by the HMRC in that the Commission suggests that there are a number of criteria none of which individually is decisive in deciding whether a machine is or is not a gaming machine.

The HMRC have taken a more definite view and have focused upon one namely “Is the game presented as involving a game of chance”.  In the opinion of the HMRC, if the answer is yes then the machine is a gaming machine and the tax consequences flow.  

It therefore appears there is some clear water between the two on this critical point.  

A link to the full guidance can be found here. 

Discussions continue between industry representatives, the Gaming Commission and the HMRC however while this period of uncertainty continues nobody is benefiting.  We continue to watch this issue unfold and will update further in due course.