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New gaming machines rules announced
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On the 29 January, the Gambling Commission published its first response towards the consultation on gaming machines.
This response sets out the Commission’s final position on the introduction of a licence condition, which would require gambling businesses to remove non-compliant gaming machines from licensee premises upon receipt of a written notification from the Commission.
The new licence condition will come into effect from 29 July 2026.
We aim to publish our responses on the remaining proposals in the Summer after the Commission has concluded consideration of responses and supplementary data, research and evidence reports submitted by stakeholders.
You can read more about our consultation response here: January 2025 - Gaming Machine Consultation: Part 1 Response
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The Commission has noted an increase in illegal gaming machines being found during premises visits. We wish to remind local authorities that all gaming machines must display the stake, prize, category of machine, responsible gambling information, RTP, and no under-18 signage where appropriate. An Operating Licence from the Commission is required to supply gaming machines, and we have an up to date register of licensed businesses and individuals on our website: Register of gambling businesses. You should ask who supplied the gaming machine, and if the venue say they don’t know, ask them who empties the machine or who they call if it develops a fault.
If you find an illegal gaming machine, you should always follow your own Enforcement Policy, but you can consider:
- Reviewing the LA03 Premises Licence (prevention of crime and disorder).
- Prosecution for the relevant criminal offence (s37 Gambling Act 2005).
The venue should return the machine to the supplier, and it is recommended you follow up your visit with a letter to the premises.
Please report illegal gaming machines and illegal supply to the Gambling Commission at intelligencereports@gamblingcommission.gov.uk. Your report should include the following:
- address of the premises.
- the name of the manufacturer (if available).
- game title.
- the stake and prize stated on the machine (if available).
- any available contact details for the supplier.
- photographs of the machine showing any information displayed, title, and where money/cards are inserted and winnings or tickets are ejected.
If you require advice about a gaming machine, please email gclocalauthority@gamblingcommission.gov.uk.
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Local authority training webinar
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Thank you to everyone who joined our webinar on betting and poker for Licensing Authorities on 10 February. We were delighted to welcome more than 550 licensing staff to the session, and the level of engagement throughout was excellent. We received a wide range of thoughtful questions, and the feedback from attendees has been overwhelmingly positive.
Because the session included discussion of enforcement protocols, we were unable to record the event. However, we can provide copies of the handouts to any Licensing Authority that would find them helpful. If you would like to receive a copy, please email gclocalauthority@gamblingcommission.gov.uk and we will send the materials as soon as possible.
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Consultation on update to the destination of regulatory settlements
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The Commission has launched a consultation proposing to align the future destination to that of financial penalties and direct regulatory settlements to the Consolidated Fund, which receives the proceeds of taxation and other government receipts which fund public expenditure.
This proposal takes account of the new levy commissioning structures and avoids a dual system or any duplication of work funded by the statutory levy.
The Commission welcomes comments on this proposed update to the destination of regulatory settlements.
Read our consultation and have your say.
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The Commission is seeing an increase in pubs offering 'Find the Joker' games, including jackpots running into several thousands of pounds and rollover-style prize pots. Local authorities should be alert to this trend, as depending on how this game is offered, it might be classed as a lottery and fall within lottery regulation.
What is “Find the Joker”?
Find the Joker is a lottery-style game where:
- Customers buy tickets to be entered into a draw for the chance to select a facedown playing card
- A draw takes place with the winning customer invited to choose one of the facedown playing cards displayed on a board
- If the chosen card is the Joker, the player wins the jackpot
- If not, the jackpot often “rolls over” and grows week by week
Because players pay to enter and prizes are awarded wholly purely by chance, this offering of Find the Joker is a lottery product. Lotteries are illegal unless they fall into one of the categories permitted by law.
Pubs cannot run commercial lotteries and may only offer customer lotteries or incidental lotteries, subject to meeting the requirements for that type of exempt lottery, each with strict conditions.
Customer Lottery (on‑premises only)
A customer lottery is a lottery run by a business for its customers, and it cannot make a profit. It is only exempt from regulation if all the following conditions are met:
- It can only be promoted by the occupier of the business premises
- Only customers on the premises may take part (no online or text entries)
- Tickets must only be sold to customers aged 16 and over.
- Advertising must be on the premises only and cannot be sent to any other premises.
- All tickets must cost the same price
- No prize may exceed £50 in value
- No profit can be made from ticket sales, and they cannot be used for fundraising. All the money raised must either be used to pay for prizes or used to cover costs of running the lottery.
- No rollover of prizes from one lottery to another is allowed
- Tickets must not be transferable and must be voided if transfer is attempted
- No more than one draw per seven days
- Tickets must be a physical document stating:
- Name and address of the promoter
- Any restrictions for who can and can’t buy a ticket
- Ticket price
- That tickets are not transferable
Incidental Lottery (at events)
An incidental lottery can be held at an event such as a charity dinner, fete, or festival. The event itself can be commercial or non-commercial. No licence or registration is required if the following conditions are met:
- The event must not be held primarily to run a lottery
- The lottery draw must be for a non‑commercial purpose and not for private or commercial gain
- No more than £100 may be deducted from ticket sales for expenses
- No more than £500 may be deducted from ticket sales for prizes (donated prizes are unlimited)
- No rollover of prizes from one lottery to another is allowed
- Tickets may only be sold during and at the event. They cannot be sold before the event
- Tickets can be sold to children
- Ticket prices may vary (e.g., “buy five, get one free”)
- The draw can take place during or after the event. Organisers should make clear to participants when and how results will be announced.
If a Pub Runs an Illegal Lottery
Where a pub provides a lottery that does not meet the legal requirements, local authorities may consider:
- Criminal prosecution
- Removing the entitlement that allows gaming machines and/or equal chance gaming under s284 GA05
- Reviewing the premises licence under the crime and disorder objective of the Licensing Act 2003
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Chase the Ace and similar format games
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The Commission has seen a recent increase in the number of reports of such gambling games being offered in pubs. Some of them offering a large amount of money as a rollover from one week to the next. Therefore, a reminder of the statutory requirements:
Under the Act, schedule 11, part 3 the requirements for customer lotteries include:
- A customer lottery or raffle cannot make a profit so is not suitable for fundraising. All of the money collected through ticket sales must be used to pay for the prizes and any expenses incurred organising the lottery.
- the lottery can only be advertised in the premises where tickets are sold
- tickets can only be sold on the business premises to customers present in those premises
- tickets must not be sold to children under 16 years of age
- no prize can be more than £50 in value (whether in cash, non-monetary prize or a mixture of both).
- no rollover of prizes from one lottery to another is permitted
- A draw cannot take place with seven days of the previous draw
- tickets must show the name and address of the organiser, the ticket price, any restrictions as to who may or may not buy a ticket, and state that the rights created by the ticket are non-transferable. They cannot be a cloakroom ticket and must be in a form as to prove the purchaser is entered into that specific lottery.
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In the coming days, you should receive an email from the Commission informing you that the portal is now open and submission of licensing authority returns 2025/26 are due.
The email will contain further information on how to submit your return, why we need your data and where the results are published.
If you require any help in submitting your returns please contact us by email at LAReturns@gamblingcommission.gov.uk
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Useful links and resources
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Some quick guides are designed to give to operators when undertaking visits, others provide an accessible ‘how to’ for licensing staff:
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