Gambling Act Definitions

The Gambling Act 2005 contains the following meanings and definitions, and defines and regulates gaming in two ways:
Licensable (Commercial, or 'for-profit') - All commercial gaming is illegal unless licenced either by the local authority or the Gambling Commission.
Exempt (Non-commercial, or 'not-for-profit') There are provisions within the Act to exempt private and non-commercial gaming and lotteries, subject to strict criteria.

Definition of Gambling (Part 18 Section 339):
All gaming and lotteries are now defined as 'Gambling'. For the purposes of the Act the definition of gambling is:

(a) Gaming - within the meaning of section 6
(b) Participating in a lottery as defined in sections 14 & 15 (paras. a, b, c)
(c) Betting, as defined in sections 9 - 11

Note: Participating in a competition, or other arrangement wherein a person may win a prize, which does not include any of the above, is NOT gambling for the purposes of the Act.

Definition of Betting (Sections 9, 11, and 14):
For the purposes of the Act, 'Betting' is defined as a transaction or the action of making or accepting a bet on:
(1) (a) The outcome of a race, competition, event or process
      (b) Whether something is or is not true
(2) despite the fact that:
      (a) The race, competition, event or process had already occurred and had been completed
      (b) one party to the transaction knows the outcome

and for the purposes of section 9.1 and 9.2 a person makes a Bet if they participate in an arrangement in which:
(a) the participants are required to guess the outcome of any of the matters described in 9(a) and 9(b)
(b) the person is required to pay to participate
(c) if the persons guess is the most accurate, or equally accurate with others, they are to win a prize, or an equal share of that prize, or enter into a class into which one or more prizes are to be allocated.

Definition of payment. Section 11 & 14:
Definition of payment to enter into:
Schedule 1: Betting and prize competitions
Schedule 2: Lotteries

Para 2: For the purposes of the Act, payment is defined as:
(a) paying money
(b) transferring money's worth

Para 3: To satisfy the requirements of the Act, it is immaterial to whom:
(a) payment is made, or
(b) who receives or benefits from the payment

Para 4: It is also immaterial whether the person knows 3(a) or 3(b)

Para 5: For the purposes of the Act, the act of payment does not include any
expenses, or any other costs incurred in respect of:
(a) paying by post or any postal or packing costs thereby incurred
(b) paying by cheque or any processing or clearance costs thereby incurred
(c) paying by bankers credit or debit card or any handling fees thereby incurred

Definition of Prizes Section 14 (4):
A 'prize' refers to any money, articles, or services offered
(a) Whether or not described as a 'prize'
(b) Whether wholly or in part consisting of money paid, or articles provided, to members of the class among whom the prize is allocated

Definition of Proceeds (section 297) and Profits, (section 299):
Proceeds shall be defined as
(a) The sums raised by the organisers in participation fees, sponsorships and other accruals paid to the person organising the gaming, minus
(b) other costs that may be reasonably incurred in organising or providing facilities for gaming.

Definition of Advertising: part 16:
Section 327: for the purposes of the Act a person advertises gambling if
(a) They do anything to encourage one or more persons to take advantage of the gambling event.