Excise Duty Brief 63/09
This Revenue & Customs Brief outlines HM Revenue & Customs (HMRC) policy in relation to an amusement machine playing a game called 'Stacker' and its liability to Amusement Machine Licence Duty (AMLD).
Background
Recent advances in technology and machine design have produced new types
of amusement machines and businesses need updated guidance to help them distinguish
between what is a gaming machine and what is a skill with prizes machine.
Gaming machines are liable to Amusement Machine Licence Duty (AMLD) unless
they fall within any of the exemptions for machines with small stakes and
prizes.
Guidance
The 'Stacker' amusement machine has been marketed in the UK as a skill with prizes (SWP) machine. HMRC believes that the 'Stacker' game satisfies the requirements for a gaming machine contained within s25 of the Betting and Gaming Duties Act 1981 and therefore depending on stake and prize limits considers that the 'Stacker' electronic game terminal is a licensable gaming machine.
A game of chance
HMRC believes that the 'Stacker' game is a game of chance because players are only allowed a very short period of time to react when playing the game and this means that they cannot win the game on the basis of skill alone. The very short time period introduces an element of chance into the game.
Implications
Depending on stake and prize limits, these machines are therefore liable to AMLD.
Finance Act 2009 introduced a new exemption for Gaming machines with a maximum stake of £1 and a non-cash prize with a value not exceeding £50.
This means that 'Stacker' machines will only require an AMLD licence if either the stake exceeds £1 or the value of any non-cash prize exceeds £50.
This policy may affect other games where players are only allowed a very short period of time to react.
What you need to do
If you provide a 'Stacker' machine on any premises you must hold a valid AMLD licence before you make the machine available for play unless the machine falls within any of the exemptions.
If you provide a machine playing a game where players are only allowed a very short period of time to react and are unsure whether your machine is liable to duty, you should consult the Helpline on 0845 010 9000 with full details of the game before making the machine available for play.
Further information
HMRC provides guidance in Notice 454 (October 2007) to help businesses decide whether their amusement machine is liable to AMLD. Exemptions are covered in section 10.
Issued 12 October 2009
