John Healey (Financial Secretary, HM Treasury; Wentworth, Labour)

The clause is about the definition of gaming machines. It amends the scope of legislation so that all machines capable of being used for gaming are subject to amusement machine licence duty. It will remove non-gaming machines, such as pinball and video machines, from the scope of the AMLD.

The clause defines a gaming machine by reference to section 23 of the Value Added Tax Act 1994. That section will be amended by clause 16, which we will  consider shortly. With stated exemptions, a gaming machine will be defined as a machine designed or adapted for use by individuals to gamble, whether or not it can also be used for other purposes.

The clause ensures that any machine classified as a gaming machine under the Gambling Act 2005 and the VAT Act will pay AMLD from 1 August. Fixed-odd betting terminals, known as FOBTs, and so-called section 16 and 21 machines are included. Those machines are not currently liable to AMLD because they use a remotely sited random number generator. The current definition of a gaming machine, which we update under the Bill, relies on the outcome of the game being generated by means of the machine itself.

The changes in the clause will come into effect on1 August. They will bring the definition of gaming machines more in line with social regulation, technological developments and current industry practice. We have delayed their implementation to give both traders and Her Majesty’s Revenue and Customs time to adjust their systems and to help to ensure smooth transition to the new regime. As set out in the regulatory impact assessment, the compliance-cost effects are minimal. I commend the clause to the Committee.

Paul Goodman (Shadow Minister (Childcare), Treasury; Wycombe, Conservative)

I must confess that I have not during my researches found a machine that would enable me to ask the Financial Secretary whether it is a gaming machine or a non-gaming machine. Given my failure, I have no further issues to raise.

Colin Breed (Shadow Minister, Treasury; South East Cornwall, Liberal Democrat)

The provision is clearly technical to keep up with the technology of gaming and amusement machines. We accept the Financial Secretary’s explanation and are happy to support the clause.