In a recent piece for, and first published in, the World Online Gambling Law Report, Anna Mathias examines three Advertising Standards Authority rulings against advertisements by betting companies on Twitter. Click on the link to view the article.
Category: Uncategorised
Conflict Management or Customer Care?
Have you ever thought why some customers are friendly, some are unfriendly, some are interesting and some are exceptionally dull. Well the answer is they are all complex people, they live with all of the pressures of modern life, family, debt, work or the lack of it and they all have their good days and of course their bad days. As a licensed retailer it is our job to ensure that whatever mood our customers arrive in, they leave feeling that they have enjoyed their visit and want to return. In the words of the theme from Cheers “Sometimes you want to go, Where everybody knows your name, And they’re always glad you came; You want to be where you can see, Our troubles are all the same”. A little corny you may think but in essence this is what people young and old are looking for, to be made welcome and have a great social experience. Invariably that is what we all set out to provide for our guests but how and why does it occasionally go wrong? And what is the best way to deal with customers expectations not being met when it all goes a little “pear shaped”?
Thoughtfully trained staff are the key to the customers experience and whilst most of us are aware of this, it is surprising how many staff are either so over trained in the products being sold that they turn into robots who seem to view guests as cattle or so under trained that they have to make it up as they go along. I am sure we all know venues where these strategies exist and still seem to make money but neither method is of any help when things go wrong and customers get annoyed or angry.
A good staff training strategy should start and end with the customer as they are the reason the industry exists and without them we go bust. Staff need to be trained to be proactive in service delivery from the moment the customer arrives using such antiquated phrases as “hello how are you” , “I’ll be with you in one moment” and the use of a smile never goes a miss either.
I am obviously over simplifying customer service but these little things make all the difference to being able to deal with people, if at some point later in their visit the customer is unhappy about something and is looking to share their opinion. They are far less likely to be aggressive about their situation if they have been made to feel welcome when they arrived and have been treated as a valued customer by the happy, courteous staff. Not rocket science I agree but I am always amazed as to why staff who have not exchanged a word with a customer up until they have to deal with a complaint expect anything but antipathy from the customer.
Over the past 12 years Innpacked has delivered thousands of qualifications to the licensed trade but in my humble opinion the most valuable course we deliver to staff is our Conflict Management course. At the mention of Conflict Management most people seem to think it will involve showing staff how to throw out trouble makers using secret body pressure points or disarming an angry stag party with only a banana for protection. This could not be further from the truth! Conflict management is about being proactive and aware of customers and how they are enjoying their evening. It’s about ensuring that conflict never takes place by dealing with issues long before they start and using great customer care as a weapon. We deliver our conflict management course in conjunction with the BIIAB Award for Responsible Alcohol Retail in a one day training package which allows us to make conflict management relevant to serving staff.
If you would like to discuss this course or any of the many other training packages that Innpacked deliver please contact me Ian Crockard on 08000 786 056
Please either click on the following link to see their APLH courses:
http://www.innpacked.com/course/aplh/
or for the whole suit of courses on:
http://www.innpacked.com/courses/
or email us direct on:
Gambling Commission Introduces New Guidance and takes Action Against Operators
In this article Andrew Woods reports that the Gambling Commission have recently taken action against operators in the Gambling sector having recently issued new Guidance for local authorities covering key issues.
Since the Gambling Act 2005 came in to force on 1 September 2007 it is fair to say that the Gambling Commission has received some bad press for its failure to take action and implement the Gambling Act 2005. The Gambling Commission has often argued that one of the main intentions behind the Act is to give local regulators the opportunity to manage the local gambling provision and that the last nine years have probably been a learning curve for both the Commission and local regulators.
Early in 2015 the Commission completed a consultation on revisions to the Licence Conditions and Codes of Practice with a lot of the changes relating to the social responsibility requirements and policies particularly connected to gambling management tools, responsible gambling information, customer interaction and self exclusion. Many of the changes came in to force on 8 May 2015 although a key change: “The drafting of a local risk assessment,” does not come in to force until 6 April 2016. This is to allow operators to look at local policies and prepare appropriate risk assessments. The Gambling Commission are being very clear on local risk assessments in that it will not be sufficient for operators simply to write: “There are no risks or issues and therefore a risk assessment is not needed.” The Commission argue that gambling risks are less visible than alcohol related harm (Article in the Journal of Licensing – November 2015) and that the risk assessments need to be related to the: “Probability of an event happening and the likely impact of that event.”
This firm specialises in both alcohol and gambling licensing and since the Licensing Act 2003 (Alcohol Legislation) was introduced we have seen a significant increase in regulation and cross-departmental co-operation in monitoring alcohol related risk. There are increasingly a number of different groups getting involved, writing reports and preparing statistics which are often used against the trade and it seems clear to me that this is now happening in the gambling industry. I would imagine that the next few years will be a testing time for gambling operators and all gambling operators would be advised to look at their procedures and systems and to ensure that those procedures and systems are: “Fit for purpose.”
We have recently seen the Gambling Commission taking action against operators in the gambling sector and identifying weaknesses in anti-money laundering controls and due diligence systems. The Gambling Commission is clear in that issues identified in recent cases will form the basis of future Commission compliance assessments and that this will include the following; Is customer risk adequately assessed? Is ongoing monitoring undertaken appropriately? Is negative evidence inappropriately relied upon? Are customers source of funds and source of wealth adequately investigated? Are enhanced due diligence and customer due diligence procedures sufficiently rigorous.
It is not going to be sufficient for the industry to argue that the policies and procedures being used are those which have been used for a number of years and without complaint. The Gambling Commission are clearly looking for policies and procedures to match their requirements in 2016 and this will place an onus on the industry to review and update the policies and procedures where necessary. I think it is very important for all operators to share knowledge and policies and procedures to ensure that such policies are up to date and: “Fit for purpose in 2016.”
I have recently been involved in a number of cases and would be happy to undertake a review of the policies and procedures at any time.
Fail to Prepare and be Prepared to be Fail
One of the first things I was taught as a trainee solicitor twenty seven years ago was preparation, preparation, preparation. This was brought in to stark reality yesterday when I appeared at Waltham Forest Magistrates’ Court to represent the London Borough of Newham to defend an appeal against the revocation of a premises licence. The circumstances were that the premises had been visited on three separate occasions since the licence had been granted and on each of those occasions there had been multiple breaches of conditions which had led to Section 19 Closure Notices under the Criminal Justice and Police Act 2001.
During the third visit non-duty paid bottles of spirits were found at the premises. An Environmental Protection Act Abatement Notice had been served in relation to the illegal use of barbecues in the outside smoking area which had led to complaints by residents; and finally, the premises were seen to be open and serving alcohol and food outside their hours of authorisation.
No reasonable explanation was given to any of these breaches or the seizure of non-duty paid alcohol when the review came before the licensing authority and a revocation had been the sanction, with very clear reasons as to why the licence had been revoked being given by the authority.
The premise licence holder appealed the revocation of the premises licence and the matter was heard before the court in Waltham Forest.
The appellant was represented by a firm of solicitors who had instructed counsel to appear on the appeal.
Things didn’t start well for the appellant as neither the appellant or counsel were at court when the matter was called on at 10:00.
At about 10:30 counsel arrived but did not have a hard copy of our paginated bundle and hadn’t prepare sufficient copies of their own bundle for the court and witness box. Always nice when the opposition are so poorly prepared!
The case really went downhill from there as the appellant could not satisfy the court that the five breaches on the Section 19’s had been rectified. One of the highlights of the case was that the premise licence holder gave evidence that the Jagermeister that had been sized by the officers was not ever sold at the premises even though their menu showed Jagermeister on offer for sale at £2.50 a shot.
The case unravelled when the manager of the premises couldn’t even tell the court what the licensing objectives were – even though he said he was receiving training twice a week.
The court did not retire for long before coming back to dismiss the appeal and award full costs against the appellant.
It is rare indeed to be involved in a case where the evidence produced at the appeal by the premise licence holder is worse than the evidence produced at the review hearing.
Any operator who is dealing with an appeal at the Magistrates’ Court should always be focussed on dealing with the issues which brought about the review in the first place. Whenever I’m acting for the premise licence holder in these circumstances we would always focus on all of the issues disclosed in the review documentation and deal professionally with any exhibited inability to promote the licensing objectives.
There is no excuse in circumstances such as this not to get your preparation right so that you can deliver a compelling case to the Magistrates’ Court.
All of the case law surrounding appeals, and in particular the case of R (on the application of Hope and Glory Public House Limited) v City of Westminster Magistrates’ Court [2011] EWCA SIV 31) point to the fact that the burden is placed on the appellant to satisfy the court on appeal that the decision below was wrong.
An appellant will always face an uphill struggle if he is unable to satisfy the court that the issues which brought the review are now resolved and that the operation promotes the licensing objectives.
It was, as always, satisfying to be involved in such a case – even more so when my licensing officer witness gave me a dozen eggs from his chickens to take home.
Pancakes for the kids in the Whur house this morning!
Gambling Commission Consults on Changes to Testing Strategy
On 3 December, the Gambling Commission (“GC”) launched its consultation on proposed changes to its Testing Strategy for compliance with its Remote Gambling and Software Technical Standards. The paper proposes significant and wide-ranging reform which many in the remote gambling sector will welcome. This follows hard on the heels of the GC’s announcement that it has signed up to an international pilot to streamline testing standards.
Both of these developments highlight the need for change. The number of operators who have to comply with the Technical Standards has increased significantly of late, with the requirement from 1 November last year for all operators transacting with, or advertising to, customers in Great Britain to have a licence issued by the GC. This has caught an additional 150 operators, bringing the total number of licensed operators in the remote sector to almost 700. Furthermore, 31 March this year saw the coming into force of Licence Condition 2.2.1, which means that operators licensed by the GC must only use software supplied by a provider that is itself licensed by the GC.
Licence condition 2.3 of the GC’s Licence Conditions and Codes of Practice (“LCCP”) requires compliance with the Remote Gambling and Software Technical Standards, and the Testing Strategy sets out the timing and processes that provide operators with the means to comply. The aim is to promote the licensing objective of ensuring that gambling is conducted in a fair and open manner and the proposed changes seek to simplify and streamline the testing requirements, while at the same time enhancing consumer protection and ensuring that the Strategy is clear, transparent and efficient and that it represents an effective regulatory tool that is fit for purpose.
The first proposal is to simplify the existing “traffic light” system, which classifies the various testing requirements and associated risks linked to various elements of game development as red, amber or green, each of which corresponds to a different level of required scrutiny. The GC is suggesting abolishing the amber category, which will provide greater clarity – those aspects that require independent external testing, and those that can be tested in-house.
Secondly, and in a move that I am sure will be broadly welcomed by the industry, the GC proposes bringing in definitions, and worked-through examples, of software amendments that will be classified as “major” and “minor”. Currently, any amendment to a previously-tested product that affects game fairness, critical files or digital signatures must be re-tested externally. However, it is possible for there to be a modification to critical files or digital signatures, such as, for example, a change to the sound functionality of a game that has no effect on the game’s logic or mathematics, which has no bearing whatsoever on the game’s fairness. The GC proposes classifying such changes as “minor” and these will not need to be externally tested. The only changes to previously-tested games that will need independent external testing are those that do affect the fairness of the game.
It should be noted that this change will not remove the requirement for the pre-release testing of new games. However the GC proposes to simplify the process of submitting the test results for these, and for amendments affecting game fairness, by allowing it to be done via an eService system.
Another proposed change is to cases where a modification to the gambling platform or random number generator (“RNG”) affects multiple games. Currently each and every game would need to be externally tested. The GC is proposing replacing this requirement with one to test a representative sample of the games affected – and it suggests leaving it up to the operator to determine what an appropriate sample is.
In contrast, where a game is rolled out across multiple channels, such as where, for example, a game originally released as a flashgame is redeveloped as HTML 5, the GC is continuing to insist that each channel is separately tested. This is because some bugs are often limited to a particular channel, with resulting impacts on customer fairness.
Currently, there is of course a requirement on operators to ensure that gambling is conducted in a fair and open way. However the GC is not convinced that operators are sufficiently monitoring, recording and reporting their return to player, or RTP, ratio in such a way that both overpayments and underpayments to customers are picked up. It proposes introducing a specific requirement that operators must monitor the ongoing performance of games and that the RTP for each channel for a game must be independently scrutinised.
Because many of the proposed changes envisage leaving more responsibility for testing, monitoring and compliance in the hands of the individual operator, the GC is suggesting introducing a requirement that operators undergo an annual audit by one of its approved test houses, in order to reassure the GC that games are being appropriately tested and deployed in the live environment.
The GC proposes that these changes will not come into force before July 2016, which means that the first annual audits, covering the period from September 2015 to August 2016, would be due in September 2016.
You can have your say on the issues raised by the consultation until 11 February 2016, by email to consultation@gamblingcommission.gov.uk. In the meantime, the GC has announced that it has signed up, together with the regulators in Alderney, the Isle of Man and Denmark, to a pilot looking into instigating a multi-jurisdictional testing framework (“MJTF”). The MJTF would mean that operators licensed across multiple jurisdictions could use one set of testing for all. Although the pilot is currently limited to these 4 jurisdictions and for now is confined to fairness testing for RNGs used in remote gambling, the GC hopes that its scope will be widened in further phases to include game fairness testing, field product certification and information security.
Gambling Commission Consultation on where gaming machines may be played
In this article Andy Woods looks at the latest Gambling Commission Consultation, dated November 2015, on controlling where gaming machines may be played. Any responses to the consultation must be submitted by 22 February 2016.
We end 2015 with an article not too dissimilar to others articles we have written since 1 September 2007, when the Gambling Act 2005 came into effect. The Gambling Commission has issued a further consultation document which in practice relates specifically to the granting and operation of premises licences for betting, bingo, casino and adult gaming centre premises and in particular the ancillary permissions for gaming machines in such gambling premises.
The document runs to nineteen pages and contains a number of very strong hints that the Gambling Commission is trying to interpret legislation in a way in which it should not, and is also trying potentially to create new legislation. The concluding sentence to paragraph 18.25 of the consultation is a very good example. It states “Furthermore the function of the premises should ensure the sum of the gambling activity is not ancillary to some other non gambling purpose”. This is not what the legislation says, is not what case law says and in my opinion is very dangerous advice to be sending out to local authorities. There is no definition of “the sum of gambling activity” and nowhere in the legislation does it say that the gambling activity cannot be ancillary to a non-gambling purpose.
I have obtained a number of bingo premises licences throughout England (in excess of fifty) for premises which also offer snooker and pool. The premises are fully compliant with the Gambling Act 2005 and many of the premises will call themselves “Bingo and pool clubs”. There is a notice displayed clearly telling customers that they are entering bingo premises and at all times these premises comply with the Commission’s Licence Conditions and Codes of Practice (“LCCP”) and the legislation.
With the exception of one application in London which related to a converted sports bar, the Gambling Commission has neither objected to any of these applications nor sought to review any of the licences once the premises have opened. The premises comply. It may well be the case (and I haven’t seen any figures on this) that more people play snooker and pool than play bingo there. It may be the case that more money is spent on snooker and pool than on bingo, and yet the premises are fully compliant with the legislation and are bingo premises. The final sentence of paragraph 18.25 is in my opinion wholly incorrect and completely without foundation and should not appear in the consultation document. The Gambling Commission appears to be saying that if more people go to a premises to play pool/snooker than to play bingo then it naturally follows that the premises are not compliant, which is quite clearly wrong.
This document is obviously a response by the Gambling Commission to the Greene King case. Greene King (a pub operator) applied for an operating licence to the Gambling Commission to allow it to apply for bingo premises licences for some of its pubs. The Gambling Commission refused the application principally on the basis that the premises which would be the subject of applications for bingo premises licences were “pubs” and this was not therefore within the “graduated regulatory framework” (a Gambling Commission term). This decision was overturned on appeal and the Gambling Commission was told to grant the operating licence, although it is right to say that there is a further appeal pending and we await that decision.
The Gambling Commission also refers in the consultation document to the decision in the Luxury Leisure Limited case (GA/2013/0001), in which Luxury Leisure were subject to an operating licence review on the grounds that they were not adhering to condition 16 of the LCCP, otherwise known as “the primary activity condition”. Were Luxury Leisure providing sufficient facilities for betting as opposed to just machines? The Gambling Commission upheld the review and issued a written warning but this decision was overturned by the first tier tribunal. Judge Warren rejected the Gambling Commission’s argument, saying that “the Gambling Commission interpretation inserts into the condition without justification words which are simply not there”. He then noted that there is a difference between existence of facilities and dominance of facilities: “I conclude that Condition 16 does not require a contest between betting and the fixed odds betting terminals as to which is or could be the primary activity at any given time”.
This court found that there was no contest between the activity named on the premises licence and the machines and yet at paragraphs 2.21 and 2.22 of the consultation document there is a very selective spin placed on this decision by the Gambling Commission.
The Gambling Commission then goes on, at paragraph 3.2 of the consultation document, to say: “in order to draw a definitive line under all previous related consultations etc” that it is proposing to remove a list of provisions and guidance documents from its website and to no longer rely on them, or even make them available. Many previous guidance notes and documents are now irrelevant. There is then a debate at paragraph 3.10 on how the Gambling Commission considers it more appropriate to make additions to the Codes of Practice issued under Section 24 of the Act, instead of introducing new licence conditions.
I should like to make it clear that the consultation process used by the Gambling Commission can be a useful tool in assisting it in drawing up its guidance and codes of practice. I should also like to stress that my articles are not always anti the Gambling Commission. For example, I was understanding of the recent changes requiring betting shops to undertake full risk assessments when making applications for premises licences. What I do not agree with is the way in which it would appear that the Gambling Commission tries to introduce new tests which are not set out in the legislation and, in my view, are not supported by the Gambling Act 2005. The proposition that the function of premises should ensure that the sum of gambling activity is not ancillary to some other non-gambling purpose is wholly without foundation and introduces a completely new concept and argument for gambling operators to deal with.
I know Paddy has done a general report on our last twelve months which have been amazing for the business in terms of what has been achieved for all clients. I would just like to wish everybody a happy Christmas and successful New Year.
Woods Whur and Innpacked strategic relationship goes from strength to strength
We are delighted that our relationship with Innpacked is going from strength to strength. Our clients are benefiting from our hook up with them and many are already taking advantage of the direct link into their training packages. We have also had some real success with bespoke packages being tailored to our clients needs.
Innpacked is one of the most successful training companies in the UK hospitality industry. Their client base ranges from large multinationals to individual clients who are just beginning their career. The reason for our hook up with them is their ability to provide training that suits our client’s individual needs. They deliver mandatory courses that vary from the Level 2 Award for Personal Licence Holders, which is required to gain a personal alcohol licence, to the Level 4 Award in Food Safety in Catering. They also design bespoke courses which are written and delivered to our client’s exact requirements, such as employee and management induction courses. Their main goal is to not only deliver quality training, but training that is relevant and adds value to your business or career.
Please either click on the following link to see their APLH courses:
http://www.innpacked.com/course/aplh/
or for the whole suit of courses on:
http://www.innpacked.com/courses/
or email us direct on:
Merry Christmas from the team at Woods Whur!
Andy and I would like to wish everyone a Happy Christmas and a prosperous New Year. It was fabulous to see so many faces yesterday at the ALMR lunch at Old Billingsgate Market. The feeling was pretty buoyant from the trade with hopes of a strong year next year. Let’s hope so…it is always so much more enjoyable preparing for, and delivering, a new application than dealing with enforcement issues when things go wrong.
2015 has been our busiest year to date as we have had an unprecedented level of contested matters to deal with across all aspects of alcohol and entertainment licensing. We have had some resounding successes, making applications against cumulative impact policies, dealt with some pretty heavy reviews and summary reviews and have just won the Fabric appeal which has topped the year off in style.
Our representation of the London Borough of Newham in licensing matters has been fruitful this year. We have undertaken a large number of appeals and were successful in the High Court for them in the challenge to a summary review decision. Working in the East End with some fabulously committed licensing officers is some of the most enjoyable work we do.
The gambling sector has been equally busy across all channels, Andy has had significant successes with casino licensing in London and the online sector has also produced some interesting worldwide projects this year. I would have liked to have visited some of the countries we had to deal with remotely…I couldn’t persuade the client that visits were essential to the project.
We are excited about next year when Woods Whur will celebrate it’s 5th Birthday as we continue to grow. 2016 looks like it is going to start as busy as 2015 is finishing. Already in the pipeline are some really interesting gambling projects, the licensing of the Olympic Stadium in Stratford and a landmark development of Bretton Hall into a 5 star resort, spa and conference centre.
We are also very excited about our hook-up with Innpacked. We are going to be offering some innovative training and consultancy packages in the New Year.
From the whole team at Woods Whur, thank you for your comments on our newsletter articles, please keep them coming in. Have a great Christmas and all the best for 2016.
Paddy and Andy
Woods Whur win landmark appeal against Islington Council!
After a year of preparation and three days in court we have been successful in our Appeal against Islington Council for Fabric, the iconic London club.
By the time the case came to appeal the only live issues were the imposition of two conditions. The first required Fabric to employ drugs detection dogs at the premises for 50% of the time the club was open. The second required the use of ID Scan machines, and for all customers to be “vetted” by the machine. These conditions had been stayed pending the appeal but we had carried out trials of both.
We instructed Gerald Gouriet QC, the leading Licensing Silk, and called evidence from, amongst others, Professor Fiona Measham (the country’s leading academic on the social impact of drug use) and Robert Humpreys OBE (Chairman of PASS).
District Judge Allison allowed our appeal in full. In relation to the drugs dog she said, on the evidence she had heard, Islington were wrong to impose the condition as it would not promote the licensing objectives. The Judge went further and found that the use of a drugs dog could undermine the licensing objectives in a number of unintended ways, including causing drugs to remain in circulation that would otherwise have been confiscated under Fabric’s thorough search procedures.
With regard to ID Scan, the Judge said that there was no evidence that the premises had issues with underage entry/sales; that to deploy it at Fabric would adversely affect the length of the queue, with possible public order consequences; and that it would create problems for the significant number of non-UK customers who would not necessarily carry photo ID. She said that Fabric had no issues with violent crime and disorder, which made ID Scan a more understandable control measure at other premises. She also noted that the ID Scan system Fabric had trialled for 7 weeks had not been interrogated once by the police, and that in 16 years of operation there had only been one incident at the premises where ID Scan might have been of some use in the prevention of crime – although she added that, on the facts, she doubted it would. Again she found that Islington were wrong to impose this disproportionate condition.
Gerald and I have spent the last year wrestling with the issues surrounding this case, and in particular the fact that young people have lost their lives after taking drugs on the way to, or in the venue. After hearing Gerald’s submissions the Judge found that the operator was a beacon of best practice, and she urged Fabric to continue its diligence in what is a difficult environment for all who work in the Night time Economy – where so many young people seem prepared, regrettably, to put their lives at risk by taking unlawful drugs.
As always, it was fabulous having Gerald to lead the team; and I would like to pass on a huge thank you to all at Woods Whur, as putting a case like this together takes a fully dedicated team to achieve a smooth delivery.
We only received the decision yesterday. Gerald and I will write a more detailed article for a future newsletter.
Paddy Whur.
Shadow Licences – A Cause for Concern or not?
I have been involved in a number of cases recently in which the issue of “shadow licences” has been raised. The term “shadow licence” has come into existence after the implementation of the Licensing Act 2003 and is not defined in the legislation. It is a simple way of describing a licence which has been obtained by one party in respect of premises in relation to which another licence has already been granted to someone else. The most common scenario for a shadow licence to exist, and this is particularly true in Westminster, is where a landlord has let premises to a tenant who has a premises licence in their name (i.e. the tenant’s name) and where the landlord then applies for an identical licence in its name, to “sit behind” the licence held by the tenant. The usual reason for this would be to protect the landlord in case the tenant surrenders the licence without giving the landlord any notice or if review proceedings are brought against the licence and the licence is revoked and the landlord has no knowledge of this. (It is of course open to the landlord at all times to serve a notification of interest under Section 178 of the Licensing Act 2003, which requires the local authority to notify the landlord of any relevant developments including applications made in connection with the licence).
The leading case in respect of shadow licences involved Extreme Oyster/Star Oyster Limited and Guilford Borough Council. The High Court decision in the matter was given by Mr Justice Turner on 22 July 2013. The Judge concluded that the applications by the landlord for “shadow licences” were compliant with the Licensing Act 2003 and must be allowed to proceed to substantive consideration and determination in the usual way. A number of issues were looked at during the case.
The High Court considered whether a landlord qualified under one or more of the criteria set out in Section 16 of the 2003 Act as determining “who may apply” for a licence, and it was concluded that it was possible for a landlord to carry on a licensable activity at premises, notwithstanding that the premises had been let and notwithstanding the existence of the landlord/tenant relationship.
It is also interesting to note that Guilford Borough Council took issue with the use of the term “shadow” licence and challenged the assertion that such arrangements are and were commonplace. The judge was of the view that as long as the term is treated as being “no more than a convenient label” and “not one to be accorded any special legal status” then there was no harm in the term being used.
The Council also argued that the existence of multiple licences would make enforcement difficult and that unrestricted numbers of licence applications placed an undue burden on licensing authorities. The judge acknowledged the difficulty in enforcing multiple licences but concluded that that argument was not sufficient to preclude a broad interpretation of Section 16. The Judge specifically referred to the comments by Mrs Justice Black, in the leading licensing case of Daniel Thwaites, that “the Licensing Act 2003 was intended to provide a more efficient, more responsive and flexible system of licensing which did not interfere unnecessarily. It aimed to give business greater freedom and flexibility to meet the expectations of customers and to provide greater choice for consumers, while protecting local residents from disturbance and anti-social behaviour”.
It was also noted by Mr Justice Turner in the Extreme Oyster case that if Parliament had wished to preclude the making of a second or subsequent licence application, then this would have been made clear either in the legislation or the guidance.
In my experience shadow licences are not uncommon, especially in Westminster. The shadow licence can provide some protection to the landlord, without affecting the tenant’s premises licence. If there is a situation where there is more than one premises licence in existence, then it is clear that it is the person who has the right to occupy the premises who can trade their own premises licence. If the tenant has a ten year lease and enshrined in the lease is the right to occupy and trade the premises, the fact that the landlord applies for a shadow licence has no impact on either the tenant’s right to occupy, or on their right to trade the premises. It merely gives protection to the landlord, should unforeseeable circumstances arise.
