Legal Affairs

A gaming machine in your hospitality business: this is what you need to arrange

A gaming machine in your hospitality establishment is not permitted just like that: you need a presence permit from the municipality and must meet strict conditions — including a valid hospitality/alcohol license and a high-threshold establishment (a real café or...

Published on November 29, 2021 by MKBjuristen.nl
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A gaming machine in your hospitality establishment is not permitted without further ado: you need a presence permit from the municipality and must comply with strict conditions — including a valid hospitality/alcohol license and a high-threshold establishment (a genuine café or restaurant aimed at adults). You operate the machine through a third party with an operating license, based on an operating agreement — have this thoroughly checked, as not all provisions are in your favor.

Installing a gaming machine is not something you can do just like that; strict requirements apply and you need an operating license. We explain what that entails and why it is better to have the operating agreement checked.

The presence permit

In principle, gambling machines are not permitted in publicly accessible places such as restaurants, cafes, and hotels; for this, you need a presence permit, which is granted by the municipality. Usually, this concerns a permit for high-threshold hospitality establishments: businesses where only the restaurant or cafe business is operated and which primarily target adults. The law allows municipalities leeway regarding their own policy, so the exact rules vary by municipality.

Regulations and restrictions

You must also comply with the regulations. For example, you need a valid catering license (under the Alcohol Act, formerly the Licensing and Catering Act) and you may not engage in any activities other than those of a café or restaurant.

A restaurant offers three-component meals (vegetables with potatoes/rice/starchy dishes and meat, poultry, game, fish, or a vegetarian alternative). Pizzerias, sandwich shops, shawarma shops, and pancake shops generally do not meet this requirement and are therefore not permitted to install gambling machines. Snooker centers, bowling alleys, and nightclubs are also prohibited from doing so, as they engage in other activities. Furthermore, you must primarily attract customers who are of legal age, and rules apply regarding the number of machines and supervision.

The operating agreement

In practice, you engage a third party for installation and maintenance, who holds the operating license — you then only need the presence permit. As a hospitality entrepreneur, you generally run no risk and share in the revenue. This is stipulated in an operating agreement, usually drawn up by the owner of the machine, outlining the distribution of revenues and obligations.

Pay attention to the other provisions. The owner may demand exclusivity: you may then only install his machines and must, for example, also replace your pinball machine — not always desirable. Also consider agreements regarding (non-)liability and termination. Not all provisions are equally favorable to you.

Frequently Asked Questions

Is every hospitality establishment allowed to install a gaming machine?

No. You need a presence permit and must be a high-threshold hospitality establishment — a genuine café or restaurant (serving three-component meals), aimed at adults. Snack bars and mixed concepts are usually excluded.

Do I need an operating license myself?

No, the operator (the third party) has that. As a hospitality entrepreneur, you need the presence permit.

Why have the operating agreement reviewed?

Because it is often drafted by the vending machine owner and may contain provisions that are not in your favor, such as exclusivity or unfavorable liability and termination clauses.

Have your operating agreement reviewed

The legal experts at MKB Juristen review your operating agreement and point out the risks via the ContractCheck. View our expertise in corporate law or schedule an intake meeting .

Please note: an article provides general information, but your legal situation may turn out differently.

A contract, conflict, or legal risk must always be assessed based on the facts, documents, evidentiary position, and interests. Are you in doubt? Have your situation assessed before you act.

Legal question regarding this article?

A blog provides explanation, but your situation often requires a concrete legal choice. MKB Juristen helps entrepreneurs with contracts, terms and conditions, GDPR documents, employment documents, disputes, and customized legal solutions.

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