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Syllable division derived from spelling — this word is not in the pronouncing dictionary, so no phonetic transcription is shown rather than a guessed one.
on-license is a noun meaning "a license to sell liquor for consumption on the premises". It carries one recorded sense.
a license to sell liquor for consumption on the premises
Definitions, synonyms and semantic relations for on-license come from Princeton University’s WordNet. Commonness is measured against a corpus of everyday English. Full sources and licences.