The UK government has announced a series of crucial reforms to the land-based gambling industry as part of its smarter regulation programme. This follows the publication of the ‘Smarter Regulation to Grow the Economy’ policy document in May 2023 and aims to streamline the regulatory landscape, making it more compatible with modern economic demands.
Released today, the consultation response represents a significant shift in how the gambling sector will operate moving forward. Last year, the Gambling Act Review white paper already set the stage for these modifications, emphasizing the need to update regulations to align with the digital age while equally considering traditional establishments.
Disappointment previously echoed through the land-based industry due to the ambiguous timeline for implementing proposed measures and dissatisfaction with the role of the GB Gambling Commission. This sentiment was voiced during the consultation period, which spanned from 26 July to 4 October 2023.
Now, the government is poised to introduce five substantial proposals for the land-based industry. Among these, the Department for Digital, Culture, Media and Sport (DCMS) highlighted the lifting of the ban on direct debit card payments on gaming machines. According to gambling minister Stuart Andrew, the objective behind this reform is to harmonize the industry with contemporary payment methods without compromising player protections.
“The prohibition on the direct use of debit cards on gaming machines was originally intended to safeguard players,” Andrew elaborated. “However, the prevalence of non-cash payments has soared across society since these rules were initially established. Some sectors, particularly those involving machines in pubs, are losing business because customers no longer carry cash.”
Andrew emphasized that while the prohibition will be removed, rigorous player protections will be implemented. These changes will be amendments to the existing Gaming Machine (Circumstances of Use) Regulations 2007 and the Commission’s Gaming Machine Technical Standards. Some aspects, such as minimum transaction times and safer gambling messaging, will undergo further consultation.
Rank Gaming Group, a key player in the industry, responded positively to the announcement. “We welcome the Government’s commitment to removing the prohibition on direct debit card payments on gaming machines, alongside the introduction of appropriate player protections,” a statement from the group read. The company also expressed their intention to collaborate with the Commission to ensure smooth implementation.
Another major proposal involves amending the ratio of gaming machines to offer more flexibility and address commercial challenges faced by the sector in recent years. DCMS aims to allow customers the option of playing on lower-staking machines, thereby reducing potential gambling-related harm. Rank Gaming Group highlighted that this adjustment would enable them to phase out older, less modern machines from their establishments.
“In land-based bingo, the introduction of a 2:1 ratio in clubs will allow us to increase our current Category B3 cabinet numbers by approximately 500 machines,” Rank stated. “This change will enable us to remove ageing, reel-based machines from our Mecca estate, ultimately reducing the number of cabinets across our properties.”
Additionally, the government plans to increase the number of Category B gaming machines in casinos from 20 to 80 per location, regardless of the number of premises licenses held. This change is optional for casinos but is expected to be widely welcomed. Sports betting will also be authorized in casinos, aligning Britain’s offerings with international norms. A sliding scale will determine the number of self-service betting terminals allowed on each casino site.
Importantly, the reforms will also make it an offense to invite, cause, or permit a child or young person to engage with a ‘cash-out’ Category D slot-style machine. This is intended to draw a clear line between adult gambling products and lower-risk products accessible to children, such as crane grabbers or coin pushers that offer non-cash prizes. This builds on the voluntary commitment by the British Amusement Catering Trade Association (Bacta) in 2021, which banned under-18s from using Category D machines in member venues.
Bacta President John Bollum praised the government’s actions, saying, “This is a good day. The Minister is to be congratulated for creating the conditions that will allow the land-based sector to move forward. The progress achieved is a testament to the hard work of Bacta and our members in advocating for reform.”
Moreover, the DCMS will push through a 15% increase in maximum premises fees. These fees are essential for regulating the industry and protecting customers from harm. They operate on a cost-recovery basis, enabling licensing authorities to carry out enforcement and administrative measures effectively.
Rank CEO John O’Reilly said that the government’s announcement heralds progress for the land-based sector by improving player experiences. “Provided the legislation is on the statute books by recess in late July, we are looking forward to enhancing the customer proposition in our venues with a roadmap of investments and improvements.”
Lastly, the government’s announcement closely follows the Gambling Commission’s confirmation of the implementation timeline for four initial white paper consultation topics. These will be rolled out between August 2024 and February 2025 and include a pilot for the controversial affordability checks. This pilot will last six months, with the Commission stressing that it won’t be active until the data-sharing process is seamless.
Overall, today’s announcements represent significant strides in modernizing the UK’s gambling landscape, bringing it more in line with contemporary practices while maintaining robust player protections.
