Compliance
Multi-staking category B cabinets provide customers with the choice of staking at different levels and therefore below the maximum stake permitted. However, over the longer term, some industry representatives have suggested that operators would likely further reduce their number of Category C and D cabinets in favour of multi-staking Category B cabinets. Unlike Option 1, it would be much more difficult for an operator to increase the number of B3 cabinets on their premises by increasing the number of Category C or D in-fills and tablets that they site. The equalising of these machine types may come at significant costs for some businesses.
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In response to the questions as to how much annual funding is needed for administration and enforcement of licences, the average amount stated by licensing authorities was £45,000. The respondents received an average of 2 premises licence applications and held an average of 44 live premises licences, per licensing authority, over the same period. By contrast, the majority of gambling operators, across all sectors (bingo, arcade, casino and betting) advocated for either no increase or a small increase of 10%. This chapter of the consultation received 40 responses, primarily from licensing authorities and gambling operators. This section of the consultation received 46 responses, primarily from licensing authorities and gambling operators. The government will allow direct debit card payments on gaming machines through a made negative statutory instrument, which will also include some of the player protection measures outlined in this chapter, such as the account verification requirement for each transaction.
We intend to place some restrictions on the number of SSBTs to avoid a scenario in which the product offering becomes unbalanced and a large number of these machines are sited in a relatively small gambling area. Where a machine is made available to take bets on virtual races, it is classified as a gaming machine and would therefore count towards the maximum permitted number of such machines. The authorisations required may include a remote betting operating licence (required if customers are to be able to bet via Self-Service Betting Terminals), as well as a non-remote betting operating licence. In order to offer this, operators will be required to hold relevant operating licences from the Gambling Commission. The white paper proposed that all casinos should have the ability to offer betting, should they wish to do so.
(Mandatory response) Yes / No / I don’t know (Mandatory response)Yes / No / I don’t know / Not applicable (Optional response)Open text box (Mandatory response)Yes / No / I don’t know
Casinos that do not site more than 20 machines
- Casinos with multiple licences at the same physical location could site more than 80 machines under the new regime – it is not clear whether the current rules are clear enough to prevent this situation from arising in practice.
- We publish registers of licensed businesses, individuals, regulatory actions and premises.
- A premises licence will not be issued until to an applicant until he holds an operating licence.
- We will use the responses to this consultation as well as wider engagement with the sector to gather data to estimate the likely uptake of additional machines by casinos.
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We propose to move the voluntary commitment into legislation, introducing a legal age limit of 18 on Category D ‘cash-out’ slot-style machines. In order to future proof the gaming machine industry and adapt to modern payment technologies, we are seeking views on a range of player protections that will ensure players can use modern payment methods whilst mitigating the risk of harm. Without intervention, there is a risk that machines could become obsolete as we move towards a “cashless” society. The white paper proposed to reform the 80/20 rule in response to evidence that the current rule does not allow operators to adequately meet consumer demand, while still providing a balanced product offer to customers.
Casinos would not have the option of reverting back to their legacy rights under the existing regime, once they decide to increase their machine allowance in this way. As at present, a 1968 Act casino with a gambling area of at least 200sqm would also need to provide a non-gambling area equivalent to at least 10% of its total gambling area. This relates to ensuring that casinos which share the same building, or adjoin or are adjacent to another casino, are wholly distinct and separate from one another.
We think that this 30 second transaction time, coupled with the other player protection measures that we are proposing, should ensure that the use of direct debit cards on a machine has a similar level of friction to playing with cash. Following 30 seconds, the player would be able to start depositing money onto the machine. We would suggest that the 30 second period should start from when the machine has read the card and approved the payment.
The responses received from the third sector also raised concerns about the potential for increased gambling-related harm to occur alongside greater numbers of Category B machines being made available. We received a number of responses from large UK arcade operators who provided projections on how their gaming machine offer would change under Option 2(a) and 2(b) by comparison to the current situation. Evidence provided for Option 1 suggests that increases in Category B cabinet gaming machines would be moderate in the short-term. The second objective is to ensure that customers are presented with a genuine offer of lower staking Category C and D gaming machines.
Itregulates various forms of gambling, including online gambling, sports betting, casino gaming, lotteries, and others. Many online casinos have multiple licences. While we only ever recommend online casinos that adhere to UKGC regulations on our site, there are a few things you can do yourself to verify a brand’s licence and to keep yourself safe. To keep yourself safe and to keep your gaming experience enjoyable, we recommend that you only sign up and play at duly licensed online casinos. Fees for non-remote Casino 2005 Act operating licences have been based on annual gross gambling yield (GGY) rather than the type of premises licence. An existing Small 2005 Act casino wishes to utilise the new table to gaming machines ratio alongside a reduction in its minimum required table gaming area.
Alcohol licensed premises have an automatic entitlement to up to two category C or D machines upon notification to the Licensing Authority. Subject to the final Parliamentary procedures, the statutory instruments when approved will have the effect of adding new conditions to applicable non-remote casino premises licences seeking to take advantage of the new entitlements. For remote gambling, the Commission issues licences to those operators whose remote gambling equipment is located in the territory of Great Britain. Covers internet casinos, betting websites, online bingo and virtual gaming platforms. Search and verify casinos, betting sites, bingo platforms and gaming operators authorised to serve British players. Search and browse all online casino casino not on gamstop operators holding Gambling Commission licences.
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The Commission’s published Advice to Government recognised this area as a potential example whereby it would be appropriate for requirements to be placed in the Commission’s regulatory framework rather than within the 2005 Act or in regulations. We believe these measures strike an appropriate balance between regulation applicable to modern payment methods, consumer benefits and protection of the licensing objectives. To support the bingo club sector further we will consider exploring the use of primary legislation to provide a clear distinction between bingo clubs and arcade premises. Some operators will benefit from both.
The arcade sector similarly reported that Option 1 and Option 3 would result in the removal of underused Category C and D machines, whilst Option 2 would have no impact or result in increased numbers of Category C and D gaming machines. This relates primarily to underused Category C and D gaming machines. For example, one large arcade operator projected a 20% increase in the number of Category B gaming machines under Option 1, which corresponded to a projected medium increase in GGY.
Anecdotal evidence suggests that for some individuals the option of attending physical bingo premises delivers substantial social benefits which would be lost if the sector is not supported. A healthier land-based gambling sector, able to compete on a more even basis with similar online gambling opportunities, is likely to support local employment opportunities, regeneration effects and contribute to business rates. We will use the responses to this consultation as well as wider engagement with the sector to gather data to estimate the likely change in machine configuration in bingo and arcade venues.
Small 2005 Act casinos will also experience a reduction in their required minimum table gaming area, from 500sqm to 250sqm. Despite respondents indicating a preference for venues to be made to reduce their gambling area, we think this is a fair exemption for the small number of casinos that it will apply to. The exemption for these casinos will apply from 16 May 2024 (the date on which the consultation response was published) and take account of any already submitted expansion plans. With regard to casinos that currently operate with a gambling area of 1500sqm or more, these casinos will be permitted to remain open with their current gambling area. When asked about the reduction in minimum table gaming area in Small 2005 Act casinos from 500sqm to 250sqm, more respondents were in favour of this being applied than opposed. A fairly even number of respondents were for and against the 12.5% rule applying for 1968 Act casinos, whereby any table gaming area would only count towards the minimum table gaming area if it constitutes 12.5% or more of the total table gaming area in the venue.
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As such, any change in the composition of gaming machines which results in a higher share of Category B machines will represent an uplift in GGY for operators. While we have no direct evidence on the rate of gambling harm for those participating on gaming machines in bingo and arcade venues specifically, we can use net expenditure and session length data to consider the possible risks of gambling harm. The rationale for considering this option is primarily to ensure that a truly balanced offer of gaming machines is available to customers following the loosening of restrictions from 80/20. We propose that an operator must notify the licensing authority of their intention to increase their number of gaming machines.
What player protections could be adopted in casinos for those customers participating in sports betting? If you are a casino licence operator, what impact is permitting sports betting expected to have on the Gross Gambling Yield (GGY) of your casino(s)? Should all 1968 Act casinos be permitted to offer sports betting, regardless of size? Therefore, 1968 Act casinos are losing out on potential revenue that might otherwise have been generated if they were allowed to offer sports betting services. Consumers (particularly international tourists) still bet on sporting events via mobile devices while in casinos, irrespective of whether sports betting is permitted or not.
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For example, if a casino had 300sqm of gambling space, its non-gambling area would need to be at least 150sqm. We are mindful of ensuring fairness between 1968 Act and 2005 Act casinos but also to those casinos that are currently operating. Option (3) would not impact any 1968 Act casinos and would give these casinos greater flexibility in the layout of their venues. We are unable to easily increase the maximum size of Small 2005 Act casinos as the legislation requires that Small and Large casinos are classified distinctly, so an overlap between the two categories would be problematic. However, as outlined in our proposals below, there are some difficulties in mirroring the exact restrictions that apply to Small 2005 Act casinos for 1968 Act casinos.
Data was also provided on the increase in session times at busy periods in a 1968 Act casino, compared to a 2005 Act casino of comparable size. Data provided for a London casino over a four-week period in October 2019 showed a clear correlation between average dwell time and occupancy rates. Evidence suggests that this can make customers who have secured a machine reluctant to take a break as they may be unable to play again.
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