UK publishes land-based reforms, operators to expand gaming machine offering
Long-awaited draft proposals for land-based casino reforms have been published by the UK government this week. These outline an opportunity for operators to increase their gaming machine count, while also outlining limitations on gambling floor space for casinos.
The UK government’s Department for Culture, Media and Sport (DCMS) sent its draft Casinos (Gaming Machines and Mandatory Conditions) Regulations to the UK Parliament on 12 May. If passed by both parliamentary houses, casinos could be able to increase machines numbers, subject to floor space, from 22 July.
DCMS’ drafts form a package of interlinked statutory instruments that make changes to the regulatory framework for land-based casinos. These cover a number of topics, such as casino size, gaming floor area size and what number of betting positions can be placed in relation to floor space.
The reforms reshape how many machines are allowed on specific floor spaces. For instance, between 380 and 400 square metres would allow for 28 machines. The maximum is 40 within a 500-square-metre floor space.
The draft also states a requirement that casino gambling areas should not exceed 1,500 square metres. If a casino floor’s gambling area is greater than 1,500 square metres as of 12 May, it can not be expanded further.
BCG welcomes ‘modest’ land-based reforms
The UK government concluded a lengthy review of the UK’s gambling laws in 2023 and released a white paper in April 2023. This called for a number of new rules and restrictions to be placed on player activity and operators’ marketing and bonusing measures, as well as some land-based reforms.
White paper recommendations included an easing of casino restrictions and allowing smaller and larger operators to adjust machine counts and offer sports betting.
UK gambling trade body the Betting and Gaming Council (BGC) welcomed the draft reforms, which have long been awaited by the sector. The body campaigned for these changes, alongside casino incumbents like Rank Group.
In a statement to iGB, a BGC spokesperson said: “Much needed reforms on gaming machine allocations and allowing all casinos to offer sports betting should strengthen the sector to better meet the needs and expectations of their customers. Implementing these policy changes will unlock millions of pounds in investment into city centres and high streets.
“The BGC is delighted to welcome these modest, mission critical modernisation reforms, so our members can better meet customer expectations and thrive.”
Rank Group set to add more machines following reform
Rank Group is set to add 882 gaming machines to its UK Grosvenor estate in the coming months, following the release of these reforms.
The operator’s Grosvenor estate consists of 51 venues across the UK that offer casino table games, electronic roulette and gaming machines. Rank Grosvenor estate currently has 1,367 machines, to which 882 are expected to be added.
Rank stated in an investor update Wednesday its suite could be increased to a total of 3,112 machines in the next two to three years.
The operator indicated it would engage with government officials in Scotland to further increase its machine offering there.
Last year, Rank CEO John O’Reilly said the company was in a good position to benefit from the land-based reforms outlined in the Gambling Act review white paper.
“We are well positioned to optimise the opportunities afforded by the UK government’s planned land-based regulatory reforms which will hopefully be implemented through the passing of secondary legislation,” O’Reilly said.
In its third quarter results for the three months ended 31 March, Rank’s Grosvenor casinos were the group’s main source of revenue.
In total, these venues generated £90.4 million ($120.7 million) in Q3 revenue, an increase of 13%. Rank said this was helped by a 14.5% rise in table game revenue and 9.5% rise in electronic roulette revenue. Total revenue for the quarter was £195.6 million ($261.3 million).