Land Based Casinos To Face New Gambling Reforms

Andrew Rhodes, the Chief Executive of the UK Gambling Commission (UKGC), has recently addressed delegates of the Bingo Association AGM, shedding light on the Commission’s plans and the implications for land-based stakeholders. With the White Paper’s consultation phase nearing completion, the regulatory body is poised to implement a series of sweeping changes that will redefine the operational landscape for brick-and-mortar gambling.

According to Rhodes, the White Paper’s third consultation phase will place a strong emphasis on land-based gambling sectors, providing a platform for stakeholders to voice their concerns and feedback. This targeted approach underscores the Commission’s recognition of the unique challenges and considerations faced by land-based operators, who have long grappled with the complexities of an evolving regulatory landscape.

“Later this year and likely this Summer, we will be publishing the next round of consultation responses and then moving forward with a third consultation, this time focusing on land-based sectors entirely,” Rhodes revealed, underscoring the UKGC’s commitment to addressing the specific needs and concerns of the land-based industry.

One of the key areas of focus for the upcoming land-based reforms will be the tightening of age verification measures. The White Paper has outlined the introduction of a legal age limit of 18 for certain gaming machines, effectively banning anyone under the age of 18 from playing low-stake Category D slot machines that payout cash.

To ensure compliance, the UKGC is recommending that licensees implement procedures requiring their staff to check the age of any customer who appears to be under 25 years of age, rather than the previous threshold of 21 years. These new age verification requirements will be incorporated into the Licence Conditions and Codes of Practice (LCCP) and are set to come into effect by the end of August 2024.

Additionally, the White Paper’s reforms will extend the scope of personal management licenses, mandating that more roles within land-based gambling establishments require such licenses. This move aims to enhance oversight and accountability within the industry.

Alongside the age verification and personal management license changes, the UKGC is also introducing new duties for gambling operators’ licenses, including a shift from annual to quarterly reporting. Starting in July 2024, all gambling operators will be required to provide the Commission with more frequent and detailed regulatory returns, enabling enhanced data collection and analysis to inform the regulatory decision-making process.

This heightened reporting frequency underscores the UKGC’s commitment to securing “better data and better evidence” to effectively govern and supervise the UK’s gambling landscape, as outlined in the Commission’s new corporate strategy.

One area of concern for land-based stakeholders has been the structure of the UK’s Statutory Levy on gambling harms Research, Treatment and Prevention. As proposed by the Department for Digital, Culture, Media & Sport (DCMS) last October, the levy will be set at 1% of gross gambling yield for online operators, while betting shops and smaller operators will face a 0.4% levy on their gross gambling yield.

The Betting and Gaming Council (BGC) has advocated for a “sliding scale” approach to the levy, aiming to protect smaller independent businesses from the higher fixed costs. While the UKGC’s Rhodes acknowledged the industry’s concerns, he clarified that the final design and implementation of the Statutory Levy will be determined by DCMS, the government body responsible for this initiative.

“When the Government sets out the timetable for the introduction of the Levy everyone will need to pull together to get it established. It will be important to provide certainty for the people up and down the country who rely on those services as well as for the organisations and charities that provide them,” Rhodes stated, emphasizing the need for a collaborative effort to ensure the successful implementation of the Levy.