The UK government have introduced long-awaited legislative changes that may allow smaller brick-and-mortar casinos to increase their gaming machine numbers significantly.
This potential move is welcomed by many in the casino industry.
The proposed reforms, the Casinos (Gaming Machines and Mandatory Conditions) Regulations, were recently submitted by the Department for Culture, Media and Sport (DCMS) to Parliament. They aim to modernise historical restrictions that have limited the growth potential for casinos under the existing regulatory frameworks.
To circumvent these limited offerings by casinos, many gamblers have turned their attention to regulated online sites where there are hundreds of slot and table games to choose from. Expert analysis by Card Player has uncovered the top UK online casinos where players won’t feel the restrictive laws that govern many smaller land-based establishments.
Under the draft chances, casinos that were licensed under the 1968 Gaming Act could see their gaming machine entitlements double, from 40 to 80 in most cases, as long as they meet certain criteria. This criteria includes a minimum gambling floorspace of 280 square metres and a stipulation that the number of machines must not exceed fice times the number of gaming tables at the establishment. All gaming machines must fall in the B, C, or D category.
The reforms are part of a broader process that is separate from the 2023 Gambling Act White Paper but aligned with it in the call for a more flexible and commercially viable regulatory situation. If the proposed changes are passed by both Houses of Parliament, they’ll take effect on July 22.
The reforms are widely supported by industry leaders, including Rank Group, the operator of the Grosvenor Casinos brand. The company has already announced plans to install 992 additional machines in its 51 venues in the UK over the next couple of years. This will bring its total machine count to 3,112, which is more than double its current number of 1,367.
CEO of Rank Group, John O’Reilly, said that the changes are a long-awaited opportunity to further invest in the business and surrounding communities.
He said:
“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.”
The Betting and Gaming Council has also welcomed the draft reforms, saying,
“The BGC is delighted to welcome these modest, mission critical modernisation reforms, so our members can better meet customer expectations and thrive.”
The DCMS proposal included several statutory instruments that will reshape the framework for land-based gaming. These include new machine-to-table ratios, updated requirements for floor plans, and a cap of 1,500 square metres on gambling areas. Casinos that exceed this cap will be restricted from further expansion in terms of floor space.
Operators are excited to start implementing these changes, however the government has not confirmed a timeline for the passage of the legislation. Even so, the industry is prepared to act fast once passed. Rank Group, for example, has already begun engaging with Scottish authorities to explore expansion opportunities.
The prospect of doubling gaming machine capacity could be transformational for smaller UK casinos. It creates a new opportunity for growth in the land-based sector that has called on policymakers for many years to bring about more flexibility and support.
