DCMS Consultation Outcome – Measures Relating to the Land-Based Gambling Sector
Removing the prohibition on the direct use of debit cards on gaming machines, subject to the introduction of appropriate player protection measures.
Detail of outcome
Published26 July 2023 – Last updated16 May 2024
This response forms part of the government’s smarter regulation programme of regulatory reform measures that began in May 2023 with the publication of Smarter regulation to grow the economy. Smarter regulation is about improving regulation and guidance for businesses across the board, ensuring it is clear, proportionate and does not unnecessarily impose burdens on businesses which restrict innovation and growth.
The Department for Culture, Media and Sport (DCMS) published its gambling white paper in April 2023, which set out the government’s plans for modernising the regulation of the gambling sector. A series of key proposals specifically relating to the land-based gambling sector were outlined in the white paper, including measures to adjust outdated regulatory restrictions applying to the sector.
From 26 July to 4 October 2023, DCMS conducted a public consultation on these measures. Following analysis of the evidence submitted, the government intends to implement the following measures:
Relaxation on casino rules: allowing 1968 Act casinos to increase the number of their gaming machines to 80 if they meet the size requirements of a Small 2005 Act casino and allowing smaller 1968 Act casinos more than 20 machines, on a pro rata basis commensurate to their size and permitting betting in all casinos.
Machines in arcades and bingo halls: allowing a 2:1 ratio of Category B to Category C and D gaming machines in arcades and bingo halls, implemented on a device type basis.
Cashless payments on gaming machines: removing the prohibition on the direct use of debit cards on gaming machines, subject to the introduction of appropriate player protection measures.
Introduction of a legal age limit of 18 for certain gaming machines: protecting children and young people by banning anyone under the age of 18 from playing low stake Category D slot-style machines that payout cash.
Licensing authority fees: increasing the maximum chargeable premises licensing fees by 15%.
Detail of feedback received
We received 87 responses to the land-based gambling consultation. The responses received represented a wide variety of stakeholders, including: researchers, adult gaming centre (AGC) operators, bingo operators, campaign organisations, casino operators, individuals, local authorities, pub representatives and responses from the wider gambling industry. We also received 16 additional responses to a supplementary consultation which was held specifically to gather further evidence on the reform of the 80/20 rule. The majority of these responses came from respondents who submitted evidence to the original consultation. However, we also received evidence form a small number of additional respondents.
In general, responses received from gambling industry respondents typically argued for the most liberalised position across the range of measures outlined in the consultation. Industry responses frequently highlighted the commercial pressures placed on their businesses in recent years – as a result of COVID-19 inactivity and rising energy costs – as a central reason for necessitating greater commercial flexibility. Many also highlighted the changing gambling landscape since the 2005 Gambling Act and the need for new regulation which is proportional to the gambling-related harm risks associated with the sector. By contrast, licensing authorities and respondents from the third sector tended to highlight the risk of increased gambling-related harm as a result of increasing commercial flexibility for businesses. The majority of these respondents argued for measures which tended to be more restrictive of the gambling products available within the land-based sector.
Consultation description
The Gambling Act review white paper published in April 2023 set out the government’s plans for modernising the regulation of gambling in Great Britain. This included a number of measures to adjust outdated regulatory restrictions applying to the land-based gambling sector. Restrictions on supply were originally viewed as an important protection in the 2005 Act, but in the light of the availability of remote gambling the characteristics of products and quality of monitoring have assumed greater importance. The proposals that we are seeking views on include:
Relaxation of casino rules: allowing large casinos to increase the number of their gaming machines to 80, allowing smaller casinos more than 20 machines, on a pro rata basis commensurate to their size and permitting betting in all casinos.
Machines in arcades and bingo halls: changing the 80/20 ratio governing higher to lower stake gaming machines to enable venues to better meet customer demands and save on energy costs.
Cashless payments on gaming machines: helping future-proof the industry by consulting on the player protections needed to remove the prohibition on the direct use of debit cards on gaming machines.
Introduction of a legal age limit of 18 for certain gaming machines: protecting children and young people by banning anyone under the age of 18 from playing low stake Category D slot machines that payout cash.
Licensing authority fees: ensuring that licensing authorities have the funding they need to carry out their licensing and enforcement duties for premises licences.
The purpose of this consultation is to ensure that the government is able to consider a range of views and evidence on this range of proposals before finalising the details of each policy.
The consultation will be open for 10 weeks, closing at 11:55pm on 4 October 2023. We encourage all those with views or evidence on the options above to make submissions via the survey link below by that point.
Following the closure of the consultation, the government will publish a formal response to set out our decision and reasoning before implementing the changes.
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