The Ministry of Culture, Media and Sport (DCMS) has issued a response to a consultation on land-based gambling regulations. This response will lift the prohibition on using debit cards for gaming machines.

The consultation response, released today (May 16), is a regulatory reform initiative within the government’s Smarter Regulation plan. This reform is based on the “Smarter Regulation for Growth” policy document published in May 2023.

Last year, the government outlined proposals for discussion in its Gambling Act Review White Paper. While many suggestions focused on the online gambling sector – and aimed to align it with the digital era – some significant measures were outlined for the brick-and-mortar sector.

At the time, the land-based industry expressed dissatisfaction with the unclear timeframe for implementing the measures and the role of the UK Gambling Commission.

The consultation period on the land-based proposals was open from July 26 to October 4, 2023. Based on this, the UK government stated today that it intends to implement five land-based proposals:

Bringing the industry in line with contemporary payment methods

The Ministry of Culture, Media, and Recreation has declared that the proposed prohibition on direct debit payments will be abolished to “achieve a fair equilibrium between contemporary payment methods and consumer concerns.”

Rank Gaming Group applauded the announcement today and stated it would collaborate with the commission to enact the measures to lift the restriction.

Gambling Minister Stuart Andrew, unveiling the decision, clarified that the action would align the sector with modern payment practices.

Andrew stated: “The prohibition on the direct use of debit cards on gaming machines was intended to safeguard players.” “However, since these regulations were established, the use of non-cash payments in society has expanded considerably, and some industries, particularly machines in pubs, are witnessing a decline in business because customers do not carry cash.

“We will assist the industry to adapt to the future by removing this restriction, provided that suitable player protection measures are implemented.”

These player protection measures will be implemented as modifications to the 2007 Gaming Machines (Use) Regulations and the Commission’s Gaming Machine Technical Standards. Specific aspects of these measures – such as minimum transaction durations and responsible gambling information – will be subject to further deliberation.

We are delighted that the government is lifting the restriction on direct debit card payments for gaming machines and implementing robust player protection measures. We will collaborate closely with the Gambling Commission to ensure customers can benefit from this alteration as soon as feasible.

The new two-to-one proportion is a significant development for Rank.
Individuals are pleased with the proposal to modify the proportion of gaming machines.

The DCMS stated they aim to assist the gaming industry, which has encountered difficulties recently, by providing them with greater flexibility to offer diverse game types. This will provide consumers with a wider range of options, including low-stakes machines, and contribute to mitigating the risks of gambling issues.

Rank asserts that the new proportion will enable them to eliminate some of their older machines.

“In land-based bingo halls, the new two-to-one proportion allows clubs to install two B3 machines for every C or D machine. This implies we can introduce approximately 500 additional B3 machines,” stated a Rank declaration.

“This will permit us to discard the antiquated reel machines at our Mecca locations. Overall, the government’s plan will enable us to have fewer machines at our Mecca locations.”

Individuals are also pleased with the proposal to introduce more gaming machines. However, it is up to the casinos to determine whether they wish to implement this change.

In line with the suggestions, the quantity of Category B gaming machines in each location will rise from twenty to eighty, irrespective of the quantity of venue licenses possessed.

It is crucial to remember that sports wagering will be permitted in gambling establishments. Andrew highlighted that this will harmonize the UK’s casino offerings with “global regions.” The quantity of self-service betting terminals permitted in each casino location will be determined using a sliding scale.

It will be considered unlawful to allow minors to utilize Category D machines. Once the consultation is put into effect, inviting, causing, or permitting children or young people to play “cash-out” Category D slot machines will be deemed unlawful.

“This is a significant step to clearly differentiate gambling products intended for adults from low-risk products that children can use (such as claw machines or coin pushers) that do not have cash prizes or are entirely different from adult gambling products,” the DCMS findings indicate.

Andrew explained that this builds upon the voluntary commitment implemented by the British Amusement Catering Trade Association (Bacta) in 2021. This commitment prohibits those under eighteen from using Category D machines at member locations.

Bacta Chairman John Bollom commended Andrew for his efforts in developing these consultation policies targeting the land-based industry.

“This is a positive day,” Bollom stated. “The minister deserves recognition for establishing the conditions for the land-based industry to progress.”

Bacta and its associates have labored diligently for reform, and the advancements achieved are evidence of this dedication. I express gratitude to all Bacta members who participated in this four-year endeavor. Bollum also stated that Bacta will collaborate with the committee to encourage the adoption of cashless gaming.

The department clarified that the price hike is linked to regulating the industry and safeguarding consumers from potential harm. In essence, the DCMS will strive to elevate the maximum operating venue fee by 15%. These levies are employed for cost recovery and empower licensing authorities to enforce legal measures and administrative processes.

Rank’s CEO, John O’Reilly, declared that today’s announcement signifies progress for the land-based sector, particularly in enhancing the player experience.

O’Reilly remarked: “The government’s response to the land-based consultation is favorable news for Rank.” “Should the legislation be incorporated into the statute book prior to the summer recess at the end of July, we anticipate enhancing the customer experience at our venues over the ensuing months and years through a roadmap of investment and improvements.”

“Modernizing legislation is long overdue, thus we are pleased with the progress incorporated in today’s announcement.”

The announcement arrives two weeks after the committee confirmed the schedule for implementing the initial four white paper consultation themes.

These steps will be put into action between August 2024 and February 2025.

Primarily, the commission will initiate a pilot affordability check, one of the most contentious points in the white paper. This trial will run for six months and will not impact consumers during its execution. The commission stresses that it will not be fully implemented until the data exchange process is “smooth.”

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