Measures relating to the land-based gambling sector
They also said that there should not be a maximum transaction limit on Category D crane grab machines. For example, a person leaving a gaming machine to go to an ATM will be required to enter their PIN. It was also raised that these machines can be converted to adapt a card reader for contactless payment, but adding a chip and pin device for every transaction in most cases would either not be technically feasible or cost effective. Respondents from the pub sector also raised issues with verification for each transaction on Category D crane grab machines.
Changes and effects yet to be applied to the whole Act associated Parts and Chapters:
Respondents in favour of sports betting pointed to evidence of casino customers placing sports bets via mobile devices while in casinos, with casinos being an environment in which people habitually watch sport. Very few responses were received by operators who hold more than one premises licence at the same location, but the majority of these indicated that they would not look to take up the maximum entitlement of 80 machines per licence were it to be an option. When asked about the likely impact of the proposed changes, if a new regime were to take effect with the proposed new maximum of 80 gaming machines, the majority of operators (88%) stated they would look to move onto this regime. These respondents also suggested that increasing the availability of gaming machines will not make customers more likely to take breaks, due to the prospect of other customers taking over their machine and claiming their ‘perceived winnings’.
From the early days of underground gambling dens to the modern era of licensed casinos, the UK has witnessed significant changes in the way casinos are regulated and operated. The ban took effect on 14 April 2020 and applies to nearly all online and land-based gambling establishments. Another measure aimed primarily at online operators is the ban on gambling with credit cards. All online casinos must participate in the multi-operator self-exclusion scheme GAMSTOP, the UKGC announced in January 2020.
The same principle would apply for in-fill machines and tablets. By contrast, industry responses argued that Option 2 would be highly restrictive for many operators and would overall provide less commercial flexibility than is currently available under the 80/20 ratio. This is a necessary objective to help mitigate against gambling-related harm. Therefore it is likely that increases in Category B machines will lead to slight increases in sessions with greater losses. In considering gambling-related harm we were attuned to the various perspectives provided by respondents.
- The UK government has been actively reassessing its approach to casino regulation, aiming to strike a balance between consumer protection and industry growth.
- The more recent data from the Gambling Commission’s quarterly telephone surveys suggests that in the year to December 2022, 44% of surveyed adults had taken part in at least one gambling activity in the previous four weeks (29% excluding those who only played the National Lottery).
- The Commission can also investigate and take action against gambling sites and operators which are illegally targeting the British market without a licence.
- They argued such tools can put too much responsibility on the individual gambler and are therefore unlikely to be effective for those in the grips of an addiction, and may even backfire in increasing the guilt of those participating in harmful gambling.
- The processing is necessary for the purposes of the legitimate interests pursued by the controller or by a third party (except where such interests are overridden by the interests or fundamental rights and freedoms of the data subject which require protection of personal data)5.
Their speed (no more than 50 spins in an hour) is much closer to a live roulette wheel than any online or gaming machine roulette game. Casinos may not offer (other than on a gaming machine) virtual casino games where random number generation (RNG) technology would be needed (e.g. to replicate the cards being dealt in blackjack or baccarat). We also note that other casinos in London also transact with the customer group of high-end casinos, but have a wider customer base too, for which this machine would not be intended. The measure would also bring Great Britain’s casino experience more in line with other gaming jurisdictions, with sports betting being an expectation for international visitors. The four high-end casinos that this issue primarily affects contributed between £80 million to £100 million per annum in tax revenue to HMRC prior to COVID-19, and an industry report in 2017 indicated an additional £120 million GVA in tourism spend from casino visitors and those accompanying them. We propose to amend the 2005 Act when Parliamentary time allows to remove the prohibition on the giving of credit in land-based casinos.
Industry Response and Compliance Challenges
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Casino licence holders making changes to their gaming machine provision are expected to reflect these changes in their MLTF risk assessment and consider whether their policies, procedures and controls need updating. The legislative changes also introduced changes to gaming machine entitlements for converted casino premises. The Commission expects casino licence holders who introduce betting activity to update their MLTF risk assessments, considering all relevant risks and taking into account the betting sector risks published in the Commission’s risk assessment. Licence holders should consider whether, as a result of the changes and gambling facilities offered, an operating licence (OL) variation is required with regard to fee category and/or the licensed activities being offered (such as betting). Arianne has a wealth of experience in the gambling sector with a focus on online gaming and betting and she regularly advises clients domestically and internationally.
From the early days of underground gambling to the modern era of licensed casinos and online gaming, the UK has continually adapted its regulatory approach to meet the needs of a dynamic and evolving industry. Each category is permitted in specific types of premises, with Category A and B1 machines available “only in the highly regulated environment of casinos“. These casinos were licensed by the Gaming Board of Great Britain and had to operate as members-only clubs where no more than 10 gaming machines could be installed. Given the largest cost to business is purchasing and installing new gaming machines, which is linked to the overall size of casinos, the IA explains that this cost is likely to increase with the size of the business.
This would mean that an operator licensed overseas could face regulatory action in that jurisdiction for operating without a licence in Britain. In particular, they are increasingly targeted at people who have self-excluded via GAMSTOP and therefore are unable to gamble with licensed operators. The enhanced approach to monitoring operators will provide it with a comprehensive view of the operators that are and are not complying with the rules in a timely manner. It will conduct a review of the status of customer funds protection across the remote industry to help inform consideration of whether further strengthening of requirements is necessary. As part of the Commission’s Review of Online Gambling (2018), a package of work was undertaken to assess the risks and options around customer funds. Licensees are required by the Commission to provide information to customers about whether customer funds are protected in the event of insolvency, the level of such protection and the method by which this is achieved.
Similarly, the existing rigorous checks on sources of funds for operating licence applications ensure standards are not undermined. The regulator’s case-by-case contentment would be contingent on assurances that adopting cryptoassets would not pose any risks to compliance. As the ‘Key Event’ reporting requirements on operators extend to any changes to payment systems within 5 days, cryptoassets cannot be adopted as a way of accepting customer deposits without the Commission’s notice. Cryptoassets also have implications for operators balancing liabilities from open bets, and can be disadvantageous to consumers because of wait times and fees. There have been no instances of licensed operators making this declaration and accepting deposits directly in cryptoassets.
A more substantial role for the Commission in directly commissioning research to inform its regulatory role will also produce further progress in building the evidence base around gambling, supporting our understanding of gambling-related harms and ways to prevent them. Online members of BGC offered to pay 1% of GGY, matching the commitment of the four biggest operators in 2019, and land-based casinos to pay 0.4%. A licence condition requires operators to make an annual financial contribution to one or more organisations which deliver or support research into the prevention and treatment of gambling-related harms, harm prevention approaches, or treatment for those harmed by gambling. Increasing the amount of data that the Commission collects from operators will improve its capability to regulate the gambling industry in a modern way and will allow it to identify compliance issues at an earlier stage. Unlicensed sites can pose a variety of risks to customers, including allowing access to those who have self-excluded from gambling through GAMSTOP. The Commission will build on the expansion of datasets it collects from operators for regulatory purposes to develop a rich resource that will strengthen the evidence base on gambling and inform data-led regulatory action.
(3) The maximum number of separate betting positions that may be made available for use at any time in relation to betting machines is determined in accordance with the table below. 5.—(1) This paragraph applies to all premises in respect of which a converted casino premises licence has effect. (b)the converted casino premises licence is not varied under section 187 of the 2005 Act(4) so as to relate to premises to which it did not relate on that date. (3) Sub-paragraph (2) does not apply to premises in which the floor area of the gambling area of the casino was 1,500m² or greater on 12th May 2025 provided that, after that date— (5) No gambling is permitted in the table gaming area of the premises other than gambling by way of table gaming. “(1) This paragraph applies to all premises in respect of which a converted casino premises licence has effect.”;
Under the new rules, financial penalties paid by British gambling operators would be paid directly to the government’s accounts, rather than being directed to charities and research bodies. The betting industry alone is reported to contribute £6 billion as of January 2010, 0.5% of GDP. Publicans must also be vigilant in ensuring that their customers do not pass betting slips between each other but only bet for themselves. Until the Gambling Act 2005, the Betting Gaming and Lotteries Act 1963 prohibited « betting and the passing of betting slips » in licensed premises, that is those licensed to sell alcohol. The commission’s site has details of both licensed operators and applicants.
We think that this 30 second transaction time, coupled with the other player protection measures that we are proposing, should ensure that the use of direct debit cards on a machine has a similar level of friction to playing with cash. Following 30 seconds, the player would be able to start depositing money onto the machine. We would suggest that the 30 second period should start from when the machine has read the card and approved the payment. Some respondents stated that any transaction time should at least ensure a break from the machine that is equivalent to the time it takes to access additional funds from an ATM. Responses varied on the length that the transaction time should be, with industry broadly agreeing on 30 seconds and non-industry respondents proposing either 90, 120 or 180 seconds. Our aim throughout the development of this policy has been to replicate the experience of playing on a machine with cash and the deposit and committed payment limits play an important role in the current customer journey.
Particular concern was raised in some submissions to the call for evidence that free bets or other promotional offers might encourage harmful engagement with gambling both in the present, and following a period of abstinence, and this was reflected in some of the most robust evidence available. Online gambling operators, like many other technology firms, have developed sophisticated means of segmenting their audience and keeping key customers engaged. The same study found a similar but much less pronounced trend for other advertising (influencing 3% of the ‘non-problem/low-risk’ group versus 9% of the ‘moderate/problem’ group), indicating the particular risk posed by direct marketing to those who are experiencing harm from their gambling.
Such checks include providing proof of income for large deposits, affordability checks and answering questionnaires about how gambling affects their daily life. To realize this, bookmakers are required to ensure that online wagering promotions are not aired to minors. The Committee of Advertising Practice, which is responsible for penning advertising codes in the UK, announced new rules aimed at protecting children under the age of 18 from content promoting gambling. By 2013, the UK media regulator Ofcom reported that this approach had led to a seven-fold increase in the number of gambling ads that were aired on the TV. According to The Guardian, the industry actively encourages VIPs to gamble more by providing them with free gifts. Simon Stevens, Chief Executive of NHS England, pointed out in 2019 that the industry spends £1.5 billion a year on marketing but under £10 million to picking up the health consequences.
This is one of the strongest consumer protections embedded in the UK casino regulations. If you are asked for affordability documentation at a UKGC-licensed casino, this is a legal requirement — not optional. Automated checks use open banking data and credit reference information. For most recreational players, the the operators above changes are largely invisible day-to-day.
The legal age for lottery is different than other gambling forms. No one under the age of 18 is allowed entry into a brick-and-mortar casino. Casinos – There are multiple brick-and-mortar casino establishments in the United Kingdom offering varied games like baccarat, blackjack, poker and more. While bingo is considered more of a game of leisure and chance, it is still popular amongst online gamblers.
This will avoid duplicating the earlier work on online slot design, reduce unnecessary complexity in our regulatory framework and retain flexibility for future product innovations while also efficiently curtailing harmful game design innovations. For example, online roulette shares some structural similarities with online slots in being a random number generator casino game which allows for relatively rapid, intense and repetitive play. This disparity is unlikely to be commensurate with the risk which other products, particularly some casino games, pose to consumers. While we are confident that the data-driven system of account level protections has been improved and can be improved further, we also note that it is primarily reactive; interventions are largely only triggered when at least some signs of potentially concerning gambling behaviour have been detected. This would reduce the opportunity for those experiencing gambling problems to exacerbate harm by avoiding safer gambling controls and limit the scope for potential harm to affected others.
While the evidence of a clear causative relationship is limited, there is sufficient evidence of an association between higher staking on slots and identified risks of harm to justify action on a precautionary basis as part of the wider package of protections. Finally, the operators considered in this data request all have different approaches to ascribing risk scores, so findings will vary by operator. The April 2021 data request particularly sought to understand the association between staking behaviour and harm (measured through operator assigned risk score as the best available proxy — see Figure 8 below).
We propose to permit casinos to offer sports betting alongside other activities and will take steps to free up unused 2005 Act casino licences where there is no prospect of development for reallocation to other local authorities. The 2005 Act sets out a range of restrictions based on the assumption that restrictions on supply (for example, casino numbers and gaming machine availability) were an important protection. The Gambling Commission provided advice highlighting the low test purchasing pass rates for gambling machines in alcohol licensed premises. Responses to our call for evidence from the on-course betting industry emphasised that since 2019 it has taken a number of steps to raise standards, including improved training and staff processes, increased test numbers at venues, and focusing on events where children were more likely to attend. While we acknowledge the views of people with personal experience of gambling harm, banning all Category D machines would disproportionately affect small businesses reliant on this trade in some of the UK’s most deprived communities. Conversely, on a wider population basis there was limited evidence to suggest that Category D slot style machines were serving as a primer for future problematic engagement with gambling.
According to data from Health Survey England from 2012 to 2018, 25.7% of those who played on slot (electronic gaming) machines were classified as at-risk gamblers. We will use the responses to this consultation as well as wider engagement with the sector to gather data to estimate the likely uptake of additional machines by casinos. 1968 Act casinos will only be eligible to site more than 20 machines if their gambling area is at least 280sqm. The number of additional machines that a 1968 Act casino will be entitled to will be determined by the size of all three different areas that have been outlined above – the total gambling area, the table gaming area and the total non-gambling area. For 1968 Act casinos that access the new machine entitlements, we propose that the mandatory licence conditions remain aligned, so that only areas that comprise 12.5% of the minimum required table gaming area can be taken into account in determining the table gaming area.
CIAs for alcohol licensing also cannot include considerations of demand, which would be consistent with section 153(2) of the Gambling Act 2005. An option suggested by licensing authorities and the Gambling Commission was to introduce cumulative impact assessments (CIAs) as used in the Licensing Act 2003, which created CIAs for alcohol licensing. It would also like customers to be able to choose to place a bet when they wish rather than pay for a fixed number of bets up front via the participation fee.
We will amend these regulations so that gaming tables where staff are not present and the player operates or controls the gaming apparatus are also excluded for these purposes. Furthermore, the regulations stipulate that real equal chance gaming tables (e.g. poker) are not considered as gaming tables for the purposes of section 172(3) to (5) of the Act. An example of a wholly automated gaming table is an automatic roulette wheel into which the ball is inserted not by a human dealer but at regular intervals by the mechanism itself, and bets are placed at touch screen terminals. Currently, the Gambling Act 2005 (Gaming Tables in Casinos) (Definitions) Regulations 2009 provide that a wholly automated gaming table is not a “gaming table” for the purposes of s172(3) to (5) of the Act. However, in updating the regulatory framework we intend to ensure that if the preferred setup of a casino changes in future, an appropriate balance of product remains – both in terms of space and product numbers.
However, we do not intend on changing any of the requirements placed on operators as we think that the current regulatory framework will ensure that licensing authorities and the Commission are notified when changes are proposed to premises under these circumstances. It will not be possible for a licensee to rely on an ancillary remote betting licence, even where the SSBT offer is alongside a non-remote offer as the ancillary licence is bound to a betting premises licence. The sliding scale will also ensure that there remains a link between gambling space and betting terminals so that the electronic offering in a casino does not overwhelm the live table offering.
Additionally, some gambling products enable charities and other non-commercial organisations such as sports clubs to raise valuable funds. Horse racing in particular has a mutually beneficial relationship with betting, and the levy paid by bookmakers on their racing derived revenue contributes around £100 million a year to support the sport. While many gambling companies do operate overseas hubs, the jobs in this country are geographically dispersed, with not on gamstop hubs of high skill work in areas like Stoke-on-Trent and Leeds. For the majority of people in the Gambling Commission’s research, gambling was just another normal activity which they reported feeling completely in control of. For most people who participate, gambling is a leisure and entertainment activity, as explored in the Gambling Commission’s research into why people gamble and its research into customer journeys. In addition to the approximately 300,000 people categorised as ‘problem gamblers’, there are approximately 1.8 million people in Great Britain categorised as ‘at risk’.
Regulator data shows that there is broadly a good standard of compliance with the existing advertising regulations. Many outdoor media owners therefore apply a ‘100 metre rule’, meaning they will not place certain ads, for example those that promote age-restricted products such as gambling, alcohol or e-cigarettes, within 100 metres of a school boundary. It also requires mandatory inclusion of safer gambling messaging, and has been updated to include the use of adtech to ensure social media ads are only targeted to users aged 25 and over where age verification is not in place, and that ads do not appear where keyword searches suggest vulnerability. The Committees of Advertising Practice (CAP), which set the rules which the ASA enforces, maintain and periodically update a dedicated broadcast and non-broadcast code (which also applies to out-of-home advertising, such as posters and billboards) for gambling and lotteries products. However, the continual growth of gambling marketing since 2005 has not resulted in an increase in gambling participation rates, which were higher overall prior to the Act’s implementation, or in population problem gambling rates which have remained broadly stable.