By Edwin Ford
The draft proposals, within the White Paper, were first introduced for consultation in April 2023 and the findings of which, came into the public domain in May 2024. It was designed to review and implement a series of updates to the somewhat outdated 2005 Gambling Act. Originally it emerged as a response to the substantial growth in the online-gambling landscape. That is a sector that still is continuing to grow in both size and innovation. This, at the time, was not seen or anticipated by its regulative authors.
In over a decade little has changed in the casino land-based sector and operators are still playing catch-up with their online counterparts. However, change could be on the cards, as the proposed reform is aiming to modernize the current, outdated framework, which governs said brick-and-mortar casinos, with a target to balance innovation with economic growth.
With the land-based casino sector poised for transformation, below is a snapshot of the reforms the operators are currently gearing up, hopefully to implement in 2025.
Slot Machines
Currently there are two types of casino licenses, those that originated under the 1968 Gambling Act and those created by the Gambling Act of 2005. The 1968 Act casinos currently can only operate 20 machines. The anticipated change is to bring said 1968 Act casinos in line with the Small Casino Category of the later-licensed 2005 Act operations. This will bring greater coherence to the casino-licensing system by allowing 1968 Act casinos of a certain size to have the same gaming-machine allowance as Small 2005 Act casinos, subject to the same machine-to-table ratio of 5:1. All of these operations must meet the size requirements, proportionate to their overall size and non-gambling area.
Sports Betting
Also, to fall in line with their online counterparts, all brick-and-mortar casinos will be allowed to offer betting, which was previously restricted to the 2005 Act casinos only. However, since we await how this will be implemented with the current size restrictions including non-gaming zones, it is probable that such an offer will be via self-service kiosks.
Introduction of Cashless Payments
Recognizing a significant shift to digital transactions, the government is set to approve the rollout of cashless-payment options for gaming machines. This would be approved with the proviso that safeguards such as account verification, spending limits and friction mechanisms are put in place to minimize impulsive spending .
To date, the UK Gambling Commission (UKGC) has been working closely with stakeholders to finalize the technical details of these reforms. The rollout of cashless-payment systems is advancing, with operators adopting technology that meets new regulatory standards. A trial phase for these systems, focusing on customer safety and ease of use, has so far shown promising results.
Support for Smaller Operators
Initiatives to support regional casinos, such as grants and reduced fees, may come into play as part of Labour's commitment to economic inclusivity.
The UK Gambling White Paper has ushered in a new era for land-based casinos, particularly those operating under the 1968 Gaming Act. By increasing slot machine limits and revising operational ratios,
the reforms aim to rejuvenate the sector, fostering competitiveness and innovation. As these changes take effect, the government’s focus will remain on
balancing economic benefits with its commitment to responsible gambling. Despite progress, challenges remain. The recently announced Statutory Levy,
intended to fund gambling-harm prevention, is to be imposed on all UK licensed entities. Previously this funding was based on voluntary contributions to raise
the now-quoted target of more than £100 million, this imposed levy will be based on a percentage of net revenues.
With all the positives, there is always a price – and smaller industry players have argued that this will need to be calculated proportionally. The Labour
government has however given a hinted response that it will review (and possibly revise) the levy on a pro rata basis, thus to ensure fairer imposed contributions from both the online and land-based operators.
The UK Gambling White Paper represents a turning point for the land-based casino sector. As the reforms continue to roll out into 2025, their success will
depend on balancing modernization with player safety and addressing the concerns of operators. The Labour government’s emphasis on enhanced protections
and fair contributions will likely shape the next phase of this transformative journey. For the land-based casino sector, this is not just an opportunity to evolve
but a chance to redefine its role in the UK’s gambling ecosystem.
About Edwin Ford
Edwin is a highly motivated, flexible and results-driven senior executive with extensive experience in strategy, sales, business development and commercial operations, developed through over a four-decade career in the gaming industry. Training, working and supervising in casino operations to an executive level , spanning over 15 years, he also operated and was a shareholder of several software-development and supply houses, leading development and deployment of new technologies across international markets. He displays a skill set transferable to almost any business sector, experienced in consulting with the ability to drive any organisation to realize its goals. In recent years he has handled licensing applications for several companies with a 100 percent success rate.
After 46 years in the industry his passion for the sector is still strong.
Image: Houses of Parliament Shutterstock
