This week, the UK government has finally released long-awaited draft proposals for reforms in land-based casinos. These proposals offer casino operators the chance to increase their gaming machine count, while also setting limits on gambling floor space.
The Department for Culture, Media and Sport (DCMS) of the UK government submitted the draft Casinos (Gaming Machines and Mandatory Conditions) Regulations to the UK Parliament on 12 May. If approved by both parliamentary houses, casinos may be permitted to expand the number of machines, subject to floor space restrictions, starting from 22 July.
The drafts from DCMS consist of a set of interconnected statutory instruments that modify the regulatory structure for land-based casinos. These changes address various aspects such as casino size, gaming floor area, and the allowed number of betting positions based on floor space.
The reforms redefine the allocation of machines on specific floor areas. For example, an area between 380 and 400 square meters can accommodate 28 machines, with a maximum of 40 machines within a 500-square-meter space.
Moreover, the draft specifies that the gambling area of a casino should not exceed 1,500 square meters. If a casino’s gaming area surpassed 1,500 square meters by 12 May, it cannot be expanded further.
BCG expresses approval of ‘modest’ land-based reforms
In 2023, the UK government concluded a thorough review of the country’s gambling laws and issued a white paper in April 2023. This paper proposed new regulations and constraints on player activities, operator marketing strategies, and bonuses, including some reforms related to land-based casinos.
The recommendations in the white paper included relaxing casino restrictions and enabling operators of various sizes to adjust machine counts and provide sports betting.
The Betting and Gaming Council (BGC) in the UK, a gambling trade association, welcomed the draft reforms, which had been eagerly anticipated by the industry. The BGC, in collaboration with casino incumbents like Rank Group, advocated for these modifications.
In a statement to iGB, a BGC representative remarked, “The gaming machine allocations and the opportunity for all casinos to offer sports betting are much-needed reforms that will enhance the sector’s ability to meet customer demands. Implementing these policy changes will lead to significant investments in city centers and high streets.”
Rank Group to expand machine count post-reform
Following the introduction of these reforms, Rank Group plans to add 882 gaming machines to its UK Grosvenor estate in the upcoming months.
The Grosvenor estate, operated by Rank Group, encompasses 51 venues across the UK offering casino table games, electronic roulette, and gaming machines. Currently, the Rank Grosvenor estate has 1,367 machines, with an additional 882 machines anticipated to be included.
In an investor update on Wednesday, Rank Group mentioned that its suite could potentially grow to a total of 3,112 machines within the next two to three years.
The company indicated its intention to liaise with government officials in Scotland to further expand its machine offerings in that region.
Last year, Rank CEO John O’Reilly expressed optimism about benefiting from the land-based reforms outlined in the Gambling Act review white paper.
Rank stated, “We are well positioned to optimize the opportunities arising from the UK government’s proposed land-based regulatory reforms, contingent on the enactment of secondary legislation.”
In the third-quarter results for the period ending 31 March, Grosvenor casinos under Rank Group were the primary revenue source for the group.
During the quarter, these venues collectively generated £90.4 million ($120.7 million) in revenue, marking a 13% increase. Rank attributed this growth to a 14.5% rise in table game revenue and a 9.5% increase in electronic roulette revenue, with total revenue amounting to £195.6 million ($261.3 million).
