The United Kingdom has released reforms concerning land-based operations, allowing operators to broaden their range of gaming machines.

Recent proposals for reforms in land-based casinos have been issued by the UK government this week. These proposals present an opportunity for operators to expand their gaming machine count, while also setting restrictions on the gambling area size for casinos.

The draft Casinos (Gaming Machines and Mandatory Conditions) Regulations were submitted by the UK government’s Department for Culture, Media and Sport (DCMS) to the UK Parliament on 12 May. If approved by both parliamentary chambers, casinos may be permitted to increase the number of machines, subject to the available floor space, starting from 22 July.

The drafts from DCMS constitute a series of interconnected statutory instruments that alter the regulatory framework for land-based casinos. These modifications address various aspects such as the size of casinos, the area of the gaming floor, and the placement of betting positions relative to the floor space.

The reforms redefine the allocation of machines on specific floor areas. For example, an area between 380 and 400 square meters would accommodate 28 machines. The maximum number is 40 machines within a 500-square-meter floor area.

The draft also specifies that the gambling area of a casino should not exceed 1,500 square meters. Any casino exceeding this limit as of 12 May will not be allowed to expand its gambling area further.

BCG appreciates ‘modest’ land-based reforms

In 2023, the UK government concluded an extensive review of the country’s gambling laws and published a white paper in April 2023. This paper proposed a range of new regulations and limitations on player engagement, operator marketing activities, and bonuses, as well as some reforms for land-based operations.

The recommendations in the white paper included easing casino restrictions and allowing operators of various sizes to adjust their machine counts and offer sports betting.

The Betting and Gaming Council (BGC), a UK gambling industry association, welcomed the draft reforms that had long been anticipated by the sector. The BGC advocated for these changes, in collaboration with casino incumbents like Rank Group.

In a statement to iGB, a BGC representative mentioned, “The sector needs these essential reforms regarding gaming machine allocations and the authorization for all casinos to provide sports betting to better cater to their customers’ demands. Implementing these policy adjustments will attract significant investments to city centers and high streets.

“The BGC is thrilled to embrace these modest yet crucial modernization reforms, enabling our members to enhance customer satisfaction and prosper.”

Rank Group planning to increase machines post-reform

Following the unveiling of these reforms, Rank Group plans to add 882 gaming machines to its Grosvenor estate in the UK within the next few months.

The Grosvenor estate by this operator comprises 51 venues across the UK offering table games, electronic roulette, and gaming machines. Currently, the Rank Grosvenor estate houses 1,367 machines, with an additional 882 expected to be installed.

In an investor update released on Wednesday, Rank announced that its total suite could expand to 3,112 machines over the next two to three years.

The company indicated its intention to collaborate with Scottish government officials to further boost its machine offerings in Scotland.

Last year, Rank CEO John O’Reilly expressed optimism about benefiting from the land-based reforms outlined in the Gambling Act review white paper.

“We are well positioned to capitalize on the opportunities arising from the UK government’s planned land-based regulatory reforms, which we hope will be enacted through the approval of secondary legislation,” stated O’Reilly.

Rank’s Grosvenor casinos were the primary revenue source for the group in the third quarter ending 31 March.

During this period, 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. The total revenue for the quarter amounted to £195.6 million ($261.3 million).

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