Gambling Act Review Recommendations

Gambling Act Review Recommendations

The British government recently published a response to the recommendation of the consultations it commissioned on land-based gambling regulations. The consultations came on the heels of the Gambling Act review white paper, Britain's breakthrough document that sought to overhaul most aspects of UK's gambling regulations going forward.

The government's response introduced a number of measures that relaxed requirements for venues such as casinos, arcades, and bingo halls without compromising the safety and security of users or provisions such as bonus codes.

In a nutshell, below are the recommendations:

Casinos

The consultations proposed a number of tweaks to the current casino rule. The regulations as currently constituted provide for two types of casino licenses: products of the Gaming Act 1968 and casinos licensed according to the Gambling Act 2005.

Casinos operating under the 1968 Act can have only 20 gaming machines. The 2005 Act, on the other hand, allows small casinos up to 80 machines whereas large establishments may install up to 150 machines.

The proposals of the consultation bridge the gap between the two regimes. Going forward, 1968 Act casinos will have more machines depending on their sizes and customer's demands. Besides, they will offer betting products to bring them to international standards.

Bingo Halls and Arcades

Currently, no more than 20% of gaming machines in bingo halls and adult gaming centers can be Category B – offer £2 maximum stake. The update concedes that this requirement is outdated, overly restricts service providers and does not necessarily offer users any protection. Going forward, bingo halls and arcades will have two Category B machines for every Category C or Category D machine they install.

Further, the white paper makes recommendations on payment methods, age limits and licensing fees. The proposals on the above topics are:

Payments Methods

Gaming machines are currently prohibited from receiving cash through direct debit. The white paper notes that while this regulation aimed at protecting players, the payment processing landscape has greatly changed. Use of non-cash is now a norm and it is only fair to adjust the rule in line with today's realities.

However, in line with prioritizing player protection, the white paper proposes maintaining necessary measures such as limiting transaction frequency, conducting cardholder verification, limiting amounts, and enforcing breaks in play even as it increase payment options.

Age Limits

Whereas Category D machines have low-stake games that can be played by anyone, the Gaming Act Review seeks to introduce an age restrictions on some games in this category. For instance, games that resemble adult slots and come with cash payouts should not be accessible to children.

In this regard, it will become a crime to entice, cause, or allow a minor to play 'cash-out' slot-style Category D machine games.

Local Authority Licensing Fees

The Gambling Commission of Great Britain realizes that licensing and enforcing licensing conditions come at a huge cost, especially considering the implications of the changes contained in the update. Therefore, it proposes to increase the maximum cap that licensing authorities can charge gambling premises by 15%.

The Gambling Act review depicts an industry in dire need of an overhaul. The stakeholders believe that implementing the suggestions highlighted above will bring it to international standards.