Casinos (Gaming Machines and Mandatory Conditions) Regulations 2025

Lord Parkinson of Whitley Bay Excerpts

Tuesday 17th June 2025 Grand Committee

I am prepared to accept that there will be monitoring—I would like to know more about that—but I hope that the Minister will accept that the Government’s current belief that, somehow, they will increase the gambling industry and reduce gambling harm does not stack up. This SI’s impact assessment does not help us believe that we have got that wrong.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the noble Lord, Lord Foster of Bath, is right: nothing catches the eye in an impact assessment like a redaction, and there are a number of them in this assessment. I know that some of the information will of course be commercially sensitive, but, if we are to have evidence-led policy, it is important that we can share as much as possible. I look forward to what the Minister has to say about the reasons for the redactions that have been made here.

We on this side of the Committee remain broadly committed to a regulatory framework for gambling that seeks to strike the right balance between addressing harm, upholding consumer protections and recognising the significant role that land-based casinos play in the UK’s leisure and hospitality economy, in the ways that the Minister outlined in her opening speech. We support the principle of reforming the rules governing casinos to reflect changes in technology, consumer behaviour and market pressures, which have been seen over the past two decades.

The proposals contained in this statutory instrument are, as the policy rationale section of the Explanatory Notes makes clear, grounded in the gambling White Paper, which was published by the previous Government in 2023. That White Paper acknowledged the outdated nature of land-based regulation and set out a number of sensible, evidence-led proposals, including changes to the machine-to-table ratio, adjustments to minimum casino floor space and lifting restrictions on in-casino betting. A consultation followed and, in May last year, the previous Conservative Government confirmed their intention to implement these modernising reforms.

The regulations before the Committee today follow directly from that process, so we welcome the fact that the Government have brought them before us. They aim to provide much-needed flexibility to land-based casinos, which have been hit particularly hard by rising operational costs and the impact of the pandemic, in contrast to the growth seen in the online gambling sector. We recognise that a standardised 5:1 gaming machine-to-table ratio, applied fairly across casinos regulated under both the 1968 Act and the 2005 Act, is a proportionate change.

We also support the reduction in minimum table gaming space for small casinos to 250 square metres, which will bring consistency and allow smaller venues to remain viable. Permitting all casinos to offer betting, subject to proportionate safeguards, also aligns the land-based sector more closely with online operators, as the Minister said. So these changes reflect much of what operators have long called for: a level playing field across the different licensing regimes, as well as the ability to offer a wider mix of products and experiences to their customers.

While we support these parts of the reforms, we note that the Government are largely following through on decisions that flowed from the White Paper in the previous Parliament. What is needed now is a clearer vision of how the Government will support the land-based sector going forward, particularly in the face of sustained inflationary pressures; increased taxation, including the rises in national insurance contributions; and rising regulatory compliance costs. We continue to have concerns about the rise of the gambling black market and urge the Minister to do all she can to ensure that her colleagues at His Majesty’s Treasury do not proceed with their tax hike, which we think will hurt bingo halls and much-loved sports across the UK and could fuel the dangers of the black market.

We remain clear that any regulation must be accompanied by rigorous safeguards. As my noble friend Lord Bourne of Aberystwyth and the noble Lord, Lord Foster of Bath, made clear, gambling is never without risk of harm. The land-based sector may not present the same immediacy of risk as online gambling, but the need for effective harm prevention measures remains in this form of gambling as it does elsewhere. The statutory levy, the requirement for casinos to maintain non-gambling areas and the obligations to monitor and intervene with customers who are at risk must be properly enforced. We would welcome assurances from the Minister on how those safeguards might be monitored and what role the Gambling Commission will play in doing that.

I thank the Minister for her very clear introduction to these statutory instruments. I have four questions for her. First, how will the Government ensure that the Gambling Commission is adequately resourced and empowered to enforce the new machine-to-table ratio and the betting provisions across all forms of casinos? Secondly, given the significant transition costs outlined, what specific support or guidance will be offered to smaller and medium-sized casinos to help them adapt to these reforms without risking closures or job losses?

Thirdly, what mechanisms will be put in place to evaluate the impact of these reforms on gambling-related harm and the sustainability of the sector, and when might we expect the first published review? Fourthly, and finally, can she clarify why the Government are taking a different approach to machine reforms in adult gaming centres? I am sure that she is aware of the widespread concerns raised in that part of the sector.

While we support the objectives of these regulations, which rightly aim to bring greater coherence and modernisation to the regulation of land-based casinos, these changes must be the start of a broader, evidence-led strategy for growth, investment and safer gambling. We will continue to press the Government to deliver on that ambition and to ensure that the sector remains sustainable and socially responsible.

[Baroness Twycross (Lab)]

This has been an interesting debate, and I am grateful to all noble Lords for their insightful contributions. It is clear from today’s discussion that all noble Lords share the Government’s intention of and commitment to protecting the British public from gambling-related harm. I am keen to do that while ensuring that those who wish to gamble can continue to do so safely and have protections around them to enable them to do so. As outlined, these changes will modernise the regulatory framework for land-based casinos and allow the sector to grow while still protecting its customers.

I turn now to specific points raised about the instrument. The noble Lords, Lord Bourne of Aberystwyth and Lord Foster of Bath, raised concerns around gambling harm. Casinos are a highly regulated environment. They have a significant amount of player supervision alongside a number of protections on gaming machines themselves. Importantly, this instrument contains a number of protections that will ensure that customers will continue to be offered a range of gambling and non-gambling opportunities that help to reduce the risk of harm.

Casinos will be allowed to increase the number of machines they offer only if they meet a number of strict requirements. Operators will have to submit an application to vary their licence to their licensing authority, setting out how they meet these conditions and enclosing a new plan. The licensing authority will have to approve this application before more machines can be offered.

The noble Lord, Lord Foster, raised concerns about dormant licences. As noble Lords will be aware, there is only a limited number of casino licences. Converted casinos can move only within their permitted area and instances of relocation are very rare. Stakeholder engagement suggests there is highly unlikely to be a significant increase in the number of these licences that are revisited. The 2005 Act casinos cannot move from the location that their licence granted them. Therefore, no new casino licences will be granted as part of this process.