In July, the UK Parliament passed the eagerly anticipated Land-Based Casino Reform Act. Executives from Rank Group indicated that the installation of betting terminals and additional slot machines is expected to be completed by September, officially launching retail sports betting services at their casinos, thus promoting the modernization and upgrade of physical gambling.
On July 22, 2024, the new gambling regulations in the UK will officially take effect, allowing casinos to increase the number of gaming machines on-site and introduce Self-Service Betting Terminals (SSBTs). Previously, although casino customers could place bets via mobile phones, they were unable to use SSBTs within the casino premises. This reform breaks this limitation. Mark Harper, Managing Director of Grosvenor Casinos under Rank Group, revealed that the company is in the application approval stage, and it is expected that the Gambling Commission will start approving the installation applications for related equipment from September.
Government Promotes Modernization of Physical Casinos
Fiona Twycross, Minister for Culture, Media, and Sport, pointed out that the existing regulatory framework unreasonably restricts casinos from offering certain gambling products. The reform will unleash investment potential, allowing for the renovation of casinos to add sports betting services and accompanying entertainment facilities such as sports bars. The new regulations allow casinos to install up to 80 slot machines based on the gambling area, and the number must not exceed five times the number of gambling tables.
Harper stated that with the group's scale, geographical advantages, and venue size, Rank is well-prepared and plans to use the additional slot machines and sports betting to expand its customer base, enhance customer experience, and increase the attractiveness of entertainment venues. This reform is seen as a "transformative" moment for the UK casino industry, with Rank continuously increasing investment over the past year to promote the upgrade and renovation of several of its casinos.
According to the 2023 white paper by the Department for Digital, Culture, Media, and Sport (DCMS), the modernization reform for land-based gambling was announced in May, approved by Parliament in June, and officially implemented in late July. Rank expects to obtain the relevant licenses by the end of August and promote more self-service betting terminals and slot machine sessions from September.
Harper anticipates that the additional slot machines will quickly lead to revenue growth, especially during weekend evenings, while the introduction of sports betting services will further enhance the overall appeal and competitiveness of the casinos.
Massive Capital Investment Drives Industry Upgrades
In 2024, Rank has already carried out seven major upgrades and renovations to its casinos and plans to invest similarly in six more casinos within the year. Harper emphasized that these investments are based on the opportunities brought by land-based reforms, aimed at meeting the diverse needs of customers and creating a more modern, cozy, and vibrant entertainment environment.
This reform of the UK's physical gambling industry injects new momentum into the sector, with Rank Group actively responding and expecting to initiate a wave of casino operation and customer experience upgrades in the coming months.
