Allowing time for initial contemplation we asked three people, each with quite different perspectives, for their observations to date.
The Industry Perspective:
Miles Baron Chief Executive of The Bingo Association
The publication of the White Paper was in the end launched with tacit approval from most stakeholder groups. There was, if you like, something in it for everyone but no one truly had their feathers ruffled either, at least as far as I could see.
That could be because the process was well managed, and the content was considered thoughtful and proportionate, or because many of the policy decisions left too much of the detail still to be confirmed. And the devil, as we know, is always in the detail.
The White Paper will lead to up to 62 work streams, all of which will need consulting on, with each consultation lasting 12 weeks. The priority will be to tackle the online measures in the paper first, where the impact will be the greater.
So what does this mean for Licensed Bingo Clubs? Well potentially there is some good news for Bingo from some of the proposals in the paper. The change of ratio from 80/20 to 50/50 for calculating the number of Category B Gaming machines permitted should allow clubs to remove thousands of old legacy Cat C kit, which is also energy heavy and lacks the more contemporary social responsibility tools.
The ability to play a wider variety of products via ‘Bingo Bets’ where betting style games allow a bet on the outcome of a game of bingo in a bingo club is also to be further worked on. Any ability to flex what constitutes a game of Bingo is to be welcomed. After all, there is unlikely to be a Gambling Act Review for many years to come!
In addition to the above, the commitment to allow cashless payments directly on to gaming machines, to allow pilots for testing new machine games, and to support trialling the linking of gaming machines are likely to lead to greater machine product flexibility and opportunity.
But then there are some areas to watch within the White Paper. The one that springs to mind is the statutory levy. Any, and I mean any, increase above the current voluntary rate of 0.1% will prove very harmful to the industry. And then there are the introduction of Cumulative Impact Assessments, Increasing Fees from Local Authorities and from the Gambling Commission, Technical standards reviews on gaming machines, and finally the introduction of a Gambling Ombudsman.
All these could increase costs and become a further burden. It is too early to determine for sure until we see more detail so the jury is out and we will be watching closely.
Thrashing out the detail around all these measures will take time and no doubt keep us busy for what is estimated to be the next three years. So, if you see something in the White Paper that you see as an opportunity, don’t hold your breath and be aware it may
take many months before it becomes a reality!
The Legal Perspective: Reform for the Digital Age
Nick Arron, Senior Partner Licensing at Poppleston Allen LLP
We have been waiting patiently for the White Paper for over wo years and now it is upon us, what does it mean for bingo? Overall for bingo I think the White Paper proposals are positive, maybe more positive than we originally expected, with welcome restoration of balance between the higher risk online gambling and our land-based venues.
You’ve seen the big headlines, proposed limits on slot game stakes online, potentially related to a player’s age, introduction of an ombudsman and a levy, changes to gaming machines allocations in casino, AGC and bingo premises, enhanced financial checks online. The proposed change in the allocation of gaming machines in our venues, from a ratio of C/D and B machines of 80/20 to 50/50 is a real opportunity. There are increases in costs, with the levy, Gambling Commission fees, and Licensing Authority fees. The levy particularly, with the level not yet decided, could be expensive. There could also be additional costs for an ombudsman. And there are risks, with greater powers proposed for Licensing Authorities to regulate gambling premises in their area.
In total there are 17 key policy commitments with a potential of 62 work streams. So, although the White Paper is full of good intentions, the detail is yet to be decided, and the devil is, as always, in the detail. Many consultations will follow, with the Government suggesting the majority will be this summer. This will be a hard ask, for all involved, the Government, Gambling Commission and the industry. The majority of the proposals require either secondary legislation, led by Government or changes to the Licence Conditions and Codes of Practice, which will be Commission led. Commission consultations are not subject to further Parliamentary scrutiny, so let’s hope the Commission take a democratic approach and take into account Licensees views.
More gaming machines
Arguably the biggest positive to come out of the White Paper is the proposal to adjust the 80/20 ratio which governs the balance of Category B and C/D machines in our bingo venues to 50/50. This was one of the key proposals in the Bingo Association response to the Call for Evidence which has led to this White Paper. More B machines will provide more customer choice and flexibility, it will be an economic benefit to the industry. We can remove the older C machines which are of little appeal to players.
In addition to increasing the number of B machines we can have in our venues, the Government also to commits to the Gambling Commission conducting a review of Gaming Machine Technical Standards, to assess session time limits on both Category B and C machines alongside the role of safer gambling tools. This will look to put onto a more formal footing the work that the industry and Association have already undertaken in relation to time and spend limits.
Government also commit to supporting specific proposals for new gaming machines to be tested within planned industry pilots, under certain conditions and with close involvement of the Gambling Commission. This may well require primary legislation so could be a longer way off, but if enacted will make the development process for new machines more streamlined with the potential for better product.
Levy
Probably the biggest risk is the proposal that Government will introduce a statutory levy, to be paid by operators and distributed by the Commission under the direction and approval of Treasury and DCMS minsters. This summer the Government will launch a consultation on the details of its design, including proposals on the total amount to be raised by the levy and how it will be proportionately and fairly constructed. The Government states that the consultation will take into account the differing association of different sectors with harm and also for their differing fixed costs. This latter point is crucial. On principle that the polluter pays, our lobbying should concentrate on bingo as community based softer gambling, renewing the approach successfully established by Bingo Association lobbying, as we saw with the reduction in tax back in 2014.
The larger mainstream online operators are already paying effectively a 1% levy in contributions to research, education and treatment of at risk and problem gambling. A figure of this level for bingo could have devastating consequences.
Increase in Licensing Authority powers
Although the White Paper acknowledges that Local Authorities already have significant powers under the 2005 Act, to refuse applications, add conditions to licences, and review those licences where they had cause for concern, the Government state that they will consider bringing in to the licensing regime a formal system of Cumulative Impact Assessments (CIAs). CIAs are powers which currently exist in relation to alcohol licensing, although they rarely affect bingo premises. They allow authorities to assess the cumulative impact on the licensing objectives of having multiple premises within an area. If evidence suggest that impact is significant then the presumption on granting of an application can be reversed. In these circumstances the ‘aim to permit’ at section 153 of the Act may not apply. Increasing powers to Local Authorities is a risk to the industry. Although it could help retain the status quo for those already operating, it will make new applications, or extensions to existing licences (for instance to add hours), more difficult, stifling development. This change does require primary legislation. Again the primary registration will only be allowed if parliamentary time allows.
Increase in Gambling Commission fees
The Government propose that the Gambling Commission can increase their fees, and going further, suggest the Gambling Commission should set their own fees, which is more in line with gambling regulators around the world. We have seen some significant previous hikes, in relation particularly to remote licences, and I think we can expect similar increases. Licence fees increased by 55% for online operators back in October 2021 and by 15% for land based operators in April 2022. This new fees review is to consider further resource at the Commission, to provide them with the skills and expertise to prevent black market gambling, and to ensure that the Commission is able to deliver on the many proposals within the White Paper.
Increasing in Licensing Authority fees
The Government will consult on raising the cap for licensing authority fees for new applications, variation applications, and for annual fees. One likely implication of this will be that, to justify those fees, we will see more Local Authority visits and inspections of bingo premises. New application licences fees are currently a maximum of £3,500, annual fees £1,000 and variation applications a maximum of £1,750.
Cashless
It is welcome that the Government recognises that less and less of us take cash out in our pockets and pay more and more by smart phone apps or using debit cards. In the White Paper the Government commit to working with the Gambling Commission to develop specific consultation options for cash payments for gaming machines, referring to the player protections that will be required before they will remove the prohibition. Cashless payments do provide a platform for player protections, and the industry has already spent time and resource developing a platform. These need to be defined, and appropriate for the circumstances. Expect a consultation in the summer on how cashless payments can move forward.
Affordability
Finally, we must mention affordability, or enhanced financial checks. The suggestion in the White Paper is that further regulation will relate to online rather than land based gambling, although as always we need to be vigilant for any consequences for bingo.
So, although we finally have the White Paper, it is again a case of watch.
Nick Arron is a partner at niche licensing law firm Poppleston Allen. Poppleston Allen act for The Bingo Association and advises its members. Nick can be contacted via email n.arron@popall.co.uk or telephone 07968 805559. www.popall.co.uk
The Political Perspective: At long last… The Gambling White
Daniel Baynes, Account Director, PLMR
There were 871 days between the then Gambling Minister, Nigel Huddleston standing up in the House of Commons to announce a review of the Gambling Act 2005 and the Secretary of State, Lucy Frazer finally giving a statement to publish it.
Since we became aware of the review taking place, we have had six Gambling Ministers, four DCMS Secretaries of State and three Prime Ministers. It has made the engagement process in this period tricky, as just when we thought progress was being made, new personnel, priorities and policies would put a fork in the road.
From the outset our goal has been to ensure that land-based bingo is rightly recognised as a unique part of the gambling landscape, due to the business model and focus on the safety and wellbeing of community. The Bingo Association has used every opportunity to promote this message to political stakeholders across the political landscape and at different levels of governing. Whether it be MP visits to bingo clubs, our charity fundraiser games at Party Conferences or the Parliamentary Reception to showcase the dedication of staff to look out for local people in the Covid-19, this goodwill resonated throughout the White Paper process and on the day of publication.
It was very welcome to hear the Ministerial statement reflect that “the status quo disadvantages… bingo halls and other traditional premises” and that “we plan to rebalance regulation and remove restrictions that disadvantage the land-based sector.” Likewise, from Shadow Minister Alex Davies-Jones, a recognition that bingo clubs are a “traditional British pastime” that “are important in sustaining our local communities, especially in coastal and rural towns.”
With the policy paper now out, attention turns to what comes next. Many of the measures most relevant for Association members will be formally consulted on, a process which can take anywhere from six months to two years. Included here is the proposal to introduce a statutory levy, which DCMS has recognised that different forms of businesses and fixed costs will be considered – a point we will look to clearly make in the consultation and to political targets over the coming year. We will also seek to ensure reforms set out to gaming machines are progressed as quickly as possible and be alert to the expanding role of local authorities in the regulation and licensing or bingo clubs.
We have plenty of opportunities to ensure the voice of the bingo industry is loudly heard in response to the wide set of proposals. The meeting of the All-Party Parliamentary Group (APPG) to brief it’s members on what the White Paper will mean for bingo clubs has been an important early step. Next on the horizon is the Culture, Media and Sport Committee who are conducting a separate enquiry into the gambling reforms and will be questioning the Minister and Gambling Commission. We will also be looking to make the most of National Bingo Day, with a special day of visits to bingo clubs taking place on the 23rd June which will be a great opportunity to showcase the work of Association members and their customers first-hand.
The long overdue White Paper was broadly a welcome development for the industry, now is the time for continued engagement to ensure implementation is as smooth for bingo clubs as possible.
Association members should prepare themselves for a steady stream of consultations in the coming months, participation in which will be key to ensure that the industry is fully and accurately represented.
