But let’s start with what isn’t happening yet. We don’t yet know when the Department for Culture, Media and Sport (DCMS) will be introducing the proposed statutory instrument regarding the change in the ratio of Category B to Category C and D gaming machines in bingo halls, from 20/80% to 2:1. Neither do we know when the removal of the prohibition on the use of debit cards on gaming machines will be introduced, this could take longer. On cashless payments on machines the Commission are continuing to do their work on the machine technical standards, including consulting with the Bingo Association, but there are changes required to the legislation, which need to be dealt with by the DCMS, and this is not a straightforward subject or process. Also, still to come are the regulations to increase the legal age limit to play Category D slot style machines that pay out cash, to 18s or over, and finally the DCMS announced, along with those I’ve just mentioned, that they would be increasing Licensing Authority premises licence fees, allowing the maximum chargeable fees to be increased by 15%.
The proposals outlined above are in the pipeline and once the new government decide on its agenda and legislative timescale, we will hopefully know more about the detailed regulations which deal with the above and implement the proposals.
We also still have matters such as the statutory levy, the increase in Commission licensing fees, and the introduction of the Ombudsman, topics on which we don’t yet have definitive announcements from government on how the proposal will be implemented.
As you will know from the Association, the Ombudsman particularly is proving to be a challenge.
Of course, the new government could decide that all the above will be subject to another Gambling Review and White Paper, they can make the decision that they wish to review all the previous government’s proposals, they could re consult with the industry etc. The general view is that this will be unlikely as the new Labour government has taken a relatively similar position to the previous Conservative government on matters of gambling regulation. But they could decide that they have their own ideas on how gambling should be regulated going forward.
Imminent changes
Back in May the Commission announced widespread changes aimed at increasing safety in customer choice. These to be implemented in four stages in August 2024, November 2024, January 2025 and February 2025.
Again, there are a number that aren’t directly relevant to bingo. Importantly the Commission’s proposals regarding changes to the LCCP, with the introduction of financial vulnerability checks and frictionless financial risk assessments will be applied to remote, online operators and not to non-remote operators such as our Association members who operate bingo halls. There are also changes announced by the Commission regarding remote game design, to reduce the intensity and increase customer understanding, again one for online operators only.
Happily, the Commission announced that the proposals regarding direct marketing to improve customer choice would be applied only to online gambling and not non-remote licensees. This was important as the original consultation from the Commission had proposed introducing these requirements, to provide customers with options to opt in to product types they are interested in receiving and the channels through which they wish to receive marketing, to both non-remote and remote licensees. There were understandable concerns expressed by the Association ion it’s response to the consultation, on the potential impact on non-remote bingo operators, particularly with regard to the proposals approach to gaming machines, and the Commission listened and decided not to impose the direct marketing changes to non-remote businesses. So, another we can ignore for now. Although as we know from experience, it’s not uncommon for regulation which is introduced to the online industry, to then be introduced to the land-based industry at a later date.
So, what will be coming in over the coming months?
One change to the LCCP which the Commission announced in May, which does impact on land-based operators, such as our bingo halls, are the new rules which will mean all gambling land-based licensees, including smaller licensees, must carry out age verification test purchasing. Previously this has been mandatory only for the larger operators. The Commission will also change the ordinary code provision (this is good practice advice rather than mandatory) to say that licensees should have procedures that require their staff to check the age of any customer who appears to be under 25 years of age, rather than the current ordinary code provision which refers to under 21 years of age. Operators might look at their age verification policies and procedures. New display notices and staff badges (for those that use them) might be necessary referencing age 25. The changes requiring all licensees to carry out age verification test purchasing took effect back on 30 August 2024. These age verification checks can be arranged by the Bingo Association on your behalf.
The other proposal from the Commission announcement in May relates to Personal Management Licensees and the extension of the roles which would require an individual to hold a Personal Management Licence. The Commission clarified and extended the operator staff management roles expected to hold a Personal Management Licence, these provisions come into force on 30 November 2024.
Clarifying the current position, the Commission announced all Chief Executive Officers, Managing Directors or equivalent will be required to hold a Personal Management Licence. This is a clarification it is already a requirement that the individuals responsible for the overall strategy and delivery of gambling operations are required to hold a Personal Management Licence. Generally, the overall strategy and delivery of gambling operations is the role undertaken by a Chief Executive Officer or a Managing Director or equivalent. But the Commission have decided that clarification is required. This is unlikely to impact on any Association members.
The Commission have also decided to implement a new provision that would require the Chairperson of a licensee with a Board to hold a Personal Management Licence. The consultation response explained that the provision applies to a Chair who was appointed for a fixed or indeterminate term of office and not on a transient and/or short term basis for individual meetings.
Again, this change potentially could impact on larger members of the Association with have a Board, but is unlikely to impact the smaller members.
Finally in relation to Personal Management Licences, the Commission decided to extend the provision to require that the person responsible for the licensees Anti Money Laundering (AML) and Counter Terrorist financing function, as head of that function, to hold a Personal Management Licence. In my experience many individuals within licensees’ management structure, who undertake the AML and Counter Terrorist financing role, already hold a Personal Management Licence, but those licensee members, where that function currently is not undertaken by a Personal Management Licence holder, will need to make changes to ensure that the individual applies for and maintains a Personal Management Licence. The Commission has been accepting applications for the roles from 1 June 2024 and all those in the role will be required to have a Personal Management Licence by 30 November 2024.
Nick Arron is the lead partner for the Betting and Gaming Team at Poppleston Allen LLP . 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
