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Figure 13: Premises Licence Fees in Scotland
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This indicates that unless customers actively plan to bring cash to a pub for use on a gaming machine, they are unlikely to be able to use one. Anecdotal industry evidence suggests that payment methods are a factor in this decline in machine usage, as pub goers now pay for food and drink by card but might have previously played a machine using spare change. Evidence submitted by the British Beer and Pub Association shows a post-COVID decline in both the percentage of pubs with machines and machine weekly income. Land-based gambling has a significantly larger workforce than online gambling.
Data from the National Gambling Treatment Service shows that a relatively small proportion of patients report participating in gaming machines in casinos. We will use the responses to this consultation as well as wider engagement with the sector to gather data to estimate the likely uptake of additional machines by casinos. Taken together, the three measures will determine the maximum number of gaming machines that casinos will be entitled to. Some of the same size requirements for Small 2005 Act casinos will apply for 1968 Act casinos, should they increase their entitlement to gaming machines to more than 20 (including one or more Category B machines). The sector views an increase to this ratio as essential in order to ensure these casinos’ long term viability by allowing them to site more gaming machines, and this conclusion was reflected in the white paper. How do you expect the measures allowing more gaming machines in 1968 Act casinos that meet certain size requirements to affect the demand for gaming machines in casinos?
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- It is possible that there will be wider costs if the increase in fees means that existing premises are unable to afford their total fees and close down as a result, or if new premises decide not to open due to the higher fees.
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- These included provisions which entitle any AGC or bingo premises licences granted before 13 July 2011 to retain their existing entitlements of Category B gaming machines (four for AGC premises and eight for bingo premises) notwithstanding the new 80/20 rule.
It was also noted from the call for evidence that where other jurisdictions apply a machine to table ratio, all currently permit a greater proportion of gaming machines in comparison to Great Britain. The government is proposing to operate two regimes for 1968 Act casinos whereby they can either operate under the existing rules with no increase to their gaming machine allowance or they can take up their new gaming machine entitlements under the new rules. Do you perceive there to be any issue with allowing multiple casino licences in the same physical location if gaming machine entitlements are increased as proposed? The implications for operating and premises licence fees, bringing 1968 Act casinos in line with existing fee scales for 2005 Act casinos, are also discussed later in this chapter. It is our intention that these casinos can continue to operate under the existing regime, whereby they are permitted no more than 20 machines where at least one is of Category B (or they may elect to have any number of Category C or D machines instead). Each should have its own casino premises licence and its own principal entrance from a street, and it must not be possible to enter one of them from other gambling premises.
There must be some notification that casinos are making a change to the number of machines and tables they are offering, even if this will not always trigger the need for a premises licence variation. This amendment will mean that 1968 Act casinos that meet the same size requirements of Small 2005 Act casinos (subject to our final position on maximum size of gambling space) will be entitled to 80 gaming machines. This will ensure that casinos continue to offer a variety of gaming and non-gaming activities for customers while at the same time allowing a greater number of machines to be sited on the premises. In order for a 1968 Act casino to be entitled to 80 gaming machines, we propose that it must have a gambling area of at least 500sqm, the same minimum requirement for Small 2005 Act casinos. It has also meant that none of these casinos are able in practice to satisfy the current conditions which would allow them to offer the maximum number of gaming machines due to the amount of space they take up.
Under the scenario outlined in Option 1, it is expected that there will be a significant increase in commercial flexibility for operators across both bingo halls and AGCs. Similarly to bingo halls, this would likely result in both energy savings and increased GGY for operators. For bingo halls, based on a sample of approximately 60 percent of the market, it is estimated that the number of Category C and D cabinets in these venues will decrease by over 1,800.
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Should it be a criminal offence for a person to invite, cause or permit children or young persons to play on these machines? Do you think premises should adopt voluntary test purchasing as a way to monitor under-18s activity on Category D ‘cash-out’ slot-style machines? What measures, if any, do you think venues should adopt to ensure that no under-18s play on ‘cash-out’ Category D slot-style machines if the age limit is introduced? The survey found that in the last 12 months, 3% of respondents had spent their own money on fruit or slot machines and a total of 6% had experience of playing on fruit or slot machines. We expect this measure to restrict the play of under-18s on machines in scope.