UK Casinos Need Regulatory Reform Now

Former Minister Damian Collins demands swift updates to UK casino regulations. Image: (AP Photo/Pavel Golovkin)

Damian Collins, the former Minister for Tech and Digital Economy, has called for urgent reforms in the UK casino industry to prevent stagnation and enhance competitiveness. 

In his article for The House, Collins expressed frustration over the ongoing delays in finalising updates to outdated gambling regulations, which he believes hinder UK casinos and strengthen the position of unregulated international operators for online casinos. 

Unregulated Casino Markets Continue to Grow 

According to the former minister, outdated regulations are holding back UK casinos as competition from online and offshore operators continues to grow. He claims that urgent legislative action is needed to modernise the industry and safeguard its economic contribution. 

Mr. Collins said: “The industry cannot afford to remain stagnant, as doing so would not benefit British consumers but rather strengthen the position of unregulated international online gambling markets.” 

Casinos Provide Significant Economic Contribution 

The former minister highlighted the significant economic contribution of casinos, which employ over 10,000 people, generate £300 million in tax annually, and contribute approximately £800 million to the UK economy. In London alone, casinos contribute an additional £100 million. However, as the online betting market expands, clearer, more modern regulations are essential. 

Progress on Reform Stalled 

The Gambling White Paper consultation has proposed key updates, including cashless payment systems, revised gaming machine allocations, and expanded sports betting options, but progress has stalled due to the upcoming General Election. 

Mr. Collins said: “Having served as Minister of Gambling and chaired the Digital, Culture, Media, and Sport select committee, I visited numerous casinos and other regulated gambling establishments. In my capacity as Minister in 2022, during the government’s review of the Gambling White Paper, I became acutely aware of the challenges facing casinos."

"Many were closing due to various factors, underscoring the ongoing BGC (Betting & Gaming Council) campaign for essential reforms that would allow casinos to modernise, innovate, and grow.” 

What came across as the main message in the article we wrote on the CMS Gambling Conference 2024 was that the industry is still going through a period of great change.

A dialogue between the Gambling Commission and the industry has been well established and the UK Government and no doubt other devolved governments will be looking closely at the effects of the regulations, which have been put in place in part.

Key reform milestones for 2024 include: 

January: Labour government affirmation of commitment to reforms. 

February: Public consultations with stakeholders. 

March: Draft legislation focused on cashless payments and sports betting. 

April: Introduction of the legislation in Parliament for debate. 

June: Aim for parliamentary approval. 

July-September: Phased implementation of reforms. 

October: Launch of new regulations. 

November: Review of reform impacts. 

Without swift action, the UK casino sector risks falling further behind, emphasising the need for the government to modernise the industry and safeguard its economic contributions.  

Mr. Collins issued a stark warning, saying: “For the sake of the thousands employed in casinos across the country, it is imperative that the Labour government moves forward with the necessary changes without delay.”