Rank Group to Add Hundreds of Slots if DCMS Enforces New Rules

Rank Group is preparing to expand its business following the introduction of Great Britain’s new rules for land-based casinos. If the new rules come into force, it would allow land-based operators in England and Wales to significantly expand their slot machine offerings.

DCMS Considers New Limits for Land-Based Casinos

On May 12, the Department for Culture, Media and Sport (DCMS) published a draft version of its proposed changes, which should come into force by the end of July. The proposal would allow smaller casinos to offer five slot machines per gaming table instead of two, allowing them to better utilize their gaming area and respond to the increased demand for slot gaming.

The change seeks to provide some benefits to land-based operators amid a rapid increase in online gaming. Proponents of the measure argue that it would make retail operators more competitive, allowing them to compete with their online counterparts.

The DCMS clarified that even with these changes, casinos would still have to comply with the 80-machine-per-venue limit.

Good News for Rank Group

For Rank Group, this change could mean hundreds of new machines. The company’s Grosvenor brand currently operates some 1,367 machines across the UK. If the changes outlined by the DCMS are enacted, the company would be able to increase its machine count to up to 2,249.

The company’s chief executive officer, John O’Reilly, hailed the DCMS’s proposed changes, saying that they will play a key role in preserving the casino industry and the numerous jobs it supports.

O’Reilly teased that Rank Group is already working on a new and broader investment plan that would allow the company to adapt to and capitalize on the updated regulatory framework.

As a result of the announcement, the company’s share price experienced a temporary spike, reaching GBX 133.80 before returning to GBX 123.80.

In the meantime, Rank Group is currently negotiating similar changes in Scotland.

The UK’s Reforms Continue

The past few years have seen UK authorities double down on their efforts to reform the local gaming sector and align gambling regulation with the modern age. These efforts have seen lawmakers and regulators discuss the multiple changes outlined in the Gambling Act white paper and consider how to apply them in a way that doesn’t undermine the benefits provided by the gaming industry.

Among other things, lawmakers have recognized that the convenience of online gaming and the cultural shift caused by the COVID-19 lockdown have pushed many players online, necessitating changes to land-based regulation in order to keep the sector competitive.

As a result, land-based operators will also have to pay less under the upcoming gambling research, education and treatment (RET) statutory levy.

In the meantime, the Labour party is reportedly considering dismantling the DCMS, potentially ushering in another period of uncertainty for the gaming industry.