Rank Group Plc Regulatory News (RNK)

The Rank Group PlcLEI: 213800TXKD6XZWOFTE12

28 April 2023

The Rank Group Plc ('Rank' or the 'Group')

Publication of the Government's White Paper (the 'White Paper') on gambling legislation

Rank welcomes publication of the Government's White Paper which sets out the public policy changes which will impact the regulation of the UK gambling sector. In line with our commitment to offering industry-leading player protection and a high quality experience to all our customers, we support the Government's objective of striking the right balance between "consumer freedoms and choice on the one hand, and protection from harm on the other."

One of the three key Objectives of the Review (published in December 2020, within the Terms of Reference) was to ensure "that there is an equitable approach to the regulation of the online and the land based industries".

We welcome those commitments in the White Paper that directly address this objective and which respond to how the gambling landscape has changed since 2005. Specifically, the increase to the number of gaming machines that are permitted in 1968 Act casinos* is positive news for the Group. The Government's commitment to a sliding scale for gaming machine numbers, based on size of venue, ought to ensure that the vast majority of our 50 casinos will benefit from a greater variety of gaming machines which will better meet the needs of our customers.

We welcome the policies which will permit sports betting to be available in all of our casinos; changes to the provision of credit for international High Net Worth casino customers*; the review of digital payment methods in land-based venues*; and, in bingo, changes to the '80/20' rule relating to the balance between Category B3 and Category C and D machines.

We will be continuing discussions with the Government and the Gambling Commission regarding those modernising proposals for which the White Paper provides high level support, and which we believe are in the best interests of customers and are underscored by robust safer gambling measures. For casinos, these include the ability to offer a wider range of table gaming products on electronic terminals and, for bingo, the opportunities to extend betting opportunities on the main stage game of bingo. We are pleased that the White Paper provides the opportunity for both of these policies to be delivered.

We note the consultation on the statutory Levy and welcome the Government's acknowledgement that their consultation will take account of "the differing association of different sectors with harm and/or their differing fixed costs", which clearly applies to our land-based business models. 

Overall, we expect the policy changes to be positive for the Group with the changes relating to our land-based operations more than offsetting the negative impact of the reduction in maximum staking limits for online slot players* and the additional cost of the statutory levy.

We do not believe that the Government's policy relating to financial risk assessments for players will have a material impact for the Group, owing to the work we have already undertaken to ensure that our customers are playing at safe levels. 

The Group will evaluate the detail in the White Paper with a view to providing a more substantial update on its expected timing and impact in due course.

John O'Reilly, Chief Executive of The Rank Group Plc said:

"The public policy changes set out by Government are a constructive set of measures for the future of our industry and provide a firmer foundation for us to invest in our business. Whilst our UK digital business will be impacted by a tightening of regulation, our land-based operations will benefit from the proposed regulatory changes and, in net terms, the Group will benefit.

"With public policy now set, attention shifts to the timeline for implementing these policy changes. Swift implementation of these much needed reforms is vital for the land-based sector as we look to meet the needs of today's consumers whilst continuing to uphold our commitment to safer gambling."

Ends

Notes to editors:

* Asterisk denotes a policy contained in the White Paper which is now subject to consultation.