Rank Group PLC
08 April 2005
The Rank Group Plc ('Rank')
UK Gambling Act
The key changes to the Gambling Act (the 'Act'), which was enacted
yesterday, and which are likely to affect Rank's gaming operations, are:
• A doubling in the number of Category B gaming machines to be allowed in
each existing casino to 20 per casino
• A four-fold increase in the level of stakes and a doubling in the
maximum prize for Category B machines in casinos from 50p and £2,000 to £2
and £4,000 respectively
These amendments are welcome and have gone some way to alleviate many of the
concerns over possible damage to the existing UK casino industry, had the Bill
been passed without amendment. The fact that there will be only one regional
casino in the UK, at least initially, is also sensible.
However, the Government has maintained its position in allowing new large and
small casinos to offer a greater range and number of gaming products than
existing casinos, thereby creating a two-tier market. Whilst Rank will compete
for each of the new casino licences, as and when they are identified and become
available, we will also continue to lobby aggressively for comparable rights for
existing casinos.
Rank believes that, despite the lack of a level playing field, the new law,
combined with the establishment of the Gambling Commission, will create a
cohesive and rigorous regulatory regime for all forms of betting and gaming in
the UK. Such a framework will help to extinguish many of the inconsistencies
which have become apparent in recent years, and maintain the UK's reputation as
being one of the world's best regulated gaming markets.
The other key measures which will be introduced as part of the new Act are:
• Removal of the 24 hour rule in casinos and bingo clubs
• Ability of casinos to advertise, subject to a strict code of conduct
• Abolition of permitted areas
• No statutory limits on the level of stakes and prize in bingo games
• No restriction on the frequency of multiple bingo games
• Roll-over jackpots to be permitted in bingo
Commenting on the new Act, Mike Smith, Rank's Chief Executive, said:
'The Act represents a much improved and more balanced framework than that put
forward at the end of December 2004. As one of the UK's largest gaming companies
with 120 bingo clubs and 36 casinos, as well as on-line and telephone
sportsbetting, Rank will continue to work closely with Government to ensure the
smooth and timely introduction of the measures contained in this important piece
of legislation.'
Enquiries:
The Rank Group Plc Tel: 020 7706 1111
Mike Smith, Chief Executive
Peter Reynolds, Director of Investor Relations
Press Enquiries:
The Maitland Consultancy Tel: 020 7379 5151
Suzanne Bartch
This information is provided by RNS
The company news service from the London Stock Exchange
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