Government Taskforce recommends gambling changes

Earlier this year the Mayor of London, Sadiq Khan, announced an independent taskforce to look at slashing tape surrounding the Licensing Act 2003, in a bid to give the hospitality sector a much needed boost across the capital.

The taskforce is made up of representatives from government, industry, police and local government. The group were tasked with making recommendations on the effective change to the Licensing Act 2003 to combat an alleged lack of proportionality, consistency and transparency – creating barriers to growth and investment.

Since their appointment, the taskforce have conducted research by way of survey and focus groups to hear first hand from the industry the changes required to combat unnecessarily burdensome red tape.

The taskforce concluded on 16 May 2025 and on 31 July 2025 the taskforce published their report which provided government with 10 priority recommendations in relation to the Licensing Act 2003. In addition to these recommendations, the taskforce recognised the impact of other licensing regimes on alcohol licenced venues, most notable for our purposes, the Gambling Act 2005.

The report called for wider legislative reform, with proposals relating gaming in alcohol licensed venues. The proposals are–

1. Automatic right to 4 Category C machines (currently 2) for licensed premises,
2. Manual payments for gaming notifications/permits, and
3. An immediate stake and prize review for Category C machines.

The taskforce state that ‘These are simple, no cost, pro-growth changes that would enable pubs and other licensed premises to maintain the real value of an important income stream.’

The current legislative framework permits up to two category C and/ or D gaming machines in alcohol licenced venues under the automatic entitlement. The proposal would therefore see the entitlement increased to 4 category C and/ or D gaming machines, allowing for more gaming machines in alcohol licensed premises before requiring a more formal application for a greater number of machines, such as a Licensed Premises Gaming Machine Permit. Under the proposal Operators would be able to offer more machines at a lower initial and renewal cost.

The current maximum stake for a category C gaming machines is £1, and the maximum prize is £100. It is not yet clear what changes the review is proposing so we await further clarity on this from the taskforce and government.

The government have welcomed the taskforce’s report and acknowledge that a modern and enabling licensing system is essential. Whilst the government accept the majority of the taskforce’s priority recommendations, where recommendations would require legislative changes to be implemented, as changes to the automatic entitlement and machine stake and prize limits would, delivery of these reforms will only take place when Parliamentary time allows.

It seems for now that the focus from government will be on the priority recommendations so only time will tell if the wider legislative reforms to the Gambling Act will gain traction.

For further information on this or any other licensing issues, please contact licensing solicitor, Elizabeth Varley on e.varley@popall.co.uk or call 0115 953 8500.