New Gambling Commission Rule Takes Effect: What Operators Need to Know

28 Jul

Introduction

From 29th July 2026, a new Gambling Commission licence condition concerning non-compliant gaming machines comes into force. Licence Condition 18.1.1 gives the Commission a clearer mechanism for requiring operators to stop using gaming machines that do not comply with licensing or technical requirements.

What does the new condition require?

Under Licence Condition 18.1.1, a licensee must not make a specified gaming machine available for use where the Commission has notified it in writing that the manufacture, supply, installation, adaptation, maintenance or repair of the machine:

was not carried out under a gaming machine technical operating licence; or
did not comply with the Commission’s Gaming Machine Technical Standards.

The obligation is triggered when the operator receives written notification from the Commission. The operator must then take the action specified in the notification within the stated timeframe.

In practical terms, this will usually mean taking the identified machine out of use and ensuring that it cannot be accessed by customers. Depending on the circumstances, the Commission may require the machine to be disabled, isolated or removed from the premises.

Who does the condition apply to?

Licence Condition 18.1.1 applies to all non-remote:

casino licences;
bingo licences;
betting licences;
adult gaming centre licences; and
family entertainment centre licences.

It does not apply to remote operating licences. However, gambling groups operating both remote and land-based businesses should ensure that their compliance arrangements clearly identify which entities and premises fall within scope.

The regulatory responsibility remains with the holder of the relevant operating licence. Operators should not assume that compliance is solely the responsibility of the machine’s manufacturer, supplier or maintenance provider.

What will the Commission’s notification contain?

The Commission has said that its written notification will clearly identify the relevant machine. The information provided may include the machine’s name, manufacturer, category and premises location.

The notification should also explain:

why the Commission considers the machine to be non-compliant;
what action the operator must take; and
when that action must be completed.

Where a non-compliant game forms part of a wider selection of games on a machine, the Commission may require the particular game, rather than the entire machine, to be removed from use. Operators should therefore follow the specific instructions contained in the notification.

Why has the condition been introduced?

Operators already have responsibilities to ensure that gaming machines are lawfully supplied, installed, maintained and operated.

The new condition does not replace those existing obligations. Instead, it gives the Commission a direct enforcement route once it has identified a particular machine as non-compliant.

The change forms part of the Commission’s wider review of the Gaming Machine Technical Standards, Gaming Machine Testing Strategy and the Licence Conditions and Codes of Practice.

The Commission considers that the condition will simplify its compliance and enforcement processes and allow non-compliant machines to be removed from use more effectively.

What are the consequences of non-compliance?

Failure to act in accordance with a written notification may constitute a breach of a licence condition and could result in regulatory action, including a financial penalty or a review of the operator’s licence.

Taking the machine out of use in accordance with the notification should avoid a breach of Licence Condition 18.1.1. However, this will not necessarily prevent the Commission from considering whether wider enforcement action is appropriate.

For example, the Commission may investigate whether the operator took reasonable steps to ensure that the machine was lawful before making it available for use. A history of similar non-compliance may also result in increased regulatory scrutiny.

What should operators do now?

Affected operators should:

ensure that their primary contact details with the Commission are accurate and monitored;
maintain an up-to-date inventory of machines at each premises;
verify that machines are supplied, installed and maintained by appropriately licensed businesses;
retain relevant supply, installation, maintenance and repair records;
establish a clear process for escalating Commission notifications;
ensure that staff know how to take an affected machine out of use; and
update compliance policies and training to reflect the new condition.

Operators should also review their agreements with manufacturers, suppliers and maintenance providers. These should clearly address responsibility for regulatory compliance, repair or replacement of non-compliant machines and any resulting losses.

Any contractual dispute with a supplier should not delay compliance with the Commission’s notification.

This article is intended for information purposes only and provides a general overview of the relevant legal topic. It does not constitute legal advice and should not be relied upon as such. While we strive for accuracy, the law is subject to change, and we cannot guarantee that the information is current or applicable to specific circumstances. Costigan King accepts no liability for any reliance placed on this material. For further details concerning the subject of the article or for specific advice, please contact a member of our team.