8th Apr 2005 09:35
Rank Group PLC08 April 2005 The Rank Group Plc ("Rank") UK Gambling Act The key changes to the Gambling Act (the "Act"), which was enactedyesterday, 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 theconcerns over possible damage to the existing UK casino industry, had the Billbeen passed without amendment. The fact that there will be only one regionalcasino in the UK, at least initially, is also sensible. However, the Government has maintained its position in allowing new large andsmall casinos to offer a greater range and number of gaming products thanexisting casinos, thereby creating a two-tier market. Whilst Rank will competefor each of the new casino licences, as and when they are identified and becomeavailable, we will also continue to lobby aggressively for comparable rights forexisting 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 acohesive and rigorous regulatory regime for all forms of betting and gaming inthe UK. Such a framework will help to extinguish many of the inconsistencieswhich have become apparent in recent years, and maintain the UK's reputation asbeing 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 putforward at the end of December 2004. As one of the UK's largest gaming companieswith 120 bingo clubs and 36 casinos, as well as on-line and telephonesportsbetting, Rank will continue to work closely with Government to ensure thesmooth and timely introduction of the measures contained in this important pieceof legislation." Enquiries:The Rank Group Plc Tel: 020 7706 1111Mike Smith, Chief ExecutivePeter Reynolds, Director of Investor Relations Press Enquiries:The Maitland Consultancy Tel: 020 7379 5151Suzanne Bartch This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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