Sadiq Khan’s “simple, low-cost, pro-growth” changes to cat-C allowance

Government taskforce makes recommendations on automatic entitlement and stakes and prizes for category C gaming machines

Elizabeth Varley, solicitor at licensing law firm Poppleston Allen, unpacks the new London taskforce working to improve profitability for hospitality and gambling in licensed venues

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 – but it also impacts the gaming industry.

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 the 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 notably for our purposes, the Gambling Act 2005.

The report called for wider legislative reform, with proposals relating to 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 states: ‘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 licensed 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 machine 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 has welcomed the taskforce’s report and acknowledged that a modern and enabling licensing system is essential. Whilst the government accepts 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 the government will be on the priority recommendations so only time will tell if the wider legislative reforms to the Gambling Act will gain traction.