The hospitality taskforce formed earlier this year by London mayor Sadiq Khan to cut licensing red tape has recommended several updates to gaming machine legislation, proposing three “simple, no cost, pro-growth changes” that could help operators boost income in a challenging business environment. It’s an odd, but welome, volte face from Khan – only a few months ago he was lining-up with local councils and other city mayors recommending an end to the Aim to Permit rule for AGCs. Are we finally beginning to see the economic and evidential arguments overriding the emotions.
The independent hospitality taskforce formed by London mayor Sadiq Khan earlier this year to propose reforms to the Licensing Act 2003 that promote growth and investment has recommended the government update its stance on Cat C machines in licensed venues.
The committee, made up of industry, police and local government representatives, was tasked with addressing “an alleged lack of proportionality, consistency and transparency” in current legislation, and engaged in several stakeholder meetings to identify key proposals.
“The taskforce concluded on 16 May 2025, and on 31 July 2025 the taskforce published their report which provided the government with ten priority recommendations in relation to the Licensing Act 2003,” reported Elizabeth Varley, solicitor at gambling law firm Poppleston Allen.
“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 recommendations are that licensed premises be given an automatic right to four Cat C machines, as opposed to the current allowance of two, the introduction of manual payments for gaming notifications/permits, and an immediate stake and prize review for Cat C machines.
In its report, the taskforce said these three proposals represent “simple, no cost, pro-growth changes that would enable pubs and other licensed premises to maintain the real value of an important income stream.” However, it has not as yet outlined its specific recommendations for changes to stakes and prizes.
According to Varley, the government “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.”
The big prize
Sadiq Khan taskforce said… “The recommendations are that licensed premises be given an automatic right to four Cat C machines, as opposed to the current allowance of two, the introduction of manual payments for gaming notifications/permits, and an immediate stake and prize review for Cat C…
