The UK government could be about to make a dramatic U-turn on its plans to relax the rules that regulate the land-based slot gaming sector.
Adult gaming centres (AGCs) have grown in popularity in UK towns and cities in recent years, despite firms claiming that the regulations governing how they operate are unfair and restrictive compared to their online counterparts.
It was expected that ministers would agree, with newer, more liberal rules established to help create a level playing field.
However, concerns of how adult gaming centres are operated – with specific reference to how vulnerable players showcasing problem gambling behaviours are treated, has given government figures pause for thought.
And now it looks as though they will delay the regulation… or halt it entirely.
The 80/20 Rule
The so-called ‘liberalisation measures’ were first detailed by Stuart Andrew, the then minister for Sport, Gambling and Civil Society, back in May 2024.
They came as a response to the White Paper consultation as part of the revised Gambling Act, which drew the conclusion that the land-based sector should be somewhat deregulated to reflect the changing needs of customers.
Amongst them was a section relating to adult gaming centres, which called for an increase in the number of slots and gaming machines that an establishment could have on its floor.
There were also controversial plans to remove the ‘80/20 rule’, which determined how the gaming floor could be set out. Under the old legislation, 80% of machines in land-based gaming establishments must be category C or D, for which a maximum stake of £1 – and maximum jackpot of £100 – is in place.
The other 20% were allowed to be category B3, with maximum stakes of up to £2 and a possible top prize of £500.
The land-based sector has long complained that such rules aren’t fair when compared to those governing the online sector, where maximum stake and jackpot thresholds are higher.
Some have also argued that the low jackpot games are unequitable to run, as so few players want to play them.
The former Conservative government took those concerns on board, promising to look into the possibility of change.
“With technological developments, land-based casinos have been able to introduce a greater range of customer protections and the experiences of applying these across each type of licence have provided insight on the likely impact of any proposed changes,” a spokesperson revealed.
Ministers instead proposed a 2:1 rule on category B, C and D machines, which would have allowed arcades and gaming venues to have more of the higher stakes facilities in their floors. There was even talk of a 1:1 ratio, or abandoning the rule altogether.
Since then, the UK has had its general election and the former Conservative government has since been replaced by a Labour cabinet. They have since adopted the White Paper and upheld some of its recommendations – although the update to this particular land-based gaming rule looks set to be canned.
Strength of Protection
The Guardian newspaper has revealed that it has seen a letter in which officials from the government’s Department of Culture, Media and Sport have confirmed that they ‘would not be introducing changes to the 80/20 rule this year.’
Ministers haven’t ruled out revisiting the possible liberalisation at some point in the future, however at the moment the government is concerned about the ‘strength of protections for vulnerable people’ that exist within adult gaming centres.
That comes after Merkur, one of the most prominent operators of adult gaming centres, was fined £95,000 by the UK Gambling Commission earlier this year for a string of social responsibility failings.
It was revealed that one customer lost nearly £2,000 while playing low stakes games in two gaming sessions in November 2023 – the latter of which seeing the individual gamble on and off from 1.28pm in the afternoon until nearly 1am the following morning. It was later revealed that the customer was a vulnerable cancer patient.
However, the president of the arcades trade body Bacta has stated that its members adhere to the highest standards of player protections.
John Bollom commented:
“We are frustrated with the delay in resolving the 80/20 issue, which was a key modernising proposal in the gambling white paper, but we remain hopeful that we will see the same progress as other sectors; and that when the minister looks again she will see this reform for what it is – common sense, safe for players and good for our ailing high streets.”