Bacta has highlighted the financial danger of the UK Gambling Commission’s gaming machine reforms, describing them as an “existential threat” to the industry.
The trade body for British arcades and amusement centres issued a call to arms, urging members “in the strongest possible terms” to continue discussions around the issue.
The recommended changes centre around the introduction of “five new standards, a licence condition, and a social responsibility code provision designed to support and empower consumers to use gaming machines safely at every stage of the customer journey”.
In particular, the Commission has been recommended to consolidate the existing 12 gaming machine technical standards into a single standard while amending the format to be more consistent with the Remote Gambling and Software Technical Standards for greater clarity.
Currently, 12 individual standards cover machines across A, B1, B2, B3, B3A, B4, C and D.
In a statement, Bacta’s Vice President, Joseph Cullis, warned that the changes could have “disastrous consequences” for stakeholders.
He said: “The Gambling Commission proposal that would require every Category B gaming machine to adhere to new technical standards irrespective of the age of the machine or its ability to receive software updates is likely to result in many units being junked with operators facing a huge bill to acquire replacements.
“The research that we have undertaken confirms that the huge spike in costs would put some operators out of business with disastrous consequences for employees as well as for local economies based at both the seaside and on the high street.”
Previously, Tim Miller, Executive Director for Research and Policy at the Gambling Commission, acknowledged that the regulatory changes would “come with considerable costs” but encouraged the industry to share evidence to assist the commission in understanding the economic cost of the proposed changes.
Bacta has had long-running concerns over the regulation of gaming machines across the UK.
Last month, the organisation’s President, John Bollom, extended an invitation to the Gambling Minister Baroness Twycross after the UK Government halted plans to relax the rules surrounding high street slot machine shops.
Plans had been considered to allow the installation of higher-stakes machines at adult gaming centres (AGCs). However, as reported by The Guardian, the Department for Culture, Media and Sport (DCMS) has shelved the plans amid concerns over how these establishments treat vulnerable customers.
As it stands, under the “80/20 rule”, no more than 20% of machines at AGCs can be category class B slots that allow stakes of up to £2 and jackpots of up to £500. The remaining 80% must be class C or D, offering stakes of up to £1 and prizes of up to £100.
In May 2024, the Conservative-led DCMS had stated it was considering adjusting the ratio to 50/50 or abandoning the rule altogether, however, the current regime acknowledged “concerns about the strength of protections for vulnerable people in the adult gaming sector”.
Bollom issued the invitation to Twycross in a bid to show her “the stellar work our AGC operators do to enshrine responsible gambling in venues”.
“Venue staff often build a relationship with regular customers, many of whom see AGCs as a vital part of their social life – a place to meet with friends and have fun, enjoying complimentary refreshments in a safe, clean environment,” he told the Minister.
Bacta has repeatedly campaigned for a resolution to the 80/20 issue, arguing that a relaxation of the rules, as set out in the Gambling White Paper, will help stimulate growth in the sector and “contribute to the government’s growth agenda”.
The trade body is set to host a webinar on 21 May regarding its response to the consultation on the Technical Standards.
It will feature contributions from leading industry figures such as Tony Boulton, Alan Claypole, John Bollom, Joseph Cullis and George McGregor, and will include advice to members on how to respond to the UK Gambling Commission’s consultation on GMTS reform, the deadline of which has been extended to 3 June.