ALMR and BBPA responses to gaming machines consultation

David Clifton’s recent article for Pub & Bar magazine “Status quo on gaming machines in pubs and bars” reported on the outcome of the government’s review of proposals for changes to gaming machine entitlements, stakes and prizes, including for gaming machines in pubs and bars.

The public consultation on the same subject that followed concluded yesterday 23 January. Press releases have now been published by each of the ALMR and BBPA and state as follows in relation to their respective responses to the consultation:

ALMR:

The ALMR has called on the Government to provide much-needed support for pubs by revitalising the gaming machine sector.

In its response to the Government’s consultation on Proposals for changes to Gaming Machines and Social Responsibility Measures the ALMR has made numerous recommendations including:

  • An upward review of stakes and prizes for Category C machines
  • An increase in the automatic entitlement from two to four machines
  • Slashing red tape and fees for venues
  • Investigating the use of contactless payment for machines to promote social responsibility
  • Review technical standards to allow for modernisation of sector

ALMR Chief Executive Kate Nicholls said:

  • “Gaming machines have historically been vital revenue streams for pubs, but their impact is dwindling due to a combination of factors. Red tape and costs prevent venues from utilising machines fully and customers have increasingly been lured away by other forms of gaming. If gaming machines are to regain their usefulness and revive their financial contribution, the Government must act to give businesses a chance make the most of them.”
  • “There is certainly justification for a much-needed revamp of gaming machines in pubs from a social perspective as well as economic. Unlike other potential areas of harm, the NatCen Social Research’s study for the Gambling Commission’s report on gambling behaviour shows that gaming in pubs has no history of contributing to problem gambling.”
  • “A simple first step from the Government would be to increase the automatic entitlement for venues and cut red tape from the process of acquiring additional machines, benefiting both licensees and local authorities. Venues are only entitled to two machines but must £50 to take up that entitlement, plus an additional £50 fee every time the licence changes. Those costs are unjustified.”
  • “The Government can also take steps to make machines more attractive to players without risking harm. An increase in the maximum stake and prize to £2 and £150 respectively would help boost play while addressing the fact that machine income has not kept pace with increased costs for businesses.”
  • “Currently, manufacturers are extremely limited in their ability modernise machines due to restrictive technical standards. A relaxation of these standards would allow for the manufacture of more appealing machines. Investigating the use of contactless payments for machines would allow ease-of-use while promoting safety. Cashless machines would help provide data on player spends and habits, reduce the risk of break-ins and virtually eliminate the potential for money laundering. With thousands of ATMs being taken out of pubs in recent weeks, there is an alarming decrease in cash in pubs, that could affect not only machines but other spending, too – contactless needs to be embraced.”
  • “These steps would provide support for an important revenue stream for pubs without increasing the risk of harm. Machines would still be in place in safe, supervised environments with far less risk of abuse than most other forms of gambling. Pubs continue to face an increase in costs and many of them are struggling. Steps to support gaming machines would provide relief for businesses operating under tight financial circumstances.”

BBPA

The British Beer & Pub Association (BBPA) has responded to the Government’s consultation on gaming machines and social responsibility proposals, and has called on the Government to ensure that Category C amusement machines (also known as fruit machines) in pubs remain attractive to customers, so that they continue to form a vital revenue stream for Britain’s pubs.

In a detailed response, the BBPA is calling for the Government to allow a modest rise in stakes and prizes for pub machines. The BBPA is also calling for an urgent consultation on the Category C technical standards to ensure the pub amusement machine can survive into the future.

The BBPA believes our suggestions set out in this response will keep pub amusement machines attractive without impacting on social responsibility or problem gambling. In fact, recent research does not identify pub amusement machines in respect of problem gambling.

Brigid Simmonds, Chief Executive, British Beer & Pub Association, comments:

  • “The amusement machine offer in pubs needs to be able to develop to meet the expectations of the consumer and form part of a low stake, low prize entertainment offer in a pub. Our proposals to increase both stake and prize should help keep pub amusement machines competitive.”
  • “Any gaming machine use in pubs is overseen by the licensee/manager and their team, and pubs represent, much as they do for drinking, a socially responsible environment. The BBPA already has a long-established code of practice to ensure machines are operated responsibly.”
  • “Operating costs for pubs are under pressure from high beer duty, business rates, the apprenticeship levy, and mandatory auto-enrolment pensions for employees. Income from amusement machines can be vitally important in keeping many pubs viable, and an increase in prize for Category C machines will enable pubs to invest in the business and keep an important social resource viable.”