High-street slot machines are reaping record takings as operators expand apace on Britain’s high streets, reigniting calls for the government to give councils more power to curb their spread.
Overall, betting and gaming revenues – excluding the National Lottery – reached £11.5bn in the year to March 2024, a 3.5% annual increase and the highest figure on record, according to statistics from the Gambling Commission that corrected previous figures.
Of these, so-called adult gaming centres (AGCs) – high street slot machine arcades grew takings by 11% to £623m thanks to a flurry of new openings by the sector’s major players, Merkur and Admiral.
AGCs are disproportionately located in the poorest areas and offer some of the most addictive machines, according to several studies.
The shops, the majority of which now offer 24-hour play, have come under increased scrutiny after high-profile instances of vulnerable people being exploited.
A Guardian investigation revealed how AGC operators have used planning and licensing loopholes and deployed aggressive tactics to flood UK high streets with 24-hour slots venues.
Expansion by firms such as Merkur and Admiral helped boost the number of slot machines on British high streets by 7% to 74,523 – an all-time high since the commission started recording the figures in 2008.
Of that total, takings from B3 machines, which offer a £2 spin every 2.5 seconds with a maximum jackpot of £500, jumped by the most, up by nearly 16% to £463m.
Each of the 14,155 B3 machines in Great Britain now takes an average of more than £32,700 a year, similar to the average UK salary.
The government recently put on hold plans to allow AGCs to install more of the B3 machines.
But a group of Labour MPs, including Dawn Butler, Beccy Cooper, Andrew Pakes and Sarah Coombes, as well as Greater Manchester’s mayor, Andy Burnham, want the government to go further by making it easier for local authorities to stop new AGCs from opening or obtaining 24-hour licences.
“These are high-stakes gambling venues, often open around the clock, targeting some of the most vulnerable in our communities,” said Burnham.
“It’s unacceptable that councils have so little power to regulate them despite repeated concerns from charities and local residents.”
Burnham is working with a group of more than 30 local authorities, led by Brent council, that want to overturn the “aim to permit” rule, a hangover from the 2005 Gambling Act that means licensing authorities have to lean towards allowing new gambling venues to open.
In practice, this means operators are very likely to win licensing battles with local authorities, even in the face of vehement local opposition.
Cooper, a Labour MP and public health consultant, said there was an “urgent need for powers to help local authorities limit gambling premises”.
Joseph Cullis, president of Bacta, the AGC trade body, said scrapping the rule “would create legal uncertainty and put legitimate local businesses at risk”, adding that it didn’t mean automatic approval.
Earlier this year, the Guardian highlighted the concentration of 24-hour venues in Peterborough. Pakes, the MP for the city, said: “There’s nothing more symbolic of the decline of the high street than the rapid uncontrolled growth of AGCs.
“How do local communities get control over high streets and stop that uncontrolled growth? Part of that is getting planning and licensing reforms.”
Cullis said Bacta’s members offered “safe, low-stake entertainment in well-regulated, supervised, alcohol-free environments”.
He added: “These Gambling Commission figures reflect the ongoing recovery of our sector following the pandemic, market realignment after B2 [fixed odds betting terminal] machine stake changes, and the continued investment our members are making in venues, staff and safer gambling measures.”
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A white paper on devolution in England contains proposals that would allow councils more leeway against the “aim to permit” rule, allowing them to “complement […] existing powers in relation to gambling outlets to refuse or place conditions on premises’ licences”.
It states: “The government’s view is that councillors, working with local people, need to be able to tackle and address these priorities.”
However, this would only apply to England and campaigners fear the proposal might not make it into the final legislation.
The Gambling Commission figures also revealed an increase of £345m in the amount of money lost to online slot machines, with the rise of 11% also outstripping the broader sector and delivering an all-time high of £3.56bn.
Both online and land-based slot machines consistently rank among the most addictive gambling products, according to multiple studies.
