AGC sector unhappy
Operators of adult gaming centers (AGCs) in Great Britain have expressed frustration at the UK government’s decision to pause plans to relax the rules governing high street slot machine arcades.
relaxation of the “80/20 rule” will not happen in 2025
The move to shelve liberalizing the regulations means the relaxation of the “80/20 rule” will not happen in 2025, and as the Guardian reports, “could be dropped altogether.”
The status quo means only a maximum 20% of slot machines in AGCs can be category B3, namely terminals that allow stakes of up to £2 ($2.66) with winnings of up to £500 ($665). The remaining 80% of the slots can be class C or D, machines with a £1 ($1.33) maximum stake for jackpots not exceeding £100 ($133).
The UK’s Department for Culture, Media and Sport (DCMS) cited concerns over the AGC’s treatment of vulnerable players as the reason behind its move.
Unexpected decision
According to reports, the Starmer administration was “widely expected” to allow the booming AGC industry to install more slots offering higher payouts.
wasted floor space and unnecessary power bills
The AGCs had argued that the 80/20 rule stifled the vertical growth as most gamblers don’t play the lower-stakes slots, which amount to wasted floor space and unnecessary power bills.
Last May, the DCMS said it was mulling either a new 50/50 rule or dropping the 80/20 regulations entirely.
On Wednesday, The Guardian cited a DCMS letter announcing it was hitting the pause button on changes for 2025. While officials didn’t rule out revisiting the plan, they highlighted “concerns about the strength of protections for vulnerable people” within the AGC vertical.
A case in point arose in February when the UK Gambling Commission fined Merkur Group UK £95,450 ($126,983) for social responsibility failings at one of the AGCs owned by the German gambling giant Gauselmann Group’s UK subsidiaries.
The penalty came after a bettor lost £1,981 ($2,635) in November 2023 at a Merkur AGC in Stockport, with The Guardian revealing how “staff allegedly exploited a vulnerable cancer patient.”
Clinging to hope
Bacta President John Bollom expressed the frustration of members his body represents from the amusements and low-stakes, low-prize gambling arcade sector, but added Bacta remained hopeful the DCMS will revisit the plan.
“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.”
Labour MP Beccy Cooper, however, welcomed the pause and called for even more restrictions on AGCs.
“Local councils also need more powers to enable them to restrict the number of gambling outlets in local communities,” she stated.
