The Gambling Commission in the UK has come out in favour of the proposed £100 maximum payout for Category C machines in the upcoming Stakes and Prizes Review.
This will take the payout up from £70 and will come as much-needed relief for the pub machine sector, which is the largest segment of the business.
The Department of Culture, Media and Sport, which in the UK has responsibility for the gambling industry, had asked the Gambling Commission for advice on gambling regulation and in particular on the stakes and prizes that are due for review every three years and will come up again this year, probably with an announcement during the summer for early 2014 implementation.
The Commission had noted, with regret, the lack of helpful data coming from the industry in other sectors of machine gambling and suggested that as a result its recommendations might be more cautious. But with the Category C sector it said that it was one category in which data, “albeit limited” on the economic impact of previous changes, had been supplied.
It warned, however, that it would be “very important” for the pub sector to demonstrate its active commitment to social responsibility if it is to generate the public confidence which it will need to support future changes. “In particular it will wish to ensure that Category C remains on the whole primarily an entertainment product as opposed to primarily a gambling product.”
On Category D machines, which are mostly used in seaside amusement arcades, the Commission noted that the UK is virtually alone in permitting children to access gaming machines in this low-stake category. “The underlying rationale for this position, many argue, stems from the cultural tradition of seaside amusements. In that environment society has been, on the whole, content to allow children access to such machines in a family environment as an incidental entertainment, though many continue to argue that it is harmful.”
The UK industry had argued that there were economic benefits to an increase in cash stake and prizes in Category D machines and that there is inconclusive evidence on harm to young people from playing the machines. The Commission noted, however, that there is evidence of an association between problem gamblers and young adults. “The Department may wish to consider whether on prudential grounds, i.e. minimising the potential risk of harm, it would prefer not to secure growth on the back of encouraging real money gambling by teenagers.”
