John Bollom, president of UK trade association Bacta, this week opened the debate on its talks with the DCMS seeking an increase in stakes and prizes.
Bollom points out that some of the levels have been in place for as long as 13 years and has therefore hampered the sector’s ability to compete with other forms of entertainment.
Bacta’s case is now before Secretary of State Lucy Frazer, seeking rises in the maximum stakes and prizes across categories C, B3, B3A and B4. Only in Category D is there no request for an increase in stake - only in prize from £50 to £75.
Category C is top of the list, with a request for £1.50/£150, followed by B3, B3A and B4 rising to £2.50/£750.
Bollom said this week: “Bacta member operators were extremely disappointed that the reintroduction of the Triennial Review, which served the industry so well, was not included in the white paper.
"We are mindful of the importance of prioritising the white paper consultations and for reforms to be delivered during this parliament but we must also keep stake and prize levels and the mechanism to determine them firmly on the agenda.”
He argued that the levels proposed are below the cumulative impact of inflation over the past decade. “These proposed maximums reflect a less than inflationary increase.
"This will not reduce the payout percentages for the player and therefore regardless of the stake selected the player is not disadvantaged in any way.
"It should be noted that any amounts retained by the machine will not increase by the same percentage amounts as a large proportion of any stake is returned to the player as a prize.
"It should be further noted that players do not all stake at the maximums. The average stake for a machine is circa 60 per cent of the maximum permitted.”
Bollom said that the increases would not harm player protection issues. “Players will always have the option of playing at a lower stake and prize if that is what they wish to do and many will, as we know from current player behaviour.
"This was not the case in the past when multi-staking was not available. The machines are not going to change, just the maximum permitted price and prize.”
