The UK government is launching a consultation in proposals to amend the maximum stakes and prize limits for category B, C and D gaming machines that could bring relief to the industry.
In 2009, the stake and prize limits for category C gaming machines was increased from 50p/£35 to £1/£70 to provide some assistance to the arcade and pub sectors. At the same time, the stake and prize limits for cranes and pushers were increased to £1/50 and 10p/£15, respectively. This was to boost revenues in seaside arcades.
In July 2011, the government increased the maximum stake limit for category B3 gaming machines from £1 to £2 to help adult gaming centres and bingo premises, while also providing a boost to machine manufacturers and suppliers.
The market continues to struggle, however, with the sales value for most categories of gaming machines - with the exception of B2 -is anticipated to continue to decline.
The industry has agued that a failure to conduct a periodic review of stakes and prizes in the wake of the 2005 Gambling Act has stifled investment required for long-term growth. In 2011, the government announced that it would reintroduce the triennial review system to rectify the problem.
In this consultation, the government is seeking views on whether to maintain the status quo or to increase stakes and prizes to cover inflation from 2007.
It is also inviting opinion on the industry’s recommendations of increasing the stake and prize limit for B1 machines to £5 and £10,000, and the latter for B3 machines to £1,000. The industry is also calling for the maximum stake for B3a machines to be doubled to £2 and for the stake and prize limit for B4 machines to be raised to £2 and £400. Interestingly, the industry proposed increasing the limits for non-money prize cranes to £2 and £100 and combined money and non-money prizes for coin pushers to 20p and £20.
The government has also put forth its own proposals. It is willing to support an increase in the maximum stake level for Cat B1 games to £5 and is seeking views on a range of prizes up to £15,000. It is also open to increasing the maximum stake level for B3a machines to £2, and would consider bringing forward an increase in stakes and prizes for B4 to £2 and £400. Cat C games could see their prize level raised to £100, while Cat D games may see their stake and prize limits increase to £2 and £60.
The consultation will run until April 9.
