Triennial Review Of Stake And Prize Limits On Gaming Machines

The Gambling Commission have provided a formal advice to the Secretary of State on the triennial review of stakes and prize limits on gaming machines (“the triennial”).

The primary concern is the potential impact of any changes in stakes and prizes:

- on gambling related harm to the under age and other vulnerable people and

- on whether the way the gambling is provided is sufficiently ‘fair and open’.

The key words in the document appear to be “precautionary approach”

In terms of the individual machine classifications the main points to note are as follows:

Category B1 machines

The Commission considers that there is scope to increase stake and prize limits on B1 machines, provided additional risk is mitigated through the development, trialling and evaluation of improved harm mitigation measures.

The casino industry has also called for very significant increases in provision for “progressive linked jackpots”, from £4,000 to £50,000. As a result, the onus on the casino industry to make a persuasive case on its commitment to leading the way on

player protection will be particularly significant.

Category B2 machines

For now, the advice is that a precautionary reduction in stakes for B2 machines is unsupported by the available evidence. However, in discussion the Responsible Gambling Strategy Board (“RGSB”) is equally clear that if the lack of transparency around the impact of B2 machines is allowed to persist – a lack that only the industry can address – Ministers may find the range of realistic options available to them narrows and that they could quite reasonably act on a precautionary basis anyway.

Category B3 machines

Following the recent significant changes to the B3 stake and prizes , and to permitted machine numbers which have been introduced relatively recently it is stated that the industry has found it difficult to quantify either the economic or the social impact of those changes. On that basis no further change shall be permitted until the impact of the recent changes are better understood.

Category B3A and Category B4 machines

The Commission agrees with the view and sees no regulatory reason why the Government should not proceed with its preferred options in this area, (ie to increase the maximum stake on both categories of machine from £1 to £2 and to increase the maximum prize on Category B4 machines from £250 to £400). However, the Commission considers that the proposed uplifts are taking stake and prize limits on such machines closer to the margins at which the effectiveness of “peer regulation” and social responsibility provisions in members clubs should be tested before future uplifts can be given serious consideration.

Category C machines

The Commission sees no reason for the Government not to proceed with its preferred option for this category (to increase the maximum prize from £70 to £100). This is one category of machine in which data, albeit limited, on the economic impact of previous changes was supplied. It is also acknowledged that belonging to the group of pub only gamblers (the largest market for Category C machines is pubs) tends not to be predictive of problem gambling.

Category D machines

The industry’s proposals on category D are based on the argument that that economic benefits (jobs, investment etc) will flow from an increase in cash stake and prize. The evidence on harm to young people from playing category D machines is inconclusive but the Department will wish to consider whether on prudential grounds, ie minimising the potential risk of harm, it would prefer not to secure growth on the back of encouraging real money gambling by teenagers. The industry itself will wish to consider whether, in seeking to move category D from an amusement space to one which is more ostensibly driven by the gambling itself it may not in fact be putting at risk the general tolerance of category D machines…A hidden warning.

In order to see the full advice click here