The UK government has put on hold controversial plans to relax rules around high-stakes slot machines in adult gaming centres (AGCs), in a move that signals growing caution over the industry’s impact on vulnerable players.
The decision marks an unexpected setback for the rapidly expanding AGC sector, which had anticipated a shift in regulation that would allow more lucrative machines in high street venues. Industry figures had hoped the government would scrap or amend the so-called “80/20 rule”, which limits the proportion of higher-stakes B3 machines in venues to just 20 per cent, with the remaining 80 per cent reserved for lower-stakes category C or D terminals.
B3 machines permit bets of up to £2 and offer jackpots of up to £500, while the lower-stakes machines are capped at £1 and £100 respectively. Operators have long argued that this restriction hampers commercial viability, with less popular machines occupying valuable floorspace and driving up operational costs.
The proposed regulatory overhaul had been set out in the government’s gambling white paper in 2023, which took a tougher stance on online betting while appearing more supportive of land-based establishments such as AGCs and bingo halls. Last May, the Department for Culture, Media and Sport (DCMS) floated the possibility of easing the ratio to 50/50—or scrapping the rule entirely.
However, in correspondence seen by The Guardian, officials at DCMS confirmed the department would not be proceeding with the change this year, stating that they acknowledged “concerns about the strength of protections for vulnerable people in the adult gaming centre sector”.
The move follows mounting scrutiny of AGCs, especially after prominent operator Merkur was fined nearly £100,000 by the Gambling Commission earlier this year. The penalty was imposed following allegations that its staff exploited a cancer patient known to be vulnerable.
Iain Duncan Smith, former Conservative party leader and chair of the parliamentary group on gambling-related harm, welcomed the government’s caution: “Given the insufficient protections in place for people in these venues and the addictive nature of these machines, increasing their numbers should be ruled out entirely. The widespread breaches of regulation by AGCs, which are now proliferating on our high streets, must be urgently looked into.”
Despite the setback, the industry continues to press its case. John Bollom, president of the arcades trade body Bacta, described the delay as “frustrating”, noting the reform was one of the “key modernising proposals” in the white paper.
“We remain hopeful that we will see the same progress as other sectors,” Bollom said. “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.”
Bacta insists that its members maintain high standards in player protection, but the sector now faces a period of uncertainty as public and political pressure mounts.
Labour MP Beccy Cooper said the decision was a step in the right direction, but urged the government to go further. “Local councils also need more powers to restrict the number of gambling outlets in our communities to prevent gambling harms,” she said.
The Department for Culture, Media and Sport has been approached for comment.
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Government shelves slot machine reforms as concern grows over gambling harm