Betting and gaming

News: Arcades and the Gambling Act 2005

  • Date: 19/11/2007
  • Author/Solicitor: James Anderson

Amusement arcades are feeling the pinch following the introduction of the smoking ban on 1st July 2007and the Gambling Act 2005 ('the Act') only two months later.

The high street arcades have been dealt a triple blow: the removal of the old Section 16 machines from the arcades, the new competition from betting shops and the smoking ban. BACTA, the industry body, have produced information to show that industry revenues are down by 21% since the 1st September.

Under the new Act, unless an arcade operator wishes to only have Category D machines, that is the lowest prize available, then he needs to be licensed both by the Gambling Commission and by the Local Authority. He needs to pay annual fees to both, including around £1,000 to the Gambling Commission for the annual Operating Licence fee. He will need to comply with Codes of Practice on responsible gambling, display signs and be wary of children in adult only areas and the potential for problem gamblers. There are new legal requirements replacing the old good practice.

The question arises, what have they done to deserve this? Have the new reforms been brought about because of a wealth of evidence of problem gambling in arcades? Have the new reforms been brought about because of existing evidence of children gaining access to adult only machine areas? Are the new reforms brought about because of existing evidence of consistently poor management of these premises?

The answer to all three questions is "no" and so the arcades find themselves in this new environment through no fault of their own. As one experienced operator has put it, although a family "pusher" has to have Gamcare information on it, an individual can sit in his own home playing internet roulette to his heart's content with a large scotch in one hand and a cigarette in the other without any form of supervision whatsoever!

It will be interesting to see, let us say in a year's time after next summer, where the arcade industry will be.

If there is any reaction, or if you have your own story to tell then please do not hesitate to contact the Betting and Gaming Team at Poppleston Allen.