Betting and gaming

News: High Street Arcades are Handed a Triple Blow

  • (Press Release)
  • Date: 23/11/2007
  • Author/Solicitor: James Anderson

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

High street arcades have been dealt a triple blow with the removal of the old Section 16 machines; new competition from betting shops and the much talked about smoking ban. To support their claims, BACTA, the industry body has produced information that reports industry revenues down by 21% since the 1st September.

James Anderson, Partner at Poppleston Allen, Said: "Under the new Act, unless an arcade operator wishes to only have Category D machines, that is the lowest prize available, they need to be licensed both by the Gambling Commission and by the Local Authority. Following on from that, they need to pay annual fees to both, including around £1,000 to the Gambling Commission for the annual Operating Licence fee. Furthermore, there is a need to comply with Codes of Practice on responsible gambling, display signs and be wary of children in adult only areas, as well as the potential for problem gamblers. In short, many are asking if the new legal requirements are simply replacing the old good practice.

"The question has been asked, 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 being 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, a cigarette in the other and a credit card, potentially running up huge debts, 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."

James Anderson