The move represents a triumph for trade body BACTA, which has long lobbied for a return to the £2 maximum stake – reduced to £1 by the 2005 Gambling Act – and earlier in the year said it had secured promises from the current government, before it was elected, that this would be implemented.

Under the 2005 rules currently in force, the maximum stake is £1, and adult gaming centres (AGCs) and bingo halls may have up to four machines at each site. The proposed changes will see the maximum stake at £2 again and the number of machines permitted at each venue increase to either eight, or 20 percent of the total units at that location, whichever is the greater.

Payouts will remain capped at £500.

Another option being considered is limiting B3 units to one machine per 170 square feet of licensed floor space, but it is understood that the government disfavours this and it is unlikely to make it into the final legislation.

A 12-week consultation period, as dictated by government policy, now runs until 25 January 2011, after which there will be a three-month pause while the regulations are passed to European authorities.

“At this point we need to plan for a six-month delay” in the proposals becoming reality, said BACTA, adding that “we have of course pointed out that many businesses will be damaged by this delay and will be doing everything possible to bring forward the implementation day”.

However, unless there is unexpectedly strong resistance to the new rules during the consultation period or an unforeseen objection from Europe, it is likely that they will pass into law as drafted.

The Department of Culture, Media and Sport, the ministry responsible for gaming, said: “The government is persuaded that the situation facing [gaming and amusements] industries is sufficiently grave to justify considering whether a small increase in the maximum stake for category B3 gaming machines...and a recalibration of B3 entitlements for AGCs and bingo clubs might be appropriate.”

It added: “The combined aim of these proposals is to provide a benefit to premises operators, their customers and manufacturers, whilst ensuring that there is no significant increase in the risk posed to the licensing objectives of the Gambling Act.”

Boost for arcades, bingo halls

John Penrose, the minister for tourism and heritage overseeing the proposal, said the changes would benefit adult gaming centres (AGCs), which as we highlight in our feature on seaside amusements this issue are under threat from eroding levels of business. They are the biggest users of B3 machines, accounting for about 22 percent of installations, according to government figures. Also likely to profit from the new rules would be bingo halls.

“These are some of the oldest tourism and leisure businesses in Britain,” said Penrose, MP for the seaside resort of Weston-super-Mare since 2005. “Arcades and bingo clubs are important elements of many local economies, particularly in seaside towns. I want to ensure these businesses remain competitive in these tough economic times.”

How will increased stakes grow these businesses’ takings? The ministry’s consultation document explained: “The proposed stake increase may enable a greater variety of games, or games that are more attractive to players, to be developed. An example given by the industry is that the doubling of stakes would enable the number of jackpots offered to also be doubled, which may be attractive to some players. BACTA has estimated that a £2 stake would bring about an increase of 22 percent in revenues to AGCs. Assuming a similar increase for bingo clubs, this could equate to some £50m per year in additional revenue across both sectors.”

Casinos and licensed betting offices also offer B3 machines, but casinos can have between 20 and 150 units, depending on criteria including their size and the number of table games they offer.

Betting shops, like AGCs and bingos, are limited to four B3s – but they are much less significant for this sector than for AGCs because betting premises are also allowed to offer the highly profitable B2 games, with maximum stakes of £100, and it appears that neither the government nor the bookmaking sector sees any pressing need to increase the number of B3s.

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