UK (Parliament Politics Magazine) – Slot machine firms target poor UK areas, funnelling millions offshore as councils call for stronger powers to curb openings and protect communities.
As reported by The Guardian, companies operating slot machines are setting up in the UK’s poorest districts, directing revenues to global tycoons and Wall Street investors through offshore financial structures.
How are gambling firms targeting Britain’s poorest areas?
The UK has seen a 7% increase in slot machine shops since 2022. Industry operators are using lenient planning and licensing rules to flood Britain’s high streets with 24-hour adult gaming centres.
According to Guardian analysis, slot machine venues are heavily concentrated in Britain’s most deprived areas. This has raised alarms from a leading addiction specialist and prompted politicians, including Greater Manchester Mayor Andy Burnham, to call for stronger council powers to block new openings.
Analysis of 1,452 adult gaming centres shows that a third operate in the UK’s bottom 10% most deprived areas. More than 50% of these establishments serve people living in the country’s most deprived 20%.
Data suggests that targeting deprived areas continued during the recent surge in new adult gaming centres. Market leaders Admiral and Merkur have been expanding their presence on high streets.
Why are seaside and deprived towns targeted by 24-hour slot machine shops?
Many coastal towns with high deprivation and a history of amusement arcades have a heavy number of adult gaming centres. Great Yarmouth ranks highest among them.
Coastal regions without resort status also have many adult gaming venues. Middlesbrough and Hull, the fourth and fifth most deprived councils, host 28 AGCs serving over 424,000 people.
Fourteen local authorities, home to 1.7 million people, do not have a single AGC. All but one are among the wealthiest 50% of councils, with eight ranked in the top 20%.
What did Henrietta Bowden-Jones say about the impact of 24/7 slot machine venues on vulnerable communities?
Prof Henrietta Bowden-Jones, the national clinical adviser on gambling harms at NHS England, stated,
“Slot machine venues, particularly those open 24/7, deploy addictive products to keep vulnerable people playing for hours on end, against their own interests.”
She said,
“The Guardian’s findings indicate that the result of this is simply to channel funds from the pockets of the poorest into the pockets of the richest. This comes as the NHS is supporting record numbers who have had their lives destroyed by gambling, with 15 clinics now up and running across England.”
Ms Burnham stated,
“It’s time we were honest about what [AGCs] really are,” He warned that AGCs were “targeting some of the most vulnerable in our communities.”
She added,
“It’s unacceptable that councils have so little power to regulate them despite repeated concerns from charities and residents. We must reclassify these venues in law, give local authorities stronger licensing powers, and hold operators accountable.”
Labour’s Beccy Cooper demands action on gambling shops
Labour MP Beccy Cooper supported calls from Andy Burnham and over 30 councils for increased local powers to block new adult gaming centres. The campaign, led by Brent Council, aims to give authorities greater control over gambling venues.
She raised concern that AGCs “appear to be clustered in areas of higher deprivation, lining the pockets of gambling companies at the expense of some of our poorest communities.”
What did Bacta say about slot machine safety and jobs?
The UK’s arcade trade association, Bacta, said its members support 9,000 jobs and contribute £200 million in taxes each year.
They added,
“Social responsibility remains a cornerstone of Bacta members’ approach to their operations and businesses. Their priority is to offer safe, enjoyable fun to the many different walks of life that enjoy playing slots safely and responsibly.”
What did Andy Burnham say about the cancer patient case linked to Merkur?
Merkur, which operates 262 adult gaming centres, is owned by Germany’s affluent Gauselmann family. Its patriarch, Paul Gauselmann, has an estimated net worth of $2.6 billion.
Earlier this year, the gambling authority fined Merkur £100,000 after the Guardian revealed claims that its staff mistreated a cancer patient.
Referring to this case, Mr Burnham said he was “shocked” and added,
“I’ve written to ministers to raise her case and lobby for basic changes that could make a huge difference in protecting everyone from the dangers of these places.”
Types of gambling centres in the UK
- Casinos (e.g., Grosvenor, Hippodrome, Genting)
- Betting Shops (e.g., William Hill, Ladbrokes, Betfred)
- Bingo Halls (e.g., Buzz Bingo, Mecca Bingo)
- Racecourses (e.g., Ascot, Cheltenham, Aintree)
- Adult Gaming Centres (AGCs) (high-street slot machine venues)
- Family Entertainment Centres (FECs) (arcades with low-stake games)
- Online Gambling Platforms (e.g., Bet365, Paddy Power, 888 Casino)