AWP limits could lose industry £43m
Trade warns that machine restrictions may lead to pub closures
Plans to restrict the number of AWP machines in pubs would cost the trade £43m every year and could lead some pubs to close, the trade has warned.
In its response to the Gambling Review Body's report, the British Beer and Pub Association (BBPA) calculated that proposals to limit the number of AWP machines on new licences to two would be costly for the trade.
It is feared the move would hit vital machine income in many outlets.
The BBPA submission, which is supported by the British Institute of Innkeeping, said: "We estimate £43m per annum would be lost to the industry after five years if the proposals in relation to pubs are taken forward. The subsequent loss to the Treasury in duty and VAT would amount to £36m."
Business in Sport and Leisure chief executive Brigid Simmonds said: "The industry is concerned that the Gambling Review Body appears to have made recommendations concerning AWP machines without doing its homework.
"No research has identified a problem in this area and the economic implications have been ignored. In many pubs, income from machines makes up a third of their profit. These premises would close if the recommendations are implemented."
The plans to restrict gambling in pubs were published in the body's report in July. It also said that, had it been given free reign to alter the existing system, it would propose a ban on gambling in pubs altogether.
But the trade has criticised the report, describing it as "moralistic" and "contrary to public opinion".
Representatives from the BBPA met with gambling minister Richard Caborn earlier this month to make sure he is aware how important AWP machines are to pubs.
The BBPA has also drafted its own alternative proposals to the Government. They include raising the maximum prize on AWPs to £25 as soon as possible, allowing all pubs four AWP machines, deregulating payment methods so notes and "smart cards" could be used and clarifying the law relating to under-18s.
The Government will now consider both the report and responses before making a statement about the future of gambling in the UK early in the new year.
