Trade welcome for £35 AWP payout
The Government has agreed to raise the maximum stake and prize money for AWP machines from 27 October.
Following a sustained campaign spearheaded by the All-Party Parliamentary Beer Group, the maximum stake will increase from 30p to 50p and the maximum prize from £25 to £35. The changes, due for review in three years' time, only apply to machines that currently offer a maximum jackpot of £25.
"It is a good result," said British Beer & Pub Association director of pubs and leisure Martin Rawlings.
"I welcome anything that helps pubs bolster trade when the smoking ban starts. Machine income has de-clined because AWPs have not been competitive - so this is a step in the right direction."
However, licensees are be-ing advised to wait until March to install machines with the new prize limit to avoid a hefty rise in Amusement Machine Licence Duty from £375 to £1,780 a year. This issue will be addressed in the Budget.
Inspired Gaming Group co-chief executive Norman Crowley believes the new
limits will help to rejuvenate the machine sector and counteract the smoking ban. "When Italy introduced a ban, machine incomes dropped for eight weeks before returning to their usual level, but Scotland has seen a more steady decline," he said.
"The smoking ban is just the nail in the coffin - there has been little innovation in the market. This is a chance to see a big resurgence in fruit machines and it will probably increase machine incomes."
Strict Code of conduct
The Department for Culture, Media & Sport has warned that failure to abide by a strict code of conduct will see new levels withdrawn.
The new code requires all gaming machines to display GamCare's helpline number, clear signs and supervision to ensure that under-18s are forbidden to play.
"We made it clear through the Gambling Bill's passage that changes to stakes and prizes had to be connected with improved social
responsibility," said sports minister Richard Caborn.
BBPA director of pubs and leisure Martin Rawlings said: "It enhances the code we've been practising for many years. The key is to ensure under-18s don't play
machines, which isn't a major problem in pubs."
