Slot Machine Companies Prey On UK’s Poorest Neighbourhoods
Recent analysis by The Guardian highlights a concerning trend in the UK gambling industry: major slot machine operators are increasingly targeting economically disadvantaged areas. This has prompted calls from politicians for local councils to be granted greater authority to prevent new establishments from opening in these vulnerable communities.
Growth of Slot Machine Outlets: 7% Rise Since 2022
The UK slot machine sector has witnessed significant growth, with a 7% increase in new shops since 2022. This surge coincides with a rise in user engagement on UK online casinos, indicating a broader trend in gambling activities.
These establishments, commonly referred to as ‘adult gaming centres’ (AGCs), are strategically located on the UK’s busiest high streets, many operating 24 hours to cater to avid slot machine enthusiasts. However, this accessibility raises alarms among addiction support groups and local politicians, such as Greater Manchester Mayor Andy Burnham, who express concerns about the proliferation of these venues in impoverished areas.
Recent amendments to the UK Gambling Act aim to tighten regulations on casino gaming machines, reflecting growing awareness of the potential social harms associated with gambling.
An analysis of 1,452 adult gaming centres revealed that approximately one-third are situated in the UK’s most deprived 10% of areas. This statistic escalates to over half when considering the lowest 20% of regions, underscoring a troubling correlation between economic hardship and gambling access.
Leading operators, such as Admiral and Merkur, have notably increased their presence, primarily focusing on economically vulnerable populations to maximize profitability.
Seaside Towns: A Key Target for Slot Companies
Regrettably, many of the UK’s seaside towns, known for their amusement arcades, have become focal points for these aggressive expansion strategies. Among the top locations targeted is Great Yarmouth, specifically Wellington Pier, a prime example of how these operators are capitalizing on local economies. Other areas, including Middlesbrough and Hull, rank in the top five most deprived regions, collectively housing 28 adult gaming centres.
In stark contrast, 14 local authorities, serving a population of around 1.7 million, report having no adult gaming centres, highlighting significant disparities across regions.
Prof. Henrietta Bowden-Jones, national clinical adviser on gambling harms at NHS England, stated:
“Slot machine venues, especially those open 24/7, market addictive products, encouraging vulnerable individuals to gamble for extended periods. The findings from The Guardian illustrate a concerning pattern of wealth transfer from economically disadvantaged individuals to corporate profits. This situation comes as the NHS supports a record number of individuals whose lives have been adversely affected by gambling, with 15 clinics currently operational across England.”
The Dominance of Austrian and German Firms in the UK Slot Market
Slot machines often feature single spins priced at £2, with enticing jackpots reaching up to £500. Recent reports indicate that these operations extracted approximately £530 million from gamblers over the past year.
Admiral Slots stands as the largest UK operator, overseeing 346 venues. As a subsidiary of Austrian giant Novomatic, their operations are linked to billionaire Johann Graf, who holds a net worth of $10.2 billion.
Conversely, Merkur, with 262 shops, is owned by the German Gauselmann family, with Paul Gauselmann’s net worth estimated at $2.6 billion. Consequently, a substantial portion of the revenues generated by these two market leaders is routed overseas, raising concerns about local economic impacts.
Mayor Andy Burnham passionately remarked:
“We must confront the reality of what AGCs are doing. They are disproportionately targeting our most vulnerable communities. It is unacceptable that councils possess limited authority to regulate these venues despite widespread concerns from charities and residents.”
Burnham has taken proactive steps by communicating with ministerial authorities to advocate for essential changes, aimed at enhancing local council powers to safeguard the community from potential gambling-related harms.
