New law 'threat' to games arcades

Customers are staying away from amusement arcades, say operators

Amusement arcades at seaside resorts in Wales could be forced out of business this winter because of changes in the gambling laws, it is being claimed.

Operators say the Gaming Act has seen profits from the arcades' gaming machines plummet, the BBC's Eye on Wales investigation found.

They say lower stakes and fewer gaming machines are turning people away.

The UK government said trading conditions for many were difficult and it will review stakes and prizes.

The owner of Mumbles Pier in Swansea John Bollom said the Gaming Act introduced last September has affected the income of the gaming machines quite considerably.

"I know for many of my friends in the trade in different coastal resorts that their downturn has been even worse.

New rules

"Many of those will not survive.

"They have held on through this season hoping that the summer trade would improve and I know in most instances it hasn't.

Mr Bollom warned: "There will be a number of closures throughout the trade this coming winter.

Arcade operators say the problem lies with new rules on the types and numbers of machines they can offer which is making traditional arcades less attractive to adult players.

Leslie Macleod Miller, chief executive of BACTA, the association which represents the arcade industry, estimated the average arcade has seen revenues fall by a fifth as customers stay away.

Customers are saying the entertainment value is no longer there

He said: "The British public is saying 'We've been playing on gaming machines for more than 50 years, the entertainment value we've previously experienced is simply not there any more. My friends have gone - I'm going.'

"This was not the objectives of the new act - it wasn't to close down businesses, it wasn't to take away entertainment value. But that's what happened."

BACTA also supports members in the well-established manufacturing sector based in south Wales, which it says is also being hit as arcade owners stop investing in new machines.

Alan Parker, managing director of GameSoft in Cardiff has already had to lay off staff.

"The changes in the Gambling Act have absolutely devastated us - it's the same with everybody else.

Higher stake

"In terms of jobs in south Wales there are thousands of jobs in this sector when you look at not only the manufacturers themselves but also the supplier chain. So there are many, many jobs at risk in south Wales now."

BACTA is lobbying for a higher stake in the biggest £500 jackpot machines and an easing in restrictions on machine numbers.

A Department of Sport, Media and Culture spokesperson said the Gambling Act 2005 introduced a range of measures designed to help the bingo and gaming machine industries.

"However, we recognise that many operators in the industry are finding trading conditions difficult," said a spokesperson.

"In June we launched a stakes and prizes review for low stake, low prize machines, thus potentially benefiting seaside arcades, pubs and clubs such as working men's clubs.

"We will review stakes and prizes on higher categories of machine next year (category B3) as planned, when the Gambling Commission has completed its review of their impact on problem gambling.

"It would be irresponsible to do so any sooner."

• Eye on Wales is broadcast on BBC Radio Wales at 1830 BST on Monday or you can listen to the show by going to its website by clicking here.