How new gaming machine regulations could reshape the industry

In January 2025, the UK Gambling Commission (UKGC) opened a consultation on sweeping changes to gaming machine regulations across the UK. The proposal would consolidate twelve separate technical standards into a single unified framework. The move aims to modernise outdated rules and bring land-based machines more in line with Remote Technical Standards used online.

The biggest changes target Category B machines, commonly found in adult gaming centres, pubs and bingo halls. All machines, regardless of age or software compatibility, would be required to include updated player protections. These updates include features such as game speed controls, session timers, and permanent safer gambling messaging on screen.

Originally set to close on 20 May, the consultation has now been extended to 3 June.

Bacta warns of existential threat to arcades

Trade body Bacta, which represents the amusement and land-based low-stakes gambling entertainment industry, has issued a strong warning over the financial and operational risks tied to the proposed gaming machine regulations that UK operators may soon face. Joseph Cullis, Bacta Vice President, has described the changes as an “existential threat to the industry”.

Bacta argues that the rules would force many operators to scrap older machines that cannot be updated. Replacement costs are steep, with new machines often exceeding £10,000 each. Multiply that by 10 or more machines; the financial strain could pull the plug entirely for smaller arcades and independent venues. This isn’t a minor update. It’s like replacing your entire fleet because the MOT rules changed.

Cullis said the spike in costs would lead to job losses and hit local seaside and high street economies hard.“The proposals could put some operators out of business. They are unfair to small firms and completely ignore the legacy of machines that have served our communities for decades.”

Bacta has called on members to attend a special webinar on 21 May. The aim is to coordinate a formal response before the consultation deadline.

Why small operators face the sharpest impact

The UKGC has acknowledged the financial burden and extended the implementation period from eighteen to twenty-four months. But critics argue this still does not go far enough.Larger operators can adapt. They benefit from economies of scale, better financing options and compliance teams that can handle transition plans. They are also more likely to invest in modern machines that already meet some of the proposed standards.

In contrast, small and medium operators face the harsh edge of reform. They often run older machines with limited upgrade options and tighter margins. Many lack the capital needed for complete replacement. Insurance premiums are higher per unit. Compliance processes are more challenging to manage without dedicated teams. The result is a regulatory change that feels less like safety reform and more like a survival test.

This disparity raises serious questions about the future of amusement arcades and bingo halls under the new gaming machine regulations the UK authorities are preparing to implement.

UKGC invites feedback but offers little relief

The Gambling Commission has said it is open to feedback. Tim Miller, Executive Director for Research and Policy, encouraged businesses to provide evidence to help assess the cost and benefits of reform. He said,“We recognise that regulatory changes impacting the design of machines can come with considerable costs. We are encouraging gambling businesses and other groups to share evidence that will assist us in measuring both the likely regulatory impact and the cost of implementation.”

Industry groups, including Bacta and the Bingo Association, are expected to submit technical alternatives and urge exemptions for legacy machines. There are also calls for more extended phase-in periods and flexible compliance options reflecting business size.

This is about more than machines

The push to modernise gaming machine regulations in the UK is part of a wider reform strategy. At its core is a commitment to safer gambling environments and consistent standards. However, good regulation balances progress with protection for players and businesses that support them.

This is not just about machines. It is about livelihoods and community venues that offer low-stakes social gambling in supervised environments. It is about towns that still rely on seasonal trade from arcades that have stood for generations. They are not just flashing lights and beeping buttons. They are the soundtrack of a working-class heritage. As usual, the big firms won’t blink. They’ll upgrade. They’ll survive and further monopolise.

If these machines fall silent, it won’t be because people stopped playing. It’ll be because amongst the noise, no one heard the alarm bells.