Pubs and Casinos to Benefit from Cashless Slot Machines with Debit Cards

Last updated: June 7, 2024 by Leon Marshal

The UK government has announced new legislation allowing the use of debit cards on slot machines, marking a significant shift towards cashless gambling. This move aims to help pubs, casinos, and slot venues adapt to an increasingly cashless society, ensuring their competitiveness and sustainability. However, the new regulations will maintain bans on credit card use and include strict spending caps to protect gamblers.

Government Legislation on Cashless Gambling

The UK government has recently introduced a significant piece of legislation to modernise the gambling industry by allowing debit cards on slot machines. This move comes in response to the decreasing use of cash in society and the need for gambling venues to adapt to these changes. By enabling cashless transactions, the government hopes to level the playing field for brick-and-mortar establishments that have struggled to compete with the convenience of online gambling.

The new legislation stipulates that while debit card payments will be allowed, using credit cards on slot machines will remain prohibited. This decision is part of a broader effort to protect consumers from the risks associated with gambling on credit. The government has emphasised the importance of responsible gambling practices and has introduced several measures to protect players.

One of the key aspects of the legislation is the implementation of spending caps on gambling sessions. These caps are designed to prevent excessive spending and to provide a safeguard for players. When a gambler reaches the limit, staff will be alerted, ensuring that there is a pause in play. This interruption is intended to give players time to reconsider their spending and to promote responsible gambling behaviours.

Additionally, the legislation includes provisions for the use of authentication methods for debit card payments. Systems like chip and PIN or biometric verification will be required to authorise transactions, adding an extra layer of security. Contactless payments will remain banned to prevent impulsive gambling, which can be more likely with quick and easy payment methods. However, systems that require user authorisation, such as Apple Pay, will be permitted under the new rules.

The government’s approach also includes a mandatory 30-second delay after payment approval before additional money can be deposited onto a machine. This measure aims to mimic the natural break that occurs when withdrawing cash from an ATM, encouraging gamblers to pause and reflect before continuing to play. This regulation is part of a broader set of changes designed to make the gambling environment safer and more controlled.

Furthermore, the government intends to work closely with the Gambling Commission to ensure the new measures are effectively implemented and monitored. The Gambling Commission will conduct a separate consultation to determine the appropriate session limits, triggering a 30-second cooling-off period once reached. These efforts aim to create a more balanced and responsible gambling environment that prioritises player welfare.

Impact on Pubs, Casinos, and Slot Venues

Thousands of pubs, casinos, and slot venues across the UK are facing unprecedented challenges as the hospitality industry grapples with soaring costs and the after-effects of the Covid-19 pandemic and Brexit. The introduction of cashless gambling via debit cards is seen as a potential lifeline for these establishments, which are struggling to stay afloat amid rising energy bills, increased rent, and staffing shortages. The ability to accept debit card payments could help these venues compete in an increasingly cashless society, where consumers are less likely to carry cash.

The shift to cashless gambling that will allow bricks and mortar to directly compete with best betting sites raises concerns despite the potential benefits. Critics argue that allowing debit card payments on slot machines could make it easier for individuals to gamble excessively, potentially leading to higher rates of problem gambling. The government has included several safeguards in the new legislation to address these concerns. These include spending caps and mandatory play breaks, designed to encourage responsible gambling practices and protect vulnerable individuals.

The hospitality industry has been particularly hard hit by the ongoing cost of living crisis. According to industry data, more than ten licensed premises close daily, with the number of licensed venues in Britain falling below 100,000 for the first time. Rising food, energy, and staffing costs have made it increasingly difficult for businesses to remain viable. Many establishments are operating at a loss, with some high-profile restaurants and pubs announcing permanent closures due to financial pressures.

Celebrity chef Tom Kerridge has been vocal about the industry’s challenges. His flagship restaurant, The Hand & Flowers, has experienced a 700 per cent increase in utility bills, highlighting the severe impact of rising energy costs. Kerridge argues that the government needs to provide more support to the hospitality sector, including a reduction in VAT rates and an extension of business rates relief. Many more businesses will likely close their doors for good without such measures.

Industry groups such as the Federation of Small Businesses (FSB) and the Hospitality Professionals Association (Hospa) are also calling for greater government intervention. They warn that the hospitality industry will continue to suffer without additional support, with dire consequences for local economies and communities. The government has announced some measures to assist small businesses, including business rates relief and freezing alcohol duty rates. However, industry leaders argue that more comprehensive support is needed to ensure the long-term survival of pubs, casinos, and slot venues.

Regulations and Safety Measures

The UK government’s new legislation on cashless gambling comes with several regulations and safety measures to protect players. One of the key provisions is the implementation of spending caps on gambling sessions. These caps are designed to prevent excessive spending and provide a safeguard for players. When a gambler reaches the predetermined limit, staff will be alerted to ensure a pause in play. This interruption is intended to give players time to reconsider their spending and promote responsible gambling behaviours.

Another important safety measure is the requirement for authentication methods for debit card payments. Systems such as chip and PIN or biometric verification will be necessary to authorise transactions, adding an extra layer of security. Additionally, the legislation bans contactless payments to prevent impulsive gambling, which can be more likely with quick and easy payment methods. However, systems requiring user authorisation, such as Apple Pay, will be permitted under the new rules, providing a balanced approach to security and convenience.

The government has also introduced a mandatory 30-second delay after payment approval before additional money can be deposited onto a machine. This measure aims to mimic the natural break that occurs when withdrawing cash from an ATM, encouraging gamblers to pause and reflect before continuing to play. This regulation is part of a broader set of changes designed to create a safer and more controlled gambling environment. By implementing these safety measures, the government aims to balance the benefits of cashless gambling with the need to protect vulnerable individuals from the risks associated with gambling.