Other Licences and Permits

Gaming Machines in Pubs: Automatic Entitlement, Permits and the Rules

How a pub can have up to two gaming machines by notification, when a permit is needed for more, the machine categories, stakes and the age rules

Quick answer

Fruit machines have been part of the pub for a century, and the Gambling Act 2005 kept a simple route for them: a premises with an on-sales alcohol licence can have up to two gaming machines by telling the council, and needs a permit for more. The catch is that the machines are gambling, the rules about children and stakes are enforced by the same licensing authority that holds the alcohol licence, and a breach on the machines is a licensing objective problem for the pub. This article covers the automatic entitlement, the permit, the machine categories and the day-to-day rules.

A pub with an on-sales alcohol licence can have two Category C or D gaming machines by notifying the council and paying £50.
More machines need a licensed premises gaming machine permit: £150 to apply and £50 a year.
Category C is £1 stake, £100 prize, over-18s only; Category D is low stake and open to children.

Key takeaways

A pub with an on-sales alcohol licence can have two Category C or D gaming machines by notifying the council and paying £50.

More machines need a licensed premises gaming machine permit: £150 to apply and £50 a year.

Category C is £1 stake, £100 prize, over-18s only; Category D is low stake and open to children.

The Gambling Commission code requires supervision, age controls and staff training; breaches put the alcohol licence at risk.

The Automatic Entitlement to Two Machines

A premises licence authorising the sale of alcohol for consumption on the premises, with a bar at which alcohol is served without a requirement to order food, carries an automatic entitlement to make up to two gaming machines of Category C or D available. To use it the licence holder notifies the licensing authority in writing and pays a one-off fee of £50. Restaurants whose licence requires alcohol to be served with food do not qualify. The entitlement is lost if the premises licence lapses or if the authority removes it by order for failure to comply with the code of practice.

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The Licensed Premises Gaming Machine Permit

For more than two machines, the licence holder applies for a licensed premises gaming machine permit, specifying the number and category of machines. The fee is £150 to apply and £50 a year, and the authority can grant fewer machines than applied for or refuse. There is no upper limit in law but authorities look at the size and character of the premises and its record. The permit lasts as long as the premises licence, and a change of licence holder needs a transfer. Alcohol-licensed premises can only have Category C and D machines under either route; the higher-stake Category B machines are for betting shops, bingo halls and casinos.

Categories, Stakes and Prizes

Category C machines, the standard pub fruit machine, allow a maximum stake of £1 and a maximum prize of £100, and are for over-18s only. Category D machines include the low-stake crane grabs and penny falls, with stakes from 10p to £1 and prizes up to £50 depending on the type, and can be played by children. The limits are set by regulation and change occasionally, so check the current figures. Machines must display the category, the stake and prize limits and the Gambling Commission's helpline, and the pub must not offer credit or let a machine be played by someone who appears under 18.

The Code of Practice and Day-to-Day Rules

The Gambling Commission's code of practice for gaming machines in clubs and premises licensed to sell alcohol requires machines to be positioned where staff can supervise them, a procedure to prevent under-18 play with the same Challenge 25 approach as the bar, staff trained on the rules, and problem gambling information displayed. A pub that lets children play a Category C machine commits an offence and undermines the protection of children objective on its alcohol licence. Failures found at inspection can lead to the entitlement being removed, the permit revoked and a review of the premises licence.