Slot Machine Companies Target Poorest Areas as Profits Flow to Billionaires High Streets Flooded with Adult Gaming Centres

Slot machine firms are increasingly targeting some of the UK’s most economically deprived areas, channelling profits to billionaire-owned corporations overseas and Wall Street funds, a recent investigation has revealed. Over a third of the 1,452 adult gaming centres (AGCs) reviewed by analysts are located in neighbourhoods among the poorest 10% of British communities. More than half are situated in areas ranked within the most deprived 20%, highlighting a troubling pattern of disproportionate placement in vulnerable regions.

The number of AGC venues has surged by 7% since 2022, largely due to lax planning and licensing regulations. Established operators, such as Admiral Slots and Merkur, have significantly expanded their presence with some venues operating 24 hours a day. Critics argue that these businesses leverage gambling’s addictive nature, particularly with slot machines, often to the detriment of local people who may already be struggling financially. Such concerns have drawn the attention of politicians and addiction experts, who are calling for regulatory reform.

Communities along Britain’s coastline, often plagued by economic hardships, have become hubs for AGCs. Great Yarmouth, a prominent example, is one of the leading areas for AGC density. Major cities such as Middlesbrough and Hull—among the most-deprived council areas in the country—have reported 28 AGC venues serving over 424,000 residents. In contrast, wealthier local authorities in areas like the south-east boast minimal to no AGCs, with some entirely free of these establishments.

Admiral Slots, the UK’s largest AGC operator, is owned by Novomatic, an Austrian gaming giant headed by billionaire Johann Graf. The company generated hundreds of millions in revenue while funnelling £82m in dividends to its parent firm. Rival operator Merkur, owned by the Gauselmann family in Germany, has similarly profited but faced controversy after reports surfaced regarding alleged exploitation of vulnerable customers. Calls for action intensified after a mayor highlighted a specific case involving a cancer patient being exploited in one of Merkur’s venues.

The problem extends beyond large corporations. Wall Street bank Morgan Stanley backs a 39-branch company, Game Nation, through a Cayman Islands-based structure, avoiding UK corporation tax while earning substantial interest payments. Regional councils and advocates argue that local authorities must be given the power to restrict AGC openings, ensuring communities have greater influence over their high streets. Campaigners also demand reclassification of these gambling establishments under more stringent licensing rules.

Amidst this growing controversy, industry representatives claim their operations support the economy through employment and taxes, but addiction advocates and politicians warn of lasting impacts on already strained public health services. With the NHS reporting record numbers seeking treatment for gambling addiction, experts stress the need for stronger intervention and support mechanisms to address the societal harm caused by these unchecked businesses.