Slot Machine Shop Staff Handed Bonuses Based on Gambler Losses Accrued

High street slot machine shop staff are allegedly being incentivised by a controversial bonus scheme linked to how much gamblers lose. Many adult gaming centres (AGCs) workers earn a minimum wage, but now they could be looking the other way when problem gamblers rack up significant losses.

The Guardian noted the biggest industry players are capitalising due to staff unlocking bonuses for meeting key performance targets. AGCs, however, have previously been described by the Social Market Foundation, a prominent think tank, as a “sinkhole of the high street”.

A demonstration of profiteering

AGCs have presided over an increase in Gross Gambling Yield (GGY), and this deducts winnings paid out from stakes stumped by punters. This has further heightened concerns from councillors and MPs that AGCs have a detrimental impact on society.

However, the accounts of Admiral and Merkur, two renowned slot gaming companies, made for interesting reading. Admiral’s revenues shot up by more than 12% to £300 million last year, and pre-tax profit surged by 16% to £46.3m.

Admiral also paid its Austrian owner a £10m dividend, while Merkur, a German-owned company, published a £15m profit for 2024. The accounts stipulated that the remuneration packages also include performance incentives and other benefits.

Unlocking controllable profit

As far as Merkur is concerned, the bulk of a bonus, worth up to 80% of a worker’s salary, is down to controllable profit. This measure was laid out in Merkur’s company structure.

The concept is largely influenced by outgoings on wages and other goodies designed to ensure players keep gambling, such as food and cash giveaways. One of the first items contributing to controllable profit mentioned is net revenues which are essentially the takings from a slot machine. On average, stakes of £2 are offered every 1.5 seconds with players jostling for a maximum jackpot of £500.

It is suggested staff would have to complete a safer gambling training course to be eligible to receive a bonus. With safer gambling elements added to the bonus scheme, this has led to Merkur staff having more interactions with players.

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Merkur hits back over claims

Merkur, however, has strongly rebuffed claims about its bonus scheme, while Admiral declined to comment when pressed for its thoughts on the matter.

A Merkur spokesperson said: “We strongly reject any suggestion that our incentive schemes conflict with our obligations to protect customers or that they in any way discourage staff from carrying out safer gambling interactions.

“Merkur is committed to ensuring a safe, responsible and enjoyable environment for all customers and to maintaining the highest standards of integrity and compliance across all our venues.”

Government wade into the argument

The steep rise of AGCs is creating a potential moral hazard. There have been indications lately that many gambling venues have gone unchecked, with more than a third of councils in England and Wales supposedly failing to carry out an inspection of a single licensed gambling establishment in the past year.

But gambling reformers, including former Conservative leader Iain Duncan Smith, had reservations about the bonus scheme which smacked of “incentive not to intervene” when gamblers were losing large sums of money. Meanwhile, Labour MP Dawn Butler, who has ambitions to become London’s next mayor, derided the scheme.

She said: “The payment of these bonuses seems to completely contradict statements from these companies about their commitments to social responsibility.

“This bonus structure should immediately be changed. It also begs a question as to why the Gambling Commission allows these practices by AGCs in the first place.”