Gaming arcades to significantly improve their reputation in 2024

The arcade, a place of vice, associated with the dangers of addiction or even illegal activities: This - admittedly exaggerated - view is held by many Germans. The German Association of Towns and Municipalities (DStGB), together with the German gaming machine industry, now wants to do more to remove the "stigma" from these establishments. What exactly does that mean?

Gambling arcades are often in the news for illegal gambling and other problems. We at GambleJoe also regularly report on minor and major incidents that do not show gambling establishments in the best light: For example, the city of Braunschweig sent undercover investigators to gambling venues on its territory to uncover regulatory violations on the part of the operators. Among other things, it was found that in some cases too few supervisory staff were present. In addition, in the autumn of 2023, a casino operator was convicted of bribery. The long-running debate in the federal states about social distancing regulations for casinos and sports betting providers, as well as the repeated (alleged) dangers, do not help either.

The often negative press surrounding gaming arcades and the generally derogatory view of society have long been a thorn in the side of the German Association of Cities and Municipalities (DStGB), the German Gaming Machine Industry Association and, not least, the operators of these establishments. As the FAZ reports, these institutions want to go on the offensive in 2024 and "free the arcades from the stigma". Ultimately, the aim is to keep more players and interested parties away from illegal offers and direct them to legal gambling establishments.

The basis for the way out of the "dirty corner" is a joint discussion paper

The German newspaper FAZ recently reported on a special discussion paper by the German Association of Cities and Municipalities (DStGB) and the German gaming machine industry in favour of "removing the stigma from gaming arcades and ensuring that fewer players find their way to illegal gaming facilities".

The gaming machine industry states that it wants to use the paper to promote legal gambling and to counteract illegal offers and the black market. The latter, in particular, is a major cause for concern. After all, the authorities have been struggling with considerable problems in this area for several years: in particular, the number of unauthorised (or no longer authorised) gaming machines is disproportionately high. This, in turn, does not make the German gaming landscape look particularly good.

Up to 50,000 illegal vending machines in Germany

The German gaming machine industry estimates that up to 50,000 machines are currently being operated illegally throughout Germany, and this does not only include those games that are located in back rooms. Systems with certain game concepts, such as so-called fun games, which have long been "banned from commercial operation", can still be found in large numbers in official arcades.

It is estimated that the market share of illegal gambling in bricks-and-mortar casinos is 30-45%. By comparison, in 2012, only four per cent of offers were illegal. This increase is the result of a study conducted by IW Consult on behalf of the gaming machine industry. There is no need to explain that such a scale is hardly conducive to the reputation of German casinos.

Increased attention to the protection of minors and the social concept

In general, children and young people should not be allowed to enter amusement arcades. Sufficient staff must be present at all times to prevent increased risk. Regular, reliable checks and, if necessary, expulsions must be consistently enforced.

This also applies to the identification of problem gambling behaviour. The tone is that arcades should be a place of safety and not a breeding ground for gambling addiction. It is precisely in the latter context that many citizens see them.

This is unacceptable - the aim is to establish arcades sooner or later as "simple places for leisure activities". In order to create a protected environment, it is particularly important to train staff in the prevention of gambling addiction and to promote the synchronisation of data with the central control systems, in particular OASIS.

The tax aspect is also part of the argument

Casinos are basically normal and (mostly) perfectly legal businesses that pay taxes and thus generate a lot of revenue for municipalities and cities.

In Germany as a whole, tax revenues from land-based gaming machines have totalled almost one billion euros (annually) in recent years. The figures have fallen considerably (partly due to the regulation of the online market). Nevertheless, the revenue potential is still extremely lucrative.

Simply by communicating this clearly and highlighting the benefits to the regions, the reputation of the casinos could be greatly enhanced. Everything runs smoothly legally and the regions receive more funds for public projects, research, education, social issues and more!

Conclusion

Image source: Screenshot von https://www.automatenwirtschaft.de/