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In a BBC investigation, hundreds of High Street gambling centres with B3 machines aren't being checked and non-compliance could be rife.
One third of councils in England and Wales haven't even inspected a single site this year.
Over 130 councils had not carried out inspections, which the regulator, the Gambling Commission, said would mean rule-breaking on the ground would be more difficult to identify.
The Local Government Association (LGA) said councils struggled to fund proactive inspections and the group which represents AGCs said its members operated responsibly and denied targeting vulnerable communities.
AGCs have seen a rise in their Gross Gambling Yield - stakes less winnings paid out - further heightening concerns from councils and MPs and think tanks who already believe high street gambling has a detrimental effect on communities.
Dr James Noyes from the cross-party think tank The Social Market Foundation described them as "sink holes on the high street", adding: "They extract money often from some of the poorest people in the country."
Gross Gambling Yield (GGy) in 2023-24 was almost £463m, 76% more than in 2021-22 figure.
Inspectors are, among other things, meant to check for the permitted number and ratio of B3 slot machines which offer up to £500 in prize money.
Betting shops - licensed to handle bets on horse races and other sports events - are only permitted to have a total of four B3 electronic gaming machines but in an adult gaming centre up to 20% of them can be this type of machine.
