High street slot machine shops in the UK are paying staff bonuses linked to the amount of money gamblers lose, prompting strong criticism from MPs and campaigners. Internal documents reveal that at least one major operator, Merkur, bases up to 80% of venue managers’ annual bonuses on “controllable profit,” with net revenues from slot machines being the primary factor. Merkur, part of a network of 1,451 “adult gaming centres” (AGCs) concentrated in economically deprived areas, reported a £15 million profit for 2024. Rival chain Admiral Slots paid its Austrian owner a £10 million dividend last year. Most of these venues operate 24 hours a day and have grown rapidly in recent years amid rising revenues. The bonus system rewards managers for meeting financial targets, including income generated from highly addictive slot machines. Staff incentives consider operational costs like wages, complimentary items for customers, and “cash giveaways,” but the key factor is still net revenue from machines. These machines allow stakes of £2 every 1.5 seconds, with maximum jackpots of £500, and have been repeatedly linked to higher rates of gambling addiction. Jackie Olden, whose terminally ill mother lost thousands at a Merkur branch in Stockport, described the bonus scheme as “a punch in the face.” Merkur was fined nearly £100,000 earlier this year for failing in social responsibility, but Olden says the company’s policies may have financially motivated staff not to intervene when vulnerable customers were at risk. Merkur has strongly denied that its incentives undermine safer gambling efforts. Lawyers for the company said 20% of the bonus can be lost if staff fail to meet performance targets, including safer gambling training. Another portion, worth up to 20% of salary, is linked to “compliance and audit” objectives, which reportedly include staff checking on customer interactions. Merkur added these safer gambling elements to the bonus scheme in January 2025, claiming it has increased staff engagement with patrons. Despite these changes, MPs from multiple parties warned that linking bonuses to revenues creates a moral hazard. Former Conservative leader Iain Duncan Smith, now campaigning for gambling reform, said the scheme could incentivize staff to ignore customers losing money. He called it “an incentive not to intervene” and described the approach as “appalling.” Labour MP Dawn Butler criticized the bonus payments for contradicting companies’ social responsibility claims. She said the structure should be changed immediately and questioned why regulators allow such schemes in AGCs. Labour MP Alex Ballinger added that the practice demonstrates “a complete lack of responsibility” and stressed the need for stricter oversight. In 2020, the Gambling Commission banned staff bonuses tied to “VIP schemes” for high-value gamblers but clarified that this did not apply to AGCs, where punters can easily lose hundreds of pounds per hour. Former Merkur staff confirmed that the potential for extra income discouraged staff from performing “safer gambling interactions,” which include advising customers to take breaks if they are losing heavily or appear distressed. “They are not inclined to stop the game for customers who are losing a lot because it affects revenue,” one ex-employee said. Another noted that junior staff received smaller bonuses of up to £315 per month, while a maximum 100% bonus was rarely achievable. Merkur reportedly adjusted its bonus system in January to reduce payouts, though other major operators appear to maintain similar incentive schemes. Accounts for Admiral’s UK operations show combined revenues exceeded £300 million last year, with pre-tax profit rising 16% to £46.3 million. These reports confirm that remuneration packages include performance incentives and benefits, though the company did not provide details on its bonus structure. Merkur insists all bonus schemes support compliance with safer gambling, audits, and training. The company claims it is committed to maintaining a safe and responsible environment and high standards of integrity across its venues. Bacta, the trade body for AGCs, said it does not issue guidance on staff bonuses but requires members to comply with safer gambling and social responsibility rules. Critics argue that linking staff rewards to gambling losses puts vulnerable customers at risk and calls for urgent reform. The controversy highlights tensions between profitability and responsible gambling in the UK’s growing slot machine sector.