THE GOVERNMENT splits gambling machines into nine categories, based on the maximum stake and maximum prize that can be gained from using them.

In pubs, the most common machines fall under the Class C and D categories, with C awarding as much as £100 for stakes up to £1 and D accounting for amusement-type units, such as claw machines, coin pushers, or penny drops.

According to the Gambling Commission, any pub is allowed a pair of machines that fall into these two categories but can also apply to the relevant local authority in order for permission to keep a third.

This is the reason the owners of The Saddle, in Horwich, had to apply to add an extra machine alongside their already popular units.

The Gambling Authority explains: “Pubs and other alcohol licensed premises are automatically entitled to two category C or D gaming machines upon notification to the local licensing authority of their intention to make gaming machines available for use.

“Licensing authorities can issue gaming machine permits which allow additional category C and D gaming machines to be provided.

“Where a gaming machine permit authorises the making available of a specified number of gaming machines in particular premises, this will effectively replace, and not be in addition to, any automatic entitlement to two machines.”

In contrast, Fixed-Odds Betting Terminals (FOBT) are relatively difficult to install, and are not allowed in pubs under any circumstances.

The units, which have a maximum stake of £100 and maximum prize of £500, are only permitted inside official betting shops, casinos and some racing tracks.

It is not clear whether these laws will change when the government implements new laws to reduce the stake to £2.

The other categories cover a range of units which include category B1 machines that can give a prize as high as £10,000 from a £5 stake but are only available in casinos.

All of these gaming machines are legally obligated to display a return to player (RTP) percentage, described by the Gambling Commission as the "theoretical target percentage return to player" or the odds of winning a prize.This is an average, put together over a large number of games.

At the other end of the scale are skills with prize (SWP) terminals, which can be placed anywhere and generally involve a game that users could repeatedly win if they were skilled enough.