Following sustained joint campaigning by UKHospitality and the British Beer and Pub Association, cashless payments will be permitted on gaming machines.
The Department for Culture, Media and Sport confirmed that debit cards, payment apps and other forms of cashless payments will be allowed, once appropriate player protections have been put in place.
These protections will be consulted on by the Gambling Commission and could include cardholder verification, transaction limits and breaks in play.
In a joint statement, UKHospitality and the British Beer and Pub Association said: “This is a significant victory for pubs who use gaming machines and the move to allow cashless payments will preserve a valuable revenue stream.
“We absolutely support linking the introduction of cashless payments to the implementation of player protections, and we look forward to working with the Gambling Commission in any way we can.
“We’re pleased that the Government has listened to our concerns on this issue and acted to ensure this type of entertainment in pubs remains safe and is future-proofed.”