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I have seen fake pound coins in the wild. My brother who does electronics work on fruit machines (low-stakes gambling terminals) has said he sees them all the time.

I couldn't tell you whether defrauding such machines is the 'killer app' to drive coin counterfeiting on a large scale. The UK has millions of betting machines with small payouts (e.g. £50) but a smaller number with larger payouts, concentrated in betting shops, casinos etc.



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