Yes! This is because of UK legislature. You don't need a gambling permit if the game is skill-based.
Yea, where would one find a machine like this? Doesn't really seem like a slot machine to me.
These are typically found in university towns in the UK.
An answer below about denomination (pounds instead of dollars) implies that it's in the UK. Definitely wouldn't expect to see something like this in the states.
I've seen several machines like this in various bars in Sweden at least.
The Nevada gaming industry is lobbing heavily to legalize them. So they can target younger demographics.
If I could loose money because I'm just unskilled at something (but had fun) rather than just got unlucky, I'd absolutely use one of those machines.
It doesn’t really work like that, eg if you play the quiz one, when you get past £3 the questions become ridiculous, like what is the size in cubic meteres of lake Victoria? 40040400303 40404940404 or 4940403030 etc
So it just ends up being luck really. They also pay out a fixed amount and the difficulty rapidly increases if you keep winning.