Appeal Court judges voted 2-1 to uphold the Government ban in June, after Sinclair Collis, which owns 20,000 machines, fought to declare it in breach of EU free trade rules.
The firm's lawyers argued it was "inconsistent" to ban the machines while allowing over-the-counter sales.
Although Lord Neuberger, the Master of the Rolls, said the Department of Health's arguments were "not very convincing", he said the health risks meant the courts should not interfere with Government policy.
Dennis Ager, of the Trading Standards Institute, said last night: "The ease with which children have been able to access cigarettes from these often unsupervised machines has been truly shocking and this ban is proportionate and necessary.
"Trading Standards will be working closely with businesses to help them comply with this new legislation."
A spokesman for the Association of Convenience Stores said no specific action was being taken to warn shopkeepers of growing numbers of under 16s trying to buy tobacco instore. There was "no way of knowing" if numbers would increase, he claimed.
However, he added: "For a number of years retailers have been very focused on trying to prevent underage smokers from buying cigarettes in their stores."
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