Pubs could be left without gaming machines

Thousands of pubs could find themselves without machines when Inspired Gaming quits the industry, the independent machines supplier's organisation has warned.

Pub chains are already switching supplier following the decision of Inspired, which under the name Leisure Link operates machines in 9,000 pubs, to exit the industry.

But John Powell, chairman of the Independent Operators Association, believes freetraders could be unaware of the situation. He said that if Inspired fails to find a buyer for its pubs business, licensees could be left without AWPs and other machines which can contribute as much as 25 per cent to a pub's profit.

"I don't think the freetrade has caught on to what's happening as the big groups have," he said. "My advice to them is to change supplier immediately."

Powell was accused of "scare tactics" by Ken Turner, chief executive of Sceptre Leisure, currently the number three in the market, but Inspired is believed to be struggling to sell its pubs arm in the credit crunch, and would like to pull out before its financial year-end in September.

The company itself would not give pubs assurance, simply reiterating that it was "negotiating a potential sale" of its entire pubs business and confirmed it "will exit" the industry.

Pub machine take has fallen steeply over the past four years with competition from higher prizes offered by betting shop machines more recently compounded by the smoking ban.

Machine suppliers have sought to maintain market share through cutting rental prices to pub groups. Inspired Gaming staked its future in the licensed trade on the introduction of digital machines - but failed to get past the trial stage.

There was good news last week, however, when the government brought forward the review of pub AWP prizes, which could increase jackpots to £75 next year.