Publicans could miss out on £100m fruit machine jackpot
Britain’s publicans could miss out on their share of a predicted £100million annual uplift in fruit machine revenues, according to forecasts issued by The IOA Group, which comprises 20 independent suppliers of gaming equipment to retailers such as JD Wetherspoon, Greene King, S&NPE and Punch.
A large scale survey of over 5,000 machines sited in managed and tenanted pubs nationwide – to assess the impact of the doubling in jackpot levels from £35 to £70 – has shown an uplift in cashbox income for managed groups of eight per cent in August and September. The figures indicate that the growth trend is still on the rise with a realistic average lift of 10 per cent anticipated across the managed, tenanted and free trade. This equates to a total annual increase of more than £100m for pubs in England, Scotland and Wales, with each machine benefiting from additional income ranging between £900 and £1,300 per annum.
However, The IOA Group is warning that pubs which fail to comply with best practice initiatives will miss out on their share of the jackpot. IOA National Sales Executive, Ken Mullarkey explained: “Whilst June’s increase in jackpots has undoubtedly re-established the AWP’s potential to be the most profitable four square feet of a pub, the extra cashbox is by no means a given.
“The increase in play brought about by higher jackpots means that it is essential to refill floats on a daily basis. Failure to do so has already resulted in machines going empty, particularly prevalent in tenanted sites, alienating players at a time when all facets of the machine industry should be encouraging player acceptance of the new £70 machines.”
The IOA has launched a huge awareness and information campaign to reduce the pressure from house floats by using the correct machine settings, including raising the note acceptor cut-off point.
Mullarkey concluded: “This analysis is based on the compilation of average figures; indeed, some of the most diligent (machine) retailers have been achieving double the average income boost. Over all this is welcome news for the pub industry, which can finally gain some consolation from the economic backdrop of declining revenues and closures over the last 12-18 months.”
The IOA Group will be holding its quarterly full meeting on Wednesday 7 October during the Preview 2010 exhibition.
About The IOA Group: The IOA Group comprises 20 independent suppliers of gaming and electronic leisure equipment geographically located to deliver local, regional and nationwide coverage. A combined market share of nearly 30,000 installed machines makes the Group Britain’s second largest operator. All member companies are privately owned, have no manufacturing interests and benefit from access to and extensive knowledge of all available machine types and brands. Further information: www.i-o-a.com
