With six pubs closing a week according to 2024 figures provided by the British Beer and Pub Association, the chances of the machine supply chain rationalising is inevitable but according to Regal Gaming Technologies MD Matt Bicknell it may also focus attention on the very important contributions that gaming and amusement machines are making to the P&L of Britain’s pub companies.

Following figures released by the British Beer and Pub Association showing that nearly 300 pubs closed across England and Wales in 2024 Matt Bicknell, Managing Director Regal Gaming Technologies has outlined what he described as an ‘inevitable’ rationalisation of the machine supply chain whilst highlighting the importance of machine income to the P&L of Britain’s pub companies.

Describing the BBPA research findings as the continuation of long-standing stresses in the market he said: “The closure of six pubs a week is a manifestation of the ongoing struggles in the pub industry, something which has been exacerbated by recent government policies and the failure to implement the recommendations set out in the gambling white paper.  

“Ultimately, less pubs means a smaller market for pub AWP operators to supply. We have already seen several smaller players exit the market and, given the need to achieve ever greater economies of scale to offset a rising cost base, the industry is likely to see further consolidation in the months and years ahead.”

With the cumulative impact of the Autumn Budget creating an extra £650 million in costs for the pub sector Bicknell asserted there’s a growing need for pubs to diversify their income streams with AWPs and other amusement equipment being well-placed to achieve this. He noted: “Machines, both gaming and non-gaming not only generate an income stream for the pub itself, but they also drive footfall and increase dwell-time.

“The commitment of our parent company, MERKUR UK, to ongoing investment as seen by the launch of the new Velocity Cabinet, the third new pub-native AWP to have been launched in the past five years, is bringing fresh innovation to the sector, something which will help to enhance player retention and deliver increased cash box income for pub locations.”

Highlighting the importance of making data-driven commercial decisions he explained: “Everyone has understood that AWPs delivered income, but historically it has been difficult to quantify its interaction with other income streams. For example, booking a singer on a Friday night might increase drink sales, but does the incremental margin derived from those sales offset the costs of the booking and what impact does this have on the income from the AWP?

“I believe that Regal has led the industry in providing not only a connected estate, but in using this connectivity to deliver real-time information to pub companies as to how to maximise their return from gaming in conjunction with different offerings.

“This information can be accessed either via the Nexus Dashboard which we provide to all our customers free of charge, or alternatively by using an API also provided on a free-of-charge basis and which our customers can use to integrate this data into their existing data warehouses and reporting platforms. 

“The investments we’ve made have succeeded in delivering solid cash boxes for customers, something which is all the more remarkable when you set this against the back-drop of an inflationary environment which has reduced consumer’s disposable income, together with an ongoing cost-of-living crisis, interest rate increases and other economic headwinds.

“Because of this pub companies are recognizing the potential of gaming and amusement equipment as additional revenue streams, something which has been fed back to me from multiple national customers.”