Slots Logic reviews and rates the world's top online slots.
Visit Casino Advisor for the best online casino reviews, news and much more.
|
Gaming machines can be big contributors to the bottom line for Britain’s beleaguered pubs, but choosing the right ones and managing them properly are essential
Britain’s 50,000-odd pubs are rarely out of the news, and it’s rarely good. Battered by the smoking ban, savaged by the recession, bled dry by rapacious pubcos, trampled by price-cutting supermarkets, they are – if you believe the scare stories – closing on every street corner.
And indeed, their number is declining. But enough are thriving, and while the big positive pub stories in the last couple of decades may have been the arrival of good food and revival of high-quality beer, many venues are finding that providing their customers with entertainment options such as gaming machines is an equally valid route to profitability.
“Amusement machines offer customers another entertainment option in the pub and also help generate valuable additional income for licensees through cash box takings and increased dwell time in the pub,” says Peter Davies, commercial director of Gamestec, which operates around 35,000 machines in more than 10,000 locations across the UK, many of them licensed premises.
“The pub is the most popular place for regular AWP [amusement with prizes] players to use machines, with many coming to the pub specifically to play machines, meaning gaming machines play a role in attracting customers to the pub,” he adds, observing that “entertainment nights such as quiz nights and poker nights are becoming increasingly popular and gaming machines can capitalise on the popularity of this type of entertainment by offering the customers the chance do a quiz even if it isn’t quiz night or to play poker even if it’s not poker night”.
Putting it more bluntly, he says “there are a number of pubs that would not survive were it not for their machine income” – depending on the pub’s consumer demographic, product and service offering and machine mix, machine profits can account for anywhere between 20 percent and 50 percent of trading profit and in some cases even more.
But with machines providing such a large chunk of profit in some pubs, it’s more important than ever for landlords to choose the right ones and manage them to optimise takings. And just as with skill with prizes machines (SWPs) such as quiz games, which we covered last month, it’s emphatically not a case of sticking a machine in the corner and hoping it pays its way.
It’s possible for landlords to operate machines themselves by buying or leasing them directly, but firms like Gamestec can take much of the difficult decision-making out of their hands (for a slice of the income, naturally), says Davies: “As an operator we can advise customers what is available and also make recommendations based on the machine combinations which have worked well at other similar venues.
“However,” he warns, “we would always encourage licensees to take an interest in the machines in their pub and talk to pub customers about what type of games and machines they like – the value of first-hand customer knowledge cannot be underestimated.”
The majority of the pub machine market is still reel-based, but players are becoming more accustomed to the newer digital machines, which allow game content to be updated more regularly. Another advantage of digital machines is that content on the machine can be tailored to reflect different client types in the pub at different times of day.
And while straightforward fruit machines remain popular, there is innovation in game design too. Last May, for example, Gamestec launched a new pub lottery pull product, TabbBoxx, offering players the chance to win cash prizes of up to £1000 with 20p of the £1 ticket price being donated to charity. It’s now in more than 450 pubs across the UK and has raised more than £170,000 for the Roy Castle Lung Cancer Foundation – as well as creating 11 winners of the £1000 jackpot. Because it’s different from the run-of-the-mill pub gaming units, it “can boost overall takings from machines, without cannibalising income from other machines”, according to Davies.
Who plays where?
Of course, machines are more appropriate for some customer demographics – and indeed some local markets – than for others. “Gamestec research has shown that fruit-machine players are typically male, aged between 20 and 40 and in work. They are typically middle-income earners in a skilled job and are likely to be single or living with a partner,” according to Davies.
“The typical SWP user is also typically male, but younger than fruit-machine users, with most aged between 20 and 30. They too are typically middle-income earners in a skilled job, although quiz machines are also particularly popular among students. A higher proportion of SWP players are female – in 2008, research conducted by Harris Research showed 36 percent of occasional SWP players were female.
“Machine deployment is noticeably higher in metropolitan town centre pubs, with JD Wetherspoon and Town and City pubs prime examples of large venues with all-day trading where density of machines is high. However, local community pubs with good footfall also enjoy strong machine performance. In general terms we find machine performance in the southeast is higher than anywhere else in the country, although Scotland also has a track record of strong machine performance.
“Footfall is the key to good machine revenue – the more people visit a venue, the more opportunity to capture additional spend in machines.”
It sounds, then, like gaming is not the solution for a pub that’s already failing because its potential customers are going elsewhere, or not going out for the evening at all.
But for those who have a good client base, it just could be the revenue-earner that stops them becoming another of those pub-closure statistics.
Barcrest’s new approach
One major name in pub gaming, Barcrest Group, is highlighting its new approach to the market at January’s ICE Totally Gaming event in London. Its In.gaming offer to pubs and operators comprises three types of gaming machine, with content from Red Gaming as well as Barcrest itself, and the goal is to give each venue a system that matches its customers’ needs while also coaxing less technologically sophisticated players toward newer gaming styles.
In.terplay uses high-definition video on a 32-inch touchscreen monitor, while In.spin provides traditional reels-based gaming. In.Spin+ combines the two technologies, with reels complemented by touch and video.
Says sales and commercial director Tim Kennedy: “In.gaming is a complete approach to pub gaming, designed to reinvigorate the pub AWP business. We’ve created a whole new brand and product set and developed a specific business model where all parties are incentivised to grow income.
“Where the in.gaming offer really stands out is in the choice it provides,” he adds. “We’ve listened carefully to retail customers and designed a product range that will appeal to all types of players. Instead of attempting to force players away from traditional gaming onto video, we’re giving them the choice.
“Some sites will have an audience already familiar with video gaming and in these sites In.terplay will be an ideal solution. Where customers are yet to fully embrace video, In.spin games will ensure they are still catered for, and In.spin+ can provide an introduction to video in a more traditional format.”
Trials began in November, with pub-trade participants including Marston’s Inns and Taverns, where a spokesperson said: “The pub market has been crying out for a point of difference like In.gaming. For the first time we have a comprehensive product range stretching from reels to video, with a distinctive brand that customers can’t fail to notice. This has got to appeal to the punters, as it allows the player to choose either reels or video.”
How to maximise profits
What makes for a profitable pub machine? Pubco Admiral Taverns has identified a number of factors, some obvious – like putting the unit in a prominent position, making sure it is always switched on while the pub is open, opting for games with higher jackpots, and changing them regularly to perpetuate the novelty factor – while some are less obvious.
For example, according to Admiral, note acceptors directly feed the bottom line, presumably because they make it less hassle to play larger amounts: someone who can’t be bothered to wait at a busy bar for change can just slide in a tenner.
Maintenance is another key concern, says Admiral, with even one failed bulb making the machine significantly less attractive to players. And Peter Davies, commercial director of pub machine operator Gamestec, agrees: “Good machine maintenance is vital to make sure that gaming machines perform to their full potential. It is vital to make sure machines are switched on during opening hours, kept clean and tidy and are in a prominent position in the pub.
“A machine which is hidden and cluttered with glasses or other rubbish is unlikely to attract players. Any faults should be reported immediately – Gamestec has a dedicated call-centre help line, open around the clock, which allows us to identify and rectify problems quickly.”
Other points to remember, according to Davies, include the importance of keeping cash hoppers topped up. “It is vital to make sure that hopper levels are well maintained – if they get low, machines will stop accepting notes, which will put players off using the machine. However, we do appreciate that putting aside large floats can be difficult for licensees. To address this problem some of our newer models of machine have been developed to also pay out in notes.”
And, he says, when deciding where to position gaming machines in pubs, consider the downsides – theft and vandalism – as well as the upside of increasing play levels: “Theft or other fraudulent activity can be a problem so it is important to make sure machines are in full view of the bar and that staff are briefed to look out for suspicious behaviour – for example, a group of unfamiliar people buying only soft drinks at the bar and clustering around the machine.”
To help publicans avoid some of these pitfalls, Gamestec has developed a monitoring tool called I-assist, which uses a seven-inch LCD touchscreen installed behind the bar to alert pub staff if machines are not switched on or faulty, or if hopper levels are low. It can even automatically make service calls, and raise the alarm if unauthorised events occur such as a unit’s door being opened.
