The Bacta Pub Summit, held during this year’s EAG Expo at London’s ExCeL, brought together key industry stakeholders to discuss the evolving landscape of pub gaming and entertainment. The opening presentation was made by Simon Barff, Managing Director of CLMS, the UK’s largest aggregator of leisure machine data, who shared insights drawn from over 35,000 pay to play machines across the country, with over 10,000 connected to live monitoring.
Gaming Machines Retain Importance, While Music Fades
Barff’s analysis revealed that 70 percent of UK managed pubs still feature Amusement with Prizes (AWP) machines, reaffirming their vital role in pub revenues. However, music in pubs has seen a sharp decline, now representing 6 percent of the machine estate.
Pool Tables and Contactless Payments on the Rise
A positive development highlighted during the summit was the increased popularity of pool tables, alongside a 35 percent surge in payments for pool play made when both cash and contactless were offered as options. While tenanted pubs have been slower to adopt digital payments compared to managed estates, momentum is building. Operators embracing cashless transactions have reported longer dwell times and revenue growth, aligning with wider shifts in consumer payment preferences.
App-Based Play Drives Additional Revenue
One of the most significant findings was the growth of app-based gameplay, while still early days a slow adoption by players, it is boosting revenues by as much as £605 a week in some locations. This trend suggests that digital engagement strategies could become a key driver of profitability in the pub gaming sector.
Regulatory Changes and Market Challenges
Upcoming changes to jukebox licensing in June are prompting operators to reassess their music offerings, potentially altering the pub entertainment landscape. Age verification requirements also remain a key focus for gaming operators, who are striving to balance compliance with a seamless customer experience.
Despite a UK machine market turnover of £5.33 billion, industry concerns remain over revenues failing to keep pace with inflation and rising costs. The sector has traditionally seen a rebound after economic downturns, but pressures from energy prices and wage increases continue to challenge margins.
Industry Optimism and the Future of Pub Gaming
Despite the call for a long-overdue increase in stakes and prizes in the upcoming review of the gaming law, Barff believes that a review of technical standards is also crucially important if the sector is to see sustained growth.
“The insights shared at the Pub Summit clearly demonstrate that while challenges exist, the sector is adapting and innovating at an impressive rate,” he said. “Gaming machines continue to play a crucial role in pub revenues, and the adoption of digital payment solutions and interactive entertainment products is creating new opportunities for operators.”
With regulatory updates, payment transformations, and shifting consumer behaviours set to shape the industry in the coming months, the Pub Summit reinforced the resilience and adaptability of the pub sector in navigating these changes.
Looking ahead, Simon Barff has been invited to participate in a workshop at the upcoming ARE Expo in Manchester in April, where he will share further insights into machine data, industry trends, and the role of technology in the evolving pub sector.
For more details or to find out how CLMS can increase revenues through data insights, contact Simon at simonbarff@clms.co.uk
30 January 2025
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