The Punch position: Gaming

Punch Taverns remains committed to working with and assisting its licensees to maximise machine income profitability through driving existing core products and seeking out new innovative opportunities.
 
Machines, such as Category 'C' gaming machines, are an important part of the trading mix for many licensees who rely on them as an invaluable income stream. Legislation has been and remains under review with the implementation of the Gambling Act in September 2007.

Punch has made significant representation and lobbying to ensure pub licensees have not been overlooked. However, the main benefactors of the new legislation will be the dedicated gaming environments such as casinos. This, coupled with the proliferation of Fixed Odds Betting Terminals in bookmakers and the opportunity to convert some of these to £500 jackpot machines, remains an ongoing challenge to the pub sector.

We are, however, pleased to see the Gambling Act 2007 provide licensees with the opportunity to advertise gaming offerings in pubs.  There is also the opportunity to revenue share with machine suppliers, which gives a more flexible platform from which to operate and grow revenue by allowing consumers to play off the winnings.

We are also pleased the government has finally made revisions to the stake and prize levels of the Category 'C' gaming machines - from maximum stake 30p play to 50p, maximum prize levels from £25 to £35 and a tax freeze on duty, meaning our licensees can increase their prize money without paying a penalty.

However, at £35 the prize level remains anti competitive with other gaming offerings and Punch will continue to lobby to review and press for further increases.