Renting out Fruit Machines
Discussion
I've been in the trade for over 20 years, quite honestly the business is on its arse, the many online forms of gambling have been the final nail in the coffin.
You'll need to go on the Gambling Commission website and search for applying for an Operators Licence, if you have any skeletons in the cupboard then forget it, they won't grant you one.
You'll need to go on the Gambling Commission website and search for applying for an Operators Licence, if you have any skeletons in the cupboard then forget it, they won't grant you one.
I did the quiz machines years ago. You need to have something big enough to move them around as they are heavy and people get bored of the same ones quite quickly. Also, many pubs are part of large chains and so have national agreements meaning you can’t get into all the best ones, only the small local ones which don’t earn much. I think that these sort of machines are fading from many pubs these days, they’re not as popular as they once were.
I'll give you the figures, you work out if you want to do it...
I rent 13 £70 payout machines @ £16.25/week, each machine is on a 5 week rotation, and same machine can not be used in same site more than once in a 6 month period. If something breaks down on the machine, rent stops being payable until it is fixed. There are 2 guys on 24/7 call for breakdowns and swap overs for the machines, who all day every day just move, fix and check machines. I'd say each machine on average has an issue every 3 months that requires a call out.
I know the guy who I rent them from fairly well, he owns and maintains around 350 machines, each costs him about £400 new and the boards used inside along with coin mech on busy machines last anywhere from 6 to 12 months, and a full rework of machine is about £125. Normally he rents each unit at between £20 and £25 per week, I get a deal because I rent so many, and I'm a pretty small operator and free of any brewers at all sites now. You won't get into over half the pubs/bars/clubs in the UK as they will be tied to a pub company/brewery for their machines, and the 6 largest machine suppliers end up almost paying the pubcos for the pleasure of being in their sites.
To me as the operator, averaged out over all 8 sites and 13 machines, we get about £80 per machine each week (after rent, license and electricity costs paid).
I rent 13 £70 payout machines @ £16.25/week, each machine is on a 5 week rotation, and same machine can not be used in same site more than once in a 6 month period. If something breaks down on the machine, rent stops being payable until it is fixed. There are 2 guys on 24/7 call for breakdowns and swap overs for the machines, who all day every day just move, fix and check machines. I'd say each machine on average has an issue every 3 months that requires a call out.
I know the guy who I rent them from fairly well, he owns and maintains around 350 machines, each costs him about £400 new and the boards used inside along with coin mech on busy machines last anywhere from 6 to 12 months, and a full rework of machine is about £125. Normally he rents each unit at between £20 and £25 per week, I get a deal because I rent so many, and I'm a pretty small operator and free of any brewers at all sites now. You won't get into over half the pubs/bars/clubs in the UK as they will be tied to a pub company/brewery for their machines, and the 6 largest machine suppliers end up almost paying the pubcos for the pleasure of being in their sites.
To me as the operator, averaged out over all 8 sites and 13 machines, we get about £80 per machine each week (after rent, license and electricity costs paid).
The company next to my factory have just sold their base of machines and snooker tables after 20 plus years as its a declining business, get the impression that its controled by large companies.
most of the smaller sites seem to rent very cheap call you out late at night when they take the most money and keep all the profits. unless you have a good lead into a large user.
most of the smaller sites seem to rent very cheap call you out late at night when they take the most money and keep all the profits. unless you have a good lead into a large user.
alexsmith said:
So you charge them the rent for the week and they get all the profit from the machine? Wont it be better if you done 50/50 and have half the profit each. Also how much is the gaming licence you need? I have looked but there was a few of them think i seen one about £1000.
My company pays the rent to the machine owner, we then float the machine and get 100% of the machine take. For the rent, they maintain and swap the machines. The company we use offer to do 50/50 split with no rent, but I make more by paying the rent, and it also means I put them in prominent positions, whereas if I just had the machines and it cost nothing, they would be tucked out the way (as they a bloody ugly things in a nice olde worlde pub, but make good revenue as explained).On licenses, ours range from £702 to £1593 per year depending on venue. As my sites have traded for a long time, it's just a case of contacting the relevant authority each year and get a new license released (they are not like premises licenses, which are automatically renewed and invoice by LA's).
Edited by fergywales on Wednesday 17th November 22:09
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