Category B4 - A club you should look at joining?

Club machines (UK category B4) have probably suffered the least from the change in UK legislation but suffered the most from the introduction of the smoking ban. Helen Fletcher finds out what these changes have really meant for the sector

The club machine sector has changed dramatically over the past 50 years. In the 60s they were one armed bandits, which used sixpenny and ‘thruppenny’ (threepenny) bits with a maximum jackpot of £5. There was a mixture of British made machines, with two of the main suppliers at the time being Aristocrat and Bell Fruit Games as well as converted American imports from Sega, Mills and Jennings.

The 1968 Gaming Act brought in a number of restrictions on where machines could be placed, making clubs that applied for new permits more of a venue for players as they were one of only a few locations allowed to retain gaming machines.

Bell Fruit Games has since enjoyed success with classic home-grown brands such as Crazy Fruits and Cops ‘n’ Robbers alongside popular licences like Bullseye and Deal or No Deal.

Then, in the 70s the electro-mechanical club machine with higher jackpots was born. According to Ivan Smith, national sales manager for UK operator Gamestec, which has been involved in the club machine sector for approximately 50 years, manufacturer Dransfield developed and patented the ‘Nudge’ feature, which is now commonplace on all machines.

At this time British manufacturers were starting to dominate the market with the main players being Bell Fruit, Barcrest, JPM, Ace Coin and Maygay.

Then by the 80s, club machines were fully electronic and continued to develop with better reels for nudging and increasingly creative features. It was also at this time that JPM introduced Club Reel Bingo, which was enormously popular for many years.

The 80s and 90s were, without doubt, a highlight for the club machine sector and during this time Barcrest introduced 55 different club machines and according to Smith the pick of the bunch were Blackjack, Pontoon, Cloud 999, Adders and Ladders, Road Hog, Take Your Pick and Trailblazer.

“The last club machine Barcrest produced in the 90s was Psycho Cash Beast,” added Smith. “Which is still around today, but is now known as Booze Cruise.”

So, what was it about these machines that made them so successful and what is it that makes them popular with players today? For Smith, customers like simple and familiar games, which could be one reason why games such as Monopoly and Cluedo have been so popular.

“Club goers seem to like board game layout machines because they are easy to understand and have plenty of features to keep the game interesting,” he said.

“Having said that there is no scientific research to say why some games are more popular than others - for a machine to perform well it has to be a mix of the right venue, looking after machines to ensure they are always in the best condition, promoting the games to customers and features that capture and hold a player’s attention.”

JPM’s Simon McCarthy adds to this, saying: “Club machine players tend to invest more heavily than AWP players, as a result of the opportunity to win a higher jackpot and therefore the player base would be classified more in ‘core’ rather than ‘casual’ terms.

“Therefore it is essential to understand this when developing new product as the players seek depth and strategy in the games as well as innovation such as video technology.”

A successful game usually integrates the presentation of audio, graphical elements and a solid game mechanic with a balanced statistical profile - but ultimately it is all about player feel.”

The introduction of a smoking ban in the UK has, however, had a very damaging effect on this sector and according to Gamestec income is down on approximately 90 per cent of its accounts. “The smoking ban cannot be underestimated,” said Smith. “A high proportion of customers at working men’s clubs are smokers and, following the ban, many have stopped going to clubs as regularly, or have stopped going altogether. This has had a knock-on effect on the number of players using the machines.”

McCarthy added: “It is evident that the impact of the smoking ban has affected the hospitality and gaming industries and subsequently the natural player base. The feedback we have received is that the machine income has suffered and the smoking ban has certainly contributed to the downturn in the business.

"It is clear that the players have had to move away from the machine and smoke in an alternative area, which has clearly affected the earning capability of the product and in turn the number of machines on any one site has reduced.”

“Many clubs have simply not had the resources to build quality no smoking areas and so have had an uphill struggle to attract lapsed members back into the clubs,” added Smith. “However, looking at the effect of the smoking ban in countries like Scotland, we would expect the long-term impact to be less severe with many of the lapsed club goers returning over time.”

There have, however, been other developments in the club machine sector that have changed its dynamics. In the last 10 years JPM has introduced the ‘rebuild’ club machine through Crystal and this, in its opinion, has been the single biggest change in the sector.

“The injection of rebuilds now outweighs new machine sales due to the pressure that the UK operator has had to endure in order to make operating club machines a viable business,” said McCarthy. “This alone has driven the ever-increasing demand for rebuild product which is required to perform and entertain to the same level as any new machine development.”

Bell Fruit Games is also another manufacturer that has picked up on the importance of rebuilds to the club machine sector and now offers a versatile range of machines to suit any club location.

The company’s current portfolio includes Cops ‘n’ Robbers Platinum - the very latest version of an all-time favourite theme - and Club Road Hog - a brand new concept with an interactive super feature wheel.

JPM is currently the sole UK manufacturer to produce new machines. Previous new machine sales have been via the Linear cabinet through the introduction of both Club Magic and Around the World.

“We are endeavouring to move the market forward with the introduction of hybrid games,” said McCarthy. “This is currently being achieved with the release of Jungle Fever in the Linear cabinet and will be closely followed by a succession of well renowned JPM club classics which will utilise the graphical elements to create a contemporary feel.”

The increase in online gaming has also had its part to play in the demise of the club machine sector, especially as online slots and bingo sites have gained momentum in attracting the £1 leisure spend.

It is the greater competition from other outlets, which, according to Smith, could also be driving down the club machine trend. “Category B machines with £500 jackpots are now available in bookmakers shops, raising the stakes and possibly attracting some traditional club machine players.”

However, despite the problems it is currently facing in the aftermath of the smoking ban and the current uncertain economic climate, there is the feeling that the sector still has a core base of customers who continue to visit clubs and play machines.

“The club machine business is important to Gamestec and we will continue to produce new machines which engage customers wishing to play this class of game,” said Smith. “We are also working closely with clubs to ensure they maximise cashbox takings by locating machines in the best position and educating them about how to get the best out of the product in their venue.”

As the club operator continues to demand value for money, longevity of the machine’s ability to generate a sustainable income, innovation and reliability from Category B product - what can they expect from future product?

“All of these aspects have to be taken into account when we start the development process and carry the games through to full production,” said McCarthy.

“JPM and Crystal will certainly continue to be a force to be reckoned with and undoubtedly our ‘video’ element of the game design will be key to our success - as for the operator, well they depend on us as manufacturers to deliver product that will sustain and grow their business in a shape that is profitable for all.”

And as for the largest UK club machine operator? “Gamestec will continue to support club style venues and will also grow business in other types of venues such as sports clubs,” said Smith. “Business growth will be fuelled by offering machines which reflect the kind of games players want to see.

“At Gamestec we are constantly developing our offering of digital machines and will look further into player attitudes to ascertain if we have an audience for digital in this marketplace, or whether club machine players will continue to demand a more traditional approach.”