There is growing evidence that retailers – site-owners in the UK, mainly the pubs – are not prepared to increase rents for machines adjusted to the new prize level of £100 which has just been announced by the British government.
Reports from operators indicate that most of the retailers are refusing to pay anything towards the updating of existing equipment, Category C machines, which in the UK are AWPs. Yet they expect machines carrying the increase from the old £70 to the new level to be updated by the first date they become lawful, expected in early 2014.
According to one operator, retailers are insisting that they will only pay £50 a week with a five-year contract permitting no further increases. Another operator is facing a £35 per week rate with a three-year contract.
With an expected total injection of only 12,000 units in 2013, this would indicate virtually no room for investment in research and development for the few remaining frontline Category C manufacturers.
