Adding a fruit machine, pool table, jukebox or arcade machine can give customers another reason to visit, stay longer and return.
But before choosing the equipment, there is another important decision to make: should you rent the machine for a fixed amount or use a profit-share agreement?
Both arrangements can work. The right choice depends on your venue, its footfall and how much financial risk you are comfortable taking.
Here is a straightforward comparison for pub landlords, club managers and venue operators.
What is a profit-share agreement?
Under a profit-share agreement, an amusement machine operator installs equipment at your venue and shares the money it generates with you.
There is normally no large upfront purchase cost. The supplier remains responsible for the machine and, depending on the agreement, will usually manage collections, servicing, repairs and rotation.
The supplier only earns when the machine earns, so both parties have an interest in choosing equipment that suits the venue and performs well.
Profit sharing can be used for commercial equipment such as:
- Fruit machines
- Pool tables
- Jukeboxes
- Punch machines
- Quiz machines
- Arcade games
The precise division of income and the services included will depend on the supplier and agreement, so venue owners should always check the terms before proceeding.
What is fixed machine rental?
With a rental agreement, the venue pays an agreed weekly or monthly fee to use the equipment.
The venue will normally retain the income generated by the machine, although servicing, collections and content updates may be handled differently depending on the contract.
A fixed rental can be attractive when a venue already has strong, predictable demand. If a machine consistently generates substantially more than its rental cost, the venue may retain a larger proportion of the remaining income.
The trade-off is that the rental charge still has to be paid during quiet weeks.
Profit share vs rental at a glance
| Consideration | Profit share | Fixed rental |
|---|---|---|
| Upfront investment | Usually little or none | Usually a regular rental charge |
| Risk during quiet periods | Shared with the supplier | Mainly carried by the venue |
| Venue income | An agreed share of takings | Venue generally retains takings after rental costs |
| Maintenance | Commonly managed by the supplier | Depends on the rental agreement |
| Machine selection | Supplier and venue choose together | Venue may have more direct control |
| Best suited to | Venues seeking a lower-risk arrangement | Venues with proven, predictable demand |
When does profit sharing make sense?
Profit sharing is often the most practical starting point for an independent pub, club or venue that does not yet know how a particular machine will perform.
It may be a good fit when:
- You want to add entertainment without committing substantial capital.
- Your weekly footfall changes considerably.
- You are introducing a new type of machine.
- You want servicing and maintenance handled for you.
- You would benefit from advice about equipment selection and placement.
- You do not want to carry all the risk if the machine has a quiet month.
It can also create a better working relationship with the supplier. Because the operator’s income is linked to the performance of the equipment, there is an incentive to keep it working, monitor its results and replace or rotate it when necessary.
When might fixed rental be preferable?
Fixed rental may suit a venue that already knows its customers and has reliable demand for a specific machine.
For example, a busy pool hall with established league nights may be able to forecast pool-table use more confidently than a pub installing its first table.
Rental could be worth considering when:
- You have dependable customer demand.
- You understand the machine’s likely weekly takings.
- You are comfortable paying a fixed charge during quieter periods.
- The rental includes appropriate maintenance and support.
- You want to retain more of the potential upside after paying the fee.
Before choosing this route, calculate the machine’s likely net contribution rather than looking only at its takings. Allow for the rental charge, downtime, maintenance, payment handling and any other costs not included in the agreement.
The machine matters as much as the agreement
A favourable contract will not turn the wrong machine into a successful one.
A community pub, sports bar, social club and holiday park can have very different customers. Equipment should be selected according to factors such as:
- The age and interests of your customers
- Available floor space
- Busy days and trading hours
- Existing entertainment
- Average customer dwell time
- Whether customers commonly carry cash
- The desired noise level and atmosphere
- Licensing and age restrictions
- Demand for organised events or leagues
Placement also makes a major difference. A pool table without sufficient cueing space will frustrate players. A fruit machine hidden in an uninviting corner may receive less attention. A jukebox needs to be visible and easy to use without obstructing staff or customers.
An experienced operator should assess the venue before recommending equipment.
What should a machine agreement include?
Whether you choose profit sharing or rental, ask the supplier to explain the agreement clearly.
Important questions include:
- Who owns the machine?
- How are takings recorded and divided?
- Who collects the money, and how often?
- Who pays for repairs and replacement parts?
- How quickly will breakdowns be attended?
- Can an underperforming machine be exchanged?
- How long is the agreement?
- What happens if the venue changes ownership?
- Are payment-system or music-content costs included?
- Does the supplier hold every licence required for the work?
For regulated gaming machines, pubs also have responsibilities concerning machine categories, local-authority notification or permits, age restrictions and supervision.
Alcohol-licensed premises are generally entitled to provide up to two Category C or D machines after notifying their local licensing authority. Additional machines require a licensed premises gaming machine permit.
Current requirements should always be checked against the Gambling Commission’s guidance for Category C gaming machines and the relevant local authority.
Do not overlook servicing and downtime
The cheapest agreement is not necessarily the best value.
A machine earns nothing when it is out of order. Equipment that looks tired, contains stale content or repeatedly develops faults can also reflect badly on the venue.
Ask prospective suppliers about:
- Typical call-out times
- Preventative maintenance
- Availability of replacement machines
- Remote or proactive performance monitoring
- Game and music updates
- Machine cleaning and presentation
- Rotation of underperforming equipment
- Support at weekends and during peak trading periods
Reliable local support can be particularly valuable when a fault develops before a busy Friday or Saturday evening.
So, which option is best?
For many pubs and clubs, profit sharing offers a sensible combination of low initial cost, shared risk and ongoing support.
Fixed rental can work well for established venues with predictable demand, but the venue takes on more of the risk if takings fall below expectations.
The best decision should be based on realistic demand—not an exaggerated earnings promise.
Find the right machines for your venue
At Diamond Leisure, we assess each venue individually and recommend equipment that fits its customers, available space and commercial objectives.
We supply and maintain fruit machines, pool tables, jukeboxes, punch machines, quiz machines and arcade equipment to commercial venues across the North West.
Our profit-share model means there is no upfront installation cost, and we only earn when you do. We also provide ongoing maintenance, machine rotation and fast local support.
If you have an empty corner, an underperforming machine or customers asking for more entertainment, contact Diamond Leisure for an honest, no-obligation assessment.
Call 0333 200 3340, email info@diamondleisure.co.uk or contact Diamond Leisure online to discuss the right setup for your venue.
This article provides general information and does not constitute legal advice. Gaming-machine requirements can vary according to premises type, permits and licensing status.