Inspired Gaming Group is to withdraw from the UK pubs market, either through the closure or sale of its pubs division.
The company is in advanced discussions to raise around £40m to fund the expansion of its core business, reduce debt and fund its exit from the pubs market. Its core business is in betting shops, leisure and gaming, both in the UK and abroad.
The core business has made a satisfactory contribution in the first half of the financial year and the directors are confident about its future growth prospects. The company has received various unsolicited and very preliminary expressions of interest for certain of its divisions and for the company as a whole.
Co-chief executives Luke Alvarez and Norman Crowley said in a statement: "The company is a leading gaming machine operator in the UK and has one of the largest estates of deployed server-based gaming terminals worldwide with a proven technology platform and valuable SBG intellectual property.
"We have a deserved reputation for innovation and technology excellence, we have strong relationships with a valued customer base and we have exceptional employees delivering innovative products and industry leading standards of on-site and remote service.
"Following the withdrawal from the pubs market and the completion of the capital injection, we are confident the prospects of the business will continue to improve and we look forward to the future with confidence."
There is a strong feeling within the industry that Inspired’s decision to leave the pub market will alarm the suppliers, who have for many years played one operator off against another in a bid to drive down rents.
As a result of this, the suppliers could end up with no choices and having to pay more because they refused to pay fair and reasonable rents in the past. The situation may also have the effect of bringing back smaller operators.
