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Up to 75 people employed at two Nottinghamshire gaming companies could be made redundant.
About 50 jobs are under threat at Bell-Fruit in Nottingham - where 282 people are employed.
Its subsidiary company Mazooma Games, based in Newark, could lose 25 of its 42 posts.
Bell-Fruit's managing director John Austin said the firm was doing all it could to minimise job losses but had been forced to look at restructuring.
He said: "Sixty-five to 70% of the machines we produce are aimed at the pub market and [that's] in massive decline, with up to 40 pubs a week closing.
"Certainly the smoking ban has contributed towards it, as has, of course, the availability of cheap booze in the supermarkets."
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