The Brewers and Licensed Retailers Association (BLRA) is to meet with Government officials following mounting concern over proposals contained in the Gambling Review.
The document, released last month, includes plans to restrict the number of AWP machines allowed on new licences to two, although existing premises would be allowed to continue trading as they are.
Martin Rawlings, spokesman for the BLRA, said he was "extremely concerned" by the review document, released last month.
"This effectively means we are sitting on a declining market. It would prevent licensees from expanding their businesses," he said.
The BLRA is due to meet with officials from the Department of Culture, Media and Sport to discuss the issue early next month.
"We are concerned by the whole attitude of the report," said Mr Rawlings.
"One of the things we would want to refute is the claim that people don't want gaming machines in pubs - this isn't because people are against gambling but because they don't like the noises or the lights that the machines make. Whether licensees choose to install them should be a commercial decision."
The trade has also criticised claims that the decision not to extend gambling in pubs was made due to concerns over mixing alcohol and gambling.
Mr Rawlings said the report had not taken the same line when considering Bingo Halls, where alcohol is also freely available.
The review was greeted with widespread disappointment within the trade after it failed to approve proposals for betting on horses or dogs in pubs or requests for the jackpots on AWP machines to be increased in line with those in private member's clubs.
The recommendations represented a turnaround by the review body which was said earlier this year to have reacted very positively to trade suggestions.
The trade has been invited to submit its responses to the review by the end of October. It is hoped the Government will make an announcement on its plans by the end of the year.
Wondering what else the Gambling Review Report has in store for the trade? Our legal team have taken a look and offer an essential guide.