The British Beer and Pub Association (BBPA) has met with sports minister Richard Caborn to outline its objections to the recommendations made in the Gambling Review.
The BBPA called the meeting after fears that proposals to limit the number of gaming machines in newly licensed pubs to just two, would see licensees who rely on the trade suffering a drastic fall in business.
Some licensees were concerned that they could go out of business if the recommendations are accepted. But Mark Hastings, a spokesman for the BBPA, said that the meeting went well and was both "positive and constructive".
"The Government is now clearly aware of the potential impact this could have on the industry," Mr Hastings said.
But he added that it was too early to say if the Government would press ahead regardless of the negative impact it could have on the trade.
"The Government has heard our objections. The review's aim was to liberalise gambling in the UK but it is difficult for the Government to argue that it has liberalised gambling in pubs," he added.
The BBPA and gambling trade organisation BACTA believe the reform of gambling law could lead to a loss of customer choice and represent a real threat to licensees. "We are pressing for a level playing field and the chance to compete fairly," Mr Hastings said.
Meanwhile, the trade is also lobbying ministers to act on recommendations to increase the prize limit on AWP machines after the review suggested that the jackpot be increased from £15 to £25.
The review body has agreed the £25 limit but as yet ministers have failed to set a timetable for its introduction. Licensees want it introduced as soon as possible and believe it could help pubs struggling after foot-and-mouth disease and the September 11 attacks.