Grocery giant Woolworths is buying more heavily into the liquor market.

Its pub and bottle shop company ALH Group is taking out long-term leases on 31 pubs located across New South Wales.

Woolworths already operates 27 pubs in the state as the majority owner of ALH Group, which is also Australia's largest poker machine operator.

ALH spokesman David Curry says the buy up boosts the grocery giant's ownership of pokie machines to almost 13,000 nationwide.

He says it has invested in pubs with good trade potential as well as their gaming capabilities.

"There's about 680, it brings the total nationwide to just under 13,000 - proportionately, we don't have a significant percentage of electronic gaming machines - we've only got about 6 per cent of electronic gaming machines in the country," he said.

"Notwithstanding the pokie tax or what's been proposed by the Federal Government, we think the hotels we've actually signed long-term leases to can achieve good trading growth.

"We're looking at injecting further capital into the business and overlapping our management expertise in NSW across those hotels."