Smoking ban hits UK bingo halls
UK leisure group Rank today offered further evidence that its Mecca bingo clubs in Scotland were being affected by the smoking ban north of the border. The company, which today sold its Hard Rock Café business to focus on gaming, said revenues growth had been held back by the performance of its Scottish clubs as it reported on trading during the 48 weeks to November 26. It said turnover at clubs in England and Wales had grown 1% with a 2% rise in spend per head helping to offset a 1% decline in admissions. However, the smoking ban in Scotland hit hard as players took outdoor smoking breaks between games rather than spend on other attractions such as slot machines. Year-on-year revenues have declined by 15% since lighting up was outlawed in March, with admissions slipping 6% and spend per head dropping 9% at the 14 Scottish clubs. 
Rank admitted there was more it could do to mitigate the impact of the ban, such as the development of new games permitted under the 2005 Gambling Act. Elsewhere, the group also reported a slowdown in revenues growth at its Grosvenor Casinos – with 30 in England and Wales – following an increase in competition. It said: Despite growth in consumer demand, the potential over-supply of casinos in certain local marketplaces remains a concern. There was a modest impact on revenues at its Spanish bingo business, Rank Espana, caused by a partial smoking ban in the country. However, online casino bookmaker Blue Square enjoyed strong trading with a good performance from its web-based Mecca bingo brand which was launched in September. Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers, said: The smoking ban is continuing to hurt the Mecca Bingo clubs in Scotland. Costs need to be addressed to improve margins and there are concerns over the highly competitive area in which it now finds itself fully devoted to.