It appears that bingo players not only enjoy
getting their gambling fix, but also enjoy getting their smoking fix at the same
time. According to the Rank gaming group, the company was hit with a lower
profit margin in 2006 due to the smoking ban in Scottish bingo halls. Rank,
which owns the Mecca Bingo network, reports the group's Scottish bingo clubs saw
a 15% decrease in revenue since the passing of the ban in early 2006. A 6% drop
in attendance and a 9% drop in spending per person attributed to the drop in
marginal profit from 2005.
Further evidence that Rank's bingo losses in
Scotland were caused by direct repercussions of the smoking ban is the fact that
Rank's clubs in England and Wales, where smoking is tolerated, saw a 1% profit
margin increase by the year's closing. Rank has also attributed a 4.6% decline
in admissions to their Top Rank Espana bingo clubs in Spain to a similar smoking
ban there.
Overall, Rank's Mecca bingo operations saw over an
18% decline in operating profit from 2005, dropping from £88 million to £72
million. However, helping to offset this drop was an increase in profit
generated from Rank's Grosvenor empire of thirty plus casinos in England and
Wales (two in Belgium), which saw an increase of over 11% in operating profit to
end 2006 in the green at £39.5 million. Grosvenor Casino operations brought in a
4.7% increase in overall revenue up to £204 million.
Furthermore, Rank's Blue Square casino and gaming
technology development branch, which provides online distribution for both
Grosvenor and Mecca - not to mention Rank Blue Square poker, sports betting and
casino products - saw a phenomenal 780% increase in profit up from £1 million in
2005. Blue Square's gross revenues rose from £13 to £23 million, while their
sportsbook revenue was up £3 million to close out 2006 at £16 million.
Rank's Chief Executive Officer, Ian Burk, said that
due to restructuring and asset disposals valued in excess of £1.1 billion, Rank
is now a more casino and gaming focused business. Having disposed of their Hard
Rock assets and Deluxe Media Services, Burk says that Rank is now poised for
long-term growth in the UK casino gambling and bingo market. Rank is expecting
increased spending in 2007, which they are planning to attract with a broader
presence through a variety of media channels.