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Around the world smoking bans are being imposed, across the board in some places and in selected locations in others. Pubs, clubs and casinos in some jurisdictions are exempt from a ban on smoking in other public places, but New Zealand's SkyCity have had to provide casino smoking balconies, and have experienced a subsequent fall in revenue. The first completely non-smoking casino in the United States was Taos Mountain Casino in New Mexico. Boasting table games, slot machines and video slots, the casino still uses its smoke-free status as a marketing tool.
Yesterday, in its group trading update for the 26 weeks to 25 June 2006, the Rank Group has reported the negative effect the smoking ban in Scotland has had on its bingo business in that country. During the 13 weeks since the introduction of the ban, Rank has seen admissions down by 6%, spending-per-head down by 9% and a 14% decline in revenue from the company’s bingo clubs in Scotland. The Rank gaming division saw an 8% rise in revenue from Grosvenor Casinos although spend-per-head was flat. The World Cup and warmer weather have impacted admissions recently.
The Board of Rank has decided to review the potential strategic options for its Hard Rock operations, and has appointed Merrill Lynch International to assist with an assessment of whether Hard Rock should remain part of the Rank Group. The review is expected to take a few months. Following the decision last March to return £200 million to shareholders, the company has, to 30 June, purchased and cancelled a total of 45.9 million Rank Group Plc shares at a cost of £102 million. (E-07.05.06)
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