Rank boost from Mecca bingo north of border
New casino for north-east on schedule as downward trading trend is bucked
Published:
Gaming firm Rank said yesterday its Mecca bingo halls in Scotland had bucked a downward trend in trading, year-on-year, seen elsewhere in the UK.
It also said it remained on schedule to open its first Grosvenor Casino north of the border, in Aberdeen, later this year. The new casino, in Shiprow, will form part of a retail and entertainment complex.
Rank said like-for-like revenue at its Mecca venues in Scotland during the 17 weeks to April 27 were slightly ahead, compared with a year ago.
Across the UK, however, Mecca’s revenue declined 14% as the bingo business came under pressure from a nationwide smoking ban, new gambling laws and a double tax burden.
Even so, the latest figures were an improvement from the 17.3% year-on-year fall seen in the final four months of 2007.
Rank, whose Mecca chain includes venues in Aberdeen, Dundee and Kinross, said its UK bingo halls saw a 13% decline in visitor numbers during the most recent period.
The group, which also operates Grosvenor Casinos and the Blue Square betting business, said it had been encouraged by its performance in the face of a difficult trading environment.
Rank told shareholders before its annual meeting: “We have achieved a degree of success in adjusting to the smoking ban and the new gaming regulations and have taken timely action to protect profits.
“Nevertheless we are conscious that the difficult consumer climate is likely to make 2008 a challenging year.”
Bingo hall operators hope the UK Government will introduce measures to assist the industry. These could include loosening the restrictions on money-spinning gaming machines imposed on bingo clubs since last September.
The clubs are unlikely to gain imminent relief from the tax regime under which they pay VAT of 17.5% and gross profits tax of 15% on bingo participation fees. Chancellor Alistair Darling rejected pleas to change the rules in his Budget in March.
Rank is attempting to tackle the smoking ban by providing outside enclosures at 50 of its clubs by the end of the year in addition to running “interval bingo” games for smoking punters. It has extended the number of clubs with outside gaming areas to 43, resulting in a revenue and profit improvement.
Grosvenor Casinos’ like-for-like revenue declined by 8% in the 17 weeks to April 27, with admissions down 14% but spending per head up 5%. The performance represented a modest improvement in average weekly revenue, compared with the final four months of last year.
Readers' Comments