Bingo: Rank Sales Drop Eases on Casino, Bingo-Hall Visits

Rank Group Plc, owner of the U.K.'s second-largest bingo-hall chain and Grosvenor Casinos, said a sales decline eased after managers took steps to counter a decline in bingo customer numbers caused by a ban on indoor smoking.

Rank opened sheltered outdoor bingo gaming areas and installed electronic gear that permits remote play at its bingo halls to counter a fall in sales after England barred indoor smoking in public places in July. The company is vulnerable to prohibitions on tobacco use because about half of bingo players smoke, twice the rate of the general populace, according to executives.

``We have achieved a degree of success in adjusting to the smoking ban and the new bingo gaming regulations and have taken timely action to protect profits,'' Rank said. ``Nevertheless we are conscious that the difficult consumer climate is likely to make 2008 a challenging year for the bingo gaming sector.''

Rank fell 1.25 pence, or 1.3 percent, to 93 pence at 8:02 a.m. in London trading. The stock has gained 1.9 percent this year after dropping 59 percent in 2007, giving the company a market value of 363 million pounds ($712 million).

Government Statement?

The owner of Mecca bingo halls and Grosvenor Casinos had to remove some higher-jackpot electronic gaming bingo machines because of changes to gambling laws. The company also owns Spanish bingo clubs, Belgian casinos and the Blue Square betting Web site.

The government plans to make a statement containing ``good news'' for bingo companies, Investec Securities said May 1. Changes probably will include a relaxation of limits on bingo prize amounts, Investec said. Minister for Sport Gerry Sutcliffe was to make an announcement to Parliament ``shortly,'' a spokeswoman said at the time, without being more specific.

Bingo revenue at sites open at least a year declined 14 percent in the 17 weeks, the same pace as the drop in the eight weeks through Feb. 24, the statement shows. Sales on that basis at casinos fell 8 percent.

Profit doubled to 311.5 million pounds in Rank's last fiscal year on a gain from selling the Hard Rock restaurant, hotel and casino unit. The disposal capped asset sales that sharpened the company's focus on gaming.

Written by Louisa Nesbitt and Loveday Morris

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