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Casino News
Crisis in OZ may spread to UK
By Graham Clifford
Published on 4 October 2007

Is it time for casinos across the UK to get worried? If new statistics leaking from Australia are anything to go by then yes.

This week the Daily Telegraph Australia newspaper revealed that revenues from poker machines in the country have taken a dramatic fall, despite decades of growth, following the introduction of smoking bans in venues three months ago.

According to the newspaper profits from poker machines dropped by nearly half a billion dollars during July after the ban was introduced on the 2nd of the month.

In July, Aussie hotels reported over a ten per cent drop in poker revenues while clubs saw more than an eight per cent drop. Some $453 million less money was generated by pub and club poker machines in August during July.

Clubs in Strathfield in Sydney were the worst affected, with a reduction in poker profits of nearly 34 per cent and clubs in St George also saw a 21 per cent tumble in turnover.

Australian Hotels Association deputy chief executive officer David Elliott told the newspaper that figures were worse than expected but that he was optimistic the situation would improve.

Alarmingly the drop in takings in Australia comes during their winter months so swapping the poker machine for the beach is not an option at this time of year.

This news will not be welcomed by casinos in the UK where smoking restrictions came into effect at around the same time.

Poker machines are like pieces of furniture in many English pubs and if they are removed as a result of dropping productivity then the pub culture here and in Wales may suffer.

Already many Bingo halls across the UK say they’ve had to close their doors because smoking punters are simply not turning up.

It now seems that as a result of the smoking ban online casino and bingo sites in the UK could benefit while their land based rivals suffer.

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