Rank Group Plc, owner of many British bingo halls, fell for a second day in London trading.

Since indoor smoking was barred in England and a new law required the company to remove some gaming machines in September, the company said operating profit this year will be ``significantly lower than in 2006'' if there's no improvement.

``People are realizing just how bad the earnings outlook for 2008 is,'' said Paul Leyland, an analyst at Arbuthnot Securities in London. Rank shares slid by the second-largest drop in the 690-member FTSE All-Share Index on the news.

Rank is vulnerable to bans on tobacco use because bingo players smoke at twice the rate of Britain's overall population. Indoor smoking was barred throughout the U.K. in a 16-month period starting with a Scottish measure that took effect in March 2006.

Changes to regulations also forced the company to remove gambling terminals in U.K. bingo clubs and from casinos.