Rank left reeling by legislation

2007-12-13 08:40:56

British gambling group Rank has been left reeling following July's smoking ban and restrictions placed on payouts.

It has released a statement that says the outlook for 2008 is uncertain, with a number of projects now on the backburner in order to reduce expenditure.

Not only has Rank had to contend with fewer customers because of the indoor smoking ban but it has been compelled to remove many of its high-risk electronic gaming machines due to the Gambling Act.

Ian Rennardson, an analyst at Merrill Lynch in London, told Bloomberg: "Investors will be disappointed by today's news. With winter here, it is hard to see any improvement until spring at the earliest."

Rank has seen admissions fall by 15 per cent since July and consumers are spending three per cent less than they were 12 months ago.

Opponents of the smoking ban have long argued that the legislation could damage businesses in the hospitality industry.