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The Sydney Morning Herald

Smoking ban cuts into Tabcorp profit

Author: Jan Eakin
Date: 05/12/2002
Words: 242
          Publication: Sydney Morning Herald
Section: Business
Page: 28
Aggrieved gamblers, upset by a ban on smoking introduced in Victoria's gaming establishments earlier this year, forced Tabcorp to issue a veiled profit warning after the market closed yesterday.

For the five months to November 30, revenue from the group's gaming division was down 8.8 per cent compared with the same period last year.

That compares with a 6.6 per cent decline announced at the annual general meeting in October.

Tabcorp managing director Matthew Slatter said: ``The gaming division has traditionally experienced seasonal growth during the period from October through to Christmas, however, after the initial decline following the introduction of the smoking bans, weekly gaming revenue has remained relatively flat."

Research carried out by Tabcorp since the introduction of the ban found that customers who smoke are playing less often and for shorter periods.

``Reasons cited include inadequate smoking facilities in venues, limitations on customers' ability to reserve machines and smokers feeling aggrieved at being targeted as a group," Mr Slatter said.

Tabcorp said it was working with its venue partners on a number of measures aimed at improving the appeal of its venues and gaming products for smoking customers.

``These focus on providing attractive areas adjacent to gaming rooms where customers can smoke, personalised machine reservation systems and service programs designed to ensure that customers who smoke feel they are valued," Mr Slatter said.

 
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