The economic situation is having an effect on Australian clubs - where the majority of slots are located.

Ainsworth’s chief executive, Len Ainsworth, told InterGaming that the international situation for the entire industry remained ‘pretty horrible’, but that there were some brighter aspects. He reports that smoking bans have also had an effect.

"Every state is different and of course timing and details of the smoking bans were naturally different with opinions varying among the club and hotel managers as to how smoking would affect them.

"As usual, the respective governments in New South Wales, Queensland and Victoria made something of a hash of it. Queensland came out of it best and quickest as the clubs in particular were relatively new and had more room to add smoking areas.

"In NSW the regulations were ambiguous and a lot of clubs got into trouble following what they believed was the letter of the law, only to be told more fresh air was needed. In any event the government compromised and the clubs are still building, but business has recovered.

"In Victoria the existing franchises of Tabcorp and Tattersalls run out in another couple of years and nobody really knows what is going to happen. This was not the world’s best arrangement in the first place but then governments do what they will, although slowly they are learning to check with the industry before they jump into the fire."

Ainsworth added that an interesting turn that has continued to progress is that of the big supermarkets, such as Woolworths and Coles, getting into the hotel end of the business just as they have with the petrol stations.

"Probably 80 per cent of the petrol sold these days goes through a Woolworths or Coles outlet with an associated small 7/11 type store. These big chains have found there is more money in the hotel/gaming end of it than they have ever seen before."