The new regulation banning smoking in public places in Spain is likely to hit the industry much harder than the law it replaces.
The fresh law, introduced because of criticisms that the previous regulation was too weak, only came in on January 2 and the coin machine industry needs a few more weeks to accurately assess the impact on revenues.
It is expected, however, that another 15 per cent is going to come off the cashboxes in bars and arcades and as much as 20 per cent in casinos. The bingo industry, which suffers the disadvantage of non-interruptable games, fears a disaster. Casinos and bingo halls were previously able to introduce smoking areas and about 30 per cent of them did so, but this is no longer permitted under the new law. The only potential ‘loophole’ is the so-called smokers’ clubs and much will depend upon how each of the country’s 17 regions apply the regulation on those locations.
This is all against a background of an industry hard hit by the general economic recession across the European Union. Between 2008 and the end of 2010 the industry recorded an average decrease in revenues from machines of 17 per cent in bars, 35 per cent in bingo halls and 30 per cent in casinos, although the figures varied from region with Andalucia - usually the most liberal region in terms of prize levels - the worst hit.
