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London Free Press Business Section:


 



Smoke ban hurts bingo halls

A city committee will hear revenues have plunged since July 1.
JOE BELANGER, Free Press City Hall Reporter   2004-01-12 04:13:23  



A report on the dramatic revenue drop at London charity bingos shows "the chickens are coming home to roost" on the city's no-smoking bylaw, says a city councillor. The report going to city council's community and protective services committee tonight shows revenues at bingos plunged after the July 1 smoking ban took effect.

It also cites as contributing factors in bingo hall woes the economy and the opening of the slot casino a few years ago at Western Fair in London.

But charities that have seen revenues shrink by tens of thousands of dollars aren't the only ones out of pocket: The city is also taking a hit, estimated at nearly $80,000 in licensing fees this year alone from the closing of two bingo halls on the same site, Pot of Gold I and II, last month.

"The solutions were on the table and they weren't even given a chance and now we're seeing the consequences," said Coun. Roger Caranci, a key opponent of the ban on smoking in bars and bingo halls.

"The chickens are coming home to roost on this one."

The smoking ban covers all indoor public places.

Although the report focuses mainly on the Jan. 1 closing of the Pot of Gold I and II halls, it includes numbers for all bingo halls that show a steady decline in business since the slots and the bylaw took effect.

"Low attendance, the enactment of the no-smoking bylaw, slot machines and economic factors were cited as factors for the (Pot of Gold) closure," the report says.

With Pot of Gold's closing, the report notes 51 charities that operated bingos there stand to lose. Those charities shared in roughly $600,000 in proceeds in 2001, about $500,000 in 2002 and, for the first nine months of last year, another $326,000.

London's five remaining bingo halls have similarly been hit, but still operate.

A significant drop in bingo hall revenues occurred before the smoking ban was introduced. The report shows that between 2001 and 2002, after the slots opened, most bingo halls saw their profits halved.

The report suggests charities that ran bingos through Pot of Gold could seek future dates at other halls, or the city "may want to consider making dates available for (them) at the expense of taking dates away from existing organizations at the other halls."

But Caranci said that's not acceptable. "I'd have a problem if they're going to other charities and saying they'll have to take less," he said.

He also rejected any payment from the city to charities to offset reduced revenue.

"The smoking bylaw was one we knew was going to have a big impact," he said.


Copyright © The London Free Press 2001,2002,2003





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