Mecca Bingo Stocks Slide

Rank who are the owners of Mecca Bingo and Grosvenor Casinos had to spend a second day concurrently, watching their stocks slide. This is because stock analysts have lowered their rating on the Rank stock and on the first day the stock slid by 19 percent with the second day following suit at 18 percent.

The blame for the lowering in the rating on the stock has been seen again to be blamed on the smoking ban, the effects that the ban seems to be having on the bingo industry and the fact that most bingo players are mostly perceived to be heavy smokers. It is believed that heavy smokers are either not playing as many games as they used to, because they are too busy outside of the bingo club, smoking or staying away from the clubs altogether. As a result there was a drop on revenue in the six weeks following the smoking ban and accordingly, Rank would be expected to see lower profits. However it is believed that the smoking ban in not the end of the problems for this company

Because of the change in regulations and the new gaming act, Rank is not only allowed to have four fruit machines that pay high jackpots on anyone site, and a combination of both of these problems has been blamed for the lack of faith in and the lowering of ratings of rank stock.

Posted: October 18, 2007
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