More and more countries are going smoke free and with England recently joining the list, it is feared by some within the coin-op industry that 'smoke free' will have a negative affect on the pub, club, bingo and street markets Helen Fletcher investigates...

According to a survey by the UK’s Department of Health within the UK, a smoky atmosphere is the single biggest reason for avoiding a pub or bar.

Thirty six per cent of the 1,700 adults surveyed said a smoky atmosphere was the main turn off for going to a bar or pub, with the type of people who go to the venue coming in second at 20 per cent. 

As well as this, over two-thirds of people said they would rather spend the evening in a smoke free environment and 91 per cent now consider lighting up in a non-smoking place unacceptable.

The European Union produced a policy paper on banning smoking, giving five options: no change, self-regulation, guidelines, EU recommendations and new laws and those countries without a policy, had until May 1 to submit their plans, after which the Commission would decide on the next step.

More and more member states are now implementing bans of one type of another with varying degree of success. Last year Spain adopted a rule in which bars and cafeterias under 100sq.m are left free to decide whether they want to be a smoking or smoke-free location.

Casinos have opted to make their table games areas smoke-free and have concentrated their slots into a smoking area around the bar.

However, Spain is a good example of how a smoking ban can fail, as according to our sources no one can find a location with an AWP in it where a smoking ban is in force.

Forceful tactics

Countries that have been considerably more forceful however, such as Sweden, Ireland and Italy have seen much more effective results.

We all know the main reason behind a ban is to protect workers and non-smokers from heart disease, cancer and respiratory illnesses as well as other chronic and acute diseases caused by exposure to second-hand smoke.

Meta-analysis has shown that non-smokers with partners that smoke at home have a 20-30 per cent greater risk of lung cancer than non-smokers living with non-smokers and non-smokers exposed to cigarette smoke in the workplace have an increased lung cancer risk of 16-19 per cent.

It is also argued that the quality of air within bars and restaurants can substantially be improved by introducing a smoking ban.

For example, a 2004 study showed that in New Jersey, US, where smoking in bars and restaurants was permitted, there was more than nine times the level of indoor air pollution within its bars, etc., than neighbouring New York city, which had put a smoking ban in place.

And in Norway where smoking in public places has been banned since 2004, tests showed decreased levels of nicotine in the urine of both smokers and non-smokers compared to before the ban.

It is clear there is a strong argument for smoking bans in public places but there are groups that argue against the smoking ban, one complaint being that it is a violation on the rights of smokers, as well as property owners wishing to allow smoking to occur.

Resistance

But the most common resistance to a smoking ban and one that affects the coin-op industry comes from businesses concerned they will suffer financial losses due to lost customers.

In Europe the majority of results point to ‘no change’, but in countries such as Spain where the smoking ban is ignored this is hardly surprising.

The one area where Spain has seen a difference is in the arcades, and bingo clubs as they have to utilise 30 per cent of their space for smokers and it has been noticeable that these areas become very crowded.

Takings in these locations initially showed a 30 per cent drop but reports suggest incomes are now almost fully recovered.

In countries such as France where smoking has been banned from offices and other workplaces since February, it is expected to have a much more significant affect as the ban is expected to spread into cafes, restaurants and other locations at some stage next year, which will in turn have a serious effect on the traditional French café.

The Netherlands will become smoke free as of July 2008 and smoking has already been banned in workplaces, with the impact on the coin-op industry likely to be negative to some degree.

Johan Buiks, who handles marketing for the JvH group in The Netherlands, said: “ There is a feeling that people who play machines are also likely to smoke, so it has to be a negative effect on machine takings.”

Buiks went on to say there is a possibility of a ‘loophole’ in the law that permits locations to section off areas within the premises and completely enclose them for smokers and said: “If this is allowed it would enable operators to position their machines within those areas, but of course non-smokers might then be reluctant to play, so either move could be negative for the Dutch industry.”

Germany has promised a ban in 2010 and most operators are gloomy about the possible outcome, but perhaps more so at the length of time and impact on profits before the industry recovers.

Having just gone through the financial struggles to re-equip the market following the new AWP laws at the beginning of last year, German operators are concerned that it will simply be another hurdle to overcome before they begin to get a return on that investment.

Transformation

The UK is currently undergoing the transformation, through the parliaments of the separate countries, which make up the UK.

Scotland brought in a ban in all workplaces and enclosed public areas in March 2006 and the Welsh parliament brought in a ban a few months ago in April, along with the Northern Ireland assembly.

Operators in Scotland have reported very mixed figures that are dependent on the style and clientele of particular sites and initial reports from Wales and Northern Ireland suggest a similar pattern to that in Scotland.

One sector in particular to suffer is the bingo industry it generates billions of pounds in stake money and employs 20,000 people in the UK.

Fifty per cent of bingo players are estimated to be smokers, with many in the habit of puffing and playing bingo at the same time.

It has been predicted therefore, that up to one in three clubs will face possible closure now the smoking ban has spread to England.

Neil Goulden, chief executive of Gala Bingo, said: “The effect of the smoking ban in Scotland has been a lot worse than we thought it was going to be. We have actually now lost eight per cent of our customer base who have stopped coming altogether.”

Hans Bierrum, director of Genesis Games in the UK, said: “The impact will without doubt be bad news for the arcade, casino and bingo market. The worst sufferer in Ireland was the single site pub market and in some cases it never recovered.”

“The average income dropped 40 per cent and it took about six to nine months to get back to normal. In some locations the original player base never returned, especially the older generation, who didn’t like being made to make these changes.”

Norman Crowley, co-chief executive of Inspired Gaming in the UK, sees the effect on business as undeniable but believes companies need to take charge of the situation.

“If we sit back and do nothing then we will be faced with problems,” he said. “We have learnt some valuable lessons from Scotland since the smoking ban came into force last year, mainly that there is no right or wrong approach to how to accommodate the smoking ban, it is not the case of one size fits all.”

But it is the character of the traditional English pub that Nick Hardy, UK group marketing manager for Merit Games and Games Warehouse, thinks will really feel the affect of the ban.

Public health

“Public health is a far higher priority than commercial concerns but it is inevitable that the character of the British pub will change and will affect all involved,” he said.

“Customers will tend to move around more through the course of an evening rather than staying in one pub for several hours as this will allow them to smoke while travelling from one place to the next.

“We will also see a move in patrons because so many locations that we know as pubs will evolve and awful, manufactured terms like ‘gastropub’ and ‘casual dining’ will become part of our everyday vocabulary.

“I feel this is unfortunate as this new type of patron will dilute and weaken the traditional aspects of what people the world over know as a British pub. The community pub - the ‘local’ - has long been the absolute hub of every locality and that concept will be killed forever.”

The main trend it would seem is to increase the location’s existing food offers, which will obviously further discourage smokers and increase the family feel of many outlets that, according to Hardy have been “adult sanctuaries.”

So while licensees turn their attention to the food side of things, what does the coin-op sector have up its sleeve to fight back against the anticipated drop in revenue caused by smoking bans.

Well some companies have and are using the move as an opportunity to introduce existing products to new customers.

“In Scotland we have already witnessed an influx of different types of customers coming back to pubs,” said Crowley.

“Many of whom are unfamiliar with our current machine offerings and we see this as a huge opportunity to provide entertainment to new customers and introduce them to the world of open server-based gaming.

“Inspired has a lot of experience operating in smoke free countries and we have seen the effects of smoking bans across the globe. The one simple truth is that a dramatic change such as this brings opportunities, as long as companies prepare and then adapt.”

However according to Hardy, it is the new Gambling Act that companies in the UK should be focused on rather than the smoking ban, although he added: “We are very conscious of the need to develop games and game formats that increase ‘dwell time’ within locations.

“As customers become ever more transient this need becomes increasingly important and the smoking ban further emphasises this.”

Trends

Another trend within the UK has been the introduction of outdoor shelters to accommodate smokers, but it would appear they are not to everyone’s liking.

“All the outdoor shelters I have ever seen are awful,” said Hardy. “They look like shanty houses that outcasts are housed in and that is exactly how they will be perceived.”

Excel Leisure has however, seen the potential that these ‘shanty huts’ could bring to the coin-op market and has introduced its first all-weather pool table.

“Rustic is designed to be sited outside pubs and under shelters to accommodate smokers,” said Stan McKenna of Excel.

“It is made from actual decking and finished with external quality plywood and internal weatherproofed slate supports, rubber-coated corners to seal the joints, powder-coated feet and weatherproofed cloth.

“We have monitored the situation in Ireland over the last two years and have seen a growth in canopy-covered outdoor areas and we believe this will be mirrored in the UK.”

And it seems Excel is not on its own with Sound Leisure introducing its new speaker specifically designed for use in outdoor conditions.

Gary Orrell, head of sales for Sound Leisure Retail, said: “The MicroPro is a compact speaker can fill unusually large areas with clear, non-directional sound and is designed to be discreetly positioned under the eaves of a building or under the canopy of an outdoor smoking area.”

The introduction of these two products is surely a sign of things to come and you have to ask - what is next?

In a few years time will pub-goers have become accustomed to weatherproof flat screen televisions to watch that all important World Cup final, while puffing away on that stress relieving cigarette; indestructible jukeboxes and who knows, maybe even waterproof AWPs?

Your guess is as good as mine, but one thing is for sure, with smoking bans become ever more present throughout Europe and the rest of the world, the coin-op industry should see another smoking ban as an opportunity to shake things up and try something new.

Will it rise to the challenge? Watch this space…