Leisure group Rank has edged up 1p to 61.25p after the House of Lords this week voted in favour of a motion to increase the number of gaming machines in bingo halls.
Bingo clubs have been hit hard by the smoking bank, a reduction in machine numbers and increased taxation. But the government had agreed to increase the number of so-called B3 gaming machines - which have a £1 stake and a £500 win - in bingo clubs from four to eight. On Wednesday night the Lords agreed. Analysts at KBC Peel Hunt believe this could add substantially to Rank's profits. They said:
"This will become law in 21 days' time and we expect Rank to act quickly to add around 300 machines to its Mecca estate. Allowing for some cannibalisation (including the closure of some Adult Gaming Centres within bingo clubs) the additional machines could add around £3m-5m to revenues, of which some 70%+ could flow through to profits."
