Millions gone after smoke ban

Article from Forces website about Australia
Millions gone after smoke ban
By Clare Masters
June 05, 2008 12:00am
THE state's crippling smoking bans have cost the State Government about $55 million in gambling taxes, with the Government underestimating the impact of anti-smoking laws.
The latest NSW Budget shows the Government believes the pubs and clubs industry could take more than four years to recover, despite initial predictions that the industry would pick up in 12 to 18 months.
State Budget in depth
The Government is facing criticism that it should not have introduced the bans in the dead of winter in Sydney - making life even tougher for smokers.
Clubs and hotels spent more than $900 million on renovations in preparation for the smoking ban from last July, but punters have reacted more strongly than expected.
Clubs alone have lost about $400 million in revenue over the last 12 months, largely because of drops in poker machine revenue.
Comparisons between budget statements 2007-08 and 2008-09 reveal Treasury estimated they would receive $1061 million in pokie taxes, but instead received $1006 million - a shortfall of $55 million.
The latest budget shows that Treasury does not expect clubs and hotels to pick up again until 2010-11.
By comparison, Star City - where smoking is still permitted in the high rollers' room - collected about $8 million more in pokie revenue than predicted in this year's budget.
Anti-smoking lobby groups have compared NSW to Queensland, where revenue picked up after 12 months, but experts say NSW is following Victoria's trend more closely due to the weather.
"With club gaming revenue continuing to fall with every passing month, it's clear the negative financial impact of the indoor smoking bans has a long time yet to run," ClubsNSW Chief Executive David Costello said.
"Unfortunately it seems that NSW clubs will suffer an experience similar to that in Victoria, where clubs took five years to return to pre-ban revenues."
Australian Hotels Association chief executive Sally Fielke said there were a number of influencing factors but smoking bans were still having a significant impact.
http://www.news.com.au/dailytelegraph/story/0,22049,23812536-5006009,00.html