The smoking ban, introduced in Scotland in the spring of 2006, has forced customers outside and caused a noticeable drop in business, market analyst Mintel found.

The report suggests that, since then, players have either stopped attending bingo or spend time during game intervals outside smoking, resulting in a sharp downturn in refreshment sales and gaming machine takings.

But a spokesman for Mecca Bingo said gambling laws posed a greater threat as the industry struggles to survive ‘double taxation’.

It is claimed bingo halls are harder hit by the smoking ban than pubs, clubs and betting shops and nationally the industry’s value will drop by 12% to under £2.5 billion over the next year.

During 2004-2005, admissions into bingo halls across the country were up by around 24%.

A spokesman for Mecca Bingo, which has premises in Douglasfield and the Nethergate, said although the smoking ban had seen a downturn in sales, it wasn’t the only factor.

“The Gambling Act has severely disadvantaged bingo halls across the UK,” the spokesman said.

“New laws restrict the maximum number of slot machines from 13 down to four per club.

“The income machines provide is now a lot less despite a consistently high demand — there have been a lot of unhappy customers because of this.

“Dundee MP Stewart Hosie has been very supportive in terms of lobbying for taxation parity, but because of this discrimination, the bingo industry is facing some pretty severe head winds.”

Under current regulations bingo halls are required to pay both gross profit tax and VAT and are the only businesses that must pay both.

Mecca Bingo are now fighting back with new initiatives.

The spokesman said, “We have tried extremely hard to adapt our business as a result of law changes.

“Our Douglasfield premises was the first in the UK to pilot the interval bingo scheme, which means bingo can be played in the outdoor shelters during breaks.”

Mr Hosie met with Douglasfield staff in September to listen to their concerns.

He said that to date little progress had been made on attempts to reverse the situation.

“I am hopeful Dundee’s bingo halls all have a bright future,” he added.

“But the Government has to understand clubs are at risk from the very real threat of ‘double taxation’.”

A spokeswoman for Gala Bingo claimed the report failed to reveal any new information and shouldn’t be given too much credence.