No smoking laws blamed for club's financial woes

One of Canberra's biggest clubs is blaming no smoking laws for driving it to the point of insolvency.

The West Belconnen Leagues Club (WBLC) has struck a deal with the Canberra Raiders to pay-off its bank debts, thought to be around $4 million.

For the deal to work the club's members will have to vote for a proposal transferring the gaming licences to the Raiders group. Members will meet later this month to discuss the proposal.

John Penca from the WBLC says there has been a dramatic downturn in the gaming side of the business since the smoking ban was enforced.

"We just found that our turnover was down 10 per cent, 12 per cent, and it's been continuing now for two years," he said.

Mr Penca says the club was forced to act because it could not meet its financial obligations.