Just been checking the Endermol site and maps of the house - seems the ciggy machine is located in the toilet, next to the ones for tampons and condoms, out of normal view so they can't be seen on TV.
The housemates are fobidden to have money in the house so BB was forced to make these machines 'free vend'. Housemates were invited to pay up-front for a supply of ciggies. Any they take over and above their pre-paid limit will be charged for when that HM comes out of the house.
This stops them 'running out' and begging BB for more, as has happened before. There was talk that one of the tobacco companies would sponsor the supply but it was felt unfair on the non-smoking HM's.
BB cannot allow HM's to buy tobacco products from the budget without this being seen as a disadvantage to the non-smokers as well. Apart from which, if the budget is only pence per day then they can hardly justify a whole week's allowance for one packet of 20.
In the same way that BB will not let the HM's starve, hence some extra rations being delivered in with the shopping, they'll quietly look after the smokers. That big green mat under the dining table isn't just for show you know!
As with many rumours and stories kicking about, don't take all this as being the 100% gospel truth. If only to stop myself nodding off whilst watching the HM's slap their legs 'in tune' I thought I'd add yet another false story to the many doing the rounds.
Someone will read this and splash it all over the C4 forums, it may even make the front page of the newspapers? This is the stuff BB gossip is made from, rumours, stories, and usually down to someone having some time to write things like this
