Gala Bingo, one of the premiere gambling groups in the United Kingdom, is cautious about the outlook for 2008, but they think they will outperform the other bingo operators.
Gala Bingo has been feeling the effects of the new gambling regulations that became effective in September like all of the other bingo operators. In spite of their problems, Gala Bingo reports an eleven percent rise in their pre-tax and pre-interest profits. Their other operations offset the decline in bingo revenues of ₤16.4 million.
The smoking ban combined with the limit on high paying fruit machines and the tax situation on bingo and casinos are what are strangling the brick and mortar bingo industry. A company executive said that they are taking a cautious approach to the situation in 2008. A fall in consumer spending may also contribute to the problems faced by the bingo operator.
Gala Bingo was created from the merger between Gala Bingo and Coral, which offers gambling activities. The merger made Gala Coral a full service gambling establishment. The company has recently moved into the Italian market. Industry watchers will closely monitor the situation in coming months to see if the bingo operators can reverse the current declining trend.