Big Losses at Gala Coral

Gala Coral has been a mainstay on the British bingo scene. They have been offering bingo almost since the beginning of the bingo industry in the United Kingdom. The company has just reported some huge losses.

Gala Coral reported losses of almost £400 million for the year ending September 2008. The company has received an infusion of £124 million in private equity to help them through the hard times, but they have debts of more than £4.4 million.

Gala Coral is expected to make some cuts in the near future in order to deal with the debt situation. They have closed approximately 10 percent of their land-based bingo halls in the United Kingdom.

Gala Coral, like other bingo operators are suffering the effects of the smoking ban since bingo players, like most gamblers, tend to be smokers. This, along with the limit on the high payout fruit machines, resulted in a drop in attendance, and thus a drop in revenues throughout the UK. The company is also experiencing problems at their land-based casinos.

One of the effects of this was an increase in online bingo playing as many patrons switched to online play as a result of the smoking ban. Gala Coral is hoping to capitalize on the growth in online play.

Big Losses at Gala Coral

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