Bingo halls across Britain are struggling to make the numbers work after falling income and a tax increase could spell the end of many halls. Even the biggest player in the bingo industry Gala Coral are looking to close up to 6 clubs with the loss of 180 jobs. This could be joined by another 100 clubs right across the country.
Some insiders believe that this is not the end of the closures but only the beginning. Over the next two years some believe that 40 to 50 more clubs may be closed or sold off, many of which are former cinemas, allowing Gala to concentrate on the more popular flat floor halls. Since the smoking ban, which many blame a down turn in business on, and the scrapping of section 21, Gala have closed 13 bingo hall and 4 casinos.
The recent rise in duty on bingo from 15 per cent to 22 per cent has forced many bingo operators to reassess their futures. The Rank Group, owners of the Mecca Bingo chain, has had to issue a profits warning estimating that they will now lose £9 million a year in lost profits.
Its not all bad bingo news at the moment though, online bingo is continuing to grow bigger and bigger and has become the fastest growing form of gambling on the internet. In 2008 the world wide online bingo market is worth $1.4billion, this year it is expected to hot $1.7billion with it rising to £2billion in 2010.
The online market is good news for Gala too. Gala Bingo is currently sitting pretty as the number one online bingo site in the UK; thought is position could be under threat with the impending sale of internet rival Cashcade.
