Posted June 17, 2009 and tagged as Gala Bingo.
Soon enough the time could come where Gala Bingo may have to close a few of their smaller bingo halls as the profit they are currently making is just not enough to overcome this new increase in tax from 15% to 22%! This means over 200 jobs are in the prospect of being lost, so another 200 people will be back to square one looking for more jobs, but as other companies have been closing down too they are going to have a tough time finding a new place to work. It will be like being a teenager again looking for work!
So currently Candover, Cinven and Permira who back up Gala Bigo (Coral) are in the mists of closing down another 6 of the 156 bingo clubs they have left which means they will then only have 150 bingo clubs in the whole industry across the nation. They were already hit hard when the smoking was put into action in the pass, then when the section 21 gaming machines were out of bounds and now this. The government are as it stands tearing the bingo world and gambling industry a part! Will they every stop!
For those earlier negative events that were put into place (smoking ban / section 21 gaming), Gala Coral already closed down 13 bingo clubs, yes 13 and 4 casino clubs! Now they are going to have to close even more clubs so that they can keep their business steady, but still staff are going to be cut from their jobs so there is just no winning option.
This sudden increase in bingo tax profits was such a surprise that there are even people who have analysed the situation and have come up with the recent conclusion that they were acting in response to the setback in which they encountered from HMRC about the section 21 gaming machines being put out of the market!
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Posted June 16, 2009 and tagged as Foxy Bingo.
As reported by eGaming Review, it has come to our attention that Cashcade Ltd could be bought out by PartyGaming and this takeover deal could even go through as early as next week. The money in which PartyGaming will be buying Cashcade out for is thought to be around the £70 to £100m mark, which is not pocket change by anyone’s standards.
So by the looks of it Foxy Bingo could have a new owner and very soon although a close source did say “The acquisition could be driven through as early as next week. Although takeovers can be complex and there are many supplier and technology issues such as player migration to finalise in this particular deal.”
This new event will have some good affects and some bad, so unfortunately for 888 they have got the negative side of this deal. Cashcade was one of 888’s key licences on their Global Platform, as this is the software of choice for all their current online bingo sites.
888 is not alone in getting affected either, Gala Bingo is next in line to be hit with this new motion of movement. Gala Bingo being the top leading bingo site of the UK will be battling out with PartyGaming as they start increase in their marketing and using up some of Gala’s. And also Gala Coral, the parent company of Gala Bingo, hit a bit of a wall when the smoking ban was put into action, coupled together with the recent hike in bingo tax, but they are determined not to fail.
They will not give up and have started a “push” to raise 200 million pound for all the loss cash in which they experienced due to that unfortunate event on their behalf and other bingo clubs across the nation.
So as next week is only round the corner we will soon find out whether PartyGaming will be taking over Cashcade as soon as the rumours have said or will the rumours be just in fact, rumours? If it does go ahead it could have a major impact on the online bingo industry, but as they say online time will tell.
Posted June 15, 2009 and tagged as Majestic Bingo.
Down in Worchester, Roger Cooper Owner of the Majestic Bingo Hall, has recently started a petition to stop tax hikes on the bingo industry, which could if they carry on shut down Mr. Cooper’s business by forcing him to close. The only way that Mr. Cooper will be able to keep his bingo club open will result in him having to enforce unwanted measures.
That would either mean increasing the fares in which bingo clubbers pay to get into the Majestic Bingo club in Worchester or to decrease the cash prizes in which bingo players can win. Whatever the option that Mr. Cooper might have to take it is a no win situation! There is no over way out then to choose either of those two options, to stop his club being closed because of the 7% rise in tax profits in which the government put into action.
It seems that everything is just trying to spoil and close down Roger Cooper’s bingo club as he says “I have already been knocked by everything else – the smoking ban, utility bills and business rates have gone up, and now this”.
Before this 7% increase taxes stood at the rate of 15%, but now they are 22%, which may not seem much but that’s an extra 22% of profits that bingo clubs make ad will never see! In the case of Roger Cooper he will be losing about £560 a week and other bingo clubs could be losing more or less, but still this percentage rise is going to affect lots of bingo clubs dearly and some of them having disastrous endings.
The loss of that £560 a week will result in Mr. Cooper not being able to repair his building if it needs repairing or to reinvest his business making him become stuck, which will not allow him to move on any further in his career and bingo business, which in return could affect his bingo players in the long run.
At this present time Mr. Cooper is trying to think up some ideas of what he cut the cost but he is still scared for the future as he quotes “Luckily, in the good years I have kept the maintenance going but I worry what I will do if I get a major expense coming along.”
