Will the giddy rise in petrol prices be yet another punch in the guts for the land-based bingo industry?

Already reeling from the effects of a smoking ban and a double taxation policy, the land bingo scene will find it difficult to rebound in the face of higher costs in actually traveling to clubs and bingo halls.

Some land bingo operators have sought to solve this problem by putting on bus services, but they still have to cover the cost of the petrol. Add to this the competitive pressure represented by online bingo games and online bingo halls which do not require members to travel anywhere except to their computer, and you have yet another dangerous trend facing the land bingo industry.

This trend is, of course dependant on the continued rise of oil on world markets. Unfortunately for the land bingo sector, there seems to be no chance that oil prices are coming down anytime soon.

Written for Eyes Down Bingo by Anthea - Your Bingo UK blog

A Clarion Gaming report says the UK government has confirmed it will not be lifting the VAT currently imposed on land-based bingo games and halls. The news will be a further blow to the land-based bingo industry that is also grappling with the effects of a smoking ban and the growth of online bingo.

Representatives of the land bingo industry have identified the lifting of the current VAT burden as crucial to a turnaround in the market.

Written for Eyes Down Bingo by Anthea - Your Bingo UK Blog

The state of the UK land-based bingo industry has been put into sharp focus in a Clarion Gaming report based on a Financial Times story.

“The Financial Times says the details of private equity firm Alchemy Partners’ £100 million buy-out of Buckingham Bingo will hinge upon negotiations with Barclays, Alchemy’s main creditor.

Alchemy is said to have two options: inject more equity into the business to cut debt levels or write off its £60 million equity investment, which would give control of Buckingham Bingo to Barclays.

Other private equity firms could find themselves in similar positions as the companies they acquired at peak valuations but high debt begin to suffer reduced earnings in the economic slowdown.

Buckingham and other bingo operators are additionally hurt by last year’s smoking ban and changes to gambling laws and tax levels.

“The company is still profitable, but we have seen a step down in attendance and profits are down in line with the rest of the sector,” said Jon Moulton, head of Alchemy.

“If you can find a bingo group doing well, we would like to see it.“

In stark contrast, the online bingo industry has shown steady growth and is considered one of the fastest growing niches in the online gaming industry. Bingo online has benefited by a steady stream of new players joining online bingo halls as land-based bingo halls face increasing concerns they may have to close.