Gala Bingo it seems is looking to sell some of their land-based bingo halls in preparation for a public offering of shares in the company.
Hedge Fund Bingo Value
Reports coming out of various sources in the United Kingdom today seem to be indicating that the owners of Gala Bingo, ironically a USA based hedge fund, have approached banks in regards to a public listing of shares.
According to these reports, Gala Bingo will be looking to sell the older type Bingo Halls which got converted from old Cinema Halls. The company will retain the more modern looking single floor bingo halls which appear to be more popular with bingo players.
The selling of shares in gaming companies is big business; Gala is looking at raising funds in this manner as so many UK Gaming companies have done in the past few years.
They will of course not sell the Gala Bingo name or any part of their online business which remains incredibly popular.
Gala Bingo has recently moved over to Virtue Fusion Bingo platform and has created a Gala Mobile Bingo site to tap into the fast-growing appetite for mobile bingo games.
It seems that the strategy for Gala Bingo is to switch its focus to its online bingo business and have fewe land-based clubs in the United Kingdom.
There is probably a variety of reasons for this amongst which taxation and competition from online bingo halls based outside of the United Kingdom are reasons for the closure of these land-based bingo halls.
Land-based bingo operators have faced tough times in recent years. The ban on smoking as well as a double taxation battle with HM Revenue officials has led to a dramatic reduction in land-based bingo halls.
That along with the fact that most Online Bingo competitors have moved their operations to other parts of the EU to take advantage of tax breaks means the UK Bingo market is the most competitive market in the world. That is great for bingo player but not so great for company profit margins.
That together with the continued growth of Online Bingo in both the United Kingdom and Europe seems to be where Gala Bingo is pinning their hopes.