Gala Bingo has finally confirmed the sale of all land-based assets. That means that the U.K Bingo giant has finally divested itself of its land-based bingo clubs.
Why did Gala Sell Its Bingo Clubs?
Gala will still be Gala though, fear not on that score. The new owners are an investment trust. Caledonia Investments are licensed to make use of the Gala name for the foreseeable future.
There are a number of reasons for this. The main reason being speculated about now is that it is due to a proposed merger with Ladbrokes.
The joint holdings of this group would raise the eyebrows of the Competition Regulator. If this deal goes ahead, it will make the joint group the largest gambling company in the U.K.
Land-Based Bingo Clubs Sale
This means that Gala has gotten rid of their traditional land-based clubs, it is estimated that Gala Bingo Clubs have over 1 Million active members & control 38 per cent of the British Bingo market.
Another reason for a sale is that people now seem to prefer to play bingo online. Gala Coral is retaining the online bingo business.
This removes the headache of maintaining a land-based business and allows them to focus on their online gambling offers.
The sale price being quoted is £241 Million Pounds on a business that creates a pre-tax profit of £33 Million per year.
We do think that Caledonia has picked up a good deal, especially considering they keep the Gala Bingo brand name.
It will be interesting to see what Caledonia will do with the Bingo Clubs. If they are wise there should not be a major shakeup.
Take the time to analyse the bingo business and carry out recommended changes slowly. Perhaps Caledonia might be interested in launching an Online Bingo room of their own at some stage.
We are interested in the Gala – Ladbrokes merger. Will this mean better deals for online bingo clients or is it just a cost-cutting exercise. Only time will tell.