The sale of Gala Bingo land-based clubs has once again cropped up. The sale of 135 Gala Bingo Clubs via auction is under consideration by the owners of parent company Gala Coral.
Gala Bingo Clubs Sale By Auction
The owners of Gala Coral include US Hedge Funds and Capital Management companies. They are looking to get top dollar on the land-based bingo clubs now that tax duties on bingo got reduced by half.
According to reports Gala Coral have been looking to raise £250 Million by selling these Gala Bingo land-based clubs.
The idea is to get rid of the land-based clubs and keep the online version of Gala Bingo. It would represent a coup for the current owners if anyone were willing to take it on with the online bingo part of Gala Bingo missing.
Even though Gala Bingo Clubs are hugely popular, it would be remiss to buy a brand as big as this if the online version of the business did not get included.
Gala Moved To Virtue Fusion
Gala Bingo has in recent times made considerable changes to the way it operates online. The significant difference as we all know has been the movement from its own bespoke online bingo software to the Virtue Fusion Bingo network.
Gala Coral has indicated that they would consider a partnership deal on the online version with anyone purchasing the land-based versions of the club.
If this sort of deal would be beneficial for a purchasing party is debatable.
It would be better for a new owner in our opinion to start a new online bingo room to introduce to the 300,000 visitors per week that visit Gala Bingo Clubs.
It seems to us that the current owners of Gala Bingo Clubs want to have their cake and get to eat it too.
At the moment we think that the price at six times their annual earnings is a bit overpriced, it becomes less attractive once you consider the fact that Gala Bingo Online does not get included.
This Gala Bingo sale has legs and will continue to run for a while.