Gambling Commission Inquiry into Bingo Hall Slots?

June 27, 2009 Bingo News

Written by Lisa (June 27, 2009 at 12:27 pm)

As reported in the Guardian, Gala Coral, one of the largest bingo operators in the UK, are facing yet more bad news as the Gambling Commission looks set to call for an inquiry into regulation of slot machines in bingo halls. The latest events follow a glut of reports suggesting that the operator will have to close some of its bingo clubs as it makes effort to steady itself financially.

The Gambling Commission, which acts as a regulator to the Gambling industry is expected to push culture minister Gerry Sutcliffe, to launch further investigations into allegations that some Bingo operators, including Gala, may have been twisting licensing rules to increase the number of £500 slot machines permissible. Through persuasion of local authorities – which are not in the jurisdiction of the commission – it has been suggested that some operators have made artificial subdivisions within clubs with the view to gaining multiple licenses and thus boost the number of slots they can run.

Furthermore, the commission looks set to advise studying the effects of this type of lucrative machine, with the recommendations that such machines are solely targeting serious gamblers. This could mean operators running these machines will be a target for further potential tax increases by Alistair Darling in the future.

Whilst the investigation is not specifically targeting Gala Coral, the business is already suffering under the weight of heavy debts and will be most vulnerable to any regulatory enforcement as a result of the Commissions recommendations.

The private equity firms Permira, Cinven and Candover have each written down the value of their investment to zero, prompting Gala to restructure in an effort to free up much needed capital in the company. In an effort to cut costs, there could be a proposed demerger between Gala and Coral, the bookmaking arm of the company. Gala are also contemplating closing 6 of its 156 land based bingo halls and has already cancelled its membership of trade associations Bingo Association, the British Casino Association, the Association of British Bookmakers and the Remote Gambling Association.
Either way, it seems like more troubled times lie ahead for the land based Bingo Industry.

Tagged as: Gala Bingo