Gala Bingo has reportedly sold 47 land-based bingo clubs to a UK-based Pension fund. Gala has been looking for a buyer for some time and has now realised a £173.4 Million deal.
Land-Based Bingo players at Gala Clubs need not panic as this sale does not mean the closure of the Bingo Clubs. Instead, gala Bingo will be leasing back the Bingo Clubs from the new owners. Why then did Gala look to sell these Bingo Halls? Gala Bingo has made significant changes in how it does business in the last few years.
First, it ditched its bingo software and moved to the Virtue Fusion Bingo Software platform. Now it has sold 40% of its land-based bingo clubs. What next?
Gala Coral is the holding company that owns all the clubs and Gala Bingo Online. We think the parent company realises cash flow to further invest in their online operation.
Instead of worrying about building maintenance and other niggling issues, Gala has effectively become tenants and can now further focus on improving its online bingo and games offering.
Let us also not forget that the sale only represents 40% of the total amount of land-based bingo halls run by the UK Bingo Giant.
The move is also an interesting one by the pension fund as it is an indicator of the state of health of Bingo in the United Kingdom.
Land-Based Bingo is now so viable it seems massive private investment is taking place on a scale unimaginable a mere two years ago.
The reduction of taxes, including the removal of an extra tax on Bingo, has seen the industry become a vibrant, viable industry that caters to the world’s leading bingo market. So take note, Gordon, George Osborne shows what can be done with the people’s game when provided with a level playing field.