Gala Closing Bingo Halls
9th January, 2008
Gala Coral chief executive Neil Goulden has stated that if the tax burden doesn’t get lifted fairly soon, they might have to get rid of the number of Bingo halls around the country.
Despite the fact that Goulden has repeatedly insisted on the fact that there are “no plans” at shutting any bingo halls, now he has admitted to Marketing Week that Gala Bingo is on a “red alert” in terms of shutting down the bingo halls.
One thing that would save Gala Bingo from closing right now is if the Chancellor changes the taxing requirements in favour of bingo halls, as they are getting taxed twice right now: by Gambling Duty and a standard VAT rate.
At the moment there are five venues that are under consideration right now and will most likely shut if the situation does not change: Lakeside, Teesside, Bristol, Bourne¬mouth and Edinburgh.
20.7% fall in pre-exceptional profits for 2007, reported by Gala, demonstrates just how much the business has been affected by the political changes in the industry.
The Gambling Act 2005, which was introduced September last year, has also forced the business to lose high-jackpot slot machines.
This is what Goulden had to say about the situation: “It is true our bingo business is suffering but not just due to the smoking ban and the removal of slot machines but through government policy and unfair tax regimes.”
Gala Coral Group as well as another major player, Rank, have filed an appeal to the Department for Culture, Media and Sport early last year. The Department is said to have approved the appeal, which in terms brings even more pressure on the Chancellor, when it comes down to the budget day.
This is what Goulden said: “The Government has got one opportunity to invest in the bingo industry. We have submitted plans to them that show they will make more money if they invest in bingo than if they don’t.”
