Gala Bingo to Face Recession

Britain’s largest online bingo operator, Gala Bingo is is reportedly feeling the brunt of the financial recession resulting in the possibility of them selling off some sectors of the business. Gala Bingo is currently owned by the Gala Coral group which operates a chain of street betting shops and casinos all over the United Kingdom.

The Observer has reported to have acquired a document from Gala Coral’s largest creditor (the Royal Bank of Scotland) and confirmed that the proposal to purchase the company has already been distributed to the potentially investors.

However, the Gala Coral - now owned by private equity companies Candover, Cinven and Permira - has denied the possibility of a split. "We are not looking to sell off assets or break up the group," a spokesman for the Gala Group said. "We have two hundred million on the balance sheet and we are not seeking an equity injection."

The present owners of the group are reportedly planning on restructuring the loans with a number of banks, however, the £230 million loan for the rest of the current and upcoming year may prove to be a hindrance. It is believed that the company is in debt of £2.7 billion.

Gala Bingo is not the only company to feel the effects of the global financial crisis on the gaming industry. Both online and land-based casinos have been facing financial troubles for the past few months, particularly due to the global recession as well as the rise in gambling taxes.