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Internet Bingo Keeps on Growing Despite Recession
The past few years have not been good ones for the brick and mortar bingo industry in the UK. `The passage of the unpopular national smoking ban and a drastic rise in taxation combined to cause economic turmoil throughout the UK bingo industry. Bingo is now the most highly taxed form of gambling in the UK and despite the recent lowering of the tax rate by 2% the land based bingo industry remains economically strapped. The global recession has also adversely affected the bingo industry as people look for inexpensive entertainment.
The internet bingo industry has benefited from the troubles of land based bingo and a recent report by the UK Gambling commission stated that internet bingo sales have increased 4.6% during the past year. The recent boom in the internet bingo industry shows no signs of slowing down and internet bingo sites are engaged in fierce competition for players. Bonuses and jackpots that would have been unheard of just a few years ago are now the norm. Jackpots of £20,000 ($32,341 USD) and more are increasingly common on internet bingo websites.
The fact that UK internet bingo websites are regulated and licensed has contributed to the popularity of internet bingo. Internet bingo players in the UK are guaranteed a safe playing experience and can be confident their funds are secure. Many internet bingo websites now offer free bingo for cash and prizes in an attempt to attract new players. All of these perks and inducements by internet bingo sites seem to be working judging by recent sales figures.
In addition to government actions which have made internet bingo much safer for UK players. Bingo websites are engaged in some serious competition. Many sites are offering more promotions and original games. Many of these games offer players significant bingo bonuses and sites will send players an email with a bingo bonus code for special games. Many sites have increased the size of their bingo sign bonus and bingo sign up bonuses of 300% are common. Players can now comparison shop for the best bingo bonus and take advantage of the very generous bingo bonuses offered by many bingo websites. As the competition gets more intense bingo sites are responding with larger jackpots and better than ever bingo bonuses.
Should the US make internet bingo legal the internet bingo industry is set to explode. The addition of millions of relatively affluent American players will make internet bingo one of the most profitable sectors of the internet gaming industry.
Gala Bingo Considers Rescue Plan
It is no secret that land based bingo in the UK is in real trouble financially. The draconian national smoking ban hit bingo clubs hard and then came a rise in taxation. For some reason bingo is taxed at a higher rate than any other form of gaming. For gaming companies that operate internet bingo websites the passage of the internet gaming ban in the US caused a drastic drop in revenue and a serious decline in publicly traded gaming stocks. A recent Reuters report states that UK bingo industry giant Gala Coral Group is presently saddled with about 2.7 billion pounds of debt.
Gala was forced to let hundreds of valued employees go and close many of its popular bingo halls across the UK. In 2009 reports of gala bingo club closures became common in the press. Gala also operates a highly successful internet bingo website. Without private investment Gala faces a bleak future indeed. A few years ago when reports said Gala was foundering US gaming giant Harrahs made a bid for shares of Gala. At the time Gala was able to repel any hostile takeover.
In November it was reported that private equity firm Blackstone made a £300 million pound bid for 40 to 60% of the shares. Despite denials from Gala it has been reported that Gala is actively seeking private equity investors to stave off collapse of the company. A recent report from news agency Reuters said the bingo giant had been approached by US private equity firm Apollo. Apollo submitted a plan to Gala which said Apollo would pay 250 million pounds ($405 million USD) for half of the company. The conditions of the Apollo deal say that 250 million pounds would be paid to Galas senior lenders and junior lenders would receive the other half of Gala.
Gala has entered the world of internet bingo with some success. Gala provides players with a generous bingo deposit bonus and free play options. Gala also offers a bingo sign up bonus to players. Like most other UK based bingo sites Gala has increased the size of its bingo bonuses to compete with others in the internet bingo industry.
Galas situation highlights the troubles of the brick and mortar UK bingo industry. Internet bingo, on the other hand, remains a thriving and growing industry. Internet bingo has defied the global recession and remains profitable for internet bingo providers. Gala may want to consider focusing on its online operations.