UK Bingo Operation Forced to Cut Jobs

This week large UK bingo and gambling operation, the Gala Coral Group, announced that it will cut 45 jobs from its head office in another cost-cutting exercise to help the struggling firm overcome the country's 2007 smoking ban, increased taxes and new laws that have knocked the firm's profitability.

News of the job cuts has come not long after the Gala Coral Group closed some of its high street bingo halls and cut 300 jobs from others. Since the smoking ban, Gala's customers have been forced to smoke outside which means they play less interval and slot games, a once crucial source of revenue for the group.

Coupled with other recent laws limiting the number of fixed odds gambling machines allowed in bingo halls, Gala has been struggling to keep profits up and pay off a hefty GBP2.5 billion debt. The Gala Coral Group's head office job cuts were the result of decision to integrate its land and online marketing divisions.

The online division focuses primarily on the operation and marketing of Galabingo.com, one of the UK's most popular online bingo casinos. The good news for online bingo fans is that despite the job cuts, Galabingo.com will continue to operate as usual.

Over and above bingo, the Gala Coral Group has interests in casinos and bookmaking, and operates four brands in Europe; Coral, Gala Casino, Eurobet, and Gala Bingo. The question financial analysts are asking is how much longer Gala can weather the storm, which has not been helped by the current economic slump.