Gala Coral is going the way of many other online gambling companies in the sense that they are hurting financially and need to find a way out. With the economy still hurting many online businesses, there is a need to stay in business long enough to get themselves out of debt. The way the economy continues to decline, it appears as there is no end in sight for these companies. Some are finding crafty ways to pull themselves out of debt. But at what price? Well for companies like Gala Coral, the price is up to 50% stake in their properties.
Currently the online gambling company sits in about £540 million debt that they are trying to negotiate their way out of. One plan is to write off loans for part of the stake in the company. These transactions could be completed by the end of the month, therefore giving them a chance to creep out of a bit of debt. This online gambling company is responsible for major gambling sites including: GalaCasino.co.uk and virtual bookmakers Coral.co.uk as well as EuroBet.com and bingo site GalaBingo.co.uk. Although they have been able to keep their heads barely above water, these drastic measures are necessary for the continuing of the company.
The umbrella gambling company also offers many land based gambling bingo halls, but unfortunately, the lack of profits have caused many of them to shut their doors. Two major reasons for the lack of income they claim are the smoking ban and the hike in taxes. By banning smoking in the gambling halls, they have significantly cut down the number of customers who come to play bingo. Smoking as you can imagine has been a major contributor to those who enjoy the game. This idea paired with the higher taxes are really working against the bingo halls gaining any ground.
