UK gaming giant Gala Coral is looking to sell its sizable bingo division following the government’s decision to cut the tax on revenue from the game from 20 percent to 10 percent.
Gala has 135 bingo halls in the UK, good for 38 percent of a market that has climbed in value under the lower tax to the U.S. dollar equivalent of $520 million. The Gala division has 1.1 million active customers and last year hosted 300,000 visits per week on average. First-half earnings totaled US$27.2 million, but the company believes a buyer could realize $85 million a year given the tax reduction.
The company reportedly has hired Lazards to shop the business, which would not include the online Gala Bingo brand. The company has been focused on web gambling since selling its land-based casinos to Rank Group last year for the equivalent of $304 million.
Gala’s online Coral brand recently added former Boylesports Online CEO Keith O’Loughlin as the new director of its sportsbook. O’Loughlin replaces Carlo Di Maio, who has gone back to overseeing Eurobet, Coral’s Italian-facing subsidiary.
