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Redundancies at Gala Bingo
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The Gala Coral Group is about to cut 45 jobs from its headquarters in an attempt to integrate their online and land based marketing divisions. The running and marketing of Galabingo.com is handled by the online division. This follows a recent announcement that 300 jobs is to be cut from the Gala Bingo Halls as well as more bingo hall closures.
Galabingo.com, which is the online bingo side of the business, will carry on as normal while the changes take place.
Unfortunately the Gala Coral Group has had no option but to cut down on their staff as they have been under great pressure to pay off GBP2.5 billion in debt that has been harming the business.
The UK smoking ban which was imposed in 2007 on all land based operations hit the Gala Coral Group extremely hard financially as much fewer people visited the bingo halls. Most of those who did visit spent a lot of their time smoking outside instead of playing. The laws on a limited number of fixed odds gambling machines in bingo halls also contributed to a huge drop in revenue. Despite this, however, the online bingo website, Galabingo.com has seen a huge increase in popularity bringing some growth to the group.
Gala Bingo recently launched a new bingo brand, named Minxy Bingo, using the Virtue Fusion bingo platform and it is not known whether Gala Bingo is trying to test the feasibility of cutting development costs by returning to a 3rd party provider.
