Gala Bingo Chairman Resigns
26th November, 2008
John Kelly, the chairman of Gala Bingo, has announced that he will resign his position effective from Christmas this year. He has been involved with the traditional bingo provider since it was bought from Bass Group.
Although the Gala Coral group is not operating at a loss, it recently announced its intention to downsize itself ahead of predictions of a tight year in 2009. They have not yet made an announcement as to who is likely to fill this role going forward.
Every since the United States of America passed the Unlawful Internet Gambling Enforcement Act in 2006, the global online gaming industry has been experiencing widespread slowdown. This new law made it illegal for financial institutions to process transactions between players and companies known to provide online gambling services.
Although the law does not make online gambling illegal, it prevents American players from accessing international gambling sites, including UK bingo sites, such as GalaBingo.com. In light of this, the Gala Coral group have already announced that it is cutting its profit forecast by £30 million this year.
Also as part of new measures, Gala Coral have been forced to announce the potential employee downsizing of 200 jobs. Moreover, its five divisions will be made into three. With Eurobet and its Coral branded betting shops becoming one and the merger of its bingo and casino divisions. These seemingly dire actions should actually safeguard the health of the company through the predicted rough times, as the reduced operating costs should help prolong profitability.
Gala Coral insists John Kelly’s leaving has nothing to do with ongoing restructuring and is per his wishes, saying “Mr Kelly has served the company for many years and will be missed as the company continues to streamline itself.”
By Rommon
