Recent press reports have shown how Bingo clubs are facing huge challenges in securing the future of this favourite pastime.

Buckingham Bingo was reported to have lost £69 million in it's value after the Alchemy partners had to write off most of its stake and hand the company to Barclays Bank. Gala Bingo were also devalued after Candover the major investors said thier stake in the firm was worthless and yesterday The Times reported that Permira has also written off its stake in Gala Coral.

Half of Riva bingo as reported from Bingosupermarket a few weeks ago was acquired by Brian Mattingley and the other half was left with Simon Hannah who paid a nominal fee for the remaining clubs.

Share holding companies are not fairing any better with Top Ten Bingo and Rank (Mecca) that have shown a continual slide in share price since the introduction of the smoking ban.

The recent downturn in the bingo industry has had several contributing factors, the smoking ban, high and unfair taxation and less obvious the selling of equity to release capital for more buyouts that has its problems when entering an economic downturn. Over expansion and buyouts of over valued businesses can spell disaster when cash flow is reduced and the customers are spending less.

Is this the end for bingo?

Bingo is still the most popular pastime for females in the UK and it is also improving with an ever increasing male following. Online bingo is showing growth and many customers who started to play bingo online are now making their way to their local clubs. Gala Peterborough have reported a 400% growth in business.

Just prior to the smoking ban some bingo operators sold their organisations at the perfect time. Greig McGill sold Walkers bingo to Top ten and made £1 million, Jimmy and Simon Thomas sold Beacon Bingo to Riva.

The bingo Association in conjunction with the National Bingo game is expected to have a larger online presence, you will see this emerge over the coming months with a National Game online.

Watch out for Nobles and Palatial Leisure, we believe there will be some expansion within these companies whilst others will feel the pressure and fold.