Gaming and betting giant Gala Coral delivered higher profits today despite smoking bans and new gambling laws hitting its bingo clubs.
The privately-owned group said a strong performance from its Coral bookmaking chain had more than offset a 11% fall in underlying earnings at Gala Bingo, the UK's largest bingo chain with 170 clubs.
Rival and Mecca bingo owner Rank warned again of falling revenues this week following England's smoking ban in July and new laws restricting the number of gaming machines allowed in clubs.
But Gala Coral - which posted pre-tax profits 11% higher at £309.9 million for the year to September 29 - said it was tackling the bingo problems by generating revenues from new sources.
Around 1.6 million players visit its clubs every year but in February 2006 Gala launched galabingo.com, which has now the largest online bingo site in the UK.
It also created the first ever bingo millionaire in July through its Kerchingo competition, where contestant qualified online to play for the bumper prize in a live TV final.
Bingo operators struggling with smoking bans and new gambling laws are also campaigning against the sector's harsh tax regime which sees participation fees subject to both 17.5% in VAT and 15% gross profits tax.
Gala Coral's chief executive Neil Goulden said: "Despite bingo being one of the softest forms of gambling, it remains the most heavily taxed in the gambling industry.
"We continue to make our case to Government for the abolition of VAT on bingo products."
Coral's earnings rose 21% to £194.3 million after another year of rapid growth. The bookie now has more than 1,550 shops, adding a further 88 through acquisitions and new openings over the year.
Gala Coral's chain of 30 casinos also increased profits but the group warned that an unexpected hike in gambling revenues by the Government in April and increasing competition would impact performance in the current financial year.
The group, based in Barking, Essex, is owned by private equity firms Cinven, Permira and Candover and employs more than 19,000 people in the UK. Overall revenues grew 7% to £1.31 billion.
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