Mecca Bingo Update

Tagged as: Mecca Bingo | by Hollie Sanders

I have just read that the relaxation of the laws Governing the amount of high paying slot machines in British bingo halls might just be the trigger that triggers the break up or sale of the Rank group that operates Mecca Bingo in the UK. I don’t know how this is possible, but am going to try and analyze it and see if it makes any sense.

There has been a great deal of speculation surrounding the fortunes of the Rank group over the past year and it has been widely anticipated that the company is struggling and could be heading for a takeover. The have sold shares to varying companies throughout the duration of their struggle, two of which were Malaysian companies Guoco and Genting Group. This essentially means that the Rank Group itself, who operates Blue Square, Grosvenor Casinos, Mecca Bingo, and also operate online bingo, have a third of its shares in these companies which sparked a drop of 60% in the share price of the group. It appeared as though something was going to happen when Rank offloaded its pension plan, but things seem to have been quiet since then.

Where they crunch seems to come regarding the new slot machine ruling, is that the Government has doubled on the present legislation, allowing eight machines of these highly profitable machines instead of four. Now this is good enough in itself, and could create a situation whereby Rank can increase profits, in which case the share price should increase, if they sell after an increase in profitability, they will get a better return for shareholders. Either way, it appears to experts that Rank will be selling one way or another. I don’t know if you understand this any more clearly than I do, but I gave it my best.