Rising costs have brought bingo halls to the brink of collapse. This is stated by the Valencian Association of Legalized Games (Ejuva), which has made a claim to the Generalitat. feasibility plan given the impossibility of increasing carton pricesdetermined by regional game regulations.
This association, which is integrated into the Community’s Leisure and Tourism Federation (Fotur), with a statement, rising material pricesraw materials, rent and personnel, with an average increase of 30%, we must add to this the increase in electricity prices.
In this context, Ejuva draws attention to the fact that the profitability they get from the game card is between 12% and 14%, and states that this does not produce enough margin to reach the profitability threshold of the room, and this causes serious economic losses.
The business is concerned that cardboard sales are sluggish and Bingo halls have prices determined according to regional regulations.therefore, it is impossible to beat the cost increases.
With all this, Ejuva does not hesitate to point out that the sector is on the verge of economic collapse and that the Administration urgently needs to initiate a viability plan that guarantees the continuation of activity and sustainability. More than 2,000 direct jobs Number of rooms in the Valencia Community area.
It should be noted that as a result of the restrictions imposed to combat the pandemic, bingo halls have already been particularly affected by the coronavirus pandemic. After opening after a long period of closure, these establishments faced 50% capacity reduction, which 52% decrease in revenue. The problem was widespread in the Community’s entertainment sector, represented by Fotur, which estimated a loss of 53 million euros in the first half of 2020.
Already at that complicated moment, Ejuva demanded a recovery plan for the bingo halls. and they say the general rise in prices is pulling companies on the ropes.