Gala Coral boss John Kelly has announced that he will resign as chairman next year and at the same time criticised UK government attitudes towards leisure in general and gambling in particular.
Kelly was instrumental 11 years ago at combining other businesses to found Gala Coral with a management buyout to take over 130 bingo halls from Bass. He has turned Gala into a major private company incorporating 31 casinos bought from Ladbrokes eight years ago and buying the bookmaker Coral for over £2bn three years ago.
Kelly said that at every stage in that development, he had been hampered by the unhelpful policies of the Labour government. "Over a period of many years the government has really not dealt with this sector well from either a legislative or a fiscal perspective. The government has not been helpful. Basically, it has been a hard slog all the way."
Kelly said that the changes of direction in the formulation of the Gambling Act was a typical example. "I have never seen legislation that ended up so different from the report that was its genesis," while the double taxation of bingo "inflames me every day."
He remains the largest single shareholder in Gala but plans to leave in October next year in a series of management changes and will be replaced by chief executive Neil Goulden, who will become deputy chairman next month. Dominic Harrison will become chief executive.
