BAD NEWS FOR LAND BINGO

14 March 2008

British budget holds little comfort for bingo owners as double taxation remains


British land bingo operators saw little to celebrate and much to criticise in Chancellor Alistair Darling's budget this week, which maintained the controversial double taxation regime on an industry already reeling under public smoking bans.

London media reported that most operators viewed the Chancellor's decision not to remove VAT from bingo charges, but rather to increase the tax burden for bingo through higher rates of amusement machine licence duty (AMLD) "with disbelief"

Bingo Association chief executive Paul Talboys characterised the decision as a "slap in the face for bingo players across the country. There is no reason why they should continue to be penalised by double taxation when other gambling products pay only a single tax," he said.

Bingo operators had complained that they are the only gambling industry to be hit by double taxation in the form of a gaming duty of 15 percent and value added tax of 17.5 percent. They say bingo is one of the softest forms of gambling, often played for low stakes by relatively older and poorer people.

The industry had warned that hundreds of clubs could face being closed if double taxation continued. Bingo clubs have also been hit by the impact of the smoking ban and the loss of lucrative slot machines because of changes to industry regulation.

Rank Group plc, operator of Mecca Bingo, and Gala Coral have led a concerted effort by the industry to bring about change. Between them, they operate 270 of the country's 600-plus bingo halls.

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