Relief for bingo likely on gaming machines

[BingoT]

May 2 2008
By Roger Blitz

Bingo operators expressed cautious optimism that the government is about to announce a series of measures aimed at halting the number of club closures.
Shares in Rank rose 1p to 96p on Friday, building on a 6.5 per cent rise the previous day, following comments this week by Gerry Sutcliffe, sports minister, whose responsibilities include gaming, to the Bingo Association
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Relief for bingo likely on gaming machines
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By Roger Blitz, Leisure Industries Correspondent

 

[shadow123]

Hi

Can anyone outline what relief is being proposed, I cant read the article in
full, says I have reached my limit of reading free articles which means the limit was zero

Thanks in advance

 

[BingoT]

Relief for bingo likely on gaming machines
By Roger Blitz, Leisure Industries Correspondent

Published: May 2 2008 23:48 | Last updated: May 2 2008 23:48

Bingo operators expressed cautious optimism that the government is about to announce a series of measures aimed at halting the number of club closures.

Shares in Rank rose 1p to 96p on Friday, building on a 6.5 per cent rise the previous day, following comments this week by Gerry Sutcliffe, sports minister, whose responsibilities include gaming, to the Bingo Association.

Mr Sutcliffe told the association he would be making a positive announcement shortly. Bingo operators lobbied unsuccessfully for value added tax relief in the Budget, claiming that unlike other forms of gaming it was double taxed. It has continued to appeal to Mr Sutcliffe for assistance.

A total of 51 bingo clubs have closed in the past 15 months, taking the number of clubs in the UK to less than 600, as the industry has suffered from the impact of the smoking ban, the economic downturn and the loss through regulation of lucrative gaming machines.

Paul Tallboys of the Bingo Association said it had been pressing Mr Sutcliffe to restore so-called Section 21 gaming machines to bingo clubs.

We have had a long and constructive dialogue with his department, Mr Tallboys said. We are hoping this might be the light at the end of the tunnel.

Analysts at Evolution Securities said in a note they believed the government was ready to allow 20 per cent of bingo clubs gaming machines to be those with high maximum stakes and prizes.

That would restore Rank, operator of about 100 bingo clubs, to the position it was in before September 2007, when the Gambling Act came into force and imposed new restrictions on gaming machines.

Ranks shares were worth 167p when the act came into force. Evolution has put a target price of 150p on the shares, based on 12 times prospective 2009 earnings and factoring in growth and takeover prospects.

The Department for Culture, Media and Sport said: Ministers have given careful consideration to the Bingo Associations case for assistance and are now clear on the way forward.

It is right that we should first tell parliament, and Gerry Sutcliffe will shortly be making a written statement to the House of Commons setting out the next steps.
By Roger Blitz