Bingo Tax Break for 2008
7th January, 2008
Two mayor players in bingo industry, Gala Coral Group and Rank have filed a campaign last year, which was backed up by the Department of Culture, Media and Sports. This is a major development in favour of bingo businesses, as it will lift a heavy tax burden, which bingo halls and online bingo operators had to face since the legislations took place earlier last year.
This should put the chancellor Alistair Darling under pressure to carry through this new tax reform for the UK’s bingo industry at the time when 2008’s budget is scheduled to be released.
If implemented, this tax reform will help the struggling bingo industry that has been facing huge admission declines and an ageing customer base, which appeared due to the smoking ban and the new Gambling Act of 2007.
At the moment bingo businesses are double taxed, firstly by Gambling Duty at 15% and secondly by VAT at 17.5%. This certainly looks unfair, considering that none of the other form of gambling is taxed likewise.
This is what Gala Coral’s chief executive Neil Goulden told the Financial Times: "The message we are giving the Chancellor and the Prime Minister is 'if you give us the same tax treatment as other gambling industries, it will be an investment that will drive up admissions'”.
Nevertheless, the Treasury is not as optimistic about these tax breaks planned, stating that the problems will not be solved by this measure alone. Up to 100 bingo clubs are expected to close this year, and even more the following years.
