Parliament Allows High Bingo Tax to Remain in Place
Posted on July 14th, 2009
The bingo industry in the UK suffered another blow after Parliament failed to lower the onerous 22% tax on bingo. The tax was raised in the April 2009 budget with no warning for the bingo industry. The bingo industry is already suffering from the current economic climate, double taxation, and the residual effects of the national smoking ban.
Despite protests from the bingo industry and thousands of players Parliament decided to allow the 22% tax rate to remain in place. A protest which attracted about 500 participants had no effect on MP’s. About the effect the tax would have on regular bingo players Paul Talboys, chief executive of the Bingo Association said, “Bingo is life and death for a lot of people, particularly the elderly in the afternoons. here’s not many places you can go nowadays where you can meet friends, have a cup of tea, even a glass of beer and maybe even win a few bob. They have fun and, without that, it’s something else gone from local communities. It can’t be right.”
In many parts of the UK particularly in rural regions bingo is the chief entertainment available to pensioners and many depend on bingo for social interaction and inexpensive entertainment while on a fixed income. Bingo is the only form of gambling subject to the 22% tax rate, all other forms of gambling are currently taxed at 15% leaving many to wonder why this innocuous form of gambling is subject to such a high rate of taxation. A statement by Mr. Holt, a representative of several independent bingo clubs expressed his dismay when he said, “A thriving bingo club paying 15% is much better than a struggling club paying 22% planning to close.”
Internet bingo is not taxed heavily like land based bingo in the UK. After the imposition of the draconian national smoking ban many players went online to play bingo. Smokers can puff away while playing internet bingo with no interference. To make thing even more attractive to new internet players bingo websites now offer substantial jackpots and free bingo bonuses. These bonuses could be a bingo sign up bonus or a bingo deposit bonus to help players make those hard earned pounds go further.
The closing of bingo halls across the UK will disable a valuable social network for many senior citizens, cause massive job losses in the industry, and club closures resulting in lower tax revenues for the government. What was Parliament thinking?
