Bingo Tax To Remain in Place

Posted on November 6th, 2009

The ongoing flap on the excessive bingo tax in the UK continues and has been discussed at the highest levels of government. This year’s budget saw the tax on land based bingo clubs raised from 15% to 22% and has hit already suffering bingo operators hard. The national smoking ban has hit the clubs hard causing a drastic drop in attendance at bingo clubs along with diminishing profits. Ian Burke of the Rank Group which operates the Mecca chain of bingo halls made a personal appeal to exchequer secretary to the treasury, Sarah McCarty Fry.

Burke has made a total of three similar appeals citing the negative impact the tax hike has had on his company’s business. In his letter to the exchequer secretary Mr. Burke asked for the following;
1)    The level of bingo duty be harmonised with the 15% rate currently applied to most other forms of betting and gaming in Great Britain.
2) That revenue from player-to-player card room games in casinos be disaggregated from casino table games for the purposes of taxation.
3) There will be no further increase in the level of taxation applied to amusement machines.

In addition a petition was presented to the government regarding the increase in bingo taxation. The petition was signed by 2,577 individuals expressed their displeasure at the tax increase and the impact it has had on the bingo industry. Six weeks after the petition had been presented the UK government issued their response. In their response the government stated, “The Government continues to recognise the important social role played by bingo clubs in many communities. Budget 2009 introduced a package of reforms intended to simplify the bingo tax regime, continuing a process of reform that began in 2003. Bingo participation fees became VAT exempt, and bingo duty was increased to 22%.  The Bingo industry had been campaigning for some time for VAT exemption on bingo participation fees, and the bingo duty increase should not be seen in isolation.” In other words the government is maintaining their position and the tax will remain.

For some reason internet bingo is not as heavily taxed as land based bingo in the UK. Minimal taxation has allowed internet bingo to flourish throughout Europe and the US. Bingo sites can offer bigger free bingo bonuses to players and spend more on promotions and original games. Many of these special games have their won bingo bonus code so players can receive a special bingo bonus by playing specified games. While land based bingo is struggling to survive in the UK internet bingo is rapidly expanding.