Category: General

In the UK, the Chancellor of the Exchequer, Alistair Darling, announced on 9 December that he was cutting the rate of bingo duty from 22% to 20%. The announcement was made during his Pre-Budget Report and was welcomed by bingo operators who have been lobbying tirelessly for a reduction in duty since it was raised from 15% to 22% in this April’s Budget. They had argued that the 7% rise would cost the industry £33m a year at a time when businesses have suffered particularly badly, due in part to the smoking ban, changes to gaming machine rules and the economic downturn. It is estimated that the number of bingo halls has fallen from 700 to about 590 in recent years with analysts predicting a further 100 impending closures as a result of the April tax-hike. Admission to bingo clubs in 2008 fell over 16 percent in England and Wales and over 8.5 percent in Scotland. The government said on the day of the report that they had made the decision based on new evidence that had been provided by the bingo industry regarding the taxation on bingo clubs.

In a statement on its website, the UK’s Bingo Association welcomed the reduction but stated that the fight would continue to reduce the rate further, back to its pre-April rate of 15%. All other forms of gambling in the UK are currently taxed at 15% while bingo inexplicably, as the softest form of gambling, bears the burden of the highest tax rate.

The change will not take effect until the time of the Government's next Budget, due in April 2010. Meanwhile the campaign to have the rate reduced further will continue.

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