No u-turn by the Government on bingo tax

6th November 2009 12:22 AM

The announcement of plans to increase the bingo tax levy from 15% to 22% sparked petitions and opposition all over the country. The  plan from the Government would only apply to  land based bingo halls, not online bingo sites and with the struggle that is facing land based bingo halls, this decision could create a devastating blow to their future. A petition with over 2,000 signatures from fans of both online bingo sites and bingo halls was presented but it seems there will be no u-turn by the Government on bingo tax.

The government have defended their position by arguing that the reforms are intended to simplify the bingo taxation. With the scrapping of VAT on bingo participation fee, the government has replaced this with the tax increase. It is no secret that even some  larger bingo hall operators such as Gala Bingo and Mecca Bingo have been struggling, and in response these major networks are now concentrating their efforts into their online bingo sites, which are taxed at a lower level.

However, the smaller independent halls are the ones which are most likely to fall foul to the new reforms. These halls have suffered largely due to the smoking ban which in turn has sparked an upturn in the revenue produced by online bingo sites. While larger operators like Gala Bingo and Mecca Bingo have the option of generating more business from their bingo sites, it is inevitable that the smaller halls will simply fail with this latest tax blow, as they so not have the alternative option of online bingo sites.

Although this can only spell good news for online bingo sites as more people will be turning to play bingo with them, it is still sad to see a game that has been more like a tradition for many years, dwindle away.

Written by Hannah Jones

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