VAT rise hits UK bingo halls

7th January 2011 10:46 AM

It seems that the traditional game of bingo is set for yet another battle as the VAT rise hits UK bingo halls. It has been a long hard struggle for many land bingo operators as they have strived to keep their doors open by restructuring their businesses in a bid to become more profitable. The increase in VAT from 17.5% to 20% on 1st January may not seem very much but for a business that is already struggling to draw customers in, it is a harsh blow.

Bingo hall operators and many others involved with the game have been campaigning for a long time about what is deemed as an unfair tax rate for land bingo. This tax rate along with the smoking ban has seen well known brands such as Gala and Mecca Bingo have to re think how they do business. More recently it has been announced that Buckingham Bingo is considering some kind of sell off due to financial issues and this latest VAT rise can only add to the woes of our ailing halls.

Many people have turned to online bingo sites over the years, not only because of the convenience and the smoking ban but also due to cost. When you visit a bingo hall people probably spend almost as much on drinks as they do on the game itself, which can make an evening out expensive. This is something that you don’t do when you play at online bingo sites and why some trends seem to have turned.

Those people who remain loyal to their local Gala or Mecca Bingo halls are going to probably find that the cost of their visits to play bingo are going to increase due to the VAT rise but it remains to be seen whether the operators can swallow this rise themselves or whether it will in fact, they will be passed onto the consumer.

Written by Hannah Jones

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