Bingo Tax to cause Bingo Hall closures in UK?

The Financial Times reported about a massive campaign by land-based bingo operators Rank and Gala Coral that is putting UK Chancellor of the Exchequer Alistair Darling under increasing pressure to cut the current taxes that are so devastating to the land-based bingo industry.

Positioning by Rank and Gala also enjoys the backing of the Department for Culture, Media and Sport (DCMS).  DCMS will likely propose tax reforms focused on the bingo industry and the UK bingo halls in its coming budget submission.  

It is being report, however, that the government in the UK is convinced that the land-based bingo clubs  problems are a more serious problem and that a simple amendment to the tax structure will not even bingo solve the industry’s current problems, caused in part by the many offerings of internet bingo games.

Neil Goulden of Gala Bingo / Coral was quoted in the Financial Times recently: “The message we are giving the chancellor and the prime minister is, if you give us the same tax treatment as other gambling industries, it will be an investment that will drive up admissions’.”

Land-based bingo has faced the twin threats of a ‘double tax’ on its earnings and the loss of customers due to a UK-wide smoking ban in public places.  And some might argue that it is the ’triple threat’ which includes internet bingo.  As a result, many bingo halls are facing closure around the UK with some bingo clubs already ceasing operations.  Bingo clubs online and sites such as Foxy Bingo are not experiencing the challenges.