UK Bingo Industry Faces Tax Disappointment - 05-05-08

May 5 - The UK bingo industry was dealt yet another blow last week when a 2000 signatory petition handed to Downing Street in an attempt to end the high taxation on the industry, was met with a firm 'no'.

In its formal response, the government said that it had "given serious thought to the points raised by the bingo industry. However, our assessment remains that tax is not at the root of the bingo industry's problems and we do not believe there is a tax solution."

The statement went on to say: "Bingo benefited in a reduction in its effective tax rate in 2003, and the average effective tax rate on bingo, which measures the combined impact on VAT and duty on a comparable basis, is in line with that of casinos, machines and the lottery. Removing VAT on bingo, would cost tens of millions - money that would have to be recouped from somewhere else."

The petition was issued in light of the depressing state of the UK bingo industry, with many bingo halls having to close down each year because of a double taxation policy, a recent smoking ban and a reduced number of gaming machines under new gambling regulations.

The industry was hopeful that comments made by the Gerry Sutcliffe, the minister responsible for gambling in the country's Culture Department, in which he hinted that the industry may benefit by the increase of high-jackpot machines on their floors, would possibly make the petition more effective.

Last week, Sutcliffe told the Bingo Association that he intended issuing a statement to the House of Commons in the coming weeks, and added that "I think it is fair to say that the Prime Minister is sympathetic to bingo and recognizes the role of bingo halls in supporting their local communities."