Bingo in the Budget: Mega-link games on the horizon

With the headline rate of gambling duty on bingo unchanged in the 2013 Budget, you might think there’s little cause for celebration – however, while operators must still pay 20% of their takings in tax, players could still see prize money go up under the measures outlined by George Osborne.

That is because of a specific measure coming into force in the Finance Bill 2013, which applies only to ‘Combined Bingo‘ – link games that are participated in and promoted by more than one bingo operator.

At present, there are sanctions in place to ensure tax avoidance cannot take place when these games are run, and that is achieved by banning UK operators from joining in with games that are linked internationally.

Under the Finance Bill 2013, this limitation is due to be removed, meaning UK bingo players will be allowed for the first time to be involved in mega-link games across venues in multiple countries.

The Treasury’s assessment of the likely impact of this change is fairly measured on most criteria: overall duties raised are not expected to be significantly changed, and most operators and other businesses in the gambling sector should see little effect too.

However, for players, the likely impact is much greater, and HM Treasury predicts that “larger jackpot prizes may be offered for games of combined bingo which may indirectly benefit those individuals who participate”.

Bigger prize money might sound like more than just an indirect benefit to long-term UK bingo fans who have, until now, been unable to participate in multinational mega-link games, which might compare to domestic link games in the same way the Euromillions jackpot compares to the UK Lotto.

However, critics will still say the Budget should have done more for UK bingo operators, by bringing the headline rate of duty down to the 15% paid elsewhere in the gambling industry.

Miles Baron, chief executive of the Bingo Association, recently called for this move to be made, adding that the likely impact on revenues for the Exchequer would be an increase of £35 million in duties paid over the next four years.

His comments came as the Bingo Association revealed its membership has roughly doubled in the past six months, including the return of Gala Bingo as an association member in January.

“The increase in membership we have experienced undoubtedly strengthens our position in continuing to lobby against what we believe to be the inequitable tax system levied on bingo,” he said.