UK Bingo Industry Lauds Tax Cut

The news that that the UK Treasury has decided cut Gross Profit Tax for the bingo industry has been welcomed across the board in the country. Alastair Darling’s Pre-Budget Report stated that the government will make a two percent cut in Gross Profit Tax for battered bingo clubs.

The Bingo Association said that the cuts were “a positive step towards addressing bingo’s unfair tax regime”.

The Brown government has been under intense pressure by many in the industry – both operators and players – to cut the 22% figure that appeared in the 2009 Budget announcement in April and a nationwide campaign led authorities to finally announce their decision to introduce the two percent cut last week.

“We are pleased that Treasury has listened and digested the actual ”˜facts’ of bingo tax and revised the GPT rate,” said the Chief Executive Officer of the Bingo Association, Paul Talboys.

Talboys said that he failed to understand the logic of putting off the tax cut until next year.

“The reasons for its delayed implementation until the next Budget is not apparent and will mean that the much needed benefit, particularly for smaller independent clubs, will not be felt until April 2010,” said Talboys. “I only hope that they can all make it.”

Talboys said that the industry has fought hard to receive fair tax treatment and was gratified by the support that many leading members of the British parliament had given.

“We are grateful for their support of and faith in Bingo, a sentiment I know that is echoed by the bingo players across the UK,” he said. “Industry and players alike will continue to fight for fair tax treatment of what remains one of the UK’s most popular leisure activities, but which is subject to a higher tax rate than that applied to other forms of gaming and betting.”

The UK land bingo industry has been going through some tough times, with over 30 clubs alone this year being forced to close. There are currently 580 bingo clubs in operation in the country, a far cry from the over 700 that attracted the hordes in the middle of the decade.

A number of other factors have affected the land bingo industry, including tough smoking bans, the recession, changes in machine regulations and the growing popularity of online bingo.