Bingo's Double Tax 'Puts Pressure On Industry'

Double taxation is the biggest obstacle currently being faced by the bingo industry, according to the numbers game trade association.

The bingo industry has not suffered from the credit crunch "disproportionately" when compared to other business areas, according to the Bingo Association.

Having a dual taxation system in place, whereby the sector pays both VAT and gross profit tax, is the main factor affecting the bingo world, the group's communications manager Steven Baldwin has said.

"The industry is unfairly treated … we pay gross profit tax and VAT, whereas other sections of the gambling industry only pay gross profit tax," he remarked, adding that bingo representatives have "lobbied for quite some time" on the issue.

Mr Baldwin went on to say that the smoking ban has had a negative impact on the bingo industry because prior to the new legislation coming in 50 per cent of its customer base were either smokers themselves or attended bingo games with a smoker.

In a letter to chancellor Alistair Darling earlier this year, the Bingo Association claimed that if the government maintained the current VAT system it will result in a drop in revenue for the Treasury as clubs start to close down across the UK.