UK Bingo Firms Dismayed By Budget

New Budget scraps VAT but increases bingo duty by 50 per cent.

British gaming operators have expressed their disappointment at the government's decision to increase bingo duty and poker taxation.

Under tax changes revealed by chancellor Alistair Darling in the Budget yesterday (April 22nd), VAT on playing bingo will be scrapped but duty payments are set to increase from 15 per cent to 22 per cent.

Although industry members have long been campaigning for the government to end its 'double taxation' of bingo operators, any benefits from the removal of VAT will be wiped out by the 50 per cent rise in duty.

Rank Group, which operates the Mecca Bingo chain, complained that the tax changes had been introduced "without prior indication or consultation".

"In Rank's recent meetings with HM Treasury there had been no discussion of increases to taxation for bingo or poker," the firm stated.

Rank said that the hike in duty is likely to hit profits by approximately £6 million in the current financial year.

Mecca Bingo is preparing to open its latest bingo venue in Beeston, Nottingham next month.