Independent Bingo Hall Speaks Out On Tax Increase

Many bingo operators are struggling to stay in business as tax rate goes up.

Major operators such as Mecca and Gala have been protesting against the government's decision to tax bingo profits at 22 per cent, but the hike has also had an impact on the country's independent clubs.

Roger Cooper, owner of the Majestic bingo hall in Worcester, said that the higher rate of duty may force him to cut jobs, reduce prizes or increase the entrance fee at his venue, the Worcester News reports.

After VAT on bingo games, chancellor Alistair Darling announced that bingo duty would rise from 15 per cent to 22 per cent with immediate effect when unveiling his Budget in April.

Mr Cooper told the newspaper: "I see the future being difficult. Either I have got to bite the bullet and tinker with prices and prizes to cut costs even more or I have to cut jobs.

"At the moment I am trying to think where I can cut costs. I am running at a reduced profit and it cannot go on."

He said that the tax hike equates to an additional £560 a week, or £29,120 a year, on his profits at the Majestic.

Rank Group, owner of Mecca Bingo, has claimed that the new tax rate will cost it about £6 million during the current financial year.