Back Bingo

In the 2009 Budget it was announced that the bingo industry would pay a Gross Profit Tax (GPT) set at 22% in place of VAT. This imposed a higher tax burden on the industry at a time when clubs were closing at their fastest ever rate.

The GPT rate has now been lowered to 20% in a result of the March 2010 Budget announcement that followed an independent audit commissioned by the Bingo Association demonstrating the severity of the situation. However, despite Government’s latest announcement which is a step in the right direction, the industry still feels more needs to be done to help bingo, especially when tax on all other forms of gambling – including online bingo which has no community benefits or notable employment – starts at 15%.

It is not too late for the regulatory landscape to change so that bingo can flourish once more. We are asking parliamentary candidates to sign the ‘bingo bond’ (link to bond document page) to show their support for the bingo industry and call for a fairer taxation regime.

The benefits of bingo:

• The UK bingo industry is extremely diverse, with operators varying from larger players such as Mecca and Gala to the hundreds of small, independent clubs.
• Bingo generates billions of pounds in stake money, and contributed over £100 million in taxes to the UK economy in the last financial year.
• The industry employs 16,000 people across the country and is played by over three million people every week.
• Bingo plays a vital role in the communities it serves, with clubs acting as a key social facility for locals of all ages. They provide a friendly, welcoming, safe environment for players who feel equally at ease going with friends and family or alone.
• Bingo helps address the increasingly important issues of social isolation and active aging that are becoming so apparent in modern societies.
• The familiar nature of bingo and the communities it supports and creates ensure that it is one of the most accessible social networks for people of all ages and backgrounds- these points are particularly relevant in considering the social and community needs of women and the elderly, for whom safety can be a significant barrier to socialisation.

As an industry we’re trying to change this level of taxation. We want bingo tax to be kept at 15% which is in line with all other forms of gambling, as the table below illustrates.

*as announced in Dec 09 PBR