Wednesday 24th of March 2010
Quiet budget for bingo
The campaign to create a fairer bingo tax system has been dealt a temporary setback.
Speculation was rife that the latest budget would continue a trend that has seen Alistair Darling shake up the industry in his last two financial reports to parliament.
On April 22nd 2009, the chancellor surprised everyone by raising gross profit tax to 22 per cent, but maintaining the rate for online bingo, casinos and sports betting at 15 per cent.
Then, there was a partial climbdown in the pre-budget report on October 9th 2009 when Mr Darling dropped bingo tax to 20 per cent, effective from today.
Fans of the UK's favourite numbers game had their fingers crossed that he would go further by returning duty to 15 per cent or at least heeding Paul Tallboys, chief executive of the Bingo Association, and cutting it by a further two points to 18 per cent.
Media speculation raised hopes
And on the eve of the big speech, a budget preview by the Guardian seemed to provide plenty of cause for optimism.
"In December, Darling caved in to a campaign by hardened bingo addicts and cut bingo duty to 20 per cent," it noted. "Perhaps he'll delight them with another reduction today."
However, no further mention of bingo was made and so it looks like gross profit tax on bingo clubs will remain static for the foreseeable future.
This is likely to disappoint the I'm Backing Bingo campaign, which enjoys the support of countless players and UK operators like Buckingham Bingo.
Andy Cunningham, CEO of Buckingham Bingo, said: "While any reduction in taxation is welcome it does not take away the fact that bingo is taxed at a higher rate than other gaming sectors in the UK.
"Bingo is a predominately working class game where potentially the poorest in society are made to pay more. A tax on bingo is a tax on the working class."
Earlier this month, more than 30 MPs showed their support for the industry by attending a parliamentary reception at the House of Commons.
MPs from Labour, the Conservatives, the Liberal Democrats and the Scottish Nationalists all came along and signed a so-called bingo bond that stated "I will campaign to reduce tax on bingo".
We can only hope that their commitment to "fight for a fair bingo tax" will bear fruit sooner rather than later.
