After numerous articles in the press over recent weeks, some government MPs are still using the rehearsed argument that the tax hike was fair even though it holds no water. Bingo Supermarket have reported many stories over the last few weeks in the regional press and they are becoming very similar with many MPs now showing support but this was not the case by the Chester MP Christine Russell.

In an attempt to justify the government's stance on the tax rise, our correspondent Miss Sandra Thompson has addressed every point the MP Mrs Russell raised.

These changes were made to simplify the way in which bingo clubs were taxed something the industry has been asking for.

The industry has asked for a less complex and fair system in line with other forms of gaming, VAT on Participation was thought to be illegal and so far the High court is in agreement that VAT should never have been charged on interval games and the industry is awaiting the reimbursement of overcharges. The industry has never asked for a bingo duty increase and this was never consulted or discussed with anyone in the Bingo Industry.

The changes mean that overall tax on bingo is 22 percent, down from an estimated 24-25 per cent rate before the Budget.
This has been brought down from the much higher rate of 35 per cent, in force in 2003.

No the bingo duty was at 15 percent and many games known as prize for cash were VAT exempt and on fiscal neutrality all bingo games should have been taxed at 15 percent.  Therefore it has not come down from an estimated 24-25 percent; it has increased by 7 percent.  The much higher rate of 35 percent in force in 2003 is an overstatement, also this was a time before the smoking ban and gambling reform, internet and the opening up of competition when bingo enjoyed a monopoly position and was in a position to pay over exuberant taxes.


The tax rate on bingo is comparable to the average tax rates on gaming machines, casinos and the National Lottery, all of which are taxed within a 20-25 per cent range.

First of all, bingo operators have gaming machines and machine licence duty should be treated as independent and could be compared to a bingo licence which is something that is not being argued when it comes to taxing bingo profits.  Also machine take is subject to 15 percent VAT and does not have a gross profits tax applied to it.
Casinos are taxed on a sliding scale from !5 percent to 50 percent based on profits.  If bingo clubs were taxed on the equivalent sliding scale then all bingo clubs would only pay 15 percent.  Bingo operators have worked out that you would have to make over £11 million a year in bingo profits per club to pay the 22 percent rate that Christine Russell is talking about and no bingo club in the UK reaches this bracket.  In fact if it did, bingo clubs would probably not complain and would accept the sliding scale argument immediately if it was put forward by the Government.

The National Lottery enjoys a monopoly position and has other concessions for instance you only have to be sixteen to take part and it is state controlled anyway, hence it can be shown and promoted on the BBC as a service rather than a commercial product so should not be compared.  Bingo clubs are often reminded that we cannot perform games that come under national lottery specifications.
Finally the statement about the rates quoted above between 20-25 percent is wholly inaccurate and the fact that sports betting, online bingo and pools are all taxed 15 percent was obviously dodged and ignored by the MP.

There have also been a number of other changes to help bingo clubs.
These include changes to the stake and prize limits and the number of gaming machines a club can offer.

The Government outlawed section 21 random machines which had a £2 stake and a bingo club could have as many as they liked.  A year later the government increased the allowance of jackpot machines from 4 to 8 with a maximum stake of £1.  The bingo industry was grateful for the government alleviating the pressures it previously added to the industry but this should not be used as justification in rising bingo duty by 46 percent

The fight will continue and the Bingo industry will embark on the Green opposite the Houses of Parliament on 1^st July 2009.  It is time for the Government to stop burying its head in the sand and stop justifying the unjustifiable.  This is an undeniably ageist, sexist and unfair tax that cannot be ignored.  Whether you are a bingo player or not, this is an issue that everyone should get behind for the sake of an industry that plays a big part in the social fabric of this society.