Today's budget dealt another blow to the bingo industry just 24 hours after Andrew Cunningham from the DCMS had stated at the Bingo Association meeting yesterday that the government are sympathetic towards bingo and its community status.

Although the government will make loud noises that VAT has been taken away, this will bring in partial exemption to bingo clubs and stop VAT reclaims that forms a huge part of reducing the tax burden on bingo clubs.

GPT has been increased from 15% to 22% an increase in tax of nearly 50%.  The government have been fighting long and hard with the industry over the charging of VAT.  The government are now trying to claim credit for dispelling a tax that may be ruled as illegal.  Many people in the industry believe this is an obvious attempt by the government to increase the tax burden on an industry that is already struggling for survival.

Some bingo games namely prize for cash (or called gaming for small prizes) were given VAT exempt status many years ago and gave some assistance in particular to small bingo clubs where prizes are below £50 cash and could charge a maximum stake of 50p.  This new regime would mean a jump from the current 15% tax to an incredible 22%.  Bingo Supermarket can also confirm that the VAT status is exempt for bingo and not zero rated like some operators had been hoping for.

The treasury have claimed for many years that bingo is taxed fairly and it should pay VAT and bingo tax (GPT) in line with general forms of gaming such as the bookmakers.  Companies including some small independent bingo businesses are asking why is the government acknowledging that bingo is different, plays an important role in the community, has much less problem gamers, much tighter on looking after the vulnerable, yet think its fair in charging bookmakers 15% GPT and charging the bingo industry 22%.  If the government claimed earlier that bingo was not taxed unfairly, by now claiming to have simplified the taxation it now shows a distinct difference and proves that bingo is taxed almost 50% more than heavier forms of gaming.

Ian Burke the chief executive for Rank (Mecca Bingo) commented in the Daily Telegraph as saying " I don't understand what the UK land Bingo Industry has done to jusitify the goverment's vindictiveness."  Bingosupermarket suggests that the government may feel that the argument over VAT not going their way could have been a factor.

Bingosupermarket have set up a bingo budget forum to encourage the industry to give views on how the new regime will affect their companies.

Fortunately for online bingo , if it is based offshore as many of the websites bingosupermarket choose to showcase, then the government's announcements will not make a difference.  Bingo Britain and The Palaces have chosen to support the government in the UK jurisdiction and unless special provisions which we don't believe to be the case will mean that an extra 7% will be taken from their bingo income and handed over the the treasury.  The government then cannot understand why online bingo operators decide to control their operations in another country.

More on this story is to follow and readers are urged to check back the latest news as it is being received, Bingo Supermarket also intends to ask for an official response to the budget from the bingo association.