Carlton Bingo one of UK's biggest operators of bingo clubs has announced a huge leap in profits, despite effects of the smoking ban, recession, changes in legislation, and the increase in bingo tax. While an increase in the profits was expected as Britain's fourth largest bingo operator reclaimed £3.6 million in overpaid VAT. The management owned company, which has 14 bingo clubs in the north of England and Scotland, and has unveiled a £6.2 million profit last year compared to £650,000 the year before. Even without the added VAT bonus, the company profits are 4 times higher. The company has suggested that benefits in terms of reduced costs, lower debt repayments and sale of property have helped in its latest accounts.

Managing Director, Peter Perrin, commented regarding the current bingo tax system. "What most businesses want is certainty, fairness and consistency in fiscal treatment and at the present time we do not have this in our sector,"

The industry is still lobbying the government after it raised bingo tax from 15% to 22% last year. In October the decision was partially reversed and the tax was reduced to 20%, however the industry still feels that it should pay 15% the same as the majority of the gaming industry. Currently only Casino venues are paying more than bingo clubs. The majority of online bingo sites do not pay UK bingo tax as they are not based in the UK. It is hoped by bingo club operators that in the future the current tax system is reviewed and all gaming operators in the UK regardless of where they are based will have to pay a flat 15% tax rate.

Given the current state of the economy, the dangerous UK deficit and a 'weak' Conservative Government having to rely on the Lib Dem party, any lobbying of the industry in relation to bingo tax is likely to fall on deaf ears. The main priority of the Treasury will be to keep its own investors happy as well as the European colleagues. While Labour were prepared to delay making cuts until we were firmly out of the recession this decision has been reversed with immediate effect. Over the next fews every pound will count and concessions are not likely to happen. The industry will however be thankful that bingo fees are now VAT excempt. An announcement relating to an increase in VAT is expected as an emergency budget is currently being prepared. How much of a difference the increase in VAT and other significant cuts that will be needed will make to bingo is uncertain but undoubtedly bingo companies are not out of the woods yet. Carlton Bingo unlike some of its competitors has certainly made a head start in these difficult times.

We reported last week how Gala have managed to restructure their debts, as the owners write of their significant investments. Buckingham Bingo, which has failed to meet banking obligations, has also failed to report positive results in recent years. Both Buckingham Bingo and Beacon Bingo which were both sold with price tags of around £100 million have seen their values reduced by half in recent years.