Rank, the Mecca Bingo and Grosvenor Casinos operator has released how the emergency UK budget is likely to effect its operations. The main concerns relate to the increase in VAT and National Insurance contributions and the company has stated this is likely to have an adverse effect to the tune of around £2.5 million from 2011. The company has stated that it would “seek ways to minimise the impact on earnings”.

There had been rumours within the industry prior to the budget that the Government may use the opportunity to increase gaming tax for all parts of the industry in including bookmakers. In addition it is expected after reviews in French legislation that the UK will follow suit allowing them to tax profits made on UK players even where the operators are not based in the UK. Rank with a variety of the operations will be no doubt thinking that things could have been much worse.

The company recently received£42.5m in overpaid VAT, although HMRC are still appealing the ruling. The appeal which is not expected to be successful could see the company having to repay the amount plus interest. The majority of other bingo operators in the UK are in similar positions and have also received significant refunds.