In previous articles we have discussed how smoking bans have wreaked havoc with the brick and mortar bingo industry. As has been pointed out before approximately 75% of bingo players smoke and since the passage of a strict smoking ban in the UK several bingo clubs have been forced to close their doors forever. In many small towns and villages the local bingo hall is a cherished meeting place and a hub of activity.

Another issue facing bingo halls in the UK is double taxation, which is peculiar to bingo; no other form of gambling is double taxed. All forms of gambling are taxed at 15% but bingo halls are forced to pay an additional 17.5% in a value added tax. This unfairness has not gone unnoticed by some politicians and members of Parliament. To add insult to injury the Sports Minister announced plans to seek an additional tax with the proceeds going to treat problem gamblers.

The current economic climate is not helping land based bingo clubs either. Many people report that they are spending less on entertainment and are cutting unnecessary expenses. Brick and mortar operations are also being affected by the growing popularity of online bingo.

So far lobbying efforts by the British Bingo industry have not produced the desired results. Bingo is still double taxed and it is almost a certainty that the additional tax for problem gamblers will be levied against bingo clubs. Member of Parliament Stewart Hosie has written to Treasury Minister, Angela Eagle, calling for an end to double taxation on bingo.

In a letter to the Treasury Minister Mr. Hosie stated; “The UK Government’s treatment of the bingo sector is incredibly unfair and action needs to be taken to help the sector at this very difficult time. Licensed bingo remains the only gambling product subject to double taxation, which results in an effective tax rate of 28.2 per cent compared with 15 per cent for most other gambling products.”

Mr. Hosie points out that land based bingo operators are subject to a tax that equals almost 30%. With all the other costs necessary to run a bingo club and the loss of revenue due to the smoking ban it is a certainty that many more bingo clubs will close their doors across the UK. This would be a great loss for smaller communities without other meeting places. Only time will tell what effect government policies will have on the UK bingo industry.