It seems like the campaign to save land based bingo is a subject dear to many a Liberal Democrat heart, as yet another MP has come forward to voice their concerns over the new tax measures that could signal the end for many a land based operator. The measures, which hike the duty paid by bingo clubs from 15 to 22 per cent, have yet to be implemented properly, but once in place may financially cripple many struggling independent and recognisable operators of bingo clubs in the United Kingdom.
No doubt many MPs are joining the thousands of industry figures and bingo fans who are trying to fathom the Government’s decision to penalise such a treasured part of Britain’s social life. But with job losses a certainty if the industry keeps going under, and with several high profile campaigns, MP’s have been quick to capitalise on the bingo cause in the face of overwhelming voter apathy. With Labour overwhelmingly in favour of the new measures, and with the Conservatives promising very little, it has fallen to the Lib Dems to champion the bingo cause.
The latest reports show Lib Dem MP Tom Brake is also throwing his weight behind the plan, speaking out and criticising the Government for a complete absence of foresight in the terrible consequences that lie ahead. Commenting on the increase in tax, the Liberal Democrat MP said:__“It is vital that we protect these local businesses, particularly at a time of such economic instability. Bingo halls are a familiar part of the local environment”
Mr Brake has joined a succession of other MP’s who have signed the Downing Street petition which asks the government to reconsider the increase in taxation for bingo operators in the UK. As shown in a recent report from the UK Gambling Commission, the last year has seen a drop in the number of operators registered in the UK from 2224 to 2166, as result leading to the number of registered bingo clubs now tallying 641, dropping dramatically from 675 the year before. The figures released by the UK Gambling Commission are only for the period of 2008-2009 – with so many closures recently reported, the actual figure may currently stand considerably lower than 641.
The glut of closures and the failure of many bingo operators to stay afloat during the current financial storm has been blamed on a shift in consumer habits, with online bingo seemingly profiting from the misery of it’s land based sibling. A new generation of bingo players have been created, and coupled with the smoking ban and the decision by many to stay in rather than go out thanks to the recession, it seems like dwindling customer levels are an unavoidable consequence for the sector.
However, many MP’s have therefore made the point that why make the situation any worse for the ailing industry with unnecessary and harsh Government legislation? A change in the tax paid on gambling machines has already hit operators hard, and when the budget was delivered in April, many operators were hopeful of the Government replacing a double taxation system with a flat rate single tax of 15%. On one hand, the double taxation system was replaced, but with a massive 7 point rise in the rate of tax, it seems the Government gave with one hand whilst taking with the other. The current rate of 22 per cent puts Bingo as one of the highest taxed sectors of the gaming industry, despite also being the softest form of gaming.
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