Bingo operators to invest as they hit jackpot on tax drop
BINGO halls got a boost yesterday as the rate of duty was cut by the government from 20 per cent to just 10 per cent.
Chancellor George Osborne said he would go further than the 15 per cent rate that the industry had requested, by halving the existing rate from 30 June.
Bingo hall operator Rank, which operates 97 Mecca Bingo clubs across Britain, announced plans for three new clubs in response to the announcement.
“Today’s announcement is an important boost for Britain’s bingo clubs, which provide a range of social and economic benefits for the communities they serve. By bringing bingo duty into line with other forms of gaming entertainment, the government has created a basis for renewed investment and innovation,” said Rank Group chief executive Ian Burke yesterday, adding that the future of a number of Rank’s clubs had been secured by the change.
Shares in Rank Group rose 6.8 per cent following the news to close at 154p yesterday.
“The industry is still feeling the effects of the smoking ban and this reduction will have a significant impact on future investment in bingo halls,” said Gareth Martyn, indirect tax director in PwC’s betting and gaming team.
Hours after the Budget, users of Twitter reacted angrily to an advert sent out by Conservative MP Grant Shapps that was widely seen as condescending to the people being helped by the cuts in bingo and beer tax. The ad proclaimed the Tories were helping hardworking people do “the things they enjoy” by cutting the duties.