bingo has long been, and continues to be, a bedrock of many communities across the UK, providing both a social centre and community, that is open to all.  In light of bingo’s unique social position and contribution to local communities, it is a shame that bingo remains singled out for unfair treatment and continues to be taxed at a higher level than other gambling activities.

So let’s look at the facts-

UK Bingo Duty is a duty charged on Bingo promotion profits which include:

All Bingo "receipts" less bingo winnings in an accounting period.
Bingo receipts include all payments received by the bingo promoter entitling a player to play Bingo, which covers the cost of cards and participation fees. They do not include payments for admission into the club, membership or other incidental benefits such as catering. However there will be VAT to be paid on those.

Bingo winnings include the total value of the prizes. If they are cash then this is the total paid out, whereas with non-cash prizes it is the actual cost to the promoter.

The current duty rate is 20 per cent on a promoter’s Bingo promotion profits. One fifth.

All Bingo played in the UK is liable to duty except non-profit making (charity) Bingo, domestic Bingo, Bingo Machines and some limited other forms of Bingo.

Brian Binley MP for Northampton South and Chairman of The All Party Parliamentary Bingo Group (formed in late 2010) has again called on the Government to reduce what they call the ‘granny tax’ on Bingo and taxation levels from 20% to 15% in line with other forms of gambling.

Brian Binley said: "Bingo is one of the most innocuous forms of gambling and yet it pays the highest rate of tax. Bingo halls are an extremely important social amenity in many local communities and the Government should recognise that most people who play bingo use it as an opportunity for social interaction and not to excessively gamble. The current Bingo tax policy not only fails to support Britain’s Bingo clubs, but actively discriminates against them and as a supporter of those who play the game I have consistently called for a fairer taxation system to help support them."

I couldn’t have put it better myself!

A new report by the Bingo Association, compiled by Ernst and Young claims that a reduction in bingo taxation from 20% Gross Profit Tax (GPT) to 15% would significantly alleviate decline in the industry and simultaneously benefit the Treasury. Land-based Bingo clubs are closing are closing at a rate of around 5% per year, with 28 clubs closing in 2010. If the current level of taxation is maintained, Treasury returns are expected to fall by just over £42 million in 2014- representing a fall of close to 50% in the Treasury returns from 2005-2014.

The final word goes to Paul Talboys, Chief Executive of the Bingo Association:

"The current tax regime is not simply unfair, it is also economically damaging to both bingo and the Exchequer. The closures of Bingo clubs have serious impacts on both those who use them and those who rely on their income, whether it is clubs or the Government. It is not too late. If the Government changes the tax on bingo to 15% the game can flourish once more."

So, support your local Bingo Hall (as well as playing online) and if and lobby your Member of Parliament to reduce the tax on Bingo- if they do, we should all feel the benefits of more places opening, fewer closing, and hey, hopefully, the Bingo companies will pass on some of the savings they make to you and I, the Players!