Warning that proposed machine tax increases could force club closures and threaten jobs, Buzz Bingo chief executive Dominic Mansour has urged the Government to protect Britain’s bingo sector. Rank chief Richard Harris was more stark: an MGD rise could put a third of his estate on the line.
Buzz Bingo chief executive Dominic Mansour has cautioned that a proposed doubling of machine games duty could force club closures, threaten jobs and undermine investment across Britain’s bingo sector.
With the Government reportedly considering increasing duty on Cat B machines from 20 percent to 40 percent, Mansour said bingo halls risk becoming unintended casualties of wider gambling tax reform. Even an increase to 25 percent would leave around a third of Buzz Bingo’s estate loss-making, he said, jeopardising the operator’s £20m annual investment programme.
“Unless bingo clubs are protected from such reform, the viability of bingo in the UK will be at risk,” Mansour warned. “The numbers for Britain’s bingo could truly be up.”
He argued that higher machine taxation would undermine the benefits of the recent abolition of bingo duty, which has helped stimulate more than £50m of investment across the sector.
“The Government made the right decision when it recognised the important role bingo plays in communities across Britain to address loneliness and foster community spirit,” he concluded. “We now need to be careful that our progress is not put at risk by allowing bingo clubs to become the unintended casualty of a blunt tax change.”
Rank says tax hike could cost Treasury millions
Rank Group chief executive Richard Harris said doubling machine games duty would cost the Mecca Bingo operator £35m annually, potentially making between a quarter and a third of its venues unviable.
“A large proportion of that quarter to a third would have to close,” he said, adding that up to 1,625 UK jobs could be lost.
Harris expressed concern that bingo halls and casinos could become “collateral damage” of wider gambling tax reform, despite their contribution to local communities and employment.
He also highlighted that closures would reduce Treasury revenues through lost business rates and employment contributions, warning: “Within 12 months, if the tax rate goes up the tax take goes down.”
The numbers up for bingo?
Dominic Mansour said… “Unless bingo clubs are protected from such reform, the viability of bingo in the UK will be at risk,” Mansour warned. “The numbers for Britain’s bingo could truly be up…
