Recently, there was a public outcry for the Government to abolish the tax on bingo halls. It was claimed that VAT as high as 32 per cent was responsible for the closures of over one hundred clubs in the UK, and the cause of thousands of job losses. The response was that bingo actually only paid VAT in the region of around 15 per cent, much lower than other forms of gambling. With tax rises predicted in this year’s budget, what will happen to the beloved game of bingo?

Some people may wonder what all the fuss is about when it comes to a game of bingo compared to the other gambling favourite poker. Bingo lovers will stand up in unison to declare that the game is for working class individuals that like to socialise whilst taking the opportunity to up their income with prize money; whereas poker players are just big on gambling.

Reducing VAT would enable bingo players to continue to enjoy their hobby, but with talk of VAT rising to 20 per cent, the move seems highly unlikely. In fact, it could potentially have a major impact of the game’s richer cousin, Casinos. Although the money that exchanges hands in a casino is of much higher value, the proposed tax on high earners could throw a double headed spanner into the works.

Not only would casino owners face increased tax payments on their revenue, but the clientele that frequent their establishments won’t be feeling as flush as usual, and playing a game of poker or black jack might be the first thing cut as the purse strings are tightened. The Labour Government has proposed that earnings of over 15,000 GBP will be subject to 50 per cent tax rate. Taxing these high earners to such a degree is bound to have a knock on effect when it comes to public spending, which is exactly what the government are after.

Bingo, it is claimed, has a clientele comprised of comparatively low earners, so for them, the tax rise will not affect their choice of social activity, as long as the bingo halls can keep open. One way around this is for players to turn to online games, something that has been a growing trend over the last ten years or so. With the price of luxury items also going up in the budget, a night in certainly is certainly an attractive economic prospect, especially as it looks like the Government have bigger fish to fry.

Dom Donaldson is a gambling expert.
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