Bingo Operators Warn of Closures Amid Potential Gambling Tax Increases

Bingo hall operators have cautioned that proposed tax increases on gambling could lead to widespread venue closures and significant job losses across the United Kingdom. The concerns arise as the government is reportedly considering doubling the duty on slot machines, a move that industry leaders fear could disproportionately impact bingo clubs.

Richard Harris, chief executive of the Rank Group, which operates Mecca Bingo and Grosvenor casinos, stated that an increase in machine games duty from 20% to 40% would cost his company an estimated £35 million annually. Harris warned that this would render a quarter to a third of his venues unviable, potentially leading to the closure of many and the loss of up to 25% of Rank's 6,500 UK workforce. He highlighted that many of the at-risk venues and jobs are located in "Red Wall" constituencies in the north of England.

Buzz Bingo CEO Dominic Mansour echoed these concerns, suggesting that even a more modest increase in the levy from 20% to 25% would make approximately one-third of their clubs loss-making. This, he said, would imperil their investment plans and necessitate difficult decisions regarding clubs and employment. Mansour also noted that a broad increase in machine games duty risks undermining the positive impact of the earlier abolition of bingo duty.

Both executives emphasized the community role of bingo halls, describing them as "local, social and low risk" environments that provide affordable entertainment and social interaction, particularly for those feeling the effects of the cost of living crisis. They argued that gaming machines are a component of the overall revenue mix for bingo clubs, which also offer food, drink, and entertainment, and are essential for maintaining community spaces.

The gambling industry has already experienced significant tax changes, including increases in remote gaming duty and levies on online sports betting, which have led to reported job losses. While the government recently abolished the 10% duty on bingo, offering some relief, operators fear the potential new tax on machines could negate these benefits.

A Treasury spokesperson stated that decisions on tax are for the Chancellor to set out at fiscal events and that the government remains focused on supporting families, businesses, jobs, and growth. They declined to comment on rumour or speculation.