Chancellor John Healey is encountering significant opposition from the bingo industry following a decision in the recent Budget to raise taxes on slot machines. This move, aimed at curbing gambling harm and targeting adult gaming centers, has put an estimated 77 bingo halls and 1,200 jobs at risk.
The increase in Machine Games Duty (MGD) from 20 percent to 25 percent was intended to generate revenue for the retail, hospitality, and leisure sectors. However, industry representatives have expressed strong disappointment, warning of the detrimental impact on bingo operators.
Nicole Garrett, chief executive of the Bingo Association, stated that the tax hike, projected to raise £145 million annually, will render 77 of the nation's 239 bingo halls unprofitable. "That will inevitably mean closures," she said, highlighting the potential for up to 1,200 job losses.
Rank Group, owner of Mecca Bingo and Grosvenor Casinos, anticipates the tax increase will cost the company £9 million and is considering mitigating actions, which may include closures and layoffs.
Industry executives have criticized the Treasury's decision to group bingo clubs with venues associated with gambling harm, particularly when the revenue is earmarked for supporting other leisure activities. One executive suggested this reflects an "anti-gambling snobbery" and a government inclination to dictate acceptable forms of leisure.
Slot machines are a crucial source of revenue for bingo halls, pubs, working men's clubs, and seaside arcades. Industry insiders compare playing these machines in a bingo hall to purchasing popcorn at a cinema, describing it as a casual interlude rather than an activity pursued for extended periods.
Buzz Bingo chief executive Dominic Mansour had previously warned that a 25 percent MGD would make approximately a third of their nearly 80 venues loss-making, suggesting that around 25 Buzz Bingo locations could be under threat.
Garrett also noted that a previous decision by former Chancellor Rachel Reeves to abolish the 10 percent duty on bingo had created an impression that the Treasury understood the industry's societal contribution. She described the current treatment as an "insult" to bingo players and a departure from recognizing bingo's role in supporting communities and high streets. She emphasized the social value of bingo clubs, particularly for older individuals who might otherwise face isolation, and reiterated her warnings that increased MGD would lead to club closures.