Bingo Budget Tax Cut – Is It Much Ado About Nothing?
It has been years that the UK bingo industry has been trying to get HMRCS to cut bingo tax. This is tax for clubs of the live variety, not necessarily the online kind. Now, apparently all Britain is celebrating because the Government has finally realised that this industry is in serious jeopardy. Bingo tax has been cut from 15 to 10%. Chancellor, George Osborne has finally been convinced to attempt to “protect jobs and protect communities”. During the last thirty years – ¾ of bingo halls have gone out of business, and 2000 jobs have been lost.
But like all taxation concessions, the Chancellor is still compelled to balance the budget, and has predictably given with the right hand, while taking away with the left. The bad news is that fixed odds betting terminals have to bear the burden of the concession for bingo. According to Osborne, these machines have "proliferated" during the last ten years. So, he has raised their tax to 25%. On the good side – and there is another – beer duty has also been cut, and Rank (Mecca Bingo)will be building three new bingo halls.
On the other side of the tax landscape – online gambling concerns that are situated in white listed areas, have not paid tax to the UK since the industry first got its start. It is realistically speaking unfair, that these businesses may offer services to a UK-facing audience, make money from these services, and not pay tax to the UK Treasury. This is all set to change, and taxes on remote gambling are about to kick off from December of this year (2014).
In the meantime Ireland has not been as quick off the mark as the British have, where the regulatory process for online gambling tax has not yet passed the committee stage. The Betting (Amendment) Bill 2012 has passed through the Dailhowever, but who knows how much longer the bill will take to be passed? This act provides a regulatory regime for online gaming operators, but has been gathering dust since 2011. Apparently the Ministry for Finance has been dragging their heels, and all the bill needs is to be signed.
While the gravy train ride is not quite over for operations such as online bingo, casino, poker, and sports betting operators, in the UK and Ireland, the net is certainly closing in. New tax benefits for the bingo crowd, could not as badly materially affect British operators in the online game. So, there is something for these operators to look forward to – being taxed is not all doom and gloom.