Rank Group to hike investment in wake of bingo tax cut
European gaming business Rank Group has announced a new programme of investment and job creation in response to George Osborne's halving of bingo duty from 20 per cent to 10 per cent.
The company said it had identified a number of new towns where it will be able to develop new bingo clubs.
Rank Group chief executive, Ian Burke said:
Today's announcement is an important boost for Britain's bingo clubs, which provide a range of social and economic benefits for the communities they serve. By bringing bingo duty into line with other forms of gaming entertainment, the Government has created a basis for renewed investment and innovation.
The move came after a concerted effort by MPs to reduce the tax. In January, the Bingo Association says that taxes on the game are excessive compared to competitors in the gambling industry and are contributing to the rapid decline of bingo clubs.
Excessive taxation may have been responsible for the significant loss of jobs in the bingo industry, with Gambling Commission figures showing the number of people employed in the sector down from 17,822 in financial year 2010-11 to 16,048 in 2012-13.
The measures have been welcomed by industry observers.
PwC's indirect tax director Gareth Martyn said:
The surprise halving of bingo duty to 10 per cent brings the rate below the level applied to sports betting and will certainly be welcomed by the bingo industry which has been lobbying hard for a change. The industry is still feeling the affects of the smoking ban and this reduction will have a significant impact on future investment in bingo halls