Two of Britain's largest bingo operators have warned that a planned doubling of machine games duty from 20% to 40% will force venue closures and mass redundancies. The government is considering the increase as part of next month's Budget.
Richard Harris, chief executive of Rank Group, which operates the Mecca Bingo chain, put the cost at £35 million ($47 million). The tax rise would render between a quarter and a third of sites 'unviable'. Up to 25% of Rank's 6,500 UK employees are at risk — around 1,625 jobs. Dominic Mansour, CEO of Buzz Bingo, said even a smaller increase to 25% would push a third of the company's venues into loss.
Earlier this week Entain, owner of Ladbrokes and Coral, said doubling the duty would close 1,470 betting shops and eliminate 15,900 positions. The sector also faces a jump in remote gaming duty from 21% to 40% and online sports betting tax from 15% to 25%. Bookmakers have already shed around 5,000 jobs since the increases were announced.
Harris noted that many bingo halls sit in 'red wall' constituencies across northern England. He will meet with the Treasury but fears bingo will become 'collateral damage' as authorities target segments of gambling they dislike. The previous government abolished the 10% bingo duty, but the new measure could erase that relief.
