<< Return to Blog & UK Bingo News Index
Monday, May 05, 2008Sneaking in on Friday, just as everyone else was rushing off to seaside for the Bank Holiday weekend, The Times carried a story about the Government's response to the calls from the Bingo industry to remove the VAT burden on Bingo. The Government have effectively robbed the Bingo industry of it's most cherished and firmly clutched straw, announcing the it would not be removing VAT from Bingo. This will come as a pretty stinging blow to the Bingo Association in the light of their recent campaign to make this happen.
The Government had this to say, and I believe it's quite a telling statement. "Our assessment remains that tax is not at the root of the bingo industry's problems and we do not believe there is a tax solution." It kind of echoes what I've said here on a number of occasions. In a way this announcement and situation is a good thing for the industry. Instead of playing the victim card and wasting its energy complaining and blaming outside forces, it may look to developing and innovating its own business.
Had VAT been abolished, it may not have helped some of the inherent problems the business needs to address. Diversifying, innovating, capturing new audiences and more, so far the retail industry has struggled to get over its own ingrained ideas about what it should be and what it should do. Now that this potential sticking plaster is no longer an option, the industry needs to get the bit between its teeth and get brainstorming, developing new markets and looking at changing what it does without veering to far from its core business. Not an easy task I realise, but one that remains at the forefront of what the industry needs to do.
Posted at 1:53 PM |
![]()
![]()
Like you I have been following this story with much interest and the Governments response to the online petition which you quote from seems to have brought this chapter at least to an end. I'm not so sure it is a good thing for the industry. Yes, as you rightly say, there is more to the retail side of the industry's problems than double taxation. This has, after all, been in place for some years now and was begrudgingly accepted for most of this time.
If there is to be any kind of future for the industry it must, as you say, capture new audiences by diversifying and innovating. In reality that takes money, money to invest in premises and technology. If the media is to be believed I think you have to have some doubt as to whether the industry has the money or the borrowing power to make that investment. Even if it did I suspect there will be a degree of conflict between the needs of the traditional player and the new audience making the solution a long drawn out and costly affair.
What relief on double taxation might have done is go some way to ease this transitional process by making more money available to the Bingo operators. There is little doubt in my mind that this decision has ensured the list of "Lost Bingo Halls" will be one of the few growth area associated with the Bingo industry over the coming months.
Innovation needn't cost money, it can start with something as simple as talking to the staff and customers about what they think might work. Bingo like many retail activities is run from the top down, at a club level it's the managers who must 'have the ideas' and set down a lot of the club activity.
In reality and my experience, two brains are better than one, and lowly floor staff could have some killer ideas for saving money, bringing in new custom, etcetera, that comes directly from their experience of working in the field. More often than not they have a different perspective that the managers are to a degree aloof from. If staff can get rewarded for innovating in partnership with senior management, that one small innovation for the industry that doesn't require big monetary development.
My old hall closed in 1994 for the same reasons that many are closing now, and it was nothing to do with the taxation and plenty to do with the lack of imagination behind how the business is run. Unfortunately as you've pointed out, I'm expecting the lost halls section to keep me busy for the time being.
<< Return to Blog & UK Bingo News Index