The dust might have had time to settle on Tuesday’s Budget, but the bingo industry is likely to be ruing the changes made to the tax regime for a long time to come. Most notable is Machine Games Duty (MGD) which will be hitting operators in their most profitable area of business, a further tax burden to an industry already taxed way more than other gambling businesses, which will offset any gains made from double taxation relief that’s also on the way. The Bingo Association says that this of the new changes:
“This new duty will help ensure that bingo’s potential for growth is substantially reduced, with some smaller independent operators seeing potential growth translated to contraction.”
The changes laid out by Chancellor George ‘Artful Dodger‘ Osbourne will see the UK’s bingo club’s prime source of revenues taxed at 20% from the 1st of February 2013. It’s come as a blow to the industry given the importance of the interval earnings from the slot machines. After a hard slog to get the number of £500 jackpot machines upgraded in the clubs a few years back.
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