No news is good news? Not for the bingo industry

United Kingdom

This article was produced by Olswang LLP, which joined with CMS on 1 May 2017.

The headline issue in Alistair Darling's first Budget was that he did nothing to assist the UK's bingo industry.



Unlike recent Budgets, which have included important changes for the gambling sector, the Spring 2008 Budget included only relatively minor announcements.

Bingo

The bingo industry will be very disappointed that the Chancellor did not take the opportunity to remove its VAT burden.



Unlike other gambling operators (which pay either VAT or a relevant gambling duty but not both), bingo operators are effectively subject to double taxation having to pay both VAT and bingo duty on participation fees.



The increase in the rates of AMLD (explained below) only serve to compound the bingo industry's continuing troubles.


Lottery duty

The Government has announced that it will consider the case for introducing a gross profits tax for the Lottery. An announcement is expected in the 2008 pre-budget report.


Amusement machine licence duty

The rates of amusement machine licence duty ("AMLD") have been increased in line with inflation. The new rates are set out in the table below.


Months

Category A


(£)Category B1


(£)Category B2


(£)Category B3


(£)Category B4


(£)Category C


(£) 145523018018016570 2905450355355320135 31355675535535485200 41805905710710645265 522601130890890805335 62710135510651065965400 731601580124512451125465 836101805142014201290530 940652030160016001450600 1045152260177517751610665 1149652485195519551770730 1251602580203020301840760


Gaming duty

The rates of (terrestrial) gaming duty have also been increased in line with inflation. The new rates payable in respect of gross gaming yield ("GGY") are set out below.



The first £1,911,000 of GGY15 per cent The next £1,317,000 of GGY20 per cent The next £2,307,000 of GGY30 per cent The next £4,869,500 of GGY40 per cent The remainder50 per cent