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Statutory Gambling Levy May Affect Bingo Profits Further

15/12/08

UK Sports Minister, Gerry Sutcliffe has said that the government would seek to introduce a mandatory levy on the gambling industry in order to help fund problem gambling, unless an agreement could be brokered between authorities and the industry to guarantee voluntary funding for this cause.

At present, the bulk of the £4.5 million that was raised for problem gambling  last year originated from several top companies in the UK industry with very little being contributed by smaller, licensed companies. Sutcliffe wants to counter this problem and get the majority of all gambling companies to make a voluntary contribution and step up to their social responsibilities.

Bingo companies in the United Kingdom, which are classified as gambling operations, are not pleased with the latest suggestion that was triggered by a recommendation made by the Gambling Commission. The bingo industry is already struggling to cope with declining numbers at land-based bingo clubs because of no-smoking laws, a cap on high prize slot games, and the rising popularity of online bingo.

In addition, the bingo industry is also subject to a double taxation policy that has left many local clubs crippled, forcing many to close their doors after decades of operation.

It is believed that if the Gambling Commission gets its way and has the government slap on a statutory levy to serve the problem gambling cause, many more bingo companies will suffer as a result.

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