The traditional bingo industry was already struggling before the current credit crunch set in and things were looking even bleaker for the hundreds of bingo halls across the United Kingdom as the economy took a nosedive. However, there seems to be a little bit of relief in sight for these bingo halls, as the government announced certain changes to its VAT rules that will affect these establishments directly.

One of the major causes of concern for the future of traditional land bingo halls in the United Kingdom was the fact that they were subject to what they termed a ‘double taxation policy’. Not only were they forced to pay Value Added Tax, but they were also slapped with a gambling tax. These expenses usually wiped out any profits seen by gambling halls, with the sad result that many have been forced to close down in the past couple of years.

However, in a bid to stimulate the economy and bring some relief to businesses, the Brown government announced several changes to its VAT system, starting with the act of dropping it from the current 17.5% to 15%. This in itself is excellent news for UK bingo halls, especially those who have been struggling to remain open. The drop of 2.5% could spell the difference between survival and closure.

In addition, the Valuation Office said that these rates will be effective retroactively from July 1st, 2007, meaning that some firms will be seeing some money back in their pockets – just in time to get their bingo halls into gear for the coming new year. Here’s hoping that this is just the beginning of a chain of good news to reach the bingo industry in 2009!

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