Britain’s ‘much-loved’ bingo halls may very well be worn out by Rachel Reeves’ playing tax
Stark warning from industry experts comes amid rumours the chancellor will hike Machine Gaming Duty (MGD) to plug a financial black hole in the upcoming budget
Snobbery could see the end of Britain’s bingo-halls as bosses warn more than a third could be wiped out if taxes are hiked. John O’Reilly, CEO of Rank, which owns Mecca Bingo and Grosvenor Casinos, said people’s “disdain” against the clubs will lead to their demise.
He warned many of the “much-loved community centres” would close if Rachel Reeves targets a gambling tax raid in the November budget.
His comments come amid rumours that Machine Gaming Duty (MGD) could be raised by the chancellor who is trying to plug a financial black hole.
But Mr O’Reilly said “snobbery and ill-informed prejudice” had been colouring the debate around gambling, despite paying “substantial taxes” into the public purse.
He said: “Britain should be proud of its bingo halls and casinos – not taxing them into extinction. For too long, snobbery and ill-informed prejudice have coloured the debate around gambling, creating the lazy assumption that our industry is an easy target for extra tax.
“It isn’t. If machine gaming duty rises from 20% to 25%, we would likely have to close around a third of our casinos and even more of our bingo clubs.
“More than 2,500 jobs would go. The result would be closures of much-loved community clubs that are often the social lifeblood of their towns.
“Those calling for higher gambling taxes often do so out of disdain for gambling itself, but punitive measures against the regulated sector only play into the hands of illegal operators—who pay no tax, employ no one, and ignore all the rules.
“They will be the ones applauding any increase.”
The Betting and Gaming Council Casino Group has warned that any increase in MGD in the upcoming Budget would undermine vital investment and threaten thousands of jobs.
BGC CEO Grainne Hurst said “This industry supports 11,000 skilled jobs and contributes hundreds of millions in tax. Raising MGD would not raise revenue – it would destroy it, by forcing viable casinos to close.”
