Bingo operator announces increased profits

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One of the largest operators of bingo clubs in the UK, Carlton Bingo, has just announced a very welcome leap in profits – which must have made for unhappy reading for the operators who have announced losses recently. Despite the problems faced by the industry; the recession, the effects of the smoking ban, the increase in bingo tax and changes in legislation, the management owned operator announced a £6.2 million profit last year, up from a £650,000 profit the year before. With 14 halls across Scotland and the north of England Carlton are the 4th largest operator. An increase in profits was expected as they had reclaimed £3.6 million in overpaid VAT, but even without this their profits have increased 4 times. They partly attribute their good news to lower debt repayments, the sale of property and reduced costs.

Regarding the current bingo tax system Peter Perrin, the Managing Director, said; “What most businesses want is certainty, fairness and consistency in fiscal treatment and at the present time we do not have this in our sector.”

Bingo tax was increased last year from 15% to 22% last year, though in October it was slightly reduced to 20%. However, as many other gaming sectors pay 15% tax the bingo industry is still lobbying the government for a level playing ground. Most online bingo sites don’t pay the UK bingo tax as they’re not based in the UK. Bingo hall operators just hope that one day the system is reviewed and everyone will pay 15% tax, regardless of where they are based. Casinos would especially appreciate this as they pay even more than bingo halls at the moment. Due to the economic situation and the recent election any lobbying at the moment will probably fall on deaf ears, and it looks like the new government will increase VAT – though luckily bingo fees are tax exempt

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