Mecca chief voices frustration at government policies

Ian Burke, the chief executive of Mecca Bingo revealed his frustration regarding conflicting government policies for the leisure industry in a recent letter to the Daily Telegraph.

The letter was written by Mr Burke as the land based bingo industry comes under mounting financial strain due in part to the UK's double taxation laws.

Earlier this year the government reinforced its refusal to eliminate VAT on Bingo charges in response to the online campaign launched by the Bingo Association in opposition to VAT on bingo.

Ministers declared that they had voted against bringing charges inline with casinos and betting shops, stating that ‘tax is not at the root of the bingo industry's problems and we do not believe there is a tax solution.’

In spite of the fact that bingo is regarded as the softest form of gambling, the government's refusal to back-pedal on the issue has determined that bingo is still the sole mainstream gambling product that is taxed by both VAT and gross profits taxation. 

In his letter Mr Burke said:-

In recent years our industry has found itself under increasing financial pressure as a result of government policies. Since the start of 2007, 59 bingo clubs in Britain have been forced into closure by heavy-handed regulation and the oppressive ‘double taxation’ system. The creation of new jobs through further investment in this sector has been stifled by myopic and inconsistent policy-making. The Government has forgotten its duty to champion and support the leisure industry and has instead hastened the closure of hundreds of pubs and clubs.

In spite of the current economic climate and the downturn in profitability across the UK's land based bingo halls Britain's' online bingo business continues to maintain a steady growth, with online bingo players spending a cool £600 million in the past year.
 

16th September 2008