In a deft sleight of hand the UK government has both helped and damaged the world of Bingo. Before the budget there was a considerable amount of publicity generated by owners of Bingo Halls concerning the double taxation that the halls must pay. This arises from the fact that like all businesses Bingo halls must pay corporation tax plus a VAT of 15%, but unlike other businesses there is an additional tax payable by Bingo halls of 15% on all revenues. The additional taxation is called Gross Profits Tax or GPT. This means that whilst most industries pay 15% tax sales in the form of Value Added Tax (VAT), Bingo proprietors pay 30%. In these difficult times where many Bingo halls are fighting for survival, this has been seen by many to be a highly inequitable charge on their businesses.

In his recent budget Alistair Darling did the right thing and removed this double taxation by abandoning VAT. Overall this will save gambling companies including, Bingo Hall and online Bingo organisations, around fifty million pounds a year. But, as has often been seen before, what the government gives with one hand it frequently takes away with the other. In order to compensate for taking Bingo out of VAT the government has increased the Gross Profits Tax on Bingo revenues from 15% to 23%. Overall this would offset the taxation benefits by 50% making them considerably less valuable, though still better than before. However the government has now imposed additional taxation measures that will wipe out even this small gain.

Before the budget there was a duty that had to be paid on slot machines. This is called Amusement Machine Licence Duty (AMLD) and was a flat rate payment of around£2,000 per machine. The government has now changed the manner in which this taxation is imposed, and the new tax represents a 9% increase.