One and Five keeps Bingo alive

An increase in the tax on the profits of bingo companies was the subject of a demonstration in London today. The new tax will be 22% up from the previous level of 15% and campaigners argue that this will lead bingo companies to raise admission prices or perhaps cut prize money on offer. The bingo industry has already come under pressure from the smoking ban and changes in gambling laws which have limited the types of fruit machines allowed on their premises. For hundreds of thousands of elderly people bingo is a regular pastime, indeed it is part of the social fabric of many less affluent areas. But the demand for bingo halls has declined over the years - an example perhaps of a service which has a negative income elasticity of demand. The Bingo Association is fighting to have the tax hike reversed but unless there is a change of government, they are unlikely to strike lucky.

The tax rise does seem inequitable especially as bookmakers, the football pools and casinos pay a gross profits tax of 15 per cent - surely bingo is at the softer end of the gambling industry?