The UK government has announced that the bingo tax rate of 22% will stay, disappointing land based bingo club owners across the country and plunging even more bingo clubs into the grips of the economic recession.

Bingo clubs had been lobbying against the tax hike, which rose from 15% to 22% in April, but the government stood by their decision after parliamentarians failed to make a strong enough case against it.

Land based bingo clubs have been facing an uphill struggle since the smoking ban in 2007 and a cap on the amount of £500 jackpot machines allowed, but the new tax ruling may put an end to some independent bingo halls as well as closing more Gala and Mecca bingo clubs.

A member of the independent bingo hall said that is it not better to have, “a thriving bingo club paying 15 percent than a struggling club paying 22 percent that’s planning to close.”

Jul 14 2009