Bingo halls warn machine games duty rise in Budget could force closures

The bingo industry has warned that an increase in gambling taxes in the Budget could force many bingo halls to close, with thousands of jobs at risk. The Chancellor will set out his plans later this month.

The immediate concern is machine games duty, the tax paid by venues that run fruit, slot and quiz machines. These machines are common in betting shops and casinos, but they are also an important secondary income for bingo clubs. According to the Social Market Foundation think tank, there are nearly 75,000 machines across just over 700 bingo venues.

The think tank says the machines in bingo halls are cheap to play, generally between 21p and £5, but can still be addictive. It argues that doubling the duty on them could raise as much as £450 million to pay for the social issues caused by problem gambling.

The bingo industry says such a rise would hit venues hard. Operators say machine income helps keep clubs viable and keeps bingo affordable. They also say that even after bingo duty was abolished at the last Budget, 27 per cent of bingo clubs are loss-making. The industry says it already pays a levy for research, prevention and treatment, and that venues make sure people play moderately.

At a club in Bolton, customers were described as socialising in a place where they belong. Operators argue the clubs provide a community service and a social good, and warn that closures would leave customers without a comparable venue. One industry voice said: "To be really clear, clubs will close." The fear is that community assets could become victims of any rise in machine games duty.

The industry has welcomed the earlier cut to bingo duty and is urging the government to back it again. It says it is making good on promises around investment and wants to do the right thing for customers.

The government has declined to comment on speculation. It said decisions on tax are a matter for fiscal events, and that it does not comment on rumour, speculation or proposals. Bingo halls will have to wait for the Chancellor to deliver the Budget before learning their fate.

Bingo itself has changed over the years, from traditional social clubs to glossy venues with large prizes and electronic cards. The game can be traced back hundreds of years and was once known as Housey Housey. It took off after the Betting and Gaming Act 1960 legalised certain forms of gambling. In Tonypandy in Wales in 1966, bingo overtook churchgoing for the first time, a sign of its place in British culture.