A curious reversal of Bingo taxation is about to take place in the United Kingdom with a distinct reversal of fortunes taking place between land-based bingo rooms and online bingo rooms.
Up until the recent budget in which land-based bingo halls got massive relief in the form of a reduction on the excessive taxes being levied on bingo halls, many including bingo players and members of parliament had been calling for this reduction.
The budget was kind and a massive bingo tax reduction was unveiled on land-based bingo rooms which has in turn then led to a mini-revival so far and the prevention of further bingo rooms closing down.
In some cases, it has led to the creation of new jobs and reinvestment in older bingo clubs. At the same time that this scenario unfolded the Government announced a new Point of Consumption Tax on all Remote Gaming which will take effect from December.
This new tax will effectively be a 15% tax on companies who are operating offshore and are not paying any taxes to the UK Government on the play by UK Bingo players.
The new law has been challenged by some offshore jurisdictions regarding the legality of the matter, what it boils down to though is that the Government is seeking to close avenues of escape for large gambling companies who have moved locations to avoid having to pay gambling taxes.
This does mean that competition in the Bingo marketplace will become a bit less competitive as we expect to see bingo rooms either shut down or not allow UK Bingo players to take part in games. This is already happening with a few closures already announced by the likes of Bingo Cafe.
It will mean less choice and possibly less generous offers from UK Bingo sites that are now having to contend with a tax that
the land-based bingo industry dealt with for yours.
The Bingo Tax reversal is well and truly on and it will be interesting to see how many casualties arise and who is left standing
at the end of Point of Consumption Tax implementation. This makes it even more important to select the best bingo rooms. With so many closures expected in the next few months, it is wise to make sure that you are playing at an Eyesdown Bingo accredited site.