The state of bingo in the UK is not good. Ian Burke, chief executive of Rank Group (Mecca Bingo), is warning that the bingo industry is on the verge of collapse.
Mecca Bingo had a profitable month last month but they are experiencing a decline in customers due to the smoking ban. That is keeping customers away at a time when they need them. Many players are making the switch to online bingo because they can play in the safety of their own homes and smoke if they want.
In addition, the limit on the big jackpot gaming machines is also contributing to the financial woes of the industry. People who would play these slots during the breaks now find they are limited. Those who smoke now go outside to smoke in a designated area and don’t play the fruit machines.
Adding to their financial woes is the tax situation. Bingo operators pay a 15% gaming duty plus a 17.5% VAT. Industry representatives will meet again with Chancellor Alistar Darling to push for ending the VAT. Bingo is the only segment of the gaming industry that is experiencing double taxation.
Mecca Bingo and other operators are watching their profit situation slip due to the situation. Bingo players are angry when their bingo halls close. Bingo has been a popular form of socialization in the United Kingdom since the 1960s and these people don’t like what is happening.