Bingo Boom? Could We See A Revival In The Industry With The Zero Percent Tax Rate?

From the beginning of April, the 10 percent tax on gross profits for land-based bingo profits will be completely scrapped, leading many to speculate whether we will see an increase in the participation of people playing bingo again over the next 12 months.

Certainly over the last few years we have seen a decline in traditional bingo halls of players, due to online brands making it more convenient and also, potentially more lucrative.

With this latest move, it is understood that it is the government’s wish to promote more community-based activities, while discouraging online slot participation, hence the 40 percent hike in Remote Gaming Duty (RGD).

For operators like Rank Group (Mecca) and Buzz bingo, it is thought that this removal will provide much-needed “headroom” to reinvest in ageing infrastructure.

Social And Community Value

It is understood that the government has implemented this in order to help reduce loneliness among the ageing population of the UK in an attempt to attract them into land-based bingo venues that will likely be able to offer more incentives to do so, following this new economic benefit.

Furthermore, by using the revival of social interaction as a hook, it is essentially advertising that bingo halls aren’t just about ‘gambling’ per se, but also friendship and fun, social, in-person experiences.

With this tax cut, it is thought that around 7,000 jobs have been protected across 250 land-based bingo venues in the UK.

Increased Bingo Experience

With the money that bingo venues will be saving, it could also mean there is more at their disposal to be able to offer a better experience, therefore increasing visitors, such as by incorporating better food like gastro-pub-inspired menus and craft beer plus live entertainment and more tech driven formats.

enjoying food and drink at the bingo

In addition many bingo halls around the country have been in their current state for the best part of two decades and the savings could well provide much-needed funds for enhancements and refurbishment to upgrade the surroundings.

Incorporating more technology may also be an option that land-based bingo operators choose to explore in order to provide more efficiency and user value; this likely to be reviewed on a case-by-case basis.

Where Will The Focus Go?

It will be interesting, on reflection, to see where some of the big bingo brands put their focus, from April onwards, especially considering the potential opportunity that lies in the land-based vertical.

Companies such as Mecca Bingo (which is available both online and land-based) have a decision to make as to which of their assets could potentially be more profitable and, to what extent they cross-market different products to customers.

Meanwhile, we could see increased omnichannel play, letting customers play in-club on their tablets that sync to their accounts, creating a seamless experience that justifies the physical visit.

No doubt we will see a difference over the next year, especially during the summer months when the weather is warmer, though just how much of a difference, remains to be seen.