Gross Profit Tax Update Gordon Brown’S Final Decision Many Operators Moving Betting, and That a New the Chancellor Had Missed
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BINGO LINK The only magazine produced for the bingo industry Issue 62 July 2003 Gaming technology: G2E 2003: Shaping the future: Exciting new developments What’s in store? Inside the DCMS paper Gross profit tax update Gordon Brown’s final decision many operators moving betting, and that a new the Chancellor had missed. on a gross profit tax for the offshore. On 6 October 2001, system would need to reduce Newspapers reported the bingo industry was a long General Betting Duty, a 6.75 the tax burden for bingo and misleading nature of time coming – 12 months, per cent tax on total stakes, be carefully thought through. the Budget Statement to be exact – and has not was replaced with a 15 per Despite months of consultation announcement on delivered what was expected. cent tax on bookmakers’ gross with the industry, the final bingo, revealing the real (the legislation implementing On 9 April the Chancellor profits. The impact was swift, ruling has not provided the implications. A number of the measures announced in concluded a process which with Government evaluation promised win for players and operators also wrote directly the Budget) in Parliament on he had started in his 2002 showing that 2,000 jobs had operators. It has, instead, to their MPs registering their 13 May. Stephen O’Brien, Spring Budget statement, been created and that left us with players whose dissatisfaction. The BA MP for Eddisbury, provided announcing that he was turnover had risen by 46 per expectations of much higher strongly felt that the with detailed briefing by the considering extending the cent, benefiting operators, prize levels cannot be Government had not fully Association, put forward same tax benefits to the players and the Treasury. delivered, and a number of understood the cases it put three alternative amendments bingo industry as had been Having delivered positive operators concerned about to Customs and Excise and to the Bill. These reflected afforded to pools and betting. results for all involved, Gordon higher tax bills. made this point in discussions more accurately the Betting had been lobbying Brown clearly wanted to The Bingo Association’s with the Treasury. discussions that had taken hard to have its tax regime repeat the success with bingo. condemnation of the 9 April A briefing, entitled ‘A Fair place with the industry and simplified and for the overall The industry made clear that announcement, issued on Shout For Bingo’, was were more consistent with rate of tax to be reduced, there were no obvious the same day, highlighted the circulated to MPs ahead of what had originally been backed up by the threat of parallels between bingo and opportunity for growth that the reading of the Finance Bill o Continued on Page 4 The Bingo Association and National Bingo Game Annual General Meetings 2003 Moving to a new venue for April Budget of a 15 per cent with the current plans that 2003, this year’s AGMs Gross Profit Tax and continued the Board has for evolving reflected the growing VAT charging, was the into the Gambling recognition of bingo’s Treasury’s Economic Minister Commission when the new importance in society, with John Healey. Mr Healey Gambling Bill sees the light a number of high profile indicated that the current of day. He also tried to speakers appearing at the strain on the public purse assure members worried event. Among the guests following the war against about the threat of who came to speak at the Iraq was a reason why the competition from casinos in impressive Queen Elizabeth Chancellor had retained the Government’s proposals Chairman of The Gaming Board, Peter Dean CBE addresses the delegates II Conference Centre in VAT on par fees, an by describing the bingo London were two ministers, explanation that failed to business as ‘remarkably under new legislation and by the Gambling Industry an opposition spokesperson satisfy those attending. robust’ during both good does not want to adversely Charitable Trust in the new and the chairman of the The Chairman of The and bad trading conditions. affect the ‘significant Gambling Bill, echoing the country’s gambling regulator. Gaming Board, Peter Dean, Richard Caborn of the business that clubs have points raised by the Bingo Perhaps the most eagerly also took the opportunity to DCMS was the second built up during the years’. Association’s Sir Peter Fry in awaited speaker at the event, address the Associations’ minister of the day to speak. The minister in charge of his Chairman’s report at the following the disappointing AGMs once again. Mr Dean He told delegates that he gambling also stressed the start of the day, and urged tax announcement in the brought members up to date wants the industry to thrive importance of the role played o Continued on Page 6 10 mini digital cameras to be won! see page 11 news The National Game Bingo in the news Quarterly news and update from Chief Executive, Paul Talboys The last issue of Bingo Link was announced, as this is not what players published at the end of March, giving and the industry had been led to believe Our last Big Game on 30 March was a great success, details of media coverage obtained for in the 12 months running up to the producing a £500,000 prize for a lucky player at Mecca, January, February and March. April 2003 Budget. All UK Members of Talbot Road, Blackpool and regional prizes of over £2,000. Unfortunately our news monitoring Parliament have been briefed on the The variable stake software performed well, despite service was unable to give us details of subject and a number of local MPs are teething problems, providing the National Game with coverage for the second quarter (April, now coming forward to support clubs much needed stake flexibility and better control over prizes. May and June) at the time of going to in their constituencies. The current crucial issue is that of GPT. The Chancellor’s press. However, it is clear to see that it May was also a good month for Budget announcement has been seen by many as a has been a busy period for bingo. coverage, which was firmly focused on U-turn by the Government who have deceived and misled April saw the Budget announcement women’s weekly magazines, with three the industry in the run-up to this ruling being announced. made on bingo Gross Profit Tax (GPT) key features appearing in Chat, Bella There is a role for everyone in the industry in making which stimulated a great deal of and Take a Break magazines. One of sure that this matter is revisited and it is important that coverage in all daily national these was our £950,000 Big Game winner we work hard to keep the issue high profile. newspapers. There has also been follow- from December 2002. Local coverage has I hope to be able to write to you in the coming weeks up coverage on this subject. The Bingo also been strong as a number of winners confirming details of our next Big Game in October. Association has brought pressure to have been encouraged by their club An influencing factor will be the results of the consumer bear on HM Treasury to review what was managers to agree to publicity. research that will be taking place shortly and will give us a clearer picture of who is playing, who is not playing, why and what might encourage them to try bingo or go more often. This research will also have an Biker Bingo in impact on the script of a new television commercial that is being developed to sit alongside our existing Bournemouth executions (football mum and army assault course) and is due to air in October. Yukio Kagayama, of Team I hope that you all have a Rizla Suzuki paid a visit to good summer and enjoy Club Grand in Bournemouth any leave that you can on 14 March. The Superbike manage to take. rider had always wanted to have a go at bingo and was National Bingo Game: key statistics joined at the club by a film Total prize money since the game began £738,549,521 crew for satellite and cable Total prize money played for in 2002 £51,350,136 channel Men and Motors, Yukio Kagayama and Club Grand Managing Partner Simon Bartlam Total prize money played for in 2003 to date (May) £20,147,818 Biggest single prize £950,000 who wanted to capture the Bournemouth area, will this year, riding a Suzuki the experience. be taking part in the British GSX-R1000 at speeds of Biggest games for 2002 Yukio, who lives locally in Superbike Championships up to 200mph. Tuesday 30 April with ticket sales of 940,039 Tuesday 28 May with ticket sales of 915,514 Biggest games to date for 2003 Sunday 27 April with ticket sales of 825,523 Sunday 26 January with ticket sales of 795,373 Diary dates 2003/2004 Warner 8 July The Bingo Association 15–16 Oct The Betting Show holiday Golf Challenge National Motorcycle BINGO LINK is published by the The Bingo 16–18 July Asian Amusement Museum, Birmingham, UK winner Association, Lexham House, 75 High Street North, Expo 2003, Suntec Int 11–12 Nov European i-Gaming Thank you to all who Dunstable, Bedfordshire LU6 1JF. Exhibition Centre, Singapore Congress and Expo. entered our competition Tel: 01582 860921. Fax: 01582 860925. Tel +65 6322 2749 Hotel Rey, Juan Carlos, Email: [email protected] www.aae-expo.com Barcelona, Spain for a Warner Holidays Editor Steven Baldwin Classic Resort weekend 16–18 Sept G2E Gaming Expo, Las Vegas Convention 2004 break for two.