After several months of campaign and petition letters, bingo giants Rank and Gala Coral finally obtained the necessary backup for a tax reform. The Department for Culture, Media and Sport of the United Kingdom has informed that it will start to pressure chancellor Alistair Darling for a bingo tax reduction before this year’s budget is released.

Currently, bingo companies have to pay two different taxes: VAT, 17.5 percent, and Gaming Duty, 15 percent. This heavy taxation plus the falling in admissions due to the smoking ban and the Gambling Act, has caused several bingo venues to close and many are experiencing financial problems that might lead to their closure.

“The message we are giving the Chancellor and the Prime Minister is 'if you give us the same tax treatment as other gambling industries, it will be an investment that will drive up admissions',” Neil Goulden, Gala Coral’s Chief Executive Officer, told the press.

If the tax reform is approved soon, it could prevent the closing of about 100 bingo clubs across the United Kingdom, which have already announced they will stop operations in the next few months if the situation does not improve.