The smoking ban in Scotland has led to falling revenues at bingo clubs and the chairman of the Bingo Association, Sir Peter Fry, is asking the Scottish Parliament to support his calls for tax relief from Westminster. Until the new law comes into effect next September, when bingo clubs will be able to offer a wider variety of games, it is likely that revenue will continue its downward trend. The smaller clubs, mostly in areas with little alternative employment or entertainment, could be forced to close.

Around 3,500 people are employed by the £300 million (US$566.3 million) Scottish bingo industry. The major operators own around half the clubs and are more able to sustain the loss of revenue than the smaller operations. Since the smoking ban came into force on 26 March, five bingo clubs have closed and profits for smaller clubs have fallen by as much as 96% in some cases. The argument for tax relief is that bingo, unlike the lottery and bookmakers, must pay both bingo duty at 15% and VAT at 17.5%.

Next year the smoking ban will apply to England and Wales as well. The UK bingo industry as a whole is presently valued at £1.9 billion (US$3.6 billion). The experience of bingo operators in Scotland, where the severity of the decrease in admissions and revenue was not anticipated, is causing concern to operators south of the border. The Bingo Association has already written to the Treasury to highlight the severity of the situation in Scotland and seek support to enable clubs to survive the transition period. (E-10.03.06)

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