Online gambling company Rank Group fall in Bingo share values
Shares of one of the UK leading gambling companies, The Rank Group PLC, fell a staggering 12.2%, this was due to the surprise announcement from the UK budget for 2009. The government’s first announcement about the gaming industry in the UK was that it is going to abolish VAT (Value Added Tax) for bingo operators, this was welcomed with a smile from the bingo companies as that is what they have been campaigning for, in the last year. This is because bingo operators in the UK have to pay VAT and gaming duty, but other gambling operators only pay for the gaming duty.
But the smiles was short lived as they also announced that there will be a Bingo and Casino duty, and this taxation of bingo, which in The Rank Group’s biggest business sources, was increasing from 15% to 22%. A spokes person for the group stated, “After accounting for these additional costs, Rank anticipates that it will continue to operate within its banking covenants.”
The Rank Group has been petitioning for reductions in the tax on Bingo, as compared to the other forms of gambling, have been treated with prejudice. And the people that frequent the bingo halls are subjected to paying more than the people who visit the other gambling establishments.