Impact of Current Financial Crises on Online Bingo in the UK
Land-based bingo has taken a hard financial hit from the current worldwide recession. Gala, Buckingham, and Rank have all dealt with very challenging economic conditions not only due to the recession, but also because of the indoor smoking ban, a lower number of jackpots worth £500 and both VAT and gambling duty. Ian Burke, chief executive of the gaming group Rank recently lashed out at what he called government prejudice against the love for bingo game that characterizes its own core voters.
Players now have to pay 22% on what they pay, which is more than other forms of gambling. Bookies pay a gross profits tax of 15% on betting. Punters' winnings and stakes are free of taxes. Burke lashed out at the governments' actions, saying they are forcing bingo halls out of business in places where they are considered a positive social amenity.
But while land-based bingo has suffered, online bingo has grown. Buckingham Bingo has joined up with Virtue Fusion online, but it is yet to be seen if it will have the kind of success that Mecca, Gala, and Ladbrokesbingo are enjoying. The online bingo site Bingo Port has said that during the second and third quarters of 2008 the numbers of bingo players joining online bingo sites have risen rapidly. Though many believed the poor economic conditions would slow the growth, the opposite has happened.
The current financial crises shaking up economies all over the world have had a dual effect on bingo. Brick and mortar bingo halls have shut down all up and down the country, while online bingo has surged in popularity. Meanwhile those who liked going to the bingo hall every week are learning the ropes of socializing in online bingo game chat rooms.
