Introduction Background Note
6.There are two elements to this section; the first increases the rate of bingo duty, the second increases the money prize limit that may be distributed or offered in the course of small scale bingo conducted on certain premises without incurring a charge to bingo duty.
7.Bingo duty is calculated at the rate of 15 per cent of a person’s bingo promotion profits for an accounting period. The rate was set when the current charging structure was introduced on 27 October 2003.
8.The rate increase is being made as part of a package of measures designed to simplify the tax treatment of fees charged in relation to equal chance gaming. These include the removal of VAT from bingo participation fees and the imposition of gaming duty to charges made in connection with card room gaming in casinos.
9.The second element of the section is concerned with the exemption from bingo duty provided for small-scale amusements provided commercially which are restricted to specified premises and operate within certain monetary limits. This includes small scale bingo played in venues such as family entertainment centres, adult gaming centres and pleasure fairs provided by travelling showmen in certain circumstances.
10.The increase in the money prize limit has been made to continue the alignment with the limit imposed for the purposes of the social regulation of prize gaming conducted in such premises. That increase, which will take place by Regulation, follows a review and consultation exercise undertaken by The Department for Culture, Media and Sport.