Bingo halls at risk if Burnham hikes taxes, Mecca Bingo owner warns

Rank Group, the owner of Mecca Bingo, has warned that the proposed £460m hike in gambling taxes could put bingo halls in peril if implemented by Andy Burnham as Prime Minister. Richard Harris, chief executive of Rank Group, expressed concern over the potential impact on jobs and the hospitality experiences provided by these halls to millions of customers.

The company paid over £225m in taxes last year and cautioned the government against further tax hikes on the gambling industry. A left-wing think tank had previously speculated that Burnham could raise £460m by increasing tax on slot and fruit machines from 20 to 40 percent, which Rank Group argued would negatively affect venue viability and lead to reduced tax receipts within a year.

Despite the scrapping of a tax on physical bingo halls, the popularity of gambling machines at Mecca Bingo sites means the firm could still suffer from a tax hike. Harris highlighted that higher gambling taxes could result in the closure of beloved bingo halls and casinos, negatively impacting customers in local communities. Rank Group is focusing on driving revenue from its digital machines and electronic gaming at its Grosvenor Casino and Mecca Bingo sites.

The company reported a five percent increase in gaming revenue to £835m in the year to June, but pre-tax profit fell by 15 percent to £39m, partly due to a £7.5m impairment charge related to gaming machines. Rank Group operates around 50 venues in its Grosvenor Casinos arm, which generated an average £7.6m gaming revenue per week, up five percent, and 850 new machines in 37 of its casinos to boost turnover.

However, the Middle East conflict impacted its table gaming performance. Rank Group has been reducing its Mecca bingo hall estate, stating that it has a "much healthier estate of core clubs and flagship venues" that can compete effectively in their marketplaces. Gaming machine revenue at Mecca jumped by six percent and accounted for 42 percent of the business's gaming turnover across the year.

Entain, a FTSE 100 owner of Ladbrokes, criticized the government's "significant and disappointing" hike in taxes on remote gambling, stating that it affected its underlying earnings.