HMRC abolishes Bingo Duty as a slight alleviation of the RGD increase

(AsiaGameHub) –   HM Revenue & Customs (HMRC) has abolished the 10% tax on gross profits for UK-based land-based bingo venues.

This policy was initially detailed in the Budget presented by Chancellor of the Exchequer Rachel Reeves in November 2025 and becomes effective from today, 1 April 2026.

According to HMRC, bingo operators are no longer required to submit returns for profits from land-based games, and the relevant guidance will be updated in the future to incorporate these amendments.

A statement clarified: “Bingo Duty operators currently registered with HMRC will continue to be able to submit any outstanding returns online until April 2030 and notify HMRC of any over or under declarations from previous accounting periods.”

This adjustment will help mitigate the impact on bingo hall operators, as HMRC simultaneously implements a rise in Remote Gaming Duty (RGD) from 21% to 40% starting today, which affects online bingo betting.

HMRC reaffirmed: “Bingo Duty does not apply to non-profit making bingo, domestic bingo, or machines subject to Machine Games Duty.”

Following the budget announcement in November, Rank Group Plc, which operates Mecca Bingo, praised the move to exempt land-based bingo halls from the 10% levy.

The company said the reform would aid in preserving jobs and encouraging investment in the land-based industry, having earlier cautioned that a lack of tax reform might result in the shutdown of venues.

Nonetheless, the reaction from the wider industry has been more measured. Buzz Bingo CEO Dominic Mansour called the removal a “full house win” for community clubs, but cautioned that its positive effect is being lessened by the almost two-fold increase in RGD.

Ahead of the Budget, Mansour had emphasised that equitable tax policies were crucial to safeguarding approximately 2,500 jobs and maintaining the company’s portfolio of 79 UK venues.

Tension persists regarding wider regulatory progress, as the government has signalled that it requires more guarantees from the industry on player safety, especially in settings with higher stakes.

Furthermore, there is ongoing dissatisfaction over whether the Labour government will alter the existing 80/20 rule, which restricts the ratio of category B to C/D gaming machines in high street bingo halls and Adult Gaming Centres (AGCs).

In April, the Department for Digital, Culture, Media and Sport (DCMS) declared that it had stepped in to halt the proposed shift to a 50/50 machine ratio.

Citing pressure from local councils concerning high street gaming, DCMS stated that adjustments to gaming machine ratios will not proceed in the present legislative session. Instead, DCMS will focus on commitments from the White Paper, including the statutory levy and online stake limits for UK gambling licenses.

Trade associations for land-based gambling, such as BACTA and leading operators, have voiced their dissatisfaction with the slow speed of regulatory change, contending that postponements are hindering bingo halls from earning the income required to update their offerings and rebound from pandemic-related setbacks and increasing operational expenses. The Treasury had previously endorsed direct reforms for gambling venues as a set of initiatives to help control rising costs for high street enterprises.

Although the end of Bingo Duty is a welcome and long-sought relief, its full benefit is counterbalanced by a wider increase in gambling taxes, forcing operators to manage a tougher landscape in the UK’s new era of a 40% RGD.