TIDMRNK
RNS Number : 6668B
Rank Group PLC
30 October 2009
30 October 2009
Rank makes Pre-Budget Report submission
The Rank Group Plc ('Rank') has written to HM Treasury in advance of the
Government's 2009 Pre-Budget Report.
The letter, sent by Rank chief executive Ian Burke to Exchequer Secretary to the
Treasury, Sarah McCarthy-Fry contains three requests:
1) that the level of bingo duty be harmonised with the 15% rate currently
applied to most other forms of betting and gaming in Great Britain;
2) that revenue from player-to-player card room games in casinos be
disaggregated from casino table games for the purposes of taxation;
3) that there be no further increase in the level of taxation applied to
amusement machines.
A full copy of Rank's submission is available from:
http://www.rank.com/downloads/prebudget_report_submission.pdf
- Ends -
Contacts:
The Rank Group
Dan Waugh, director of investor relations 01628 504053
Financial Dynamics
Ben Foster/Marc Cohen 020 7831 3113
Notes to editors:
The Rank Group Plc
The Rank Group Plc ('Rank') is a leading European gaming
and betting business, based in the UK and listed on the London Stock Exchange
(RNK.L). Its principal activities are the operation of bingo clubs and casinos
with complementary interactive gaming and bookmaking services.
For more information about The Rank Group, visit www.rank.com.
Gaming and betting taxation
The majority of betting and gaming activities in Great Britain are subject to a
15% rate of duty, applied to revenue. Bingo is uniquely taxed at the higher rate
of 22%. The table below sets out the structure of betting and gaming taxation in
Great Britain.
+------------------------------------+------------------------------------+
| Activity | Duty rate |
+------------------------------------+------------------------------------+
| Bingo (in a licensed club) | 22% |
+------------------------------------+------------------------------------+
| Bingo (online) | 15% |
+------------------------------------+------------------------------------+
| Sports betting (in a licensed | 15% |
| betting office) | |
+------------------------------------+------------------------------------+
| Sports betting (online) | 15% |
+------------------------------------+------------------------------------+
| Football pools | 15% |
+------------------------------------+------------------------------------+
| Casino games and poker (in a | 15% to 50% |
| licensed casino) | |
+------------------------------------+------------------------------------+
| Casino games and poker (online) | 15% |
+------------------------------------+------------------------------------+
Amusement machines are subject to amusement machine licence duty (GBPnil to
GBP2,815 per year depending upon the category of machine) and VAT at the
standard rate.
For more information on gambling taxation, visit
www.rank.com/our_industry/taxation.jsp
The effect of recent tax changes on the bingo industry
During the five months following HM Treasury's Budget 2009, when the Government
increased the rate of bingo duty from 15% to 22%, at least 20 licensed British
bingo clubs closed - a rate of four closures per month.
This represents a worsening of a long-term trend. Since 2003, the net number of
licensed bingo clubs operating in Britain has fallen from approximately 700 to
fewer than 580. According to the Gambling Commission, more than 2,000 jobs have
been lost as a result of these closures. The high level of taxation applied to
bingo clubs over this period (substantially higher than other forms of gaming
and betting) is one of the main reasons for this decline.
This information is provided by RNS
The company news service from the London Stock Exchange
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