Taxation

Great Britain is Rank’s principal market. Our bingo clubs and casinos in England, Scotland and Wales account for more than 80% of Group revenue and operating profit (before central costs).

The UK is the principal tax jurisdiction for Rank, with 80% of the Group’s revenue in 2008 (2007: 84%) generated by businesses in England, Scotland and Wales.

The table below sets out the different types of taxation that apply to each sector in which Rank operates and highlights the inequitable treatment of bingo, which is the only form of gambling in the UK to bear double taxation (where revenue is subject to both VAT and gross profits tax). This situation continues despite intensive lobbying by Rank and the rest of the bingo industry.

At a time when clubs are closing and the economy is in recession, it is patently unfair for low-stakes social gaming to continue to bear this burden. We will continue our lobbying activity in conjunction with our members.

UK tax regime

	Gaming duty/ Gross profits tax	VAT	AMLD (annual)
Bingo
Main stage bingo	20%	–	–
Interval bingo	20%	–	–
Category B3 gaming machines	–	17.5%	£2,285
Category C gaming machines	–	17.5%	£860
Casino
Casino games and poker (tax on gaming win in a six-month period)	15% – first £1,975,000	–	–
	20% – next £1,329,500	–	–
	30% – next £2,329,500	–	–
	40% – next £4,915,500	–	–
	50% – over £10,549,500	–	–
Category B1 gaming machines	–	17.5%	£2,905
Interactive*
Sports betting	15%	–	–
Gaming (casino, bingo, poker)	15%	–	–

1. * Rank’s Interactive business is based offshore (Alderney, Channel Islands) and is not subject to this taxation.