Buzz Bingo Boss Warns Of Venue Closures As Tax Hike Looms On Gambling Firms

Dominic Mansour chief executive of Buzz Bingo has raised serious concerns about potential closures across the company’s 79 bingo halls should the government proceed with new tax increases on the gambling sector. The warning comes amid heightened calls for higher taxes on online gambling and gaming machines as the Chancellor prepares the Autumn budget announcement for 26 November. Former Prime Minister Gordon Brown has led a group of over 100 Labour MPs urging for an increase in gambling taxes promising billions in additional revenue to tackle child poverty.

Mansour, speaking to The Sunday Times, stated that a significant hike in taxes would force the company to shut a considerable number of its venues and make staff redundant. He pointed out that a moderate rise would still force Buzz Bingo to scrap millions of pounds in planned investment, including a £50 million refurbishment programme. He insisted that any funds redirected to the Treasury would otherwise have been invested in upgrading premises, supporting jobs for painters, decorators, carpet fitters and builders throughout the UK.

Buzz Bingo presently operates across the country providing inperson bingo experiences alongside substantial online gambling and gaming machine services. The suggested rise could see tax on online casinos and gaming machines surge from around 21 percent and 20 percent respectively to as high as 50 percent. Mansour underlined that such a move would leave the business unable to sustain operations at many of its venues leading to widespread closures and job losses.

The gambling industry is pushing back strongly against the proposed measures. Joanne Whittaker chief of Betfred has publicly indicated that higher taxes would force the closure of all of the company’s 1300 betting shops. Industry representatives have also warned that steep taxes risk pushing customers towards the black market compromising player safety and undermining efforts at responsible gambling practices.

MPs and the Treasury committee have responded critically to these warnings. Dame Meg Hillier chair of the committee has argued that the government must act decisively to address the well documented social harms of problem gambling and dismissed as unfounded industry claims of no social impact. The committee insists that online betting games are extracting growing sums from vulnerable people funnelling them into riskier segments of the industry and strengthening the case for reform.

Bingo halls like those run by Buzz Bingo have long played a distinct community role. Mansour stressed the difference between social bingo and alternative gambling forms noting the company’s work with the Gambling Commission to protect vulnerable players. Despite a 5 percent rise in sales to £217 million in the latest financial year the company recorded widened pre tax losses of £317 million. Its restructuring during the pandemic led to the closure of 26 sites and changes in ownership. Past experience and rising costs have left the company highly sensitive to any further reduction in operating margins.

The government maintains that decisions over taxation remain the responsibility of the Chancellor. An official statement emphasised that the official consultation focuses largely on the expansion of remote gambling since 2015 which operates with fewer staff and lower overheads but delivers significantly higher profitability. The sector faces a pivotal few weeks as it awaits budget decisions that could reshape the landscape for years to come.