It was revealed this week that a court decision could mean that the British Revenue and Customs authorities would have to pay a big sum to bingo operators, such as the Rank Group. Apparently, the tribunal considers that Value Added Tax on the bingo activity contravenes European Union regulations.

The Rank Group, owner of Mecca Bingo clubs, filed the case a few months ago claiming that VAT is applied to some bingo machines in the UK but not to all of them, creating a contradiction. According to Rank’s attorneys, the Group paid £36 million more VAT than it should have paid, a situation that happened to other operators, which could now be compensated.

“The same principles will apply to any taxpayer who has paid VAT on this type of bingo,” Deloitte Head of indirect tax Tony McClenaghan commented. “It’s a case of eyes down for other taxpayers to consider if they have claims to submit.” Consultant Deloitte was Rank’s advisor in the case.

For some months, land-based bingo operators have been fighting the effects of the smoking ban and a double taxation that has caused many halls to close due to a decline in their revenues.