Casino bosses warn tax changes could drive poker games underground
Posted by Gavin Smith on 29 Apr 2009 at 08:04
Executives at one of Britain's biggest casino companies have warned government tax changes could lead to illicit poker venues appearing as official card rooms may have to close.
Rank Group was reacting to the government's decision to up tax on poker profits from 15 per cent to 50 per cent.
According to the Mail on Sunday, Rank chief executive Ian Burke wrote a letter to chancellor Alistair Darling. He said the change could "result in the closure of card rooms and that as a consequence, demand for games of poker will be satisfied in unregulated, unsupervised and untaxed premises".
The company is the country's biggest casino poker room operator, and runs games in two thirds of its network, which consists of 33 casinos.
Rank also said it expects to lose about £2.7 million every year due to the new rules, and is also taking a hit from the chancellor's proposals to up bingo tax from 15 per cent to 22 per cent.
Mr Burke is also calling on the chancellor to rethink the poker changes and is also seeking an urgent meeting on the issue.
Poker has become increasingly popular in Britain thanks to televised tournaments, online poker firms, and a trend which has seen the game crop up in a number of high profile movies.
Poker playing was also given a boost in 2005 when the gambling act meant pubs could host poker games at a limit of £10 per player.
Casino operators must have a special licence to hold poker games in a card room, but face a battle against internet poker companies which pay little or no tax and are often based offshore.
Casinos make money from poker card rooms either by renting out the rooms themselves, taking are slice of each part or charging a fee to enter.
