BINGO clubs could have more money to invest following Government tax reforms announced today.

The industry will now be taxed on its gross profits instead of tax on bingo stakes.

According to John Healey, economic secretary to the Treasury, it will mean bingo clubs will be able to deliver higher prizes at lower prices and will enable clubs to invest more in the future.

Bingo is played by one in seven people in the North West. John Kelly, chief executive of Gala who own a club in Burnley, said the initiative was an important step to "modernising" the bingo tax regime.

"Gala has been experimenting with entrance fee abolition and we have found it works for both the company and its customers," he said.

"The Government's tax initiative has enabled us to end fees once and for all and to top up our prize fund." Sir Peter Fry, chairman of the Bingo Association, said: "We have been all around the country working with members and local customs and excise officers to try and ensure that the implementation goes as smoothly as possible."