UK Discuss Mandatory £100M Levy to Fund Gambling Harm Treatment
The UK government looks set to enforce a mandatory levy on gambling companies to raise £100 million each year to support research, education, and treatment for gambling-related harms.
UK flag with Big Ben in the background. UK gambling operators to pay annual levy for harm prevention.
LISTEN TO THIS ARTICLE:The policy, expected to be announced soon, marks a departure from the current voluntary system, which allows operators to decide how much to contribute and where the funds go.
Labour is reportedly ready to approve the plan, originally proposed by the previous government, and it is thought that the gambling minister, Baroness Twycross, could unveil the new system as early as Wednesday. The levy will take effect in April 2025.
Under the new “statutory levy”, operators will be required to allocate 1% of their gross gambling yield, the total amount they profit from UK gamblers, to harm prevention initiatives. Recent data from the UK Gambling Commission shows the industry earned £10.9 billion in the past year, meaning the levy would raise approximately £109 million annually.
Land-based operators, such as high street bookmakers and casinos, may benefit from a lower rate of 0.4% due to their higher operational costs. Businesses with gambling revenues below £500,000 will also be exempt, according to details from last year's consultation on the proposal.
A Milestone in Tackling Gambling Harms
Iain Duncan Smith, chair of a parliamentary group focused on gambling-related harms, celebrated the levy’s introduction. He described it as a “seismic moment” and a “huge step forward” but said that there is still “much more to do”.
The funds are expected to support various initiatives, including new NHS addiction clinics and smaller charities offering services such as school education and counselling for those affected by gambling-related issues, including suicide.
A key point of contention remains the distribution of the collected funds. Currently, GambleAware is the largest recipient of voluntary industry donations, receiving nearly £50 million between April 2023 and March 2024. However, sources suggest that the Office for Health Improvement and Disparities (OHID) is competing with GambleAware to become the government’s preferred overseer of the new system.
The gambling minister’s upcoming appearance at GambleAware’s annual conference in December is expected to provide further clarity on the government’s direction.
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Industry Response to the Levy
While the Betting and Gaming Council (BGC) initially supported the idea of a statutory levy when it appeared in a government white paper in April 2023, the group has voiced new concerns as the policy gains momentum.
The BGC previously proposed a mandatory levy, and we welcomed the government’s announcement of a new system of payments with continued independence of funding allocation. The BGC remains concerned that there should be a sliding scale for land-based businesses that have much higher fixed costs, such as staff and premises, and that funding for longstanding, expert providers of research, prevention and treatment services in the third sector is protected.
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