Casinos and bookmakers in Great Britain will be required to contribute £100 million ($125.6 million) annually to fund research, education, and treatment for gambling-related harms under a new statutory levy set to take effect in April.
The levy, part of government plans announced by Gambling Minister Baroness Twycross, replaces the current voluntary donation system, ensuring mandatory contributions from industry operators. The initiative also introduces stake limits for online slot games, £5 ($6.3) per spin for individuals aged 25 and over and £2 ($2.5) for those aged 18–24, to mitigate gambling-related risks among younger players.
Under the proposed levy, firms will pay on average 1% of their gross gambling yield—the revenue generated from gamblers in Britain. The levy will be charged at a set rate for all holders of a given Gambling Commission license, ranging from 1.1% to 0.1% of Gross Gambling Yield (GGY), or equivalent, depending on the sector.
Based on recent figures from the Gambling Commission, which reported industry revenues of £10.9 billion (13.7 billion) in the last year, this would generate approximately £109 million ($137 million) annually.
The funds will support various initiatives, including NHS addiction clinics and smaller charities offering educational programs, school interventions, and suicide prevention counseling. Half of the funding generated will directly benefit the NHS-led gambling treatment system in England, with additional funds allocated to appropriate bodies in Scotland and Wales.
The move has been hailed by Iain Duncan Smith, chair of the all-party parliamentary group (APPG) on gambling harms. “For the first time, the gambling industry will be mandated to pay for the harm they cause. Whilst there is much more to do, this is a seismic moment and a huge step forward,” he said.
The government has confirmed that funding allocation decisions will be made independently of the gambling industry. The Gambling Commission, under the strategic direction of the government, will oversee the distribution of funds.
Baroness Twycross is expected to address these issues at GambleAware’s annual conference in December, an event that could prove contentious if the UK’s leading gambling charity is excluded from future funding.
Twycross stated that the introduction of the levy, combined with new regulatory measures, represents a significant step toward reducing gambling-related harm. “We are absolutely committed to implementing strengthened measures for those at risk, as well as providing effective support for those affected,” she said.
Claire Murdoch, NHS national director for mental health, highlighted that referrals to NHS gambling services have increased by 129% over the past year, reinforcing the urgency of these measures.
The Betting & Gaming Council (BGC), representing the industry, has expressed mixed views on the levy. While initially supportive of a mandatory payment system, the council has voiced concerns over the financial burden on land-based operators and the protection of longstanding third-sector service providers.
A BGC spokesperson reiterated support for a sliding scale for businesses with higher fixed costs, stating the need for an independent allocation of funds.
Original article: https://www.yogonet.com/international/news/2024/11/27/86603-uk-gambling-industry-faces-100-millionplus-annual-levy-to-tackle-harms-
