The United Kingdom will witness new government proposals that will be announced imminently where the current voluntary donation system will be replaced by the statutory levy, compelling casino operators to contribute a set percentage of their gross gambling yields in order to address the adverse impacts of gambling. The industry bodies and organizations project mixed reactions prior to the announcement, giving rise to uncertainty surrounding the progress and the effect when the levy is finally implemented.
Details of the New Mandatory Levy
The new statutory levy will be announced by Baroness Twycross, the UK gambling minister, as a replacement of the existing voluntary system that has raised millions in pounds.
Bookmakers and online casinos in UK will have to pay a levy of £100 million a year to fund education, research, and the treatment of problem gambling harms under the new plans announced by the government. They will also need to contribute a total of 1% of the gross gambling yields, amounting to an estimated value of £109 million, calculated on the recent earnings of the industry standing at around £10.9 billion. Compared to previous consultations, this is almost 0.4% higher.
The funds will be used for various initiatives such as the development of new clinics for NHS specialist addiction and provide assistance to small charities through counseling and education, especially to those who are severely affected by harms related to gambling, including suicide. According to Iain Duncan Smith, chairman of the All-Party Parliamentary Group (APPG) of MPs said that for the very first time the UK gambling industry is mandated to pay for the gambling harm that the industry causes. While there are many things which need to be done, this seismic movement will serve as a massive step forward and raise the required money to treat the gambling harms.
Industry Reactions and Implementation Challenges
While one side of the industry has shown support for the new mandatory levy, industry lobby, the Betting and Gaming Council has shown mixed reactions since 2022. The lobby group seems to have changed their mind with the political support they have gathered.
Brigid Simmonds, the former chair of BGC, mentioned in 2022 that the position of such a mandatory levy on the gaming industry is a backward move with no actual impact on gambling related harm. However, a spokesperson for the BGC said on Monday that the industry body previously proposed the mandatory level, welcoming the government’s present announcement for the new system of payments, considering there is continued independence of the allocation of funds.
The co-founder of Gamban, Matt Zarb-Cousin expressed his views through an email to NEXT.io, stating that he has been campaigning for five years and was finally delighted to witness the White Paper. He expects this move to transform prevention, research, and treatment of problem gambling and other gambling-related harms.
Another prominent charity, GambleAware, that works with the Gambling Commission and supports the National Strategy to Reduce Gambling Harm has gathered adequate financial contributions from licensed casino operators. The organization plans to use the accumulated funds to support education, research, and treatment programs at local and national levels.
Under the existing voluntary system, the gambling charity, GambleAware has secured the largest amount of nearly £50 million in pledges and donations over the last year. However, the move towards mandatory levy raises concerns about whether this role be retained in the future.
