Casinos and bookmakers across Britain will face a mandatory annual charge of £100 million to fund research, education and treatment of gambling-related harm, under new government proposals expected to be announced soon.
The aim of this move is to replace the current voluntary donation system with a statutory levy, forcing gambling operators to contribute a fixed percentage of their gross gambling revenue to address the negative consequences of gambling. This shift would mark a significant change in how the industry supports harm reduction initiatives.
Sources indicate that details of the levy will be announced soon, with implementation possibly starting from April next year. Under the proposed terms, gambling companies would have to pay 1% of their gross gambling revenue – the total amount they win from UK gamblers – to fund support services. Based on recent figures from the Gambling Commission, which reported profits of £10.9 billion in the sector last year, this could generate around £109 million annually.
However, previous consultations have proposed a lower rate of 0.4% for land-based operators such as major bookmakers and casinos, taking into account their higher operating costs. Smaller businesses with gambling revenues of less than £500,000 are expected to be exempt from the levy.
Iain Duncan Smith, chairman of the All-Party Parliamentary Group on Gambling-Related Harm, welcomed the initiative, saying: “For the first time, the gambling industry will be mandated to pay for the harm they cause. This is an important step forward in tackling gambling-related problems.”
The funds raised are expected to support a range of initiatives, including the creation of new specialist NHS addiction clinics and funding for charities that provide education, advice and support services to people affected by gambling-related problems.
A potential point of contention is the allocation of the funds, especially in relation to GambleAware, Britain’s largest gambling charity. Under the current voluntary system, GambleAware is the largest recipient of industry donations. There are indications that the Office for Health Improvement and Disparities (OHID) could become the government’s preferred destination for funds raised under the new levy.
The industry’s trade body, the Betting and Gaming Council (BGC), had initially expressed support for a statutory levy when it was proposed in a government white paper. However, the BGC has since raised its concerns. In a statement, a spokesperson for the BGC said: “We previously proposed a mandatory charge and welcomed the government’s announcement for a new payment system with independent allocation of funding. However, we remain concerned that this will create a sliding scale for land-based businesses with higher fixed costs and protect funding for established providers of research, prevention and treatment services.”
The Ministry of Culture, Media and Sport declined to comment on the upcoming announcement.