UK Government Set to Introduce £100m Levy on Gambling Operators
Outlined in the UK White Paper, the levy will require online gambling operators to contribute 1% of their gross gambling yield, while traditional betting shops and casinos will pay around 0.4%.
The UK Government is reportedly preparing to announce a new statutory levy on gambling companies, aimed at raising approximately £100m ($125.87m) annually for research, education, and treatment of gambling harms.
Outlined in the UK White Paper, the levy will require online gambling operators to contribute 1% of their gross gambling yield, while traditional betting shops and casinos will pay around 0.4%. Reports suggest that Gambling Minister Baroness Twycross could confirm this initiative as early as Wednesday, with Labour expected to continue implementing the framework set by the previous Government. The levy could come into effect from April next year.
Addressing Criticism of the Voluntary Levy
The current voluntary levy system has faced criticism for inconsistent contributions, with some operators reportedly paying as little as £1 towards gambling harm prevention and treatment. NHS England and GambleAware have previously voiced their support for a mandatory levy, citing the need for stable and sufficient funding.
In June last year, these organisations advocated for the compulsory system, emphasising its role in ensuring equitable contributions from all operators.
Industry Response to the New Levy
A spokesperson for the Betting and Gaming Council (BGC) commented:
"The BGC previously proposed a mandatory levy and we welcomed the Government’s announcement for 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."
