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New levy to raise approximately PS100,000,000 for new funding in research, prevention and treatment.
After the publication of the whitepaper on gambling in April, government is now taking a next step to mandate payments from the industry by launching a public consultation on the design and proposed gambling operator levies.
At the moment, not all gambling operators contribute equally to the voluntary levies. Some operators pay as little as 1 PS towards research, treatment and prevention. The government is taking steps to ensure that all operators pay their fair share.
The Government wants to charge online gambling operators a new fee of 1% of their gross gambling revenue, while betting shops and traditional casinos would pay an estimated 0.4%.
The white paper proposes a fair and equitable approach to the levy rate between operators. It takes into consideration, for instance, the differences in operating costs, and the level of harmful gambling that is associated with various gambling activities.
Lucy Frazer, Culture Secretary, said:
In our effort to protect those at greatest risk from gambling harm, we are introducing a new tax on gambling operators that will pay for research and treatment.
This consultation will allow the gambling industry, clinicians and those who have suffered gambling harm to voice their opinions on the proposed gambling operator levies.
This levy is a way to strengthen the safety net, and to deliver on our long-term goal of building stronger communities. It will also allow millions of people gamble in a safe environment.
The technology has changed where, when, and how people play. Online gambling has increased significantly due to smartphones’ ease of use. People can now gamble anywhere and anytime.
The NHS Digital Health Survey shows that online slot and casino players have a higher rate of gambling addiction than the general population. In fact, the ‘problem gambling” rates are eight times greater.
The gambling industry won’t have any say in how money is spent on research, prevention, and treatment. The Gambling Commission, which is responsible for funding research and innovation, will instead distribute funds directly to UK Research and Innovation and the NHS. The levy is backed by legislation, which means that firms are required to pay.
The funding provided by the levy will provide substantial new investments for the NHS of England, Scotland, and Wales. This will improve access to treatment for those who have suffered harm from gambling. The levy will help develop a national approach to gambling prevention, and fund independent and high-quality research that can inform policy and practice.
The NHS announced in July that seven new gambling addiction clinics would open this year in Milton Keynes and Thurrock as well as Derby, Bristol. Blackpool, Sheffield, Liverpool, Blackpool, and Derby. The NHS announced in July that seven new specialist gambling addiction clinics would open in Milton Keynes, Thurrock, Derby, Bristol, Liverpool, Blackpool and Sheffield this year.
Stuart Andrew, Minister for Gambling, said:
We are working to quickly implement our bold reform plans because we know that gambling addiction is a serious problem.
This consultation will bring us closer to being in a position to provide PS100,000,000 of new funding to support research, prevention, and treatment. The NHS can also benefit from a ring-fenced investment to assist gambling addicts.
This new statutory levie will make sure that gambling firms are required to pay their fair share.
Health Minister Neil O’Brien said:
Gambling can ruin relationships and destroy people’s health and lives.
We believe that gambling companies should contribute their fair share to the cost of treatment, but we would like to hear as many opinions as possible on how the new statutory levies should be implemented.
We will continue to work with those who are affected by gambling harms. Twelve of the fifteen planned NHS gambling addiction clinics are now open across the UK, providing essential support services to thousands of people who experience gambling-related harms and their loved ones. The remaining three clinics are expected to be open by the end the year.
Henrietta Bowden Jones, National Clinical Advisor on Gambling Harms said:
“I welcome this Levy, which reflects the Government’s decision to fund Gambling Treatment, Prevention, Research and Education in an independent, evidence-based manner, allowing us to carry on our work to eradicate all gambling harms within society.”
NHS mental health director Claire Murdoch said:
The NHS has responded to this growing demand by opening up four new clinics for gambling addiction in the last few months. Three more will be opening later this year.
The NHS has been calling for a statutory levied since the early 1990s. It is right that this multi-billion dollar industry supports people who suffer from gambling addiction. I am happy that steps are being taken to protect people and prevent them from harming themselves in the first instance. We must continue to work together in order to provide effective treatment, prevention and education for this condition.
The government’s gambling paper published in April of 2023 outlines a number of measures that will improve player protections, reduce the risk of addiction to gambling, and minimize harms associated with gambling in the age of smartphones. The Government’s gambling white paper, published in April 2023, outlines a range of measures to improve player protections and reduce the risk of gambling addiction and harm.
The Government and Gambling Commission will continue to implement measures set forth in the white book with the aim of having key elements in place by summer 2024.
