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The UK government wants to spend up to PS100 million ($126,000,000) per year on harm reduction and research.
According to a UK Department of Culture, Media and Sport statement released on Wednesday, the planned statutory levies on all licensed operators range from 0.1% up to 1.1% of gross gambling yield, depending upon the sector and type of gambling.
Over the past few years, the UK has introduced stricter regulations for gambling. This includes requiring operators reduce the intensity in online games, conduct financial vulnerability checks on players, and give customers better control over what marketing they receive. The majority of these measures were announced by the Conservative government that lost the General Election in July to the Labour Party.
According to the statement, the government will review this charge within five year of its introduction. The first formal review is expected in 2030.
Last month, UK gambling stocks surged after UK Chancellor Rachel Reeves budget didn’t include the tax hikes that were widely expected on this sector.
The statutory levies are a separate initiative that was proposed by the Conservative government as part of a white paper in 2023 on gambling reform.
Matt ZarbCousin, a campaigner against gambling, welcomed the announcement. He said that he is “really happy” that this initiative will be introduced. Zarb-Cousin stated that the new law would “totally transform” research, prevention and treatments of gambling harm.
In anticipation of a levy, the four largest gambling operators, Entain Plc (owner of William Hill), Flutter Entertainment Plc (Owner of Evoke Plc) and Bet365, had pledged to donate 1% of gross gambling profits to a charity funded by the industry, GambleAware.
The charity reported that it received PS49.5 millions in donations for the year ending March. Of this, PS46.6 Million came from the four largest operators.
This is a major step in protecting people against gambling harm. “The levy will also ensure continued support via a statutory framework, something we’ve been advocating since 2017”, said GambleAware CEO Zoe Osmond in a press release.
The Betting and Gaming Council (which represents the industry) has said it supports the plans for the levies outlined in the proposal from last year.
In a press release, Betting and Gaming Council CEO Grainne Hurst stated that “Ministers should not forget the fact that the vast majority (22.5 million) of people who bet on the lotto, at bookmakers, in casinos, bingo halls and even online, do so in a safe manner.”
