UK To Impose Mandatory Gambling Levy Of Up To 1.1 Percent

November 27, 2024
Back
The UK government has announced plans to impose a levy of up to 1.1 percent on gross gambling yield to generate £100m to “guarantee increased, ringfenced and consistent funding to prevent and tackle gambling harm”, and confirmed earlier plans for online slots stake limits.
Body

The UK government has announced plans to impose a levy of up to 1.1 percent on gross gambling yield (GGY) to generate £100m to “guarantee increased, ringfenced and consistent funding to prevent and tackle gambling harm”, and confirmed earlier plans for online slots stake limits.

The levy will be between 1.1 percent and 0.1 percent, depending on the sector, the government said.

The Department for Digital, Culture, Media & Sport (DCMS) also confirmed that stake limits for online slots will be set at £5 per spin and £2 limits for ages 18 to 24, in line with what it called a “higher-risk gambling product associated with large losses, long sessions, and binge play”. 

Under 25s get lower limits in line with research suggesting that younger adults are “particularly vulnerable to gambling harm”, the DCMS said.

“Gambling harm can ruin people’s finances, relationships, and ultimately lives,” said gambling minster Fiona Twycross, a member of the House of Lords. “We are absolutely committed to implementing strengthened measures for those at risk, as well as providing effective support for those affected.” 

Specifics on which levy rate will fall on each gambling sector were not available at time of publication.

“The levy will be charged to all licensed gambling activity at varying levels depending on the sector and nature of the gambling activity to ensure impacts are proportionate,” the DCMS wrote. “Rates take into account the difference in operating costs and the levels of harmful gambling associated with different gambling activities.” 

The government press release did not mention a date for implementation, but a promise to review the levy every five years, with the first review in 2030, suggests a 2025 implementation.

The previous Conservative government had promised to implement the levy by September 2024, but the Labour government took power in July.

An October 2023 consultation had set a top limit of 1 percent, with 0.4 percent for land-based casino and betting outlets, and 0.1 percent for society lotteries.

Half of the money generated will be channelled to NHS England and comparable bodies in Scotland and Wales to develop  a “comprehensive support and treatment system”, the DCMS said.

About 30 percent will go to prevention, including staff training and “national public health campaign”, with 20 percent going to research.  

The April 2023 white paper produced under the previous government had called for a statutory levy for research, education and treatment to be collected and distributed by the Gambling Commission under the direction of Treasury and DCMS ministers.

Current licensing calls for operators to contribute to an organisation that delivers research or treatment of gambling addiction, although no amount is specified, and today’s announcement says some have only donated £1.  

The industry-funded GambleAware charity had asked operators to voluntarily contribute 0.1 percent of GGY.

Don Foster, who chairs the Peers for Gambling Reform group in the House of Lords, said he considers the announcement of the mandatory levy an “important step towards the gambling industry paying for the harm it causes”.  

“The gambling industry has for far too long avoided paying the money it should have done, and it is a damning indictment of the sector that their failure to pay adequately on a voluntary basis has necessitated the levy becoming a statutory obligation,” he said.

The Betting and Gaming Council (BGC) said it supported the white paper call for a mandatory levy, adding that members of the trade and lobbying group have contributed £170m voluntarily over the past four years, including £50m this year.

“Ministers must not lose sight of the fact the vast majority of the 22.5 million people who enjoy a bet each month, on the lottery, in bookmakers, casinos, bingo halls and online do so safely, while the most recent NHS Health Survey for England estimated that just 0.4 per cent of the adult population are problem gamblers,” the BGC said in a statement.

“The tone of this announcement suggests government is at risk of losing perspective of these facts, while simply dancing to the tune of anti-gambling prohibitionists, which serves no one,” the group said.

Our premium content is available to users of our services.

To view articles, please Log-in to your account, or sign up today for full access:

Opt in to hear about webinars, events, industry and product news

Still can’t find what you’re looking for? Get in touch to speak to a member of our team, and we’ll do our best to answer.
No items found.