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UK government announces £100m levy on gambling companies

The UK government is planning to introduce a statutory levy on gambling companies. The aim is to raise around £100 million (around €116 million) a year. This money will be used for research, education and treatment of gambling problems.

According to the UK White Paper, online gambling companies will have to pay 1% of their gross gambling revenue. Traditional bookmakers and casinos will pay a lower rate of 0.4%. Gambling Minister Baroness Twycross is expected to confirm these plans on Wednesday. The system is expected to come into effect from April next year. The opposition Labour Party has already indicated that it supports the previous government’s policy in this regard.

Current system under fire

The current system, where contributions are voluntary, has been widely criticised. Some gambling companies have paid as little as £1 to initiatives to prevent and treat gambling harm. Organisations such as NHS England and GambleAware have long advocated for a mandatory levy. They stress that stable and sufficient funding is essential.

In June last year, these organisations expressed their support for a mandatory system, stressing that it would ensure fair contributions from all gambling operators.

Industry reaction

A spokesperson for the Betting and Gaming Council (BGC) responded positively to the plan:

“The BGC previously proposed a mandatory levy and we welcome the government’s announcement of a new payment system with independent allocation of funds.”

However, the BGC is concerned about the impact on physical gambling venues such as bookmakers and casinos. They advocate a sliding scale, as these businesses have higher fixed costs due to staff and premises. The organisation also stressed that existing research and prevention providers should not be financially disadvantaged by the new scheme.

A significant step for gambling prevention

With this proposed levy, the UK is taking a significant step towards tackling gambling-related issues. The plan aims to provide a sustainable and fair solution to reducing the social impact of gambling.

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At the heart of the Gambling Club is our dedicated journalist, Maxime (32), whose passion for journalism goes beyond simply reporting facts. With a keen eye for detail and an insatiable curiosity, Maxime strives to uncover the stories that matter, that shape our communities, and that impact the world around us.

With years of experience in the gambling industry, ranging from local news reporting to international investigations, Maxime brings a deep understanding of the complexities of today’s news landscape.

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