Proposed mandatory levy to raise £100m for RET funding in UK

The UK government has announced an estimated £100m will be raised for the research, education and treatment (RET) sector with the incoming mandatory levy.

As it stands, it is not mandatory for gambling operators to donate to the RET sector. Instead, firms are encouraged to give 0.1% of their respective annual gross gambling yield (GGY).

Companies that generate less than £250,000 in annual GGY are asked to donate a minimum of £250.

In the white paper into the Gambling Act 2005 review, published in April, the government announced a switch from the existing voluntary system to a mandatory levy.

That levy is set to be 1% on online operators’ annual GGY and 0.4% for retail betting shops and land-based casinos.

Derived from the incoming levy, the government has said the Gambling Commission will distribute an estimated £100m equally between the NHS and UK Research and Innovation (UKRI).

The statutory levy will be used to provide “fresh funding” across England, Wales and Scotland for organisations to provide a “full treatment pathway” to those affected by gambling-related harm.

The government has launched an eight-week consultation into the design of the proposed statutory levy, which will take in views from the industry, clinicians, academics and those with lived experience of gambling-related harm.

Culture Secretary Lucy Frazer said: “We are taking the next step in our plan to protect those most at risk of gambling harm with a new levy on gambling operators to pay for treatment and research.

“All gambling operators will be required to pay their fair share and this consultation is an opportunity for the industry, clinicians, those who have experienced gambling harm and the wider public to have their say on how the proposed gambling operator levy should work.

“The introduction of this levy will strengthen the safety net and help deliver our long-term plan to help build stronger communities while allowing millions of people to continue to gamble safely,” she added.

In response to the government’s announcement, the Betting and Gaming Council (BGC) threw its support behind the incoming mandatory levy but noted that it must be applied on a “sliding scale”.

The BGC said the levy should apply to all operators, including The National Lottery, and that funds must be given to the organisations who deliver “genuine RET services”.

A spokesperson for the BGC said: “This current voluntary levy funds an independent network of charities which treats around 85% of all problem gamblers receiving treatment in Great Britain. RET donations only go to charities accredited by the Gambling Commission and BGC members have no say on how the funding is spent.

“The BGC supports a new mandatory levy – indeed we proposed this to the government ahead of the white paper. Our industry has been the majority funder of RET for over 20 years. However, we believe it should apply to all operators including The National Lottery, without affecting good causes, who are not immune to having problem gamblers gamble with their products like scratchcards and instant win games.

“It must also be applied on a sliding scale, with smaller percentage contributions from land-based operators, including independent betting shops on our high streets that have struggled to recover after the pandemic and incur disproportionately higher fixed costs.

“There must also be adequate oversight to ensure levy funds are only distributed to charities and organisations delivering genuine RET services to ensure long-term, sustainable funding – including protecting existing third-sector providers who are already doing vital work and who may now be at risk,” the spokesperson concluded.