The government has confirmed its plans to impose a statutory levy on gambling company profits. The compulsory levy will ‘generate £100m for the research, prevention and treatment of gambling harms,’ says the Department for Culture, Media and Sport (DCMS), with half of the money going into the NHS-led gambling treatment system.
The levy, which was first announced in last year’s poorly received gambling white paper, will be charged to all licensed operators and the money raised will be ringfenced, says DCMS. The government will also introduce stake limits for online slot games, set at £5 per spin for over-25s and £2 for 18-24-year-olds. Online slots are considered a higher-risk product ‘associated with large losses, long sessions and binge play’, DCMS states.
The levy – which will replace the current voluntary arrangement that sees some companies paying ‘as little as £1 a year’ – will be charged at a set rate of between 0.1 per cent and 1.1 per cent of gross gambling yield (GGY) or equivalent, for all holders of a Gambling Commission licence, says DCMS. The new levy system will be subject to formal review within five years.
In addition to the 50 per cent of funding generated going to NHS England – alongside Scottish and Welsh bodies – for a ‘comprehensive support and treatment system’, another 30 per cent will go towards prevention activities such as training for frontline staff and public health campaigns. The remaining 20 per cent will go to UK Research and Innovation (UKRI) and the Gambling Commission for research to ‘inform future policy and regulation’.
‘Gambling harm can ruin people’s finances, relationships, and ultimately lives,’ said gambling minister Baroness Twycross. ‘We are absolutely committed to implementing strengthened measures for those at risk, as well as providing effective support for those affected. The introduction of the first legally mandated levy will be instrumental in supporting research, raising awareness and reducing the stigma around gambling-related harm. We are also helping to protect those at risk, with a particular focus on young adults, by introducing stake limits for online slots. These measures will help build an NHS fit for our future and strengthen protections whilst also allowing people to continue to gamble safely.’