UK’s Mandatory Levy Seeks to Minimize the Industry’s Impact on Treatment Services

The United Kingdom is set to consult the implementation of the mandatory levy which will replace the current voluntary system. The measure seeks to prevent the gambling industry’s influence on how gambling harm treatment services are operated.

Under the rules outlined in the Gambling Act white paper, online gambling companies will have to pay 1% of their revenue to the National Health Service and UK Research and Innovation. Land-based operators, meanwhile, will only have to pay 0.4% of their revenue because of the higher costs associated with retail gambling.

The money will be used to develop gambling research and support the treatment of gambling-related problems. Estimates believe that the levy has the potential to raise as much as £100 million for the NHS.

The exact future and specifics of the measure will be decided during an eight-week consultation.

The Measure Would Minimize the Industry’s Impact on Treatment Services

Previously, many of the United Kingdom’s gambling operators would donate 0.1% of their revenues or even less, attracting critiques from activists. As a result, GambleAware sometimes failed to reach its £10 million target.

The campaigning of anti-gambling parties, health service workers and the UKGC eventually prompted some of the biggest gambling companies to increase their donations. Since then, contributions increased significantly but operators retained control over how their donations are distributed.

As a result, the new levy seeks to also minimize the industry influence on treatment services while increasing the funding gambling treatment services receive.

The measure was welcomed by anti-gambling activists and responsible gambling promoters, including the Gambling With Lives charity. However, the charity also urged the government to officially implement the levy as soon as possible, lest charity companies dissolve because of the lack of funding.

In the meantime, the United Kingdom will continue to discuss the measures proposed by the white paper over the next few months. Tim Miller recently spoke about the second batch of white paper consultations and said that they will focus on socially responsible incentives and gambling management tools.

Speaking of Miller, the UKGC executive director recently took part in G2E and used the opportunity to talk about the importance of collaboration between gambling regulators. He said that this would allow regulatory bodies to hold operators up to standards and “pose difficult questions” to them if they “act poorly in other markets.”