Casinos and bookmakers across Great Britain are set to face a mandatory £100 million annual levy to fund research, education, and treatment of gambling-related harms, under new government proposals expected to be announced imminently.

The move aims to replace the current voluntary donation system with a statutory levy, compelling gambling operators to contribute a fixed percentage of their gross gambling yield to address the negative impacts of gambling. This shift would mark a significant change in how the industry supports harm reduction initiatives.

Sources indicate that details of the levy could be unveiled soon, with implementation potentially starting from next April. Under the proposed terms, gambling firms would be required to pay 1% of their gross gambling yield—the total amount they win from British gamblers—towards funding support services. Based on recent figures from the Gambling Commission, which reported industry earnings of £10.9 billion over the past year, this could generate approximately £109 million annually.

However, previous consultations have suggested a lower rate of 0.4% for land-based operators like high street bookmakers and casinos, acknowledging their higher operational costs. Smaller firms with gambling revenues below £500,000 are expected to be exempt from the levy.

Iain Duncan Smith, chair of the All-Party Parliamentary Group on Gambling-Related Harm, welcomed the initiative, stating: “For the first time, the gambling industry will be mandated to pay for the harm they cause. This is a significant step forward in addressing gambling-related issues.”

The funds raised are anticipated to support a range of initiatives, including the establishment of new NHS specialist addiction clinics and funding for charities that provide education, counselling, and support services for those affected by gambling-related problems.

A potential point of contention is the allocation of the funds, particularly concerning GambleAware, the UK’s leading gambling charity. Under the current voluntary system, GambleAware is the largest recipient of industry donations. There are indications that the Office for Health Improvement and Disparities (OHID) may become the government’s preferred destination for funds collected under the new levy.

The industry’s trade body, the Betting and Gaming Council (BGC), had initially expressed support for a statutory levy when it was proposed in a government white paper. However, the BGC has since raised concerns. In a statement, a BGC spokesperson said: “We previously proposed a mandatory levy and welcomed the government’s announcement for a new system of payments with independent funding allocation. However, we remain concerned that there should be a sliding scale for land-based businesses with higher fixed costs and that funding for established providers of research, prevention, and treatment services is protected.”

The Department for Culture, Media and Sport declined to comment on the forthcoming announcement.