The UK government is poised to introduce a mandatory levy requiring gambling operators to contribute £100 million annually towards research, education, and treatment (RET) for gambling-related harm. The levy aims to replace the voluntary contribution system currently in place and is expected to be formally announced by Gambling Minister Baroness Twycross as early as this week.

The new RET levy will impose a mandatory fee of 1% on gross gambling yield (GGY) for online operators, while land-based casinos and betting shops will be subject to a reduced rate of 0.4%, reflecting their higher operating costs. Businesses with gambling revenues under £500,000 are expected to be exempt. This framework, developed after a consultation in late 2023, is anticipated to come into effect in April 2024, according to The Guardian.

Based on the Gambling Commission’s most recent figures, the industry’s £10.9 billion GGY over the past 12 months would generate approximately £109 million under the new system in the United Kingdom. Funds raised will support NHS addiction clinics, school education programs, and counseling services for families affected by gambling-related suicide.

Iain Duncan Smith, chair of the All-Party Parliamentary Group on Gambling-Related Harm, expressed his approval, calling the measure “a seismic moment and a huge step forward.” He added, “For the first time, the gambling industry will be mandated to pay for the harm they cause.”

Debate Over Fund Allocation

The transition to a statutory levy brings contentious questions about which organizations will oversee and benefit from the funds. GambleAware, which currently receives the majority of voluntary contributions, may face reduced involvement. Sources suggest that the Office for Health Improvement and Disparities (OHID) could become the primary recipient, challenging GambleAware’s role.

Under the voluntary model, GambleAware secured £50 million in contributions for the 2023/2024 period, primarily from major industry players such as Flutter Entertainment, Entain, and bet365. Despite this, NHS England and other stakeholders have criticized the voluntary system, emphasizing the need for a “clean break” from industry influence over funding distribution. NHS officials have stated that the proposed levy would eliminate any gambling industry control over the allocation of funds.

GambleAware has defended its independence and highlighted its role in the National Gambling Support Network. The charity supports frontline services that address gambling harms, including education and treatment programs.

Industry Reaction and Concerns

The Betting and Gaming Council (BGC), representing industry operators, expressed conditional support for the levy but emphasized the need for a fair and sustainable implementation. “The BGC previously proposed a mandatory levy and welcomed the government’s announcement for a new system of payments with continued independence of funding allocation,” said a spokesperson. The BGC has advocated for a sliding scale to accommodate the financial pressures of land-based businesses and warned against disproportionate costs that could lead to job losses.

Margot Daly, chair of GamCare, called for greater clarity on how funds will be allocated. She urged the government to ring-fence levy contributions to ensure they support frontline services effectively. Daly noted that 90% of gambling harm treatment in the UK is provided by third-sector organizations with community connections.