Gambling operators in the UK face a tax of as much as 1.1 per cent of profits on some types of games as the government there seeks £100 million (€120 million) a year to invest in harm reduction and research.

The planned statutory levy on all licensed operators will range from 0.1 per cent to 1.1 per cent of the gross gambling yield, depending on the sector and nature of the gambling, according to a statement Wednesday from the UK’s Department of Culture, Media and Sport.

The UK has over the last few years introduced stricter regulation of gambling, including requiring operators to reduce the intensity of online games, carry out financial vulnerability checks of players and provide customers with better control over the types of marketing they receive. Many of the measures were announced under a Conservative government, which lost to the Labour Party in July’s General Election.

The government will review the charge within five years of its introduction, with the first formal review expected by 2030, according to the statement.

UK gambling stocks soared last month after UK Chancellor Rachel Reeves’ budget did not include much-speculated tax hikes on the sector. The Guardian previously reported that Treasury officials were weighing proposals from two influential think tanks to double some of the taxes levied on online casinos and bookmakers.

The statutory levy is a separate initiative, proposed under the Conservative government in a 2023 white paper on gambling reform.

The announcement was welcomed by anti-gambling campaigner Matt Zarb-Cousin, who said he was “really pleased” that it is being introduced. “It will totally transform the research, prevention and treatment of gambling harm,” Zarb-Cousin said by email.

The four biggest gambling operators – Entain, Paddy Power owner Flutter Entertainment, William Hill-owner Evoke and Bet365 – previously pledged to pay 1 per cent of their gross gambling yield to an industry-funded charity GambleAware in anticipation of the levy.

In the year ending in March, the charity received donations of £49.5 million, £46.6 million of which came from the top four operators, according to a statement on its website.

The Betting and Gaming Council, which lobbies for the industry, said that it supports plans for the levy outlined in last year’s proposal.

“Ministers must not lose sight of the fact the vast majority of the 22.5 million people who enjoy a bet each month, on the lottery, in bookmakers, casinos, bingo halls and online do so safely,” Betting and Gaming Council Chief Executive Officer Grainne Hurst said in a statement. – Bloomberg