The proposed mandatory levy on UK gambling operators will generate an estimated £100m ($122m) annually for the NHS. [Image: Shutterstock.com]

Shaking up the system

A new proposed levy on gambling companies in the UK could see the National Health Service (NHS) receive about £100m ($122m) in payments annually. This money would go towards researching gambling addiction, prevention, and treatment. The UK government plans to introduce this levy to replace the existing model of voluntary operator contributions.

online gambling operators to pay 1% of their revenue

The proposal is for online gambling operators to pay 1% of their revenue through the mandatory levy, with the rate dropping to 0.4% for land-based casinos and retail sportsbooks. The total industry revenue last year was approximately £10bn ($12m), leading to the £100m estimate.

The government still needs to iron out the specifics of the mandatory levy through an eight-week consultation period. Legislation will then be put in place to make it a requirement for companies to pay.

Changing the model

Operators will not have a say in the way in which the levy money is spent when the industry transitions to the new model. The current system sees operators usually contributing 0.1% of their revenues; some companies having a reputation for not contributing anything at all.

One of the main recipients of the voluntary funds has been the GambleAware charity, with the organization failing to hit its £10m ($12m) contribution target numerous times in recent years. Major operators did agree in 2019 to make bigger contributions, which had reportedly led to £110m ($134m) in funding since then, according to the Betting and Gaming Council, an industry lobbying group.

Anti-gambling campaigners believe that a voluntary system means that operators have too much control in the distribution of the funds, a key reason why the NHS does not accept any money through this model.

send the funds directly to the NHS and UK Research and Innovation

The plan is for the UK Gambling Commission to collect the money and to send the funds directly to the NHS and UK Research and Innovation. Under the current plan, the UK National Lottery will not need to make any contributions.

A big issue in the UK

Gambling addiction is a big issue in the region, so campaigners and health professionals welcome the planned mandatory levy. Much of the funding will go towards aiding specialty gambling addiction clinics that are popping up around the UK. Seven such NHS centers are set to open their doors before the end of 2023, bringing the total number of facilities of this kind to 15. Only one such clinic was available as recently as 2019.

The voluntary contribution system has been in effect since the expansion of gambling laws in 2007.

The UK government published its white paper on gambling legislation reform in April following numerous delays. In addition to introducing a mandatory levy on operators, it also proposes other changes such as stricter affordability checks on gamblers and lower online slot stake limits. Most of the major proposals are still in the consultation period and no major progress is expected until 2024.