The government has confirmed details of the statutory levy to fund research, education, and treatment.

UK.- The UK gambling minister Baroness Twycross has this morning confirmed details of a statutory levy on gambling revenue to fund the research, education and treatment (RET) of gambling harms. The levy will come into force in April 2025.

The Department for Digital, Culture, Media, and Sport (DCMS) has also confirmed the introduction of online slot stake limits from the start of December following the end of a transition period. The limits will be set at £5 for those aged over 25 and £2 for those aged 18 to 24, as proposed in a consultation last year.

UK gambling levy rate

The proposal for a gambling levy to fund research, education and treatment was proposed in a consultation that ran from October to January. The levy will be set at 1.1 per cent of gross gambling yield (GGY) for online gambling operators and suppliers, 0.4 per cent for betting shops and land-based casinos and suppliers, and 0.1 per cent for land-based arcades, bingo operations and society lotteries, including External Lottery Managers and local authority lotteries licensed by the Gambling Commission. 

Society lottery operators will be charged based on proceeds retained after prizes and contributions to good causes.

The government hopes to collect £100m through the levy, double the £50m raised through voluntary donations to GambleAware in 2023/2024 period. The levy will replace the previous voluntary scheme, under which the largest operators, Flutter Entertainment, Entain, Evoke, and bet365, made 94 per cent of contributions but some operators paid as little as £1. Almost all operators will have to make contributions under the levy, although those with revenues of under £500,000 will be exempt.

Baroness Twycross said this morning: “The introduction of the first legally mandated levy will be instrumental in supporting research, raising awareness, and reducing the stigma around gambling-related harm. We are also helping to protect those at risk, with a particular focus on young adults, by introducing stake limits for online slots. These measures will help build an NHS fit for our future and strengthen protections, whilst also allowing people to continue to gamble safely.”

UK gambling levy funding allocation

The DCMS had already decided that the funds would go to the NHS, which will replace GambleAware as the primary commissioner of RET funding in Britain. The Gambling Commission will oversee the implementation of the levy and the distribution of funding directly to the NHS and UK Research and Innovation (UKRI). 

It’s now been detailed that 50 per cent of the funds raised will go to NHS England and equivalent bodies in Scotland and Wales for support and treatment, covering referrals, triage, recovery programmes and aftercare. Meanwhile, 30 per cent will go to gambling harm prevention, including public health campaigns and training for frontline workers, and 20 per cent will be directed to UK Research and Innovation (UKRI) to create a Research Programme on Gambling.

Minister for health Andrew Gwynne said: “Tackling gambling harm is a crucial part of our commitment to support people to live longer, healthier lives. This levy will provide an important funding boost for the NHS, whilst also enabling independent research and more effective prevention initiatives. By making NHS England responsible for all treatment and support services for those experiencing gambling-related harms in England, we will ensure people are getting the most effective care possible.”

The NHS has stated previously that the levy would mean that the “gambling industry will no longer have a say over how money for research, prevention and treatment is spent.” GambleAware has stressed its independence from the gambling industry despite relying on the industry for voluntary donations. It came out in favour of a statutory levy and will continue to exist, but now as a partner to the NHS for the development of the National Gambling Support Network (NGSN).

However, there have been suggestions that there is a battle between GambleAware and the Office for Health Improvement and Disparities to receive funds from the levy. Baroness Twycross is to speak at GambleAware’s annual conference in December.

As for operators, the industry trade body the Betting and Gaming Council (BGC) has long promoted the achievements of its voluntary scheme but decided it would not oppose the introduction of a levy as long as contributions were based on a fair system to avoid disproportionate costs for operators. However, some smaller operators have argued that they will not be able to afford the levy.