The mandatory 1% levy for UK gambling companies is formally in place. BGC responds with a cryptic message – is there more than meets the eye? (Image Courtesy of Pixabay)
It seems the topic of regulation in the UK never ceases. The most recent announcements on the news grapevine are a mix of warnings and costs to gambling platforms.
Gambling Minister Baroness Twycros announced the voluntary donation system has now switched to the new mandatory levy system.
The levy that British gambling entertainment companies must pay is on top of taxes. It comes as a condition of the UK White Paper. You can read the full White Paper report here.
It will cost companies operating in the country £100 million. The idea is to use this money to help fund activities that help charities that deal with problem gambling.
Great News for Problem Gambling Charities
It is a blow to the industry in some way, but great news for the charities. People who work for non-profits often have limited resources, while remuneration for their work is low.
On top of this, low budgets can often mean people with a problem gambling issue may not get the help they need in a timely fashion.
Yet, the new £100 million target set by the government gives the prevention of problem gambling sector a massive yearly cash injection. This will allow some clinics to hire more personnel, purchase better equipment, and provide employees with better training.
As well as money from the levy going to problem gambling treatment clinics, some of the money will also be funnelled into research on how to prevent gambling addiction.
How much will each gambling company pay? The predicted amount to reach £100 million is going to cost roughly 1% of each gambling company’s revenue.
A Clever Warning From the BGC
One of the most outspoken proponents of the UK gambling industry is the Betting and Gaming Council.
Something tells me that reading between the lines of CEO Grainne Hurst’s latest statement on the BGC website is that she and the rest of the BGC feel the government may not stop at just a levy.
She mentioned that the BGC supports the White Paper. She also pointed out that UK gambling companies voluntarily contributed an amount to the tune of £170 million in the last 4 years. These donations she tagged as being for “tackling problem gambling and gambling-related harm”.
Another point she made is that already in 2024, domestic UK gambling firms donated £50 million.
Up until this point of the statement, from what I was reading, I didn’t need to read between any lines. A mandatory levy is now in action, and British gambling companies have already donated millions voluntarily. Yet, it is at this point I begin to worry.
The statement goes on to highlight two key points for the UK government:
- 5 million people in the UK gamble, and they do so safely.
- The NHS survey says that of 22.5 million, the estimation is that 0.4% of people have gambling addiction issues.
I was wondering why she pointed out these facts, and it was the last part of his statement that made me feel there is more to the statement than meets the eye. Maybe Ms Hurst feels that the recent threat of the UK raising gambling taxes was a sign of things to come.
Although the gambling taxes were not raised in the latest UK budget, it does feel like the newly elected government does have one eye on the gambling industry.
The last part of Ms Hurst’s statement says: “The tone of this announcement suggests Government is at risk of losing perspective of these facts, while simply dancing to the tune of anti-gambling prohibitionists, which serves no one.”
Rounding Up the Levy and Ms Hurst’s BGC Statement
In my opinion, the news of £100 million finding its way to charities and research that helps those with problem gambling issues and helps to reduce problem gambling is great news.
Yet, I also agree with Ms Grainne Hurst. The government cannot continue dancing to the tune of anti-gambling prohibitionists. The new rules do enhance the UK’s gambling scene with improved player protection, but any further changes could have devastating effects in the future.
Along with a levy in place, we also have to consider that the UK slot machine maximum bet limits hit the country’s gambling industry late this year, too. Players 24 or under cannot bet more than £2.00 per spin, and those 25 or over can only bet £5.00 max.
Let’s just recap here:
- A new £100 million
- New max bet limits on slot machines
On top of this, lest we forget, there is a pilot affordability checks program currently in play. This is another issue that could push players towards non-UKGC online casinos.
Therefore, there are, in fact, three new rule adjustments to the UK Gambling Act 2005 that will hit Great Britain’s gambling entertainment industry’s bottom line. Ms Hurst is simply saying enough is enough. The UK gambling industry has complied with the new white paper rules.
For me, I am also saying enough is enough. Although, I do agree, that there is one more step that still needs to be taken, and that is to tackle gambling ads.
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