In a significant move towards addressing gambling-related harm, the British Labour government is preparing to implement a mandatory £100 million annual levy on gambling companies. The initiative, expected to be announced by gambling minister Baroness Twycross this week, marks a decisive shift away from the current voluntary contribution system.
The statutory levy, scheduled to take effect from April 2025, will require gambling operators to contribute 1% of their gross gambling yield from British punters. Based on recent Gambling Commission data showing industry earnings of £10.9 billion in the past year, the levy could generate approximately £109 million annually.
Industry stakeholders will face varying contribution rates, with land-based operators such as high street bookmakers and casinos potentially paying a reduced rate of 0.4% due to their higher operational costs. Small-scale operators generating less than £500,000 in gambling revenues will be exempt from the levy.
The collected funds will support a comprehensive network of NHS specialist addiction clinics and various charitable organisations providing essential services, including school-based education programmes and counselling for families affected by gambling-related suicide.
A notable point of contention surrounds the allocation of prevention funds between GambleAware, currently the largest recipient of voluntary industry donations, and the Office for Health Improvement and Disparities. The charity received nearly £50 million in donations and pledges during the 2023-24 financial year.
The Betting & Gaming Council, initially supportive of the statutory levy when proposed in the Conservative government’s April 2023 white paper, has adjusted its stance. The organisation now emphasises the importance of implementing a sliding scale for land-based businesses and protecting funding for established third-sector service providers.
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