Casinos and bookmakers across Great Britain are set to face a mandatory annual tax of £100 million to fund research, education and tackling gambling-related harms, under new government proposals expected to be announced soon.
The move aims to replace the current voluntary donation system with a statutory tax, forcing gambling operators to contribute a fixed percentage of their total gambling revenue to address the negative effects of gambling. This shift represents a major change in how the industry supports harm reduction initiatives.
Sources indicate that details of the tax may be revealed soon, with implementation starting next April. Under the proposed terms, gambling companies would be required to pay 1% of their gross gambling revenue – the total amount they win from British gamblers – to fund support services. Based on recent figures from the Gambling Commission, which reported industry profits of £10.9bn over the past year, this could generate nearly £109m a year.
However, previous consultations had proposed a lower rate of 0.4% for land-based operators such as bookmakers and casinos, recognizing higher operating costs. Small businesses with gambling revenues of less than £500,000 are expected to be exempt from the tax.
Ian Duncan Smith, Chair of the All-Party Parliamentary Group on Gambling-Related Harms, welcomed the initiative, saying: “For the first time, the gambling industry will be made to pay for the harm it causes. This is an important step forward in tackling gambling-related issues.”
The funds raised are expected to support a range of initiatives, including the establishment of new NHS specialist addiction clinics and funding charities providing education, advice and support services to those affected by gambling-related problems.
One potential sticking point is the allocation of funds, particularly in relation to GambleAware, the UK’s leading gambling charity. Under the current voluntary system, GambleAware is the largest recipient of industry donations. There are signs that the Office of Health Improvement and Inequalities (OHID) may become the government’s preferred destination for money raised under the new tax.
The industry’s trade body, the Betting and Gaming Council (BGC), initially expressed support for a statutory tax when it was proposed in a government white paper. However, the BGC has since raised concerns. In a statement, a BGC spokesperson said: “We previously proposed a mandatory levy and welcomed the government’s announcement of a new payments system with an independent funding allocation. However, we remain concerned that there should be a sliding scale for land-based businesses with higher fixed costs.” And that funding for research, prevention and treatment providers is protected.
The Department of Culture, Media and Sport declined to comment on the upcoming announcement.