Gambling Harms Researchers Set to Benefit From £100M Government Levy

_{New £100M levy aims to combat gambling harm with mandatory contributions from UK casinos. (Image: Panoramic Images / Alamy)}

The UK government is set to announce a significant measure aimed at tackling gambling-related harms, requiring casinos and bookmakers to contribute £100 million annually towards research, education, and treatment initiatives. 

This levy, expected to be unveiled by gambling minister Baroness Twycross soon, will mark a shift from the previous voluntary funding system to a mandated statutory requirement.  

As early as next April, gambling firms could be required to pay 1% of their gross gambling yield—essentially what they earn from British gamblers—toward this crucial fund.

With industry revenue figures reaching £10.9 billion in the last year, this legislation could generate around £109 million to combat gambling harm. 

Notably, the planned levy may include a reduced rate of 0.4% for land-based casinos, such as high street bookmakers and casinos, to accommodate their higher operating costs, with smaller firms earning less than £500,000 being exempt. 

In a recent interview with Casinos.com Dr. Jamie Torrance of Swansea University highlighted some of the research undertaken at the university.  

Recent research from Swansea University highlighted a significant link between strategic forms of gambling and harmful gambling behaviours, particularly among individuals with a history of mental health issues, such as PTSD. This study marks the first identification of a direct relationship between game type and gambling risk in this demographic. 

Findings indicate that while participants showed a preference for both strategic games—like poker—and non-strategic games, those inclined towards strategic gambling faced a higher risk of experiencing gambling-related harm.

Levy Hailed as Historic Moment in Approach to Gambling Regulation 

The introduction of this levy is being hailed as a historic moment in the UK’s approach to gambling regulation. Iain Duncan Smith, chair of an all-party parliamentary group focused on gambling harms, expressed his enthusiasm, stating that this statutory levy will ensure that the gambling industry takes financial responsibility for the harm it causes.

Funds raised through this initiative are expected to significantly benefit research and treatment programs aimed at addressing gambling-related issues. 

There is anticipation for the establishment of more NHS specialist addiction clinics, alongside support for smaller charities offering educational services and counselling for those affected by gambling-related crises, including suicide. 

Universities and Charities Set to Benefit from Funding 

Several prominent organisations stand to gain from the funding generated by the levy, which could enhance their capabilities in tackling gambling harms. 

For instance, the National Centre for Social Research (NatCen) is known for its rigorous research on gambling behaviours and harm. NatCen aims to inform policy and public understanding through data-driven insights. 

Their ongoing projects, such as the new mixed-mode gambling prevalence and problem gambling survey, highlight their commitment to understanding and addressing gambling-related issues. 

The Centre for Gambling Research has over two decades of focused research on gambling-related behaviours and stigma. This centre seeks to advance knowledge of the gambling landscape, providing evidence that can shape effective policies and mitigate harm. 

University Collaborations  

Various universities, including the University of Bristol and Bournemouth University, have established dedicated research hubs to find effective prevention and intervention methods for problematic gambling behaviours. Their work aligns with the government's goals of reducing gambling harms through scientific research and community education.  

The competitive landscape for receiving funds is set to include established organizations like GambleAware, which has historically received substantial voluntary contributions from the gambling industry. 

The inclusion of other entities, such as the Office for Health Improvement and Disparities, in the funding discussions may lead to varied allocations reflecting the government’s priorities in addressing gambling harms.  

BGC Lends Support for Levy  

The Betting & Gaming Council, representing the industry, has signalled its support for a statutory levy, although concerns about equitable funding based on operational costs remain. This shift from a voluntary framework to a statutory obligation is anticipated to foster a more consistent and impactful approach to combating the repercussions of gambling. 

In response to the latest budget, the BGC said: “BGC members contribute £6.8bn to the economy and generate £4bn in tax while supporting 109,000 jobs. 

“The regulated betting and gaming industry also provides some of the country’s most popular sports with vital funding. 

“According to a report by EY commissioned by the BGC, horseracing benefits to the tune of £350m annually, the English Football League and its clubs receive £40m, and snooker, darts, and rugby leagues receive more than £12.5m. 

“BGC members are working with the government and the Gambling Commission to deliver the proposals contained in the White Paper, many of which we called for to raise standards.  

“Each month around 22.5 million people in Britain enjoy a bet on the lottery, in bookmakers, casinos, bingo halls, and online, and the overwhelming majority do so safely and responsibly.

“The most recent NHS Health Survey for England estimated that 0.4 percent of the adult population are problem gamblers.” 

As preparations for the official announcement continue, there is cautious optimism that this government initiative will not only enhance the resources available for tackling gambling harm but also usher in a new era of accountability within the gambling industry.