Welsh Gambling Harm Awareness Group Slams “Incessant Politicking” on Statutory Levy Debate

Deal Me Out founder and CEO Jordan Lea suggests research, education and treatment of gambling-related harm causes could “cease to exist” if levy is introduced

A Welsh gambling harms awareness group has called on all sides of the gambling spectrum to move on from the “incessant politicking” which has coloured the debate on a statutory levy for gambling operators in the UK, including sportsbooks and casino sites. 

Deal Me Out CEO and founder Jordan Lea, writing to the Department for Digital, Culture, Media and Sport (DCMS) has suggested the so-called third sector of research, education and treatment (RET) into gambling-related harm could “cease to exist” within six months should a mandatory levy be introduced.

Mandatory Levy Lobby

In his letter - which Casinos.com has received access to -  Lea suggested that the mandatory levy had been “vastly damaging and problematic” in efforts to help those experiencing gambling-related harm.

“I am not here to lobby against a mandatory levy, that would be banging my head against a brick wall, however I am calling for the government, and shadow government stop the incessant politicking from all sides of the debate,” Lea wrote.

Later this month, the UK Government and Gambling Commission will publish their response to the consultation on a levy for the industry to support research, education and prevention of gambling harms.

Lea told Casinos.com: “It is my hope that the DCMS will give everybody a shake, and ensure all stakeholders commit to a collaborative approach to preventing gambling addiction in the United Kingdom.”

Counting The Cost

The mandatory levy would be paid for by gambling operators, collected and administered by the Gambling Commission, under the direction of the UK government, and would replace the current voluntary-based system.

The current consultation discusses the design of the levy, including proposals on the total amount to be raised by the levy and how it will be constructed.

It also aims to take into account the differing association of different sectors with harm and/or their differing fixed costs to ensure that a rate is fairly and proportionately set.

Part of the white paper review into the 2005 Gambling Act, the introduction of a mandatory levy has become a proverbial political football, with charities and other groups, including the UK horseracing industry voicing concerns.

“The rhetoric around industry funding causing un-independence is fictitious and damaging to the future of harm prevention,” Lea wrote. “The people of Great Britain need a collaborative approach, one that is denied by the NHS gambling service, and the charity sector in equal measure.”

The Voluntary System

Under the voluntary system, operators are encouraged to donate a minimum of 0.1% of their annual Gross Gambling Yield (GGY) to GambleAware each year; and those with an annual GGY of less than £250,000 to donate a minimum of £250. 

The Big Four gambling operators (Bet365, Entain, 888, Flutter)  have committed to increase their donations from 0.1% to 1% of gross gambling yield each by 2024.

During the first quarter of the fiscal year 2023/24 (1 April to 30 June 2023), the charity received £4.3m in total, including £317,099.59 in Research, Education and Treatment (RET) contributions from gambling operators. 

Winning The Argument

In his letter, Lea calls for government intervention to bring together a broad collaborative approach utilising the third sector, the NHS, academics and the gambling industry itself.

The Deal Me Out CEO also slams calls for the potential removal of GambleAware, which administers payment of voluntary contributions to the RET sector as a “significant cause for concern”, citing the potential for significant damage to the sector.

“We need collaboration, by all sides, not childish in fighting over who controls the money,” Lea wrote. “I’m calling for the government to insist on this collaboration, and bring all sides together within the DCMS and commit to a future where the service user is put first,” 

“The third sector is under severe financial threat, and could cease to exist within six months due to the implementation of a mandatory levy,” he added.