The British government last Wednesday (27) set out plans for a new tax on gambling profits, with the aim of raising £100 million to prevent gambling-related harm and also confirming new limits on participation in slots. online.
This is considered a big step towards reducing the damage caused by gambling. The previous government included both the betting fee and limits in the Gambling Act white paper, published last year.
The fee paid by each deal will range from 0.1% to 1.1% of gross gaming income (GGR). Authorities will determine the exact fee based on the industry, vertical, and type of game offered by each company. This will take into account licensees’ operating costs and the risk profile of the products they offer.
The current voluntary system does not guarantee that all operators pay their fair share, the government claimed. Some pay as little as £1 a year for research, prevention and treatment, he noted.
The reforms follow a consultation that ran from October 2023 to January 2024. It gathered input from doctors, academics, industry and the public on how to design and implement the tax effectively.
The new statutory tax is due to come into force in 2025. The government has promised a formal review of its effects within five years, by 2030.
NHS will receive 50% of new tax funds
The tax is expected to generate £100 million for the research, prevention and treatment of gambling harm. Half of the funding, according to the government, will be allocated to the NHS (National Health Service) led gambling treatment system.
About 30% of the funding will be invested in prevention efforts, including national public health campaigns and training of frontline staff. The remaining 20% will go to UK Research and Innovation (UKRI), which will develop a research program focused on betting.
The Gambling Commission will oversee the distribution of funds. Meanwhile, the gambling industry will have no say in how money for research, prevention and treatment is spent.
“The harm from gambling can ruin people’s finances, relationships and, ultimately, lives,” said Baroness Twycross. “We are absolutely committed to implementing enhanced measures for those at risk, as well as providing effective support to those affected.”
“The introduction of the first legally binding tax will be critical to supporting research, raising awareness and reducing stigma around gambling-related harms.”
NHS support for new measures
Claire Murdoch, NHS national director of mental health, said the organization has long called for a legal levy on gambling. “I am delighted to welcome the commitment to a mandatory gambling tax that the NHS, bereaved families and the voluntary sector have been demanding so that we can address this growing problem.”
“We will continue to work with the government to do everything we can to protect problem players in this billion-pound industry,” he added.
“I’m excited to support the government’s new tax, which will help us tackle the negative impact of gambling harm on communities, using treatment, prevention and research through an independent, evidence-based strategy at last,” she said. Professor Henrietta Bowden-Jones, Clinical Consultant on Gambling Harms at NHS England.
Reform advocates celebrate victory. Two of the most prominent campaign groups hailed the introduction of the statutory tax as a significant step forward.
Ian Duncan Smith, the Conservative MP who chairs the All-Party Parliamentary Group on Gambling-Related Harm, highlighted that the Westminster pressure group requested the measure five years ago. “While there is much more to do, this is a significant moment, a huge step forward, and I welcome it without reservation.”
“British government must not dance to the tune of anti-gambling prohibitionists”
Betting and Gaming Council (BGC) CEO Grainne Hurst welcomed the introduction of the tax, but objected to the tone adopted in the British government’s announcement.
“BGC members have voluntarily contributed more than £170 million over the past four years to combat problem gambling and gambling-related harm,” Hurst said in a statement following the announcement.
“This includes £50 million this year alone. They are funding an independent network of charities that currently care for 85% of problem gamblers who receive treatment.”
“Ministers must not lose sight of the fact that the vast majority of people who like to bet every month do so safely. The most recent NHS Health Survey for England estimated that just 0.4% of the adult population are problem gamblers,” he added.
Hurst pointed out: “The tone of this announcement suggests that the government risks losing perspective on these facts while simply dancing to the tune of anti-gambling prohibitionists, which serves no one.”
Betting limit at online casinos
This tone was evident in the second part of the ad. This is because the British government cited that slots are “a high-risk gambling product, often linked to large losses, long sessions and compulsive gambling.”
As first revealed in February, players aged 18-24 will be limited to spending £2 per spin. This increases to £5 per spin for over 25s.
The government cited research from the Office for Health Improvement and Disparities and the Gambling Survey for Great Britain to impose the betting limits. Research shows that young adults face greater vulnerability to gaming-related harm.
“We are helping to protect those at risk, with a particular focus on young adults, by introducing betting limits for online slots,” said Baroness Twycross.
“These measures will help build an NHS fit for our future and strengthen protections, whilst allowing people to continue to gamble safely,” he concluded.
