The UK government has proposed a new charge on online gambling companies to raise funds for researching and addressing gambling addiction.
This move is in response to the surge in mobile betting apps and online gambling platforms.
The current voluntary levy has faced criticism, with some operators contributing as little as £1 ($1.22) towards prevention and treatment efforts. To address this, the Department for Culture, Media, and Sport (DCMS) is considering a new mandatory levy. Under this proposal, online gambling operators would pay 1% of their gross gambling yield, while traditional betting shops and casinos would pay around 0.4%.
These measures are part of the government's broader strategy to update regulations and tackle the challenges posed by digital betting. The funds generated from this new levy would offer extra financial support to the state-run National Health Service (NHS) in England, Scotland, and Wales.
The UK government aims to ensure that gambling companies contribute their fair share, with the new statutory levy legally obliging them to do so. The Betting and Gaming Council (BGC) has expressed support for the idea of this mandatory levy, emphasizing their commitment to reducing gambling-related harm, particularly among young people:
“Indeed we proposed this to the Government ahead of the White Paper. Our industry has been the majority funder of RET for over 20 years. However, we believe it should apply to all operators including the National Lottery, without affecting good causes, who are not immune to having problem gamblers gamble with their products like scratch cards and instant win games.”
They have already implemented changes to advertising standards, dedicating 20% of advertising space to promoting safer gambling across various media platforms. Additionally, starting from December 1, 2023, the BGC will enforce a minimum age of 25 for all digital platform advertisements.
The Betting and Gaming Council (BGC) is a prominent industry association in the United Kingdom that represents betting shops, online gaming companies, and casinos. It serves as a unified voice for the gambling sector, advocating for responsible gambling practices and ensuring a safe and enjoyable betting environment. The BGC is committed to promoting high standards of integrity and integrity within the industry.
Source:
“BGC response to UK Government 1% gambling levy proposal”, gamblinginsider.com, October 17, 2023.