His Majesty’s Government launched the Public Consultation on the structure, distribution and governance of the statutory levy and Mims is encouraging all who would like to share their views, to complete the consultation which closes on the 14th December, 2023.
This consultation follows the gambling white paper published in April which delivered on our manifesto commitment to review the Gambling Act 2005, and set out our vision for the future of regulation and legislation in the gambling sector.
More Details of the Consultation can be found Here.
One of the key proposals in the white paper was the introduction of a statutory levy, replacing the system of voluntary contributions.
The government welcomes the contributions that the industry has made to research, prevention and treatment since the introduction of the Gambling Act. However, we recognise that we need a sustainable and equitable funding system which guarantees independence, as well as sufficient funding, for effective research, prevention and treatment arrangements. Issues surrounding the independence of the funding has resulted in the NHS ending all arrangements with organisations in receipt of direct funds from operators, and some researchers have also refused this funding given its source.
Proposed design of the statutory levy
The Government is consulting on the details of how the levy will be designed, including proposals on the total amount to be raised by the levy and how it will be constructed to help us get the design of the levy right. The public consultation sets out the proposals in these areas as follows:
Structure:
The Government propose that online operators pay the levy at a higher rate than land-based operators. In line with the white paper, the proposals have taken into account evidence of the differing association of different sectors with harm and/or their differing fixed costs to ensure that rates are fairly and proportionately set, while raising sufficient funding for key projects and services. They expect that the levy will raise c.£90m-£100m per year when fully in force, which they estimate is what is needed to deliver on our objectives.
Distribution:
They propose that c.10-20% of levy funding should be directed each year to UK Research and Innovation (UKRI), the umbrella body for UK research councils, as part of a new, multidisciplinary Gambling Research Programme; 15-30% should be used to fund a programme of prevention and education to raise awareness of gambling harms across Great Britain; and 40-60% should be directed to the NHS to improve and expand treatment commissioning for gambling addiction across the full treatment pathway.
Governance:
They propose that a Statutory Levy Board and separate Advisory Group are established to ensure appropriate government oversight of the levy system, as well as creating a forum for sector experts across public health, academia and charities to inform funding priorities.
