Statutory Levy on Gambling Operators Set to Raise £100M for RET Initiatives

Mandatory RET Levy

According to sources, Gambling Minister Baroness Twycross is expected to announce the detailed framework of the statutory levy imminently. This announcement could take place as early as Wednesday, with the levy slated to come into effect in April 2024. The initiative aims to replace the current voluntary scheme, ensuring that licensed operators contribute fairly and consistently.

The statutory levy will impose a 1% fee on the gross gambling yield (GGY) of online operators. Meanwhile, land-based gambling venues and betting shops will be subject to a reduced rate of 0.4% of GGY. Small operators generating less than £500,000 in gambling revenues annually will be exempt from the levy.

£100 Million for Harm Reduction

The Department for Digital, Culture, Media, and Sport (DCMS) has clarified that the levy will generate approximately £100 million annually. This funding will be managed by the National Health Service (NHS), taking over from GambleAware, the previous steward of the voluntary system. The NHS will serve as the primary commissioner for RET initiatives, collaborating with organisations like UK Research and Innovation (UKRI).

The new approach marks a “clean break” from prior arrangements, which NHS England had deemed unsustainable due to the dual-commissioned funding structure. Moving forward, the Gambling Commission will oversee the equitable distribution of funds to ensure transparency and accountability.

Industry and Stakeholder Reactions

The Betting and Gaming Council (BGC), which represents the UK’s leading operators, has voiced conditional support for the statutory levy. The organisation emphasised the importance of a fair and proportionate funding structure that does not lead to job losses or excessive financial burdens. The BGC also reiterated that member contributions over the past two decades have been directed exclusively to independent charities accredited by the Gambling Commission.

However, the shift in administration has raised concerns among key stakeholders. GambleAware, which had previously called for a formal statutory levy, highlighted its independent operation and significant contributions to the voluntary scheme. The charity will now play a supportive role in developing the National Gambling Support Network (NGSN), focusing on frontline services for affected individuals.

Concerns Over Fund Allocation

Stakeholders such as GamCare and the Young Gamers and Gamblers Education Trust (YGAM) have urged the government to provide greater clarity on how funds will be allocated. Local third-sector organisations, which deliver 90% of treatment and support services, stress the importance of ring-fenced funding to ensure continuity and effectiveness.

GamCare Chair Margot Daly emphasised that RET funding should be strategically managed to guarantee the best outcomes for those harmed by gambling. Daly called for assurances that funds would support existing initiatives while addressing emerging challenges.

Despite broad support for the statutory levy, concerns linger about potential conflicts in fund allocation. The Office for Health Improvement and Disparities (OHID) is reportedly competing with GambleAware to become the government’s preferred recipient of RET funds.

Baroness Twycross is set to address GambleAware’s annual conference in December. Her speech may shed further light on the government’s intentions.