UK set to pass £100m on gambling companies – report

After the industry narrowly steered away from a rumored double-digit tax on gambling that was unflatteringly called "nothing short of stupid" by industry bigwigs, the Labor government may be on its way to introducing a measure pitched by the Tories.

A statutory levy on gambling companies could be coming this week

According to The Guardian, which first reported on the double-digit tax couple of months ago, and is now reporting on the rumored levy, Labor is set to introduce the suggested £100m levy which will be earmarked for research, educating and treatment of gambling harms.

The idea is to do away with the previous system of voluntary contributions and replace it with one where companies would have to pay a specific percentage based on their size and operations.

The measure should in theory allow companies that rely on industry funding to advance treatment and research into problem gambling to plan better for each year. Another consequence could be that charities would no longer have to worry about funding, as it would be compulsory for companies to stump up.

This could in turn help dispel some bias against certain charities that have been accused of being on the teat of the industry and contributing to the misery of ordinary citizens, beholden to their "paymasters" instead.

Although the news is based solely on The Guardian’s report, the general idea of how a gambling levy would actually work is somewhat borne out already.

A "statutory levy" as the term is more broadly used to describe a proposed mandatory payment equal to 1% of gambling companies’ gross gambling yield that will be distributed to support research, education, and treatment, as noted.

According to estimates based on the industry’s current operational results, these causes and projects can levy a sum exceeding £100m, with the industry bringing in £10.9bn over the past 12 months, putting the raised total to £109m.

The rumored measure would need to undergo more clarifications

Gambling minister Baroness Twycross could announce the new levy plans as early as Wednesday, the Guardian said, citing its sources.

It’s not yet clear how the funds will be distributed just yet should the levy come into force, with both the Office for Health Improvement and Disparities and GambleAware likely candidates to distribute the money to various organizations in order to fund charity projects and help strengthen consumer protections.

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