The 5 largest gambling operators in the UK have offered to increase their voluntary funding for problem gambling treatment six times. If this happens, the move will result in £60 million being raised on an annual basis to help gambling addicts but the proposal was qualified as a “bribe attempt” to avoid authorities’ tougher regulation.
The five companies, which have addressed the Government with a proposal for an increase in the voluntary levy they pay from 0.1% to 1% of their yearly UK revenue within five years, are William Hill, GVC, Sky Bet, bet365 and Flutter Entertainment.
Previously, campaigners have criticised gambling operators in the country, saying that the £10 million they raise under the levy are simply not enough to help regulators tackle problem gambling. Critics have also claimed that some companies have simply been getting away with paying nothing at all, which has led to some gambling charity organisations, politicians and the gambling industry regulatory body call for a mandatory tax to be imposed.
According to analysts, the levy increase offered by the five companies, which are currently the biggest players in the British gambling sector, would end up contributing £60 million, based on their domestic market earnings. As revealed by a spokesperson for the five companies, the operators would provide a plan by the end of the year to support what they called a rapid expansion of gambling addiction treatment and to make sure that young and vulnerable people are protected against gambling-related harm.
Operators Pledge to Boost Levy from 0.1% to 1% to Fund Gambling Addiction Charities
The five operators sent a letter to the Department for Digital, Culture, Media and Sport to demonstrate their commitment to collaborate with the authorities in order to make sure that gambling-related harm is tackled with the priority of protecting the young and vulnerable.
A couple of sources with knowledge of the matter, the letter was sent to the authorities after a meeting which took place on June 14th, at which the Culture Secretary Jeremy Wright indicated that he wanted more work to be done to address the issue. One of the sources, which remained unnamed, has suggested that the operators are trying to avoid stricter government regulation by voluntarily offering a larger portion of their winnings to fund the battle against problem gambling.
The major gambling regulator in the country, the UK Gambling Commission (UKGC) has been considering whether to impose stricter rules on gambling advertising, as well as background checks and other measures which are expected to affect the companies. The existing voluntary levy is calculated on gambling operators’ gross gambling yield. In 2018, it raised £10 million, with the proceeds being redirected to GambleAware, the main charity organisation aimed at helping problem gamblers deal with their gambling addiction.
Unfortunately for operators, their attempt to take responsibility by offering to voluntarily increase their levy contribution to 1% of their annual revenue has been criticised by campaigners who call their actions a bribe. According to some MPs, such as the Scottish National Party MP Ronnie Cowan, operators are trying to avoid the stricter measures which have been considered by the UKGC and the Government by introducing the suggested increase of money which are intended to be used for research, education, prevention and treatment of gambling addiction and gambling-related harm.
- Author
Olivia Cole
