In the midst of an expanding cost-of-living crisis, financial struggles resulting from the global pandemic, and increasing interest in online gambling, UK individuals are expected to be exposed to a higher risk of gambling harms.
To prevent gambling harm, GambleAware introduces a set of six new principles, with a mandatory gambling levy being one of them. The organisation also called for an expertise coalition that would help combat inequality. The supposed levy of 1% should be applied to Gross Gambling Yield (GGY) and would generate about £140 million per year, with these numbers based on the GGY for the year between 2019 and 2020. The raised funds should be used for the financial support of programmes dealing with research as well as the prevention and treatment of gambling-related harms.
Mandatory 1% Gambling Levy Could Provide New Funding System to Prevent Gambling Harm
Taking into account different factors that may increase the potential gambling harm among people and their families, on Wednesday, GambleAware published six principles they believe are required to tackle the growing risk of gambling harm in the UK. One of the more notable principles was the suggestion for a mandatory gambling 1% levy imposed on GGY. The organisation called for the Government to introduce the said levy as a licence condition that operators must meet.
Estimations show that the GGY that Great Britain generated for the fiscal year between 2019 and 2020 amounted to £14.1 billion. Based on those numbers, GambleAware believes that the gambling industry could raise about £140 million annually if they introduce a mandatory gambling levy of at least 1%. According to the organisation, such steps are highly required as the country needs to handle the increasing financial and economic hurdles in the UK.
GambleAware believes that rather than introducing such reform as a voluntary tool, the gambling levy must be a mandatory requirement that gambling businesses must meet if they wish to operate within the UK. The suggested levy could serve as a tool that can help prevent gambling harm. With the proviso that the mandatory levy gets introduced, the new funding model will allow services to conduct long-term plans and provide tools to combat gambling-related harms. A better funding system could also help the NHS focus on individuals with more serious gambling issues as current data show that more than 90% of the treatment of gambling problems is happening outside the jurisdiction of the NHS.
Six Principles to Tackle Gambling Harm and Reduce Inequalities Among Gamblers
In addition to the mandatory gambling levy of at least 1%, GambleAware also introduced five other principles they believe will help reduce gambling harm among British individuals. The organisation shared that the principles they are introducing should ensure a transparent interaction with the Government while the white paper on the Gambling Act is getting ready to be published as well as after the new reforms in the law are introduced.
The first principle published by GambleAware is related to providing support to those at the highest risk of gambling harm by reducing inequalities. The organisation believes the gambling industry should not be allowed to earn money by targeting vulnerable communities that are at the highest risk of harm during the cost-of-living crisis. The rest of the principles published by GambleAware include early interventions and support for all communities, innovation-driven treatment and support, a coalition of expertise, and the active participation of gambling investors.
- Author
Olivia Cole
