Online gambling operators could face 1% fee to tackle addiction

Online gambling operators could face a one per cent fee on gross yield to fund the prevention and treatment of addiction and other gambling-related harms.

The government has said it is taking the next steps towards mandating payments from the gambling sector by launching a new consultation on the design of a proposed new gambling levy.

Not all gambling companies currently contribute equally towards the existing voluntary levy, with some operators paying as little as £1, it said.

Under the proposed levy, the gambling industry will no longer have a say over how money for research, prevention and treatment is spent.

The Gambling Commission will instead distribute funding directly to the NHS and UK Research and Innovation (UKRI), which coordinates research and innovation funding under the strategic direction of government.

The proposed levy, which would raise an estimated £100 million of funding, would be underpinned by legislation meaning firms will be required to pay.

Research shows that there has been a significant rise in online gambling behaviour due to the ease of access on smartphones, with data from the NHS Digital Health Survey indicating that some of these online products are associated with elevated levels of gambling-related addiction.

These figures also demonstrate that problem gambling rates are eight times higher for online slots and casino game players than in the population as a whole.

The government said it is minded to set the levy at one per cent for online gambling providers, while traditional betting shops and casinos will pay around 0.4 per cent.

"Harmful gambling can affect people’s savings, ruin relationships, and devastate people’s lives and health," said health minister Neil O'Brien. "Gambling companies should pay their fair share towards the costs of treatment services, but we want to hear from as many people as possible about how the new statutory levy should work."

NHS mental health director Claire Murdoch said that the health service has long called for a statutory levy.

"Gambling addiction destroys people’s lives and with record numbers turning to the NHS for support, the health service has met this demand head on by opening four new specialist clinics in recent months, with a further three opening later this year," she added.

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