A new 1% levy will be applied to online gambling companies by the British government as of Tuesday, 17th October 2023. The money earned from this levy will be used for research, prevention, and treatment of problem gambling. So, the benefit will be minimizing the social impact of gambling addiction. Moreover, the Gambling Act 2005 will be amended to include this 1% tax. That way, children and vulnerable people will be protected, and gambling will be conducted fairly. This could potentially generate as much as £100 million annually. The revenue raised will significantly enhance consumer safety and promote responsible gambling. Consumers’ safety and the promotion of safe gambling could be greatly improved with the money raised. The funds could be used to improve treatments for gambling addiction, focus more on prevention, and support research to discover the best treatments possible.
Voluntary levy already exists in the UK. That means that businesses are encouraged to make contributions, and it solely depends on the goodwill of each person. Because of the fact that it’s voluntary, companies can choose whether to contribute and what amount they contribute. So, the effectiveness of voluntary levies is low because there is no natural commitment to social responsibility without the need for government intervention. Many have criticized it as inefficient, and DCMS (Department for Culture, Media and Sport) said that some operators contributed just a single pound.
That is why this new mandatory gambling levy would be much better. Many organizations that work in the responsible gambling sector welcome this news so they can fight better for the future of problem gamblers.
Using a new statutory levy would enable gambling companies to pay their “fair share,” says UK Gambling Minister Stuart Andrew. According to the DCMS, the government is considering introducing a 1% charge on the total earnings of online gambling providers. In comparison, local betting shops and casinos might face a fee close to 0.4%. This way, all players will continue to gamble safely, and the problem gamblers will be given a safe place to cure their gambling problems.