This snapshot taken on 12/05/2010, shows web content selected for preservation by The National Archives. External links, forms and search boxes may not work in archived websites.

Government moves to secure funding to tackle problem gambling

002/09
06 January 2009

Sports Minister Gerry Sutcliffe today unveiled plans to introduce a statutory levy on the gambling industry to fund the research, education and treatment of problem gambling.

The statutory levy would raise over £5 million per year to fund initiatives such as running helplines, treatment centres and commissioning further research into the issue.

Existing voluntary arrangements with gambling operators have not raised an acceptable amount and in some cases contributions have not been forthcoming. A statutory levy will come into force during the next financial year - unless the industry can give satisfactory funding guarantees. A consultation was launched today and will run for 12 weeks.

The new independent gambling Strategy Board, launched in November and headed by Baroness Neuberger, will advise on the amount of funding required on a three year rolling basis.

Under the proposal set out by the Government premises-based operators would pay a flat fee based on the number of premises they run and the type and volume of gambling they offer.

Remote operators would pay a flat fee within bands based on the Gambling Commission’s licence structure.

The levy will be set to take account of the particular challenges facing smaller operators. The smallest on-course bookmakers and family entertainment centres will not be expected to contribute. 

Minister for Sport Gerry Sutcliffe said:

“We have put the protection of vulnerable people at the heart of the Gambling Act and that remains our priority. We must ensure that organisations working to prevent and treat problem gambling are given the financial security they need to carry out the important work they do.

“Gambling operators have a responsibility to help fund this and it is very disappointing that the industry has so far failed to agree improved voluntary arrangements to do this.  So, in order to ensure funding is in place for this vital work, the Government has today set out its proposal for a statutory levy on all licensed gambling operators in the UK.

“If the industry can agree the improved voluntary arrangements in the meantime the door is not closed, but time has almost run out.”

Following the publication of the Gambling Prevalence Survey in 2007, the Gambling Commission was asked by Ministers to report on the funding for gambling research, education and treatment. The report, published in October, made the case for the introduction of a statutory levy in 2009 should the gambling industry fail to come up with firmly committed voluntary funding arrangements on a three year rolling basis.

Gambling operators have contributed on a voluntary basis since 2002, in an arrangement administered by the Responsibility in Gambling Trust (RIGT). 

For the last two years the funding target has only been achieved very late in the financial year and due to the fact that major operators agreed to make up the shortfall.  This year (2008/09) the shortfall is currently estimated to be around £1.2 million.

Notes to editors

  1. The consultation on a statutory levy for the research, education and treatment of problem gambling is available on the DCMS website.

  2. The 12 week consultation period ends on 31 March 2009.  The Gambling Act 2005 allows the Government to bring in a statutory levy via secondary legislation. For the legislation to become law it will need to be laid as an ‘affirmative resolution’ Order in Parliament and be debated and approved by both Houses.

  3. The Gambling Commission’s report into the funding of research, education and treatment of problem gambling is available on the Gambling Commission’s website.

  4. Baroness Neuberger was recently appointed Chair of a new independent Strategy Board set up to advise the Gambling Commission and DCMS on the research, education and treatment programmes needed to support a national responsible gambling strategy. 

  5. An illustrative table showing examples of what operators may pay if a statutory levy were to be introduced PDF (27kb) is available here.

Press Enquiries: 020 7211 6052/6277
Out of hours telephone pager no: 07699 751153
Public Enquiries: 020 7211 6200

Back to main

Next >
< Prev

Back to top