The Government has approved plans first mooted in the White Paper to introduce a mandatory levy between 0.1 and 1.1 percent of GGY on all gambling licensees, with DCMS also enacting online slot stake limits of £5 for over 25s, and £2 for people aged 18 to 24. But it’s the unexpected doubling of the levy on high street AGCs and bingo halls that has rocked the industry. How much more financial misery, they say, can be heaped on businesses by the new government?

DCMS has approved the introduction of a mandatory levy on UK gambling companies, estimated to be worth £100m annually, and dedicated to the research, prevention and treatment of gambling harms.

The headline figures will make uncomfortable reading, no longer just for online operators, they were long braced for a whack from the statutory levy.

But it’s the land-based sector, AGCs and bingo halls in particular, that will be thinking about the financial impact: their future is now under extreme threat following the decision that operators will have to pay 0.2 percent rather than the 0.1 percent originally mooted – a significant burden in the current economic climate..

There was some respite, however, for machine manufacturers and suppliers – in fact, a huge relief; their contribution was revised down to 0.1 percent from 0.4 percent.

The bookies and casinos fared worse though, although that’s no consolation – particularly for the UK’s high streets. They will have to contribute 0.5 percent, an increase in what they were anticipating.

“The introduction of the first legally mandated levy will be instrumental in supporting research, raising awareness and reducing the stigma around gambling-related harm,” said minister for gambling, Baroness Twycross.

“We are also helping to protect those at risk, with a particular focus on young adults, by introducing stake limits for online slots. These measures will help build an NHS fit for our future and strengthen protections whilst also allowing people to continue to gamble safely.”

For the players, the big step taken by government is  the cap on stake limits which will be set at £5 per spin for adults aged 25 and over, and £2 per spin for 18 to 24 year olds on all online slots, which DCMS described as “a higher-risk gambling product associated with large losses, long sessions, and binge play.”

Probing into the detail of the levy, legislators were very clear on defining the fundamental gap between online and land-based operations – albeit a miniscule concession for high street businesses considering financial lashings meted out by the government recently.  As far as the levy is concerned, the 1.1 percent of previous yearly GGY will be due from all online and software businesses. 

And the levy will also operate a ranking on land based businesses: the premier league payers will be the betting shops and casinos at 0.5 percent; the football league tier comprises AGCs, bingo halls and on course bookmakers at 0.2 percent; and the levy non-leaguers, FECs, machine technical licensees, and society lotteries will pay 0.1 percent.

So, who gets all the dosh that will no longer be going to economic growth? Well it’s likely to be a whole new sector of money-hungry researchers – they will be laughing all the way to the bank. The NHS will receive 50 percent of all funding generated, to develop a comprehensive support and treatment system, while 30 percent will go towards funding prevention efforts, such as national public health campaigns and training for frontline staff.

The remaining 20 percent will be directed to UK Research and Innovation (UKRI) and the Gambling Commission, to develop bespoke research programmes.

The future of GambleAware, however, is somewhat precarious. The charity received £49.5m in voluntary donations last year, but DCMS was tight-lipped.  “The government is taking the time to get the important decision on the future of prevention right and will publish next steps in the coming months.”

A slap in the face for GambleAware? Well the jury’s out on that at the moment, but, if truth be told, there wouldn’t be a shortage of charities happy to queue up for the opportunity to smack GambleAware down for its poor performance over the years. 

Funding from the levy will be distributed to the NHS and UKRI, the umbrella body for research councils, by the Gambling Commission “under the strategic direction of the government.