£100m Problem Gambling Offer: Altruism or Protectionism?

Recent headlines praised five of the UK's largest betting and gambling companies for offering to raise their taxation levy from 0.1% to 1% over the next 5 years. Given that this levy would not be mandatory under the current UK Gambling Commission regulations this was seen as a positive step from these operators in terms of getting involved in the battle against Problem Gambling.

✓What Does Mean In Real Terms?

The offer was made in writing to Department for Digital, Culture, Media and Sport (DCMS) and included signatories for William Hill, Coral Ladbroke, Betfair Paddy Power, Skybet and Bet 365. The current levy sees the gambling licensees generating just over £10 million per year for the cause. The increased levy would see revenues skyrocket to somewhere in the £60-£100 million per annum range over a five-year period. This princely sum which would be dedicated to dealing with all gambling harms including compulsive gambling and underage gambling prevention.

Jeremy Wright, Secretary of State at the DCMS, said:

"Protecting people and their families from the risks of gambling-related harm is a priority for this government and I am encouraged that the sector now recognises that they need to do more."

The additional funding would go a long way towards helping the current gambling addiction support and prevention programs acquire the staff, facilities and technology they need to assist those in need.

✓Is It Altruism or Protectionism?

While the offer seems to be the answer to the UK’s need for funding to address what they see as a growing national concern there are those who are less than glowing in their view of the companies involved and their offer of financial aid.

Ronnie Cowan, the Scottish National party MP, said:

“It’s a bribe to appease campaigners and the UK government against introducing a statutory levy for education, research, treatment and support.”

His view, which is shared by Labour deputy leader Tom Watson, is that the issue of problem gambling is a here-and-now problem. One which requires the UKGC to take a harder stance with purveyors of gambling entertainment in the form of a mandatory tax increase. The proposed tax would generate revenues of approximately £70 million almost immediately, not five years from now.

The call for a statutory gambling tax received strong support from GambleAware and the British Medical Journal (BMJ) in their report “Gambling and public health: we need policy action to prevent harm”. While on the other side of the picket line Sports Minister, Mims Davies, has come under fire for reporting that the voluntary levy system is proving to be a successful and sustainable avenue for revenue generation.

✓Where There’s Smoke…

Upon closer inspection it becomes apparent why these companies are vying to get into the UKGC’s good books:

The Gambling Commission estimates more than 430,000 Britain’s are addicted to gambling, with an additional 1.5 million deemed to be high risk.
The NHS is opening its first children’s gambling clinic amidst reports of more than 55,000 children being classed as gambling addicts.
The UK Government installed the Howard League for Penal Reform’s Commission on Crime and Problem Gambling to trace and act upon links between problem gambling and crime.

With these industry body blows coming in hard and fast it is no wonder there is a concerted drive to control the narrative, to present gambling operators and the gambling sector as a whole in a more positive light. But is it too little too late?

✓Share Your Thoughts

We would love to hear your thoughts. Do you feel enough is being done and that people need to take responsibility for their decisions? Should the betting and gambling companies be doing to protect those who might be susceptible to compulsive gambling? Join the GamblersPick Community and let us know where you fall on this issue.

Remember to always gamble responsibly.