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UK Operators May Face Obligatory Levy Toward Gambling Treatment Charity
By Shane Addinall May 15, 2022 IndustryAccording to the UK Gambling Commission, one person suffering from gambling harm is one too many. Will lawmakers heed the call from GambleAware for compulsory donations to aid those in need?The UK non-profit, GambleAware, urges lawmakers to impose a compulsory levy on licensed operators following unpredictable donations from the industry. For the past financial year, voluntary contributions amounted to £34.7 million, but GambleAware warns that many evade their responsibility.
Although this is an increase of 82.6% from the previous financial period, the gambling-harm charity expresses the need for more funds to aid in the fight against gambling-related harm.
British operators await the government’s whitepaper on the country’s much-delayed gambling reform. Whether an obligatory annual donation awaits UKGC licensees remains to be seen.
Lopsided Operator Accountability
GambleAware reported on donations from April 2021 to March 2022, revealing that 91% of the pledged £34.7 million came from a handful of operators. As some of the largest providers in the region, Flutter, Entain, Ladbrokes, William Hill, and Bet365 (Hillside) pledged approximately £31.6 million combined.
In stark contrast, other individual pledges mostly range between £50 and £90,000, with a few exceptions reaching six figures. This imbalance is what GambleAware seeks to address with its motion for compulsory levies. The charity currently requests a voluntary donation from anyone who benefits from gambling activities to the value of 0.01% of the company’s Gross Gambling Yield (GGY).
Four of the leading operators in the UK subsequently committed to contributions worth 1% of their annual GGR. Still, their efforts were not matched by their peers. In their report, the organisation said:
“GambleAware continues to call for a mandatory levy to address gambling harms and ensure transparency and consistency across the industry. Having such a system in place would provide the sustainable funding which is vital for the delivery of research, treatment and prevention.”
The amount received from donors excludes regulatory settlements and additional donations, as GambleAware did not receive any for the year in question.
Why is More Necessary?
Current economic realities such as inflation and financial constraints from pandemic inflicted challenges pose a serious threat to increased problematic gambling, according to GambleAware. Zoë Osmond, Chief Executive at GambleAware, argues that a predictable source of funds leads to sustainable support for those in need. Osmond elaborated:
“These donations fund essential services for the prevention of gambling harms, helping build a coalition of expertise to tackle and prevent gambling harms across Great Britain.”
If the UK government enforces an annual levy of 1% for all providers in the jurisdiction, based on 2020 revenues, GambleAware should receive pledges worth £140 million. Osmond called on lawmakers to include a mandatory levy with licensing conditions.
Imminent White Paper
British MPs continue to question the contents and arrival of the gambling reform white paper. Nigel Huddleston, Parliamentary Under Secretary for Digital, Culture, Media and Sport, eluded the process is nearing finalisation. Huddleston gave no definitive information about the contents or a timeline for the issuing thereof.
GambleAware’s call on the government may be just in time to make it into the new rule book for providers in the region. With reports estimating 409 suicides annually linked to gambling problems, a more sustainable approach to allocating funds that support the cause makes sense.
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