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UK’s 1% Gambling Levy Supported by BGC

UK's 1% Gambling Levy Supported by BGC
by
October 18, 2023
in iGaming News, Taxation
326

In a significant move towards promoting responsible gambling, the Betting and Gaming Council (BGC) has thrown its weight behind the UK government’s proposed 1% gambling levy. This levy is designed to address the pressing issue of gambling-related harm and tackle problem gambling, a concern that has been growing in the UK and beyond. The BGC’s support for this levy underscores their commitment to the well-being of their patrons and the broader community.

A Generous Pledge

The BGC, representing a significant portion of the UK’s betting and gaming industry, has not merely offered verbal support but made substantial financial commitments. A spokesperson for the BGC revealed, “BGC members pledged £100 million over four years to fund Research, Education, and Treatment (RET) services to help prevent gambling-related harm and tackle problem gambling.”

This financial contribution is an essential part of the industry’s commitment to tackling the problems associated with gambling. The money is utilized through a unique voluntary levy scheme, which ensures that it reaches the intended beneficiaries. The spokesperson continued, “They have gone further and will have donated £110 million by March 2024, helping to protect the vital work of third sector RET providers.”

A Network of Care

This current voluntary levy operates by funding an independent network of charities specializing in treating gambling-related issues. These charities are accredited by the Gambling Commission, ensuring their legitimacy and accountability. The BGC members, who contribute to this fund, have no say in how the funding is spent, further underlining the commitment to transparency and responsible utilization of these resources.

Support for Mandatory Levy

The BGC’s support for the UK government’s proposed gambling levy is more than just an endorsement of the existing voluntary system. It’s a call for a new mandatory levy system. The spokesperson stated, “The BGC supports a new mandatory levy – indeed, we proposed this to the Government ahead of the White Paper.”

This proposition is rooted in the industry’s belief that it should apply to all operators, including even the National Lottery. The aim is to ensure that all aspects of the industry share the responsibility for addressing problem gambling, without adversely affecting good causes, which are also vulnerable to the presence of problem gamblers among their patrons.

Equitable Distribution

To ensure the effectiveness and fairness of the proposed mandatory levy, the BGC advocates for a sliding scale approach. This means that the levy contributions should be proportionate, with smaller percentage contributions from land-based operators. This move acknowledges the challenges faced by independent betting shops on high streets, which have struggled to recover post-pandemic and incur disproportionately higher fixed costs.

The Need for Oversight

The BGC’s support for the mandatory levy also comes with a call for adequate oversight. This oversight is crucial to guarantee that levy funds are only distributed to charities and organizations that genuinely provide RET services. This measure aims to ensure long-term, sustainable funding for these crucial services while safeguarding the existing third sector providers who are already doing vital work and may now be at risk.

The BGC’s commitment to responsible gambling and support for the UK government’s proposed gambling levy showcases a significant step in the right direction. It not only highlights the industry’s willingness to address problem gambling but also emphasizes the need for a comprehensive and inclusive approach that encompasses all operators and ensures equitable distribution of responsibilities and resources.

FAQ

What is the UK gambling levy?
The UK gambling levy is a proposed 1% levy on the gambling industry to fund Research, Education, and Treatment (RET) services aimed at preventing gambling-related harm and addressing problem gambling.

How much has the Betting and Gaming Council (BGC) pledged towards the gambling levy?
BGC members have pledged £100 million over four years to support the gambling levy, with a commitment to donating £110 million by March 2024.

How are the funds from the voluntary levy scheme utilized?
The funds from the voluntary levy scheme support an independent network of charities accredited by the Gambling Commission, which treat problem gamblers in the UK.

Why does the BGC support a new mandatory levy?
The BGC supports a new mandatory levy to ensure all operators, including the National Lottery, contribute to addressing problem gambling, without affecting good causes.

What is the sliding scale approach proposed by the BGC?
The BGC advocates for a sliding scale approach where smaller percentage contributions come from land-based operators, recognizing the challenges faced by independent betting shops.

What is the role of oversight in the BGC’s proposal?
Oversight is essential to ensure that levy funds are distributed to charities and organizations genuinely delivering RET services, safeguarding long-term, sustainable funding and existing third sector providers.

How does the proposed mandatory levy benefit the gambling industry?
The proposed mandatory levy ensures that the industry takes collective responsibility for addressing problem gambling, fostering a safer and more responsible gambling environment.

How will the mandatory levy impact good causes supported by the National Lottery?
The BGC’s proposal aims to ensure that the mandatory levy does not adversely affect good causes supported by the National Lottery.

What challenges have independent betting shops faced post-pandemic?
Independent betting shops on high streets have struggled to recover after the pandemic and incurred disproportionately higher fixed costs, making them more vulnerable.

How can the gambling industry balance profitability and responsible gambling?
The BGC’s support for the mandatory levy represents a significant step in balancing industry profitability with a commitment to responsible gambling and the well-being of patrons.

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