This week, the UK Government announced that it will impose an enforced levy of £100 million on operators to create a fund for the research, prevention, and treatment of gambling problems.
Funding will be raised solely by this new levy, which will be paid for by operators in the UK, and there will be no voluntary contributions, this will be forced.
There has been talk of something like this coming in place for a while now, so it may not be a surprise, but I do think the wording and the path we are going down is a little stronger than I had initially expected.
Under the previous government, a consultation period took place in January 2024 to determine how a statutory levy would be implemented and spent. The findings of that consultation are now going to be implemented by the new government.
While levy payments have been in place for some time now, this is the first time that mandatory levy has been put in place, so it is a real historic moment for the industry.
It also comes just a few weeks after the government asked racing to fix levy problems themselves rather than relying on direction from them. While racing hasn’t really been given the option to work on anything themselves here, it’s certainly a shot as to what could happen in the future if the industry doesn’t get its act together.
Smaller Operators Worry about New Levy
The traditions of betting inside a shop are slowly fading away, and they’ve been dealt another blow with the introduction of this levy.
There are 500 independent shops around the UK, and while the deal in place means that smaller operators will pay a lot less than the bigger operators into the pot, they still have to pay something.
These shops are ultimately going to be at risk, with the additional cost of paying the new levy.
Payments towards this fund will begin for operators in April, at the same time that both the living wage in the UK rises and the national insurance contributions from employers are to go up. This means three additional payments for smaller businesses in the gambling industry, so the pressure is definitely on them.
The UK high street continues to go through a period of change, and there’s more coming in April. Given this news about the levy, betting shops have even more on their plate and could be one of the most impacted in April when additional costs are added.
Slot Stake Limits Also to be Implemented
Alongside the news about enforced levy, the government also confirmed that slot stake limits are also due to be introduced online.
While full details of these changes have not yet been announced, the changes have been spoken about for some time now and were part of the government white paper, which came out before the change from Conservative to Labour.
These changes, in particular, have more than likely been delayed by the change in government and the switch around but were worked on by both parties, so the change was always going to happen.
From high street bookmakers to vibrant casinos, BGC members provide a major boost to the UK’s leisure and tourism sectors. The regulated industry keeps thousands employed and supports local communities, making a significant impact across Britain.
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— Betting and Gaming Council (@BetGameCouncil) November 29, 2024
The Betting and Gaming Council, who work with the government on behalf of the operators to try and keep links strong, said that they agreed to the staking limits, plus the new enforced levy payments.
For now, the course we are taking is something that was probably expected by most. However, the enforcement of the levy for the first time and the nature of the announcement certainly make you wonder what the next steps will be.
