Explainer: The Statutory Levy
In this blog, we’ll explain the levy and explore what it means for reducing gambling harms across England, Scotland and Wales.
What is the statutory levy?
The statutory levy will be a percentage of Gross Gambling Yields (GGY, the profit gambling operators make) which will be paid by operators to the Gambling Commission, who will administer it to deliver research, prevention and treatment to reduce gambling-related harms. For some operators, including online and remote operators, this will be set at 1%. For land-based casinos/betting and non-remote licences this will be 0.4% and for land-based arcades and bingo, and society lotteries this will be 0.1%.
The aim is to raise £90 million to £100 million per year by 2027 for research, prevention and treatment (RPT) to reduce gambling-related harms. This represents a significant expansion in the amount of funding available, and a move away from the current voluntary system for funding to reduce gambling harms.
How will it work?
The levy distribution will be administered by the Gambling Commission (the regulator for the gambling industry). This will be done under the strategic direction of government and will need approval from the Department for Culture Media and Sport (DCMS) and the Treasury. It will be supported by a Levy Board, which will include the Department for Health and Social Care (DHSC) and Department for Science, Innovation and Technology (DSIT), and who will feed into decision-making on the distribution of levy funds. This cross government approach is a positive step forward and reflects the government’s decision to tackle gambling-related harm as a public health issue.
There will also be an informal Advisory Group which brings together experts from the third sector, research community and with a lived experience background, that will support decision making on how funds are spent.
Research, prevention and treatment (RPT)
The government propose that research, prevention and treatment will have individual commissioners. For research, this will be UK Research and Innovation, for treatment this will be the NHS and the commissioner for prevention hasn’t been decided yet.
The government’s consultation proposes the distribution of funding be split up as:
- Research: 10-20% of funding to UKRI for the establishment of a Gambling Research Programme (GRP).
- Prevention: 15-30% of funding to create a co-ordinated GB-wide approach to prevention, early intervention and education.
- Treatment: 40-60% of funding to the NHS in England, Scotland and Wales to commission treatment and support services.
What do we think?
We’re pleased that this new system provides the long-term funding security for organisations across Great Britain working hard to reduce gambling-related harms.
Having multiple commissioners means targeted funding, but there is a lot of overlap between research, prevention and treatment that can’t be ignored. We are recommending that the government implements a National Strategy that unites the three new commissioners with the shared ambition to set a clear direction to reduce gambling harms in the long term.
We have a long history of embedding and learning from lived experience, as does much of the third sector. When work is co-produced with lived experience it helps to reduce barriers to treatment and makes interventions more effective. Therefore, it is vital that the expertise of people with lived experience of gambling-related harm is central to decision making for the levy – helping to inform and improve service provision in the third sector.
We are also concerned about the transition period between now and the implementation of the statutory levy. We want to ensure that services are available and working so that people who need support, get it at the right time and without disruption. Last year, our National Gambling Helpline received 44,049 calls, and 9,009 people attended structured treatment or an Extended Brief Intervention. Each of the individuals contacting us deserve the highest quality and most accessible care during the transition.
The statutory levy represents a generational shift in the gambling harms sector. If it’s done right, the levy is an opportunity to bring together research, prevention and treatment, helping to prevent gambling harms and providing the best care for people who need it.
Read our full consultation response
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