Compulsory £5m Gambling Levy proposed

It is very likely that online gambling companies will be forced to contribute to an annual £5m gambling addiction levy set by the Government. The levy was recommended by The Gambling Commission in 2007 when it criticised the short fall in gambling addiction funding available for treatment centres, helplines and research into gambling addiction by the Industry, and stated at the time that should the gambling Industry as a whole not meet the recommended voluntary funding targets then a compulsory levy should be set.

Gerry Sutcliffe has published a consultation paper regarding the proposed compulsory £5m levy as a direct response to the gaming industry’s failure to assist in the rehabilitation and protection of vulnerable people who suffer from gambling addiction. The sports minister is quoted as saying “We must ensure that organisations working to prevent and treat problem gambling are given the financial security they need to carry out the important work they do”. The gaming industry which includes online gambling organisations has 3 months to agree on a workable voluntary scheme or face compulsory measures to protect the vulnerable by the Government.

There is an estimated shortfall of £1.3m in this years voluntary funding by the gaming industry, and this figure is only likely to increase if a compulsory levy is not introduced by the Government with “unacceptable consequences” predicted by The Department of Culture, Media and Sport.

It is expected that the Government would introduce an annual fee that each gambling organisation would pay dependent on size and gambling volumes, all gaming companies would be liable including online gambling organisations casinos, lotteries, betting shops and bingo halls with the exception only of the smaller gaming and entertainment centres. The Association of British Bookmakers (ABB) spokesman feels that there is little need for a compulsory levy to be introduced however did recognise that some sectors of the gaming industry have failed to make adequate (if any) contribution to the voluntary fund. In fact the ABB are so against the levy that they have joined forces with the British Casino Association (BACTA) the RGA and The Bingo Association to speak in one voice against such proposals being introduced to form a new body The Confederation of Gambling Associations (COGA). Russ Phillips of ABB is quoted as saying "none of us see the justification for a new statutory levy to cover research, education and treatment, and we would all like DCMS to do more to promote our industry rather than talking it down.”