LABOUR are set to announce a statutory levy on gambling companies, reports say.
The government could announce the plans as early as Wednesday, with bookmakers and casinos being forced to pay the £100m per YEAR charge.
This levy will go towards funding for research, education and treatment of gambling harms.
It was first suggested five years ago by an all-party parliamentary group, now chaired by Iain Duncan Smith, who are a group of MPs examining gambling harms.
It follows the white paper published by Conservatives, with many of its proposals up in the air when they were removed from power.
Now, the Guardian report the current government are to rubber stamp these plans to come into force from next April and replace the old ‘voluntary’ levy system.
Currently, gambling firms are able to decide who received their donations and how much they wanted to donate.
But new statutory measures mean operators will now pay 1% of their gross gambling yield, which is essentially the money they ‘win’ from punters.
That’s not likely to include land-based operators, with a proposed 0.4% levy instead set to be proposed, with the likes of high street bookmakers incurring higher costs for premises and staff.
Based on last year’s figures, that could mean an annual sum of £109m, going towards charities to help with support of gambling treatment as well as on new NHS addiction clinics.
Previously, the UK’s largest gambling charity, GambleAware, were the recipients of close to £50million in voluntary payments from gambling firms.
However sources have told the Guardian that the Office for Health Improvement and Disparities (OHID) was pushing to be the main body to receive the majority of funds generated from this new levy.
On the expected announcement, Iain Duncan Smith said: “I am delighted that the statutory levy, which the APPG first proposed five years ago, is finally being introduced.
“For the first time the gambling industry will be mandated to pay for the harm they cause.
“Whilst there is much more to do but this is a seismic moment and a huge step forward and I welcome it unreservedly.”
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While a Betting and Gaming Council spokesperson told the Guardian: “The BGC previously proposed a mandatory levy and we welcomed the government’s announcement for a new system of payments with continued independence of funding allocation.
“The BGC remains concerned that there should be a sliding scale for land-based businesses that have much higher fixed costs, such as staff and premises, and that funding for longstanding, expert providers of research, prevention and treatment services in the third sector is protected.”
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