UK Gambling Operators Face £100M Tax in Harm Reduction Push

Gambling operators in the UK face a tax of as much as 1.1% of profits on some types of games as the government seeks £100 million ($126 million) a year to invest in harm reduction and research.

The planned statutory levy on all licensed operators will range from 0.1% to 1.1% of the gross gambling yield, depending on the sector and nature of the gambling, according to a statement Wednesday from the UK’s Department of Culture, Media and Sport.

The UK has over the last few years introduced stricter regulation of gambling, including requiring operators to reduce the intensity of online games, carry out financial vulnerability checks of players and provide customers with better control over the types of marketing they receive. Many of the measures were announced under a Conservative government, which lost to the Labour Party in July’s General Election.

The government will review the charge within five years of its introduction, with the first formal review expected by 2030, according to the statement.

UK gambling stocks soared last month after UK Chancellor Rachel Reeves’ budget did not include much-speculated tax hikes on the sector.

The statutory levy is a separate initiative, proposed under the Conservative government in a 2023 white paper on gambling reform.

The announcement was welcomed by anti-gambling campaigner Matt Zarb-Cousin, who said that he was “really pleased” that it is being introduced. “It will totally transform the research, prevention and treatment of gambling harm,” Zarb-Cousin said.

The four biggest gambling operators – Entain Plc, Flutter Entertainment Plc, William Hill-owner Evoke Plc and Bet365 – previously pledged to pay 1% of their gross gambling yield to an industry-funded charity GambleAware in anticipation of the levy.

In the year ending in March, the charity said it received donations of £49.5 million, £46.6 million of which came from the top four operators.

“This represents a significant step towards protecting people from gambling harm. The levy is also a crucial step towards ensuring continued support through a statutory system and is something we have been calling for since 2017,” GambleAware CEO Zoë Osmond said of the plans in a statement.

The Betting and Gaming Council, which lobbies for the industry, said that it supports plans for the levy outlined in last year’s proposal.

“Ministers must not lose sight of the fact the vast majority of the 22.5 million people who enjoy a bet each month, on the lottery, in bookmakers, casinos, bingo halls and online do so safely,” Betting and Gaming Council Chief Executive Officer Grainne Hurst said in a statement.