JenningsBet, an independent British betting operator, has weighed on the statutory levy discussions, saying that the measure would have adverse effects. According to the company, a mandatory levy would result in closed shops and mass layoffs.

For reference, the statutory levy is a much-discussed measure outlined in the United Kingdom’s Gambling Act white paper. The levy would replace the current voluntary system whereby gambling operators across the country make voluntary donations for gambling research, education and treatment.

Under the mandatory levy, all online operators will have to provide 1% of their annual revenue for such initiatives, while land-based companies will pay only 0.4% because of the higher costs associated with retail operations. This move, according to its proponents, will provide treatment organizations with the funding they need to improve their services and efficiency.

However, opponents of the measure say that it may cause more harm than good. JenningsBet, for one, is not happy with the changes.

JenningsBet Warns of Shop Closures

Vicky Knight, JenningsBet’s head of safer gambling, addressed the matter in a Betting and Gaming Council blog post, saying that the new moves might actually hinder the industry’s ability to help those in need.

According to Knight, JenningsBet has dutifully paid the voluntary levy for two decades and is proud to have supported many excellent charities. However, she argues that the 0.4% levy on retail operators is disproportional and would lead to layoffs and closed shops.

That would be devastating for operators like us, which are the beating heart of many hard-pressed high streets, offering community to customers, and bringing in much-needed investment both locally and nationally.

Vicky Knight, head of safer gambling, JenningsBet

Knight pointed out that the retail sector has already been negatively affected by the COVID pandemic and the recent economic hurdles, causing the closure of dozens of shops and businesses. In just five years, 43% of the small betting businesses have died out, she pointed out.

She added that Family Entertainment Centers in the UK are exempt from the new rules and will only have to pay 0.1% despite having similar operating costs. Knight also mentioned the National Lottery, which has only contributed 0.01% of its gross gaming yield toward the levy over the past three years.

If all independent bookies are unfairly targeted with a higher levy than our peers, it will inevitably push some shops into unprofitability. That will mean further closures and job losses.

Vicky Knight, head of safer gambling, JenningsBet

Knight concluded that her team wants to pay its fair share, as it has done for two decades now. However, she hopes that the government will keep the independent bookmakers in mind when implementing the reforms.

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GambleAware’s chief executive officer, Zoë Osmond, has weighed in on the statutory levy consultations, expressing her excitement about the measure. However, she also had a few points to make.

For reference, the levy would require all operators in the UK to provide a portion of their revenues for gambling harm research and treatment and was among the measures outlined in the Gambling Act white paper.

Osmond said that GambleAware has been waiting for this measure for years and is happy to finally see it happen. The charity sector previously depended on voluntary donations but will now have some much-needed security.

The CEO of GambleAware added that she hopes that the sector can finally move on from the “unhelpful distraction” of heated discussions about dependence and funding.

In the meantime, Osmond said that the Levy can potentially transform the charity sector, helping more people across Britain get access to gambling harm treatment. However, she noted that there are a number of “core elements in the proposed approach” that her team believes could negatively impact the provision of services.

Osmond Had a Few Points to Make

Osmond started by mentioning that GambleAware supports the creation of a National Strategy for the Prevention and Treatment of Gambling Harms. While this was not a part of the proposals, GambleAware believes that one is absolutely needed to transform the system of prevention and treatment.

In addition, GambleAware would prefer if there be a single Prevention and Treatment Commissioner tasked with increasing awareness of societal issues and accessibility of gambling harm treatment services across the country. In the absence of such a commissioner, GambleAware believes that it is essential that the Treatment and Prevention Commissioners work together to ensure that the system is working as intended.

Osmond also believes that the current proposed funding allocations do not adequately reflect GambleAware’s desire to focus more on prevention and early intervention than on treatment.

In order to have a meaningful impact on gambling harm at a population level across Great Britain, prevention must be reprioritized with additional funding. At a minimum, there should be an equal focus on both prevention and treatment. 

Zoë Osmond, CEO, GambleAware

Osmond also noted that the current definitions of treatment and prevention used in the consultation do not recognize that prevention is broken into primary, secondary and tertiary approaches. The current proposals define interventions as Tier 1 and Tier 2 prevention and put them under the authority of the Treatment Commissioner.

Osmond recommended the co-commissioning of these interventions, including the helpline. She also proposed that the launch of national public awareness campaigns and digital early interventions should be included within the remit of the Prevention Commissioner.

Finally, Osmond once again emphasized the need for a smooth transition to the new system. She warned that failing to do that might deprive the third sector of funding and disrupt the availability of services.

Osmond concluded that she hopes her concerns will be addressed so that the levy reaches its full transformational potential.

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As per the white paper, the United Kingdom is planning to proceed with its plans to introduce the statutory levy. The country’s current gambling minister, Stuart Andrew, believes that the UK will be able to deliver it for summer 2024.

For reference, the statutory levy is a measure that would force gambling operators to pay between 0.1% and 1% of their gross gaming revenue as a type of gambling tax that would fund gambling harm research, education and treatment. The levy would replace the existing voluntary system.

Andrew commented on the matter during the annual GambleAware conference, explaining the government’s progress when it comes to the implementation of the levy. He said that the government is focused on ensuring a seamless transition that would not hurt RET funding, allowing gambling harm charities to continue their work.

Andrew said that everything would come to “getting the timing right” and ensuring that all the necessary infrastructure, processes and relationships are in place. This means that the measure must be introduced in Parliament as quickly as possible, allowing his team to create the foundations for the levy.

The minister added that he hopes to create a clear roadmap that his team would follow when implementing the levy.

The Reforms May Take Years

In the meantime, Andrew is working with industry shareholders, consulting the upcoming measure. According to him, the industry will not cancel its voluntary funding until the levy has been officially introduced.

Unfortunately, the implementation of all the white paper measures is unlikely to happen anytime soon and certainly not before the next general election. According to Andrew Rhodes, CEO of the UK Gambling Commission, implementing so many measures is likely to keep his team occupied for the next few years.

Rhodes emphasized the need to approach the reforms with care rather than haste, ensuring that everything is well thought-out and functional. Despite that, critics have slammed the pace of the reforms, critiquing the government for its slow progress.

Rhodes, however, remains firm that progress is being made. He promised that the moderate pace would allow his team to create a UK gambling market that is safer and fairer.

Speaking of safe gambling, the UK government just outlined who may benefit from gambling addiction treatment.

In the meantime, the UK continues to discuss the controversial affordability checks, another measure outlined in the Gambling Act white paper.

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NHS England, the public body of the Department of Health and Social Care, and GambleAware, the independent charity working to keep people safe from gambling harm in Great Britain, came out with a joint statement, welcoming the statutory levy on operators.

Boost RET Funding

The statutory levy on operators was part of the White Paper proposals seeking to boost funding for gambling research, education and treatment (RET) and is expected to replace the current system based on voluntary donations.

NHS England’s National Clinical Advisor on Gambling Harms, Prof. Henrietta Bowden-Jones OBE, outlined in her comments the statutory levy’s “potential to finally ensure the independence of funding for treatment and research programs, as well as for prevention initiatives to address gambling harm.”

“It must be implemented without delay in order for fully integrated treatment pathways to be established,” Bowden-Jones said, emphasizing the NHS commitment to continue the long-standing collaboration with GambleAware throughout the interim period “to ensure that all patients in need of gambling treatment are accessing the service that they need.”

Besides the recognition of the constructive relationship with GambleAware, Bowden-Jones expressed the body’s “commitment to working with non-statutory providers of gambling treatment across the country,” noting that NHS England does not seek to be the only provider of gambling treatment on a national level.

Key to Delivering Efficient Service

GambleAware’s chief executive officer, Zoë Osmond, welcomed the statement from the NHS, seeing it as a confirmation of the long-standing and constructive collaboration between the two bodies.

“In our role as leading charity and strategic commissioner, partnership with those across the healthcare sector is vital,” Osmond said, looking forward to continuing work with the NHS to “ensure people are able to seamlessly access the services they need.”

Osmond also pointed to the charity’s collaborations with DCMS, DHSC, OHID, and the Gambling Commission and the key role these relationships play in helping GambleAware deliver “efficient and effective service” through the National Gambling Support Network.

“We welcome the introduction of a statutory levy on the industry to provide certainty and stability of funding, which will allow us and others to make long-term commitments to meet the needs of the population,” she concluded.

The joint statement represents a change of tone about the White Paper proposals that were subjected to stern criticism by public health specialists and anti-gambling advocates upon the document’s release.

GambleAware also joined the choir of critics, alongside GamCare and Gordon Moody, in sharing their concerns over rising addiction rates in the country.

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