Some 50% of levy funds will go towards treatment, 30% prevention and 20% research.
The UK’s Department for Culture, Media and Sport (DCMS) has published details on how it will distribute funds from the new statutory levy, having revealed the scheme generated a total of £120 million ($161 million) during its first nine months of implementation.
The new levy came into effect on 6 April, having been included in the previous government’s Gambling Act white paper. It was designed to generate additional funds to support the research, prevention and treatment (RPT) of gambling-related harm.
The levy applies to all UK-licensed operators, with rates differing depending on the type of licence they hold. Rates range from 1.1% for online operators and software licensees to 0.1% for family entertainment centres, pooling betting licences and machine technical licences.
An exemption applies to the National Lottery as it operates under its own legal framework. It also already contributes to research, prevention and treatment causes and raises money for good causes under its current systems.
Where will the levy money go?
Detailing the funding split, 20% will be directed to the UK Research and Innovation (UKRI) to support a new, bespoke Research Programme on Gambling (RPG). A small proportion will go to the Gambling Commission to direct further research in line with the licensing objectives.
Within the UKRI’s initial focus will be a new Gambling Harms Research Coordination Centre (GHRCC) and Gambling Harms Research and Innovation Partnerships (GHRIPs). It will also focus on “rapid” evidence reviews for the new RPG to support future policies.
“This high-quality, independently commissioned research will help fill gaps in the evidence base for gambling-related harm to inform policy and practice,” the DCMS said. “UKRI will be launching further opportunities as the levy progresses.”
DCMS urges ‘comprehensive’ approach
Elsewhere, 30% of statutory levy funds will be used to strengthen gambling harm prevention efforts in the UK. Funds will go to the Office for Health Improvement and Disparities (OHID), as well as the Scottish and Welsh governments. This will develop a “comprehensive” approach to prevention and early intervention across all three nations of Great Britain.
The DCMS said prevention efforts will include a range of measures. Among these will be the OHID in England taking forward a public health approach to the commissioning of prevention activity. This, the department said, will be fully independent of the influence of the gambling industry. The idea of this, the DCMS added, will be to maximise impact for those at risk of or experiencing harm
“Prevention will include a wide spectrum of measures, with the ultimate goal of delivering on the government’s objective to reduce gambling-related harm in Great Britain,” the DCMS said.
Treatment to get most funding from levy
The largest proportion of funds – 50% – will be reserved for treatment and support services, with this being split across NHS England and the Scottish and Welsh governments. Treatment efforts will involve working collaboratively with all providers, including the third sector, to ensure services are connected and consistent.
“The priority for the government is to increase the level of investment and strengthen the provision of projects and services to understand, tackle and treat gambling-related harm in order to improve outcomes for the public,” the DCMS said.
New groups to monitor implementation and delivery
As part of the new scheme the DCMS has set up two groups to monitor its implementation and delivery. These, it added, have been designed to ensure the long-term “sustainability and effectiveness” of the system.
First, the Gambling Levy Delivery Group will be the main forum to bring together the RPT strands of the system. It will have members from across the DCMS, Gambling Commission, UKRI, OHID, NHS England, the Scottish and Welsh governments, Public Health Scotland and NHS Wales Performance and Improvement.
Its key roles will include facilitating communication, integration and collaboration between commissioning and coordinating leads. It will also provide a forum for progress and delivery updates, as well as raise issues in the gambling sector. Meetings are due to take place once a quarter to allow for regular communication.
The second group is the Gambling Levy Programme Board, which will become the central oversight mechanism for the levy system. It will assume responsibility for monitoring the levy and delivery of objectives and commissioning priorities.
Ben Dean, director for sport and gambling with the DCMS, will chair the board. Julie Carney, deputy director for gambling and lotteries at the DCMS, will serve as vice chair. Other board members will include more representatives from the DCMS, the Treasury, Department for Science, Innovation and Technology, Department of Health and Social Care and both the Scottish and Welsh governments.
“The statutory gambling levy represents a generational change to funding arrangements,” the DCMS added. “It is a significant transformation in the government’s commitment to strengthening efforts to understand, tackle and treat gambling-related harm.”