UK’s Gambling RET Levy Changes May Be Flawed
Concerns have been raised about the impact of changes to how research into gambling-related harm due to the upcoming industry levy by the UK government.
Calculations over the new gambling levy are ongoing.
Key Facts:
- Labour expects to raise around £100 million via the levy
- Operators from across the gambling industry are preparing to make their first payments in October
- New levy will provide funding for gambling-related research
- This replaces bodies like GambleAware, which is being closed
The Labour government announced the new levy not long after last year’s general election, with the state aiming to raise as much as £100 million in taxes to boost finances.
That money will partly go towards funding research into gambling-related harm, with the impact that bodies such as GambleAware will be shuttered.
But questions have been asked over potential bias if money from gambling companies is being used to pay for studies into potential negative impacts.
The BMJ – formerly known as the British Medical Journal – has released fresh findings suggesting that the new investment into gaming research via the levy may cause more harm than good.
October is when the first payments of the levy are due, with the Gambling Commission having recently revealed how the money to be paid will be calculated.
Protecting the Research Process
Research into gambling-related harms is often at least partly funded by the industry in the UK.
This could potentially cause problems around bias, with around 20% of the money that is set to be raised by the new gambling levy being set to go to research.
Those studies will be led by UK Research and Innovation (UKRI in conjunction with another organisation called the Arts and Humanities Research Council.
However, with the money still coming directly from gambling companies such as sports betting firms and online casinos, some researchers are worried about potential problems.
Some experts have told the BMJ that the move threatens the “opportunity for a fresh start” provided by the launch of the levy.
Researchers also suggested current policies “will not protect the research process” from being influenced by the industry.
Pay Up or Lose Licenses
The Gambling Commission has warned operators that they could lose their licence if they do not pay the new gambling levy.
But the industry has pushed back on calls for new taxes to hit the gambling sector, with the UK’s former prime minister Gordon Brown supporting fresh measures.
Brown has backed recent calls from UK think tank the Institute for Public Policy Research to increase gambling taxes to raise more than £3.2 billion per year in extra public finances funding.
Members of the Betting and Gaming Council (BGC), a UK standards body sometimes described as a lobbying group, are said to support more than 100,000 jobs.
The BGC also says that the industry generates nearly £7 billion for the country’s economy and raises some £4 billion in taxes.
Around 22.5 million adults in this country have a bet monthly, while the most recent NHS Health Survey for England found that just 0.4% of the population are problem gamblers.
