Labour urged to implement Tories' £100 million annual levy on gambling companies

Campaigners have called on UK Prime Minister Keir Starmer to enact a £100 million ($129.15 million) annual levy on gambling companies, a measure proposed by the previous Conservative government. The plea, conveyed in an open letter, warns that delays in implementing the reforms could cost lives.

The Conservatives introduced a white paper on gambling regulation reform last year. However, many proposals remain unaddressed following Labour's election victory, including a significant measure to impose a statutory levy on gambling company revenues. This levy is intended to fund research, education, and treatment related to problem gambling.

Expected to generate £100 million annually, the funds would be allocated to the NHS for treatment, UK Research and Innovation for research, and the Office for Health Improvement and Disparities for harm prevention. However, the plan was absent from policy proposals in the king's speech last week.

Campaigners have also raised concerns about potential conflicts of interest, citing connections between senior Labour politicians and the betting industry, which may influence the future of the white paper’s proposals.

The open letter, signed by members of the House of Lords, campaigners, and academic researchers, urges the government to publish its response to a public consultation on the levy and to legislate for its implementation.

“For years, the gambling industry exerted influence over the research, prevention, and treatment of gambling-related harm by providing inadequate funding through a voluntary system,” the letter states. It emphasizes the broad support for the levy from across the political spectrum, NHS clinicians, and academic experts, warning that delays could exacerbate mental health issues, damage communities, and result in fatalities.

Signatories include the chief executive of the Samaritans, eight House of Lords members, academics, and various campaign groups.

The issue of gambling-related harm is set to gain attention this week as the Gambling Commission releases new figures, expected to indicate higher rates of problem gambling than previously estimated. An experimental survey last November suggested that 2.5% of the population might suffer from problem gambling, a significant increase from the previous 0.3% estimate. The commission is also expected to provide evidence linking gambling to suicide.

Supporters of the levy argue that the current system of voluntary donations allows the industry too much control over funding intended to assist those harmed by gambling.

A government spokesperson reiterated the administration's commitment to reducing gambling-related harm, ensuring responsible gambling, and enhancing protections for at-risk individuals. Some measures from the white paper are already being implemented, including a cap on digital slot machine stakes and a pilot scheme testing affordability checks to prevent significant losses.

However, other proposals, such as the establishment of a gambling ombudsman, remain in limbo following the change of government. While the white paper did not address gambling advertising, Premier League teams have agreed to voluntarily remove betting sponsors from the front of shirts starting the season after next.