UK Gambling has been notified that the government is set to imminently unveil its plans for the framework of the ‘Statutory Levy’ for research, education, and treatment (RET) of gambling harms.

As reported by The Guardian, the government is expected to ‘rubber stamp‘ the plans this week, detailing how the levy will operate and collect £100m from UK-licensed betting operators to fund RET organisations, projects, and initiatives.

“The levy, which multiple sources said could be announced by Gambling Minister Baroness Twycross as soon as Wednesday, is expected to take effect from next April,” The Guardian understands.

Replacing UK Gambling’s ‘voluntary scheme’, the RET Levy was announced as a key proposal in the Gambling Review’s White Paper published in April 2023. A subsequent consultation, launched in October 2023, aimed to ensure fair contributions from all licensed operators and to finalise the levy’s design.

The statutory RET Levy will impose a 1% fee on the gross gambling yield (GGY) of online gambling operators, while land-based gambling venues and betting shops will pay a fee of 0.4% GGY. The consultation also proposed that firms with gambling revenues below £500,000 would be exempt from RET contributions.

As determined by the Department for Digital, Culture, Media, and Sport (DCMS), the RET Levy will be commissioned by the NHS, which will act as the primary commissioner of RET funding for UK organisations, replacing GambleAware as the previous steward of the voluntary scheme.

Before the White Paper was published, NHS England had declared the dual-commissioned arrangement unsustainable, emphasising that RET funding required a ‘clean break’ from its ties to the UK gambling sector.

In its response to the DCMS consultation, the NHS stated: “Under the proposed levy, the gambling industry will no longer have a say over how money for research, prevention, and treatment is spent.”

Instead, the Gambling Commission will oversee the distribution of funding directly to the NHS and UK Research and Innovation (UKRI), which coordinates research and innovation funding under the government’s strategic direction.

GambleAware responded by asserting that it had always operated independently of UK gambling industry influence and had previously called for the levy to be formalised as a statutory measure. In its newly assigned role, GambleAware will serve as a key partner to the NHS in developing the National Gambling Support Network (NGSN), providing essential services to those affected by gambling harms.

For the 2023/2024 period, the voluntary scheme generated £50m in RET funding, with 94% of contributions coming from Flutter Entertainment, Entain, Evoke, and bet365.

However, the structure of the RET Levy is regarded as one of the most contentious issues in the Gambling Review. The government must consider the intricate services delivered by third-sector organisations.

In light of structural reforms, Margot Daly, Chair of GamCare, responded to the consultation by urging the DCMS to ensure that funds raised through the RET Levy are ring-fenced to guarantee the most effective treatment for victims of gambling harms.

RET stakeholders such as YGAM and GamCare have called for greater clarity from the government regarding funding for frontline organisations. These groups, which provide vital treatment support, have expressed concerns about divergent opinions on how the levy should be managed.

Daly emphasised that ring-fenced funding is critical to supporting existing stakeholders, as 90% of treatment and support for gambling harms is delivered by local third-sector organisations with strong community ties.

While acknowledging the achievements of the ‘voluntary scheme’, the Betting and Gaming Council (BGC) stated it had no objection to the RET Levy, provided financial contributions were based on a fair system that avoided job losses or disproportionate costs.

The BGC reiterated its position that, over 20 years of funding, UK gambling operators have had no influence on the allocation of donations. “All RET donations are exclusively directed to independent charities accredited by the Gambling Commission to deliver RET services, and BGC members have no say on where or how this funding is spent.”

The view was shared by igaming executive Jamie Walters, CEO of QiH Group: “While levies and taxes can sometimes be viewed as a burden, the truth is that most responsible gambling companies have already been making this contribution to research and harm-prevention as they see it as sensible and worthwhile. All that is happening now is a switch from voluntary to mandatory, and the rate is not punitively high.

“The industry should view this as a positive chance to work hand-in-hand with the NHS, charities and government as all stakeholders pull together to minimise gambling harm. Gambling is meant to be fun and entertaining and the industry must ensure that it is responsible, so that those in need can gain access to appropriately funded support as and when they need it.”

Nonetheless, as highlighted by The Guardian, “One area of contention could be whether any funds for the prevention of gambling-related harm are allocated to the UK’s leading gambling charity, GambleAware.”

“Sources familiar with the plans indicated that the Office for Health Improvement and Disparities (OHID) is competing with GambleAware to become the government’s preferred recipient of funds collected under the statutory levy.”

The article concludes by noting that Baroness Twycross is scheduled to speak at GambleAware’s annual conference in December, “an engagement that could prove tense if the government excludes the charity from official funding channels.”

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