Keir Starmer is facing mounting pressure to uphold the previous government’s plan for a £100 million annual levy on gambling companies, a proposal seen as vital by advocates concerned about gambling-related harms.
In an open letter to the Prime Minister, a coalition of concerned campaigners warned that delays in implementing this levy could have dire consequences.
The previous Conservative government had introduced a white paper outlining reforms in gambling regulation, but many of its initiatives remain in limbo following Labour’s recent electoral victory.
One crucial yet unresolved measure is the statutory levy on gambling companies’ revenues. This levy is intended to fund research, education, and treatment related to problem gambling.
The anticipated £100 million from the levy would be allocated across several key areas: the NHS would oversee treatment efforts, UK Research and Innovation would focus on research into gambling harms, and the Office for Health Improvement and Disparities would work on harm prevention.
However, the King’s Speech last week did not include the levy in its policy proposals, raising concerns among reform advocates.
Critics have also voiced concerns about potential conflicts of interest within the Labour Party due to its connections with the betting industry. These ties have fueled fears that the necessary reforms might be compromised.
In their open letter, members of the House of Lords, campaigners, and academic researchers urged the government to publish its response to a public consultation on the levy and swiftly move to enact the necessary legislation.
They emphasized, “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.”
Expressing their deep concern over the delay, the letter’s signatories called on the government to act promptly, stating, “This commitment has received support from all sides of the political debate, as well as leading NHS clinicians and academic experts.”
They warned that any further delay “will lead to further harm to mental health, damage communities across the country, and, ultimately, will cost lives.”
The letter was signed by a diverse group of advocates, including the chief executive of the Samaritans, eight members of the House of Lords, academics, and various campaign groups.
Their call for urgent action comes as the Gambling Commission prepares to release new figures this week, based on updated research methods, which are expected to show that problem gambling rates might be higher than previously estimated.
Mounting Evidence of Gambling Harms
Last November, an experimental survey by the regulator suggested that 2.5% of the population could be suffering from problem gambling, a significant increase from the previous 0.3% estimate.
Additionally, the commission is expected to present evidence linking gambling to suicide.
Supporters of the levy argue that the current system of voluntary donations allows the gambling industry too much control over the funding intended to support those harmed by gambling.
A government spokesperson reaffirmed their commitment to reducing gambling-related harm.
“As stated in the government’s manifesto, we are absolutely committed to reducing gambling-related harm. We will ensure responsible gambling and strengthen protections for those at risk.”
Despite the uncertainty, some measures from the white paper are moving forward. These include a cap of £2 to £5 on digital slot machine stakes and a pilot scheme testing affordability checks to prevent substantial losses by gamblers.
However, other proposals, such as the creation of a gambling ombudsman to resolve disputes between customers and operators, remain stalled.
The white paper did not address gambling advertising, but Premier League teams have voluntarily agreed to phase out betting sponsors on the front of their shirts starting the season after next.
The push for the £100 million levy underscores the urgent need for comprehensive gambling reform, highlighting the high stakes involved in protecting vulnerable individuals from gambling-related harm.
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