As recommended in the updated gambling white paper, the UK government is proposing a mandatory 1% levy on iGaming operators’ revenues, to be directed toward the National Health Service (NHS) and used to support research and initiatives aimed at responsible gambling.
Land-based gambling will contribute at a lower rate of 0.4%, reflecting the higher fixed costs associated with bricks-and-mortar establishments.
The proposed iGaming levy marks a 10x increase over the existing voluntary contribution of around 0.1%. Based upon 2022 numbers, a 1% levy could generate £100m ($122m).
Such a step would effectively mean the NHS replacing the GambleAware charity as the primary source of such funding. GambleAware takes voluntary donations from the industry but has been unable to pass these contributions on to the NHS which does not accept such assistance.
A statement from the NHS said: “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 distribute funding directly to the NHS and UK Research & Innovation, which coordinates research and innovation funding, under the strategic direction of the government.”