RGA backs new levy to fund problem gambling treatment
Trade association will advise government to impose new tax, admitting current voluntary system is not “fit for purpose”
The Remote Gambling Association (RGA) has thrown its weight behind the introduction of a statutory levy to help fund problem gambling research and treatment.
The trade association, which represents the likes of Paddy Power Betfair, Ladbrokes Coral and bet365, said the current system of voluntary funding via GambleAware was no longer “fit for purpose”.
The RGA said it would proactively push for the statutory levy, and would respond in January to the DCMS consultation on Gaming Machines and Social Responsibility Measures in that vein.
In October the government said in its triennial review findings that operators should step up on funding for problem gambling research, education and treatment saying: “If not, government will consider other options, including introducing a mandatory levy on gambling operators.”
GambleAware fell £5m short of its £13m industry contributions target last year.
The RGA said at the time it was not opposed in principle to the levy, but stepped up that support yesterday.
“There has been much to commend in the voluntary funding system, but if we are to combat problem gambling to the best of our ability and to minimise gambling related harm, then now is the time for change and for a fresh start,” said RGA chief executive, Clive Hawkswood.
“We are all disappointed that the current system has been the subject of so much criticism and has struggled with fundraising, but we need to put that behind us.
“We have acknowledged the problem and put forward a long-term solution. We believe everyone’s efforts should now be focused on bringing this change about. For the industry this should be seen as an opportunity rather than a threat. More funding is needed if we are to fulfil our responsibilities to everyone in this country who gambles, and especially those who are affected by problem gambling.
“A statutory levy will ensure the right funds are raised in a fair and open process and, crucially, that they are allocated in a way that is transparent, independent, and achieves measurable benefits.”
The RGA did not specify what the levy rate should be, only calling for “an equitable and effective system that can be implemented sooner rather than later”.
The announcement comes as the Gambling Commission has stepped up its calls for the industry to regulate itself or risk major sanctions.
Statistics published in August by the Gambling Commission suggested that the number of British “problem gamblers” had risen from 280,000 to 430,000 between 2012 and 2015, although the same report said the rate of problem gamblers had remained statistically stable.