The government set a target of voluntary donations from the UK gambling industry to £10 million each year. However, the latest financial report showed the industry gave £9.6 million in 2018-19 fiscal year.
As a result, MPs call for compulsory levy instead of voluntary donations from the gambling firms. What made the situation worst was some firms only gave £1 to £5. In addition, sports minister Mims Davies came under fire after praising the current levy system. Under the existing system, firms need to give 0.1 percent of their revenues to the government according to sportsbook pay per head analysts.
Davis told gambling news reporters that current voluntary levy does work. However, it contradicted the report posted by Gambling Commission. Labor deputy leader Tom Watson said that it showed the sports minister was wrong. He added that what the UK gambling industry needs is mandatory levy.
UK Gambling Industry
The companies belonging to the UK gambling industry make billions of pounds yearly. However, they refuse to contribute at least 0.1 percent to support the treatment, education, and research of gambling harms. In fact, voluntary donation was part of the deal when the government deregulated the industry in 2005.
GambleAware told sportsbook software experts that some major betting companies donated less than 0.1 percent of their revenue. As a result, Labor MP Carolyn Harris wants to implement a compulsory levy system.
Not hitting the target amount is a strong case for a mandatory levy. In fact, the government can implement one under the Gambling Act of 2005. The mandatory levy can increase funding for problem gambling research and treatment.
GambleAware said the UK gambling industry will not donate enough if it is voluntary. On top of that, funding requirements continue to increase as part of the UK’s harm reduction initiative.