The statutory levy needs a robust governance framework

Victoria Reed, founder of Better Change, emphasizes the critical importance of establishing effective governance for the statutory levy in the gambling industry. The essential questions remain: How will these funds be allocated?

The gambling sector is poised to contribute significantly to the UK government’s statutory levy fund. Imagine the ramifications if a cost to your business or a specific tax increased by 66%. Naturally, you would expect a clear justification for this hike, along with a detailed plan outlining the allocation of these funds. Yet, these fundamental questions remain unanswered as the statutory levy for gambling-related harm is set to take effect on April 6, 2025.

The proposed distribution of these funds is noteworthy: 50% earmarked for gambling harm treatment, 30% for prevention initiatives, and 20% for research activities. However, it is crucial that the gambling community, alongside the public, retains confidence in this levy before it is implemented.

Achieving this confidence necessitates the publication of a comprehensive set of guidelines. These guidelines must be adhered to by the government, the levy board, commissioners, and the fund’s recipients.

When I founded Better Change in 2021, it was driven by a passion to see impactful projects aimed at safer gambling receive the funding they need. Unfortunately, many worthy initiatives were sidelined due to budget constraints and a lack of perceived business benefits.

Understanding Previous Voluntary Fund Allocations

During my tenure in the industry, I observed organizations committing substantial sums under the previous voluntary levy scheme (RET). However, the allocation of these funds was dictated by entities approved by the Gambling Commission, leaving gambling operators with no say in how the contributions were utilized.

Oversight was provided by organizations like GambleAware, which allocated RET funding to commission essential services, alongside the Gambling Commission, which issued guidelines for the proper use of these funds.

Most of the RET funding was effectively channeled into establishing new treatment services, offering specialized support to underrepresented groups, launching awareness campaigns, and facilitating helplines and peer support services.

However, there were troubling instances where RET funds, as well as those acquired through regulatory settlements, were diverted toward lobbying efforts and anti-gambling campaigns. Some funds were even used to cover financial shortfalls stemming from mismanagement by certain charities, which is contrary to the Gambling Commission’s guidelines. The lack of enforcement from the Commission was frustrating for us at Better Change, where our mission is to combat gambling harm effectively.

Ensuring Transparency and Fair Distribution of Funds

As we transition to the statutory levy scheme, threats of repeating past mistakes loom large. During a recent parliamentary committee session, public health advocates disparaged the efforts of RET contributors, labeling them as mere “industry players.”

This narrative must change. With treatment commissioners like the NHS also funding their services, how can we ensure a fair and unbiased allocation process? For many charities, support organizations, researchers, and educational providers, access to the RET scheme was vital for their operational funding.

Prior participation in the RET should not disqualify organizations from accessing funds under the new levy. We need a transparent, equitable process that prepares a level playing field. Without such measures, we risk misappropriating public funds and jeopardizing the decades of experience and progress made in combating gambling harm.

Gambling Harm: The Statistics and Implications

Gambling-related harm, while affecting a relatively small percentage of players, can have severe consequences for individuals and their families. Current data from the Gambling Commission and a 2018 Public Health England report indicates that problematic gambling impacts about 0.4% of the population.

This figure has fluctuated, with it previously being as low as 0.2%, but has shown a downward trend from 0.7%. Recent findings from the Gambling Commission’s Gambling Survey for Great Britain suggest that harm may be more prevalent than previously understood; however, there’s no substantial evidence to support a year-over-year rise in gambling-related issues.

Notably, treatment data from GambleAware reveals a 25% decline in referrals since 2019. While the industry might not be viewed sympathetically in light of increased financial contributions to the levy, it is crucial to remember that these funds are from the public, and we hold a responsibility to ensure their optimal use.

The prospect of allocating over £100 million without robust governance or a transparent rationale for the required funding is deeply concerning. It underscores the urgent need for establishing effective oversight and accountability in managing these vital resources.