Shadow gambling minister: Lack of government engagement about statutory levy a “major concern”

The UK government has come under severe scrutiny by opposition MPs over its lack of communication regarding the introduction of the statutory levy on gambling operators set to come into force in April.  

The draft regulations detailing how the levy will be implemented were approved in the House of Commons Grand Committee on 29 January.  

Speaking in Parliament’s Fourth Delegated Legislation Committee the same day, Conservative MP and shadow parliamentary under secretary for the Department of Digital, Culture, Media and Sport (DCMS) Louie French slammed the government’s lack of communication with the industry regarding the levy.  

He also suggested that both pro- and anti-gambling lobbyists had found common ground over their mutual frustration with how the government has handled levy communications so far. 

French said: “I urge the government to address a clear structural problem with how they are approaching this important policy area.  

“It is remarkable that in almost every conversation the shadow team has with people across the sector, we are being told consistently that the government is not even engaging, let alone listening. This is a major concern that keeps coming up, and it’s a constant theme.  

“I think the government has successfully, and I must say, quite remarkably, managed to unite both the anti-gambling side of the sector and the pro-gambling side of the sector and everyone in between in their concerns about a lack of engagement.” 

The DCMS confirmed plans to introduce the statutory levy back in November 2024.

Under the new system, operators will be required to pay between 0.1% and 1.1% of their yearly gross gambling yield (GGY), depending on the sector, with the aim of generating £100m of ringfenced funding for gambling-related harm prevention and treatment. 

The DCMS said 50% of the levy will be funnelled towards NHS England and its equivalent organisations in England and Wales.  

A further 30% will be directed towards preventative measures to combat gambling harm, while 20% will go to UK Research and Innovation (UKRI) and the Gambling Commission to develop research programmes on gambling behaviour.  

French referred to and praised the work currently being carried out by mental health charity Gordon Moody.  

The charity’s CEO Monica Shafaq later took to LinkedIn to echo the concerns expressed by French. 

She wrote: “The introduction of a statutory levy is a positive step in principle, as it brings in much-needed sustainable funding for gambling support services. However, there remain significant questions about how the transition will be managed, how commissioning will work in practice and how NHS England will ensure that existing expertise is not lost. 

“As the opposition lead, he [French] challenged the government on the key issues that need addressing, including the risks of not engaging fully with the sector and ensuring the transition to the new system does not come at the cost of the knowledge, experience and sustainability of specialist providers. 

“There is still much work to do to shape a system that truly delivers for those affected by gambling harms and we will continue to push for clarity, fairness and collaboration to ensure no expertise is lost and that the support for those in need is strengthened, not undermined.” 

French’s fellow Conservative MP Iain Duncan Smith added during the 29 January meeting that the government should make sure gambling-related harm charity GambleAware should have no influence on the levy funding, claiming the organisation is “far too close” to the gambling industry.  

As part of the statutory levy’s introduction, the gambling industry will have no say in how the funding for research, education and treatment is spent.  

Smith added: “Can the government confirm that GambleAware will have no role in influencing the future work, framework or shape of the research undertaken by UKRI under the statutory levy? 

“They are far too close to the gambling industry. We need to make sure there is independence from that based on the evidence of the harms that are taken and more evidence that we can gather.” 

In response, Jordan Lea, founder and chief executive of gambling harm charity Deal Me Out, slammed Smith’s comments for perpetrating “boring, false and dangerous narratives”.  

Writing on LinkedIn following the meeting, Lea said: “The parliamentary debate on policy this morning was extremely interesting. I, and Deal Me Out, absolutely support the Conservative party in questioning and seeking clarification on the statutory levy before supporting it. The levy should not result in job losses and a struggling RET sector. 

“But most concerning, by a country mile, were the comments from Iain Duncan Smith MP, seeking to clarify from Stephanie Peacock MP that GambleAware would not have a role moving forward in the system, citing the same old boring, false and dangerous narratives used to discredit the system.

“If this happened to my organisation, there would be legal letter on his door before he gets back from afternoon tea. It has to stop, immediately, regardless of your views on GambleAware. Lies, and nonsense need to be met with strength.” 

When announcing the levy, the government also noted that the system would be reviewed within five years, with the first review expected to take place by 2030.

EGR reached out to the government for comment.

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 Conservative MP Louie French criticises the Labour government for uniting both pro- and anti-gambling groups over lack of communication for new legislation
The post Shadow gambling minister: Lack of government engagement about statutory levy a “major concern” first appeared on EGR Intel.