Gaming - Labour propose statutory Levy on Gambling industry

In his speech to the Party Conference today the deputy Labour Leader, Tom Watson, will propose the introduction of a statutory levy on the Gambling Industry.

Currently a voluntary donation equivalent to 0.1%  of gross gambling yield is deemed to fully discharge a licensee’s obligations under the Gambling Commission’s licensing conditions and code of practice.

If every Operator complied with the voluntary scheme it is estimated £13m would be donated each year. Gamcare Chairman, Sir Ian Prosser, reports that donations total approximately only £8m per annum.

The Labour party policy would be to replace the voluntary scheme with a statutory levy to raise a set sum each year. 

A levy would not be an entirely new tool in the Gambling Industry.  he Horseracing Betting Levy, established in 1961, is now a 10.75% tax that bookies pay on gross profits generated from wagers in betting shops. The Levy yield for 2015/16 (the 54th scheme) was £54.5m, considerably more than the £13m the currently voluntary scheme aims to raise for gambling research.

The Levy was set up to offset the decline in raceday revenue after the legalisation of bookmakers’ off course operations meaning that people wishing to bet on a race no longer needed to attend it. The Levy ensured that some of the proceeds from off-course betting were returned to racing.

Although the horseracing levy was designed for a different purpose, the Gambling Industry may be feel that a statutory levy for research purposes, in place of a voluntary scheme, will be considerably more costly in the long term.