DEPARTMENT FOR
CULTURE, MEDIA AND SPORT News Release (002/09) issued by COI News
Distribution Service. 6 January 2009
Sports Minister
Gerry Sutcliffe today unveiled plans to introduce a statutory levy
on the gambling industry to fund the research, education and
treatment of problem gambling.
The statutory levy would raise over £5 million per year to fund
initiatives such as running helplines, treatment centres and
commissioning further research into the issue.
Existing voluntary arrangements with gambling operators have not
raised an acceptable amount and in some cases contributions have
not been forthcoming. A statutory levy will come into force during
the next financial year - unless the industry can give
satisfactory funding guarantees. A consultation was launched today
and will run for 12 weeks.
The new independent gambling Strategy Board, launched in November
and headed by Baroness Neuberger, will advise on the amount of
funding required on a three year rolling basis.
Under the proposal set out by the Government premises-based
operators would pay a flat fee based on the number of premises
they run and the type and volume of gambling they offer.
Remote operators would pay a flat fee within bands based on the
Gambling Commission's licence structure.
The levy will be set to take account of the particular challenges
facing smaller operators. The smallest on-course bookmakers and
family entertainment centres will not be expected to contribute.
Minister for Sport Gerry Sutcliffe said:
"We have put the protection of vulnerable people at the
heart of the Gambling Act and that remains our priority. We must
ensure that organisations working to prevent and treat problem
gambling are given the financial security they need to carry out
the important work they do.
"Gambling operators have a responsibility to help fund this
and it is very disappointing that the industry has so far failed
to agree improved voluntary arrangements to do this. So, in order
to ensure funding is in place for this vital work, the Government
has today set out its proposal for a statutory levy on all
licensed gambling operators in the UK.
"If the industry can agree the improved voluntary
arrangements in the meantime the door is not closed, but time has
almost run out."
Following the publication of the Gambling Prevalence Survey in
2007, the Gambling Commission was asked by Ministers to report on
the funding for gambling research, education and treatment. The
report, published in October, made the case for the introduction
of a statutory levy in 2009 should the gambling industry fail to
come up with firmly committed voluntary funding arrangements on a
three year rolling basis.
Gambling operators have contributed on a voluntary basis since
2002, in an arrangement administered by the Responsibility in
Gambling Trust (RIGT).
For the last two years the funding target has only been achieved
very late in the financial year and due to the fact that major
operators agreed to make up the shortfall. This year (2008/09) the
shortfall is currently estimated to be around £1.2 million.
Notes to editors
1. The consultation on a statutory levy for the research,
education and treatment of problem gambling is available on the
DCMS website: http://www.culture.gov.uk/reference_library/consultations/5722.aspx
2. The 12 week consultation period ends on 31 March 2009. The
Gambling Act 2005 allows the Government to bring in a statutory
levy via secondary legislation. For the legislation to become law
it will need to be laid as an 'affirmative resolution'
Order in Parliament and be debated and approved by both Houses.
3. The Gambling Commission's report into the funding of
research, education and treatment of problem gambling is available
on the Gambling Commission's website.
4. Baroness Neuberger was recently appointed Chair of a new
independent Strategy Board set up to advise the Gambling
Commission and DCMS on the research, education and treatment
programmes needed to support a national responsible gambling strategy.
5. An illustrative table showing examples of what operators may
pay if a statutory levy were to be introduced is attached to this
press release and is available on the DCMS website.
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