Question to the Department for Digital, Culture, Media & Sport:

To ask His Majesty's Government what estimate they have made of the tax revenues the statutory gambling levy will raise per year.

The government’s priority is to ensure funding is directed where it is needed most to deliver our objective to further understand and reduce gambling-related harms. That is why we have appointed UK Research and Innovation (UKRI), the Office for Health Improvement and Disparities (OHID) and NHS England, together with appropriate bodies in Scotland and Wales, as lead commissioning bodies for research, prevention and treatment. Decisions on how levy funds are spent within research, prevention and treatment lie with commissioning leads. We are also establishing robust governance structures to ensure the core aims of the levy are met and we expect to publish an Annual Levy Report each year setting out the use of the levy and impact against objectives.

The levy will be charged at a set rate for all holders of a Gambling Commission licence, ranging from 1.1% to 0.1% of Gross Gambling Yield (GGY) and is expected to raise around £90 million to £100 million per year.

The Gambling Act 2005 is clear that all gambling activity licensed by the Gambling Commission is in scope of the levy, including society lotteries. However, to minimise disruption, these operators will be charged the levy at the lowest rate of 0.1%, in recognition of the low rates of harm associated with participation in society lotteries and the important benefits they bring to good cause fundraising. This 0.1% will be charged as a proportion of proceeds retained after good causes. Under the terms of the fourth licence, the National Lottery operator, Allwyn, is already required to make a £1.6 million annual contribution to socially responsible purposes such as research and treatment. Commercial prize draws are not regulated as a gambling product under the Gambling Act.