Other connected changes following the introduction of a statutory levy
The existing licence condition and list for gambling operator research, prevention and treatment (RET) list
Once the statutory levy is brought into force, paragraph two of the existing Social Responsibility (SR) Code Provision 3.1.1 - Combating problem gambling requirement will become obsolete. This provision requires gambling operators to make an annual financial contribution to one or more organisation providing research, prevention or treatment to bodies on a list of organisations for operator contributions set out by the Gambling Commission. Under this requirement, the amounts paid by the industry are voluntary and the Commission publishes data about the destinations of such funds. In the context of a levy, the Commission currently considers that the requirement and the LCCP RET list will no longer be relevant.
We currently envisage that the intended change to remove the current requirement would come into effect either at the point at which the statutory levy comes into effect, or at the beginning of the relevant financial year to avoid the potential for two RET funding processes running concurrently which could create confusion in the system. We will continue to work closely with the Department for Digital, Culture, Media and Sport (DCMS) to ensure effective transition to the levy system and alignment with final policy decisions on the levy’s operation.
The Commission intends to consult on removing paragraph two of the existing Social Responsibility (SR) Code Provision 3.1.1 – Combating problem gambling, and on the timing and approach of a removal of the requirement.
Consideration of regulatory settlement destinations
Regulatory settlements which include an element of financial payment for socially responsible purposes following enforcement action should not be seen as part of the core funding system for research, prevention and treatment.
When the Commission takes regulatory action against a gambling operator, an outcome of that action can include a payment in lieu of a financial penalty applied for socially responsible purposes in line with the Statement of principles for determining financial penalties. The Commission reserves the right to review the destination of regulatory settlements to ensure that they meet the criteria set out in this statement.
Destinations must be for socially responsible purposes which address gambling related harm or other Gambling Act 2005 licensing objectives and should demonstrate how they will accelerate progress to reduce gambling harms, how they will publish any research findings and ensure that meaningful evaluation will be conducted.
It is important that regulatory settlement funds are not seen as part of the core funding system. However, should there be any such future regulatory settlements following enforcement action, the Commission will consider the process for approving the destination of such settlements in view of the final levy system. This means that we would consider, working with government, how any regulatory settlement process can, as far as possible, ensure the coordination of commissioning with the new levy system and avoid a dual system or duplication of work being funded by the statutory levy.
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Last updated: 16 November 2023
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