The UK government has announced a new initiative aimed at reducing gambling-related harm, establishing a fund of £30 million ($39.71 million) for voluntary and community organizations. This program, led by the Department of Health and Social Care, marks the initial phase of a two-year effort designed to strengthen support systems in anticipation of a forthcoming statutory levy on gambling operators.
Details of the Fund and Application Process
As outlined during an information session on October 26, 2023, the application period for interested groups is now open and will run until January 9, 2024. Applications will be accepted starting January 12, 2024, with decisions regarding grants expected by early spring. The first funding installments are anticipated to be available from April 2024.
The fund comprises three main components. The first focuses on direct prevention efforts, targeting outreach programs that engage with individuals and communities before gambling-related harm escalates. The second segment is dedicated to fostering innovation, encouraging new strategies or adaptations of successful models from other sectors. The final component will enhance the operational capacity of organizations through staffing support, training, and system improvements, enabling them to expand their services. Organizations can apply for grants ranging from £5,000 ($6,600) to £2 million ($2.65 million).
Addressing Industry Concerns and Future Regulations
This funding announcement comes amid growing concerns in the gambling sector about rising financial distress among non-profits. Many organizations have expressed anxiety over uncertainties surrounding the distribution of funds from the forthcoming statutory levy. The competition for limited resources has led to friction among charities, with some accusing others of undercutting efforts to secure funding.
Government officials have stressed the necessity for applicants to achieve “industry-free funding status” by 2030. While this requirement has raised concerns for organizations reliant on industry donations, officials indicated a pragmatic approach for the initial two years. Notably, funds from the National Lottery will not be considered industry money during this transitional period, although this stance may be reassessed in the future. Beginning in April 2026, organizations receiving funds must not accept contributions from gambling operators.
This initiative coincides with significant changes in the gambling landscape, particularly following the announcement of a tax increase on gambling operators, which will rise from 21% to 40%. Experts worry that this escalation may drive players towards unlicensed gambling sites, increasing the risk of harm and placing additional strain on organizations already facing challenges. The new fund is thus expected to play a crucial role in fortifying the UK’s harm prevention infrastructure ahead of the full implementation of the statutory levy.
