The UK government has announced a significant initiative aimed at mitigating the risks associated with gambling harm by launching a new fund of £30 million (approximately $39.71 million). This fund, which is part of a broader strategy led by the Department of Health and Social Care, is designed to support voluntary and community organizations in their efforts to prevent gambling-related issues. The announcement was made during an information session on October 26, 2023, where officials outlined a two-year program that seeks to address immediate funding gaps before the introduction of a statutory levy system.
Details of the Funding Initiative
The fund will be allocated across three main components. The first component emphasizes direct prevention efforts, focusing on outreach programs that engage with individuals and communities before gambling harm escalates. The second portion will support innovative approaches, encouraging organizations to experiment with new methods or adapt successful strategies from other sectors. The final component addresses organizational capacity, providing resources for staffing, training, and systems enhancement to enable these groups to scale their operations effectively.
Organizations can apply for grants ranging from £5,000 (approximately $6,600) to £2 million (about $2.65 million). The application period for expressions of interest is open until January 9, 2024, with grant applications accepted from January 12. Decisions regarding the grants are expected in early spring, with funding expected to be available starting in April 2024.
Addressing Sector Concerns
This funding initiative responds to growing concerns within the gambling sector, particularly as many non-profit organizations report increasing financial distress. These organizations are awaiting clarity on when funds from the forthcoming statutory levy will begin to flow. The distribution of existing resources remains a contentious issue, with some charities voicing concerns about competition for limited funding, which has led to tensions within the sector.
Government officials have indicated that applicants must achieve “industry-free funding status” by 2030. This expectation raises concerns among organizations that still rely on industry donations for survival. However, officials have stated that they will adopt a pragmatic approach during the initial two-year period. Importantly, funds from the National Lottery will not be counted as industry money during this time, although this position will be reassessed later. Beginning in April 2026, any organization receiving funds from this initiative will be prohibited from accepting contributions from gambling operators.
The Government Grants Management Service will facilitate this transition, introducing a new digital system aimed at improving monitoring and reporting processes post-2026. This funding initiative comes at a crucial time, as the gambling sector faces significant changes due to a recent increase in gambling tax from 21% to 40%. Experts have expressed concern that this tax hike could drive more players towards unlicensed gambling platforms, thereby increasing the risk of harm and putting additional pressure on organizations already struggling to provide support.
The new fund represents a vital step in strengthening the UK’s infrastructure for gambling harm prevention, paving the way for more comprehensive measures once the statutory levy system is fully implemented.
