The gambling industry has fallen short of a target of £10m in voluntary donations to the leading charity that funds addiction treatment and research, fuelling renewed calls from MPs for a compulsory levy.

Data released by GambleAware, the recommended recipient of donations, showed the industry gave it £9.6m in 2018-19, with some firms ensuring their presence on the list of donors by giving £1 or £5.

Evidence of the industry’s failure to meet its commitments comes a week after the sports minister, Mims Davies, came under fire for praising the existing levy system, under which firms are asked to give up 0.1% of their gambling revenues.

In a speech at the launch of a national strategy to reduce gambling harm last week, Davies said the existing voluntary levy “does work”, apparently contradicting the Gambling Commission and charity GambleAware.

“This shows exactly why the sports minister is wrong; we do need a mandatory levy,” said Labour’s deputy leader, Tom Watson, on Friday.

“These companies are making billions and yet are refusing to contribute even 0.1% to support research, education and treatment of gambling harms. The pittance contributed by some firms, and the complete absence of others from this list, is frankly an insult to the voluntary system. We urgently need reform.”

Bookmakers, bingo halls and online betting companies agreed to give 0.1% of their revenues to charity voluntarily, as part of a deal agreed when the last Labour government deregulated gambling in 2005.

GambleAware’s £10m target for donations is already lower than the £14.4m it would receive if firms met that target, based on their annual £14.4bn revenue from betting.

The list of companies that gave to GambleAware revealed some firms donated nominal sums such as £1 or £5. This ensured they were included on the list of voluntary donors. SkyBet did not feature on the list but is understood to have donated to other causes.

Several other major betting firms appeared to have donated far less than 0.1% of their gambling revenue.

The Labour MP Carolyn Harris, who chairs a cross-parliamentary group on issues surrounding fixed-odds betting terminals, said: “We have always known that without a compulsory levy the industry would play lip service to contributing to rehabilitation and treatment.

“I was aghast when the minster stated that the current system worked. Morality and principle are not words that spring to mind in connection with this industry.”

The Scottish National Party MP Ronnie Cowan, who is vice chair of the same group, said the shortfall provided evidence that a mandatory levy was required.

“This is well below what is required to support those individuals and families affected by gambling and I believe the UK government must now consider creating a statutory levy to ensure adequate funding is forthcoming.”

The government has the power to introduce a mandatory levy at any time under the terms of the Gambling Act 2005, which liberalised regulation of the industry.

Davies said the government would consider doing so if the industry didn’t pay enough to fund addiction treatment and research.

But while advocates of a mandatory levy include the Gambling Commission, GambleAware and the Responsible Gambling Strategy Board (RGSB), Davies said she believed the voluntary system was working.

GambleAware has repeatedly said the industry is not donating enough and funding requirements were likely to rise beyond £10m after 2020 as a result of the national harm reduction strategy.

The RGSB said the sum might need to increase dramatically, to at least £70m.

A spokesperson for the department of digital, culture, media and sport said: “We expect the industry to be socially responsible in all aspects, not just do the minimum that the law requires. If it turns out that the voluntary system is not capable of meeting current and future needs, we will look at alternatives – everything is on the table.”



