Social tax introduced for gambling in England: Also a concept for Germany?

Gambling is fun and can be very lucrative. On the other hand, it harbors considerable dangers, at the top of which is gambling addiction. Such a disorder is accompanied by various, often serious social conflicts. Treatment is complex and expensive. This is why the British government recently decided on a social tax for all gambling, which is intended to generate 100 million pounds annually. Would this also be an option for Germany?

The British gambling industry has to pay considerable taxes. The general levy is 15 percent of net revenue. Now another mandatory payment has been added, namely a social tax, which is intended to mitigate the social impact of gambling problems.

Under the new legislation, all licensed companies are now required to contribute 1 percent of their gross gaming revenue - i.e. what they collect from UK players - to support research, education and treatment. Special provisions for small businesses are in the pipeline. Based on figures from the Gambling Commission, which show that the industry has taken in £10 billion in the last 12 months, £100 million should come out of this.

And why all this?

1. The starting point for the realignment of the social levy is, on the one hand, the plan for a fair distribution of payments.
2. On the other hand, there are also worrying trends in the spread of gambling addiction. In the relevant government press release, various experts comment on this.

Claire Murdoch, Director of Mental Health at the National Health Service (NHS), said: "Problem gambling can ruin a lifetime and the problem has skyrocketed. NHS services are treating record numbers. Our latest data shows an incredible 129 percent increase compared to the same period last year. Back in 2020, GamCare warned of a rapid rise in gambling addiction, particularly among women.

Professor Henrietta Bowden-Jones, NHS Clinical Advisor for Gambling Harm, added: "Gambling harm has a devastating impact on people's lives. We know that 2.5 percent of the population engage in serious and harmful gambling. But there are many more who are already suffering negative consequences but are below the clinical threshold.

In this context, it is also interesting to note that the British GamStop player blocking system reported record figures of no less than half a million registrations in the fall of 2024.

British gambling industry is concerned

The introduction of the new social tax has sparked resistance in the British gambling industry.

Smaller, local gaming facilities in particular fear damaging financial losses. The tax could threaten their existence in an already highly competitive industry. Many of the major market players such as Bet365 or Flutter, on the other hand, are already accustomed to investing a not exactly small portion of their revenue in social causes. According to British reports, Flutter alone has donated over 70 million pounds since 2020.

The statutory levy therefore raises the following questions:

1. Should everyone bear the same tax burden?
2. And how fair is the distribution of funds really?

The statement: "The BGC argues that there should be a sliding scale for land-based businesses that have much higher fixed costs, such as for staff and premises."

• The plan is for 50 percent to go to the National Health Service (NHS) in future. There, the donations are to be invested in the development of a treatment network for gambling-related harm - from preventative measures to therapy services and often very lengthy aftercare. In England, there are also special clinics for gambling addiction in children and young people.
• Around 30 percent is earmarked for prevention measures. These would include nationwide health campaigns and training programs for professionals. GambleAware would probably also fall into this area.
• The remaining 20 percent will go to research institutes such as UK Research and Innovation (UKRI) and the UK Gambling Commission, the country's licensing authority. The plan is to deepen research into gambling-related harm and ultimately enable increasingly data-based regulation.

What is the situation in Germany in comparison - would such a levy also be conceivable here?

In Germany, there is no special social tax for gambling providers. The revenue from gambling taxes, for example the online flat rate of 5.3 percent or the amusement tax on gaming machines, simply ends up in the big pot of the state budget. Earmarked for combating gambling addiction? Not a chance.

These measures are not voluntary. Companies have to implement them themselves - and that costs a lot of time and money. Those who slip up risk sanctions. Nevertheless, specific financial contributions to addiction prevention often remain voluntary. In autumn 2024, the SPD called for online casinos to contribute to therapy costs after virtual table games were approved in Schleswig-Holstein.

And now the big question: could Germany introduce a mandatory levy based on the British model?

Actually, there is nothing to be said against it. After all, the figures are alarming: according to the Gambling Atlas 2023, 4.6 million people in Germany exhibit problematic gambling behavior. of these, 1.3 million are considered to be acutely addicted to gambling.

Politicians would just have to have the courage. Sure, there would be resistance. But a regulated fund for prevention, research and treatment? That could be a real game changer - for gamblers and society. So why not adopt the British approach? Germany has the potential to be a role model here. Once again, the only thing that could really stand in the way seems to be the local bureaucracy.

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