It’s Official: UK Government Introduces Slots Cap, Betting Levy

Earlier this week, we informed you of The Guardian’s report based on multiple sources that claimed gambling minister Baroness Twycross would soon announce the new statutory levy. 

The approximate term of the said announcement was rumored for sometime this week. 

Now, the same publication announces that the UK government has confirmed the online slots cap and mandatory betting levy on gambling companies to fund NHS services addressing problem gambling.

These measures aim to reduce gambling-related harm and improve support for affected individuals.

Casinos and Sportsbooks to Pay 0.1%-1.1% for Research and Prevention 

Under the new rules, sportsbooks and casinos will be required to contribute between 0.1% and 1.1% of their revenue to fund research, prevention, and treatment efforts. 

Online gambling companies, which have lower operating costs, will face higher rates. 

Half of the estimated £100 million ($125.9 million) annual levy will go directly to the NHS, with 30% allocated to harm prevention initiatives. 

The remainder will support research through UK Research and Innovation.

“Gambling Harm Can Ruin People’s Lives” 

“Gambling harm can ruin people’s finances, relationships, and ultimately lives,” said gambling minister Twycross. 

“The introduction of the first legally mandated levy will be instrumental in supporting research, raising awareness, and reducing the stigma around gambling-related harm,” he added. 

The statutory levy will replace the voluntary system currently in place, where contributions vary widely. 

Last year, the GambleAware charity collected £49.5 million ($62.36 million) from the industry, though some firms contributed as little as £1 to appear on donor lists.

Online Slot Spins, Capped at £5 for Players Aged 18-24

The reforms also include stake limits on online slot machines, with spins capped at £5 ($6.3) for players over 25 and £2 ($2.52) for those aged 18-24. 

Currently, there are no restrictions on stakes for these games. 

The Department for Culture, Media, and Sport has emphasized that these changes will enhance protections for vulnerable individuals while preserving safe gambling options for the majority of players.

The Betting & Gaming Council (BGC), the industry’s primary lobbying group, has shifted its stance to support the levy, despite initially calling it a “backward step” in 2022. 

On Wednesday, the BGC announced its members donated £50 million ($62.9 million) to tackle gambling-related harm in 2023.

The BGC’s chief executive, Grainne Hurst, cautioned against “losing perspective,” while the group’s lobbyists highlighted that the “vast majority” of gamblers participate responsibly, including on the National Lottery. 

However, critics point to a Gambling Commission estimate suggesting that 2.5% of the population struggles with gambling, significantly higher than the 0.4% figure cited in older studies.

Both the levy and the new stake limits are expected to take effect in 2025, giving online casinos a grace period to adjust. 

At the start of the month, the Gambling Commission’s executive director Tim Miller highlighted the recent launch of the Gambling Harms Action Lab by Money Mental Health, emphasizing the extensive efforts aimed at protecting the wellbeing of consumers.