New Stake Limits Might Cost the UK Slots Industry £166M

Last week, the UK’s white paper showcased the fresh £5 ($6.33) limit per stake on slot bets for players over the age of 25 and £2 ($2.53) for players between 18-24 years old. 

Now, the government has predicted the important impact that the changes are going to bring on gross gambling revenue, potentially costing the slots industry as much as £166.2 million ($211 million) per year.

DCMS Anticipates GGY Cuts

Besides the forecast made by the UK government, the Department for Culture, Media and Sport (DCMS) expressed their view that the latest gambling limits might lead to a drop in the gross gambling yield (GGY) as a percentage of online slots GGY in 2022-2023 by 5.2%.

This would further lead to a 2.6% cut in total remote GGY for the same period under assessment.

The DCMS also highlighted that the £5 stake limit would help the government reach its objectives “in a proportionate way, with a lower risk of unintended consequences such as displacement to the illegal online market.” 

The same department also reiterated that only 0.6% of all spins made via online platforms in the UK were over the £5 threshold.

Ongoing Debate on the Proposed Stake Limits 

Belonging to a more complex strategy meant to usher in the UK’s gambling legislation into the digital age, the stake limit proposals have been intensively debated in the online community of bettors. 

Some consultation respondents have argued that the new stakes would impose limits on players’ freedom while their enforcement would prove to be extremely expensive.

Special emphasis is to be put on the £2 limit which has proven to be a more controversial topic. 

While roughly 30% of respondents voted in favor of lower limits for younger adults, others argued that these types of restrictions would ask software developers and operators to do more “extensive development.” 

As a result, these actions would be “far more complex and costly to implement” than the introduction of a universal limit.

The DCMS says that almost all respondents thought that a £10 limit would help strike a balance between freedom and protection. 

In the future, “boundary-pushing” products such as Slingo, which mix bingo and slots gameplay elements, could also be subjected to similar limits.

Last December, the gambling industry in the UK announced reaching historic revenue amidst the surge in online slots.