Statutory levy and online slot stake limits to be introduced to tackle gambling harm

The government has taken its first steps towards strengthening gambling harm legislation today, confirming plans to implement a statutory levy on gambling profits and online slot stake limits to help tackle the issue of gambling addiction. 

Gambling Minister Baroness Twycross has outlined how a levy on gambling operators will be designed and implemented as the government moves forward on its manifesto commitment to reduce gambling harm. 

The landmark levy will be charged to all licensed operators and will guarantee increased, ringfenced and consistent funding to prevent and tackle gambling harm. 

Under the current voluntary system not all gambling companies contribute equally, with some operators paying as little as £1 a year towards research, prevention and treatment. The new mandatory levy will ensure all operators contribute a fair share. 

The Gambling Minister has also confirmed that the government will introduce stake limits for online slots, a higher-risk gambling product associated with large losses, long sessions, and binge play. 

Stake limits will be set at £5 per spin for adults aged 25 and over and £2 per spin for 18-24 year olds. Evidence from the Office for Health Improvement and Disparities and the Gambling Survey for Great Britain shows young adults can be particularly vulnerable to gambling related harm with under 25s having one of the highest average ‘problem gambling' scores of any age group.

Minister for Gambling, Baroness Twycross said: 

“Gambling harm can ruin people's finances, relationships, and ultimately lives. We are absolutely committed to implementing strengthened measures for those at risk, as well as providing effective support for those affected. 

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

“We are also helping to protect those at risk, with a particular focus on young adults, by introducing stake limits for online slots. 

“These measures will help build an NHS fit for our future and strengthen protections whilst also allowing people to continue to gamble safely.”

From October 2023 to January 2024, the government sought views from clinicians, academics, the industry and the wider public on how the levy should be designed and implemented. 

In its response to this consultation, the government has confirmed 50% of all funding generated will be directed to NHS England and appropriate bodies in Scotland and Wales to develop a comprehensive support and treatment system. This will include referrals and triage, through to recovery and aftercare.

Prevention is a crucial part of the government's efforts to tackle gambling harm. 30% of levy funding will go towards investment in this area, which could include measures such as national public health campaigns and training for frontline staff. The government is taking the time to get the important decision on the future of prevention right and will publish next steps in the coming months.

The remaining 20% of funding will be directed to UK Research and Innovation (UKRI) to develop a bespoke Research Programme on Gambling, undertaking vital research to inform future policy and regulation.

Claire Murdoch, NHS national director for mental health, said: 

“Problem gambling can completely ruin lives and the issue has skyrocketed, with NHS services treating record numbers and our latest data showing a staggering 129% increase in service referrals compared with the same period last year.

“I am delighted to welcome this commitment to a mandatory gambling levy which the NHS, bereaved families and the voluntary sector have been calling for so we can treat this growing problem – and we will continue to work with government to do all we can to protect problem gamblers from this billion-pound industry.”

Professor Henrietta Bowden-Jones, National Clinical Advisor on Gambling Harms at NHS England, said: 

“Gambling harms have a devastating effect on people's lives. We know that 2.5% of the population are gambling in a severe and harmful way but many more are affected, whether family members or gamblers already experiencing negative consequences but below the clinical threshold. 

“We recognise the need for more action, which is why I am thrilled to support the Government's new levy, which will help us address the negative impact of gambling harms on communities using treatment, prevention and research through an independent evidence-based strategy at last."

Funding from the levy will be distributed to the NHS and UKRI, the umbrella body for research councils, by the Gambling Commission under the strategic direction of the government. The gambling industry will have no say over how money for research, prevention and treatment is spent. 

The levy will be charged to all licensed gambling activity at varying levels depending on the sector and nature of the gambling activity to ensure impacts are proportionate. Rates take into account the difference in operating costs and the levels of harmful gambling associated with different gambling activities. 

Minister for Health Andrew Gwynne said:

“Tackling gambling harm is a crucial part of our commitment to support people to live longer, healthier lives.

“This levy will provide an important funding boost for the NHS, whilst also enabling independent research and more effective prevention initiatives.

“By making NHS England responsible for all treatment and support services for those experiencing gambling-related harms in England, we will ensure people are getting the most effective care possible.”

Technological developments in recent years have paved the way for a dramatic shift in the ways people gamble. Gambling has moved away from betting shops and casinos to people being able to play anywhere, anytime, on their phones, leading to a significant increase in online gambling behaviour. 

The levy and online slot stake limits announced today complements a raft of major changes the government and the Gambling Commission is delivering to make gambling safer in an age of technological advances. This includes including financial risk checks to better alert operators to risky behaviours and tighter controls on marketing. 

ENDS

NOTES TO EDITORS

• The Written Ministerial Statement will be available here. 

• The levy will be charged at a set rate for all holders of a given Gambling Commission licence, ranging from 1.1% to 0.1% of Gross Gambling Yield (GGY), or equivalent, depending on the sector. 

• Society lottery operators will pay the levy as a proportion of proceeds retained after good causes and prizes paid out.

• The UK government will formally review the statutory levy system within five years with the first formal review expected by 2030.

• The proposed online slot stake limits will work together with previous changes to slots game design which have been in place since 2021. This includes slowing down the speed of play and banning autoplay features, aiming to reduce play intensity and provide customers with a better understanding of their gambling.