The recent announcement marks a significant advancement in efforts to mitigate gambling-related harm in Great Britain. The proposed levy and stake limits were part of the previous government’s Gambling Act white paper released last year.
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NHS and reform campaigners’ reactions
Haven’t we heard of slot stake limits before?
Businesses will be charged a rate ranging from 0.1% to 1.1% of their gross gambling yield (GGY). The precise rate will depend on the sector, vertical, and type of gambling offered, considering licensees’ operating costs and product risk profiles.
The government stated that the current voluntary system fails to ensure that all operators contribute fairly. Some contribute as little as £1 annually toward research, prevention, and treatment.
The reforms are based on a consultation period from October 2023 to January 2024, gathering insights from clinicians, academics, the industry, and the general public on designing and implementing the levy.
The new statutory levy is anticipated to come into effect in 2025, with the government committing to a formal review of its impact within five years, by 2030.
NHS to receive 50% of new levy funds
The levy is expected to generate £100 million for research, prevention, and treatment of gambling harms. According to the government, half of this funding will support the NHS-led gambling treatment system.
About 30% of the funds will be directed towards prevention efforts, including national public health campaigns and training for frontline staff. The remaining 20% will be allocated to UK Research and Innovation (UKRI) to create a specialized research program on gambling.
The Gambling Commission will manage fund distribution, ensuring the gambling industry has no influence over how the money is allocated for research, prevention, and treatment.
“Gambling harm can devastate people’s finances, relationships, and ultimately lives,” stated Baroness Twycross. “We are fully committed to implementing strengthened measures for those at risk and providing effective support for those affected.
“The introduction of the first legally mandated levy will significantly support research, raise awareness, and reduce the stigma surrounding gambling-related harm.”
NHS backing for new measures
Claire Murdoch, NHS national director for mental health, affirmed that the NHS has long advocated for a statutory levy on gambling.
“I am thrilled to welcome the mandatory gambling levy, a call long supported by the NHS, bereaved families, and the voluntary sector to tackle this growing issue,” Murdoch stated. “We will continue collaborating with the government to protect problem gamblers from this billion-pound industry.”
Gambling harms can have a “devastating” impact on people’s lives, according to professor Henrietta Bowden-Jones, national clinical advisor on gambling harms at NHS England.
“This is why I fully endorse the government’s new levy, which will help us address gambling harms through treatment, prevention, and research, guided by an independent and evidence-based strategy.”
Reform campaigners claim victory
Two of the leading reform campaign groups hailed the introduction of the statutory levy as a significant triumph.
Iain Duncan Smith, the Tory MP and chair of the All Party Parliamentary Group for Gambling Related Harm, highlighted that they advocated for this measure five years ago.
“For the first time, the gambling industry will be required to pay for the harm they cause,” Duncan Smith remarked. “While there’s more to be done, this is a monumental moment, a considerable step forward, and I welcome it wholeheartedly.”
Conversely, Lord Don Foster criticized the sector for not voluntarily contributing enough, referring to the levy as a “damning indictment.”
“The funds generated will contribute to gambling treatment, research, and harm prevention, but future reviews of payment levels are essential to ensure sufficient funding,” stated Lord Foster, chair of Peers for Gambling Reform in the House of Lords. “I anticipate working with the government on implementing this urgently needed levy.”
BGC – government must not “dance to the tune of anti-gambling prohibitionists”
Betting and Gaming Council (BGC) CEO Grainne Hurst welcomed the levy but criticized the tone of the government’s announcement.
“BGC members have voluntarily contributed over £170 million in the past four years to address problem gambling and related harms,” Hurst stated. “This includes £50 million this year alone, funding an independent network of charities caring for 85% of problem gamblers in Britain.”
Despite welcoming the levy, the announcement implied that many licensees were not contributing their fair share. Murdoch and Bowden-Jones emphasized gambling’s negative effects, and the increased levy on higher-risk products echoed the ‘polluter pays’ rhetoric used by reform advocates. Hurst felt compelled to defend the industry.
“Ministers should not overlook the fact that most people who partake in gambling do so responsibly. The most recent NHS Health Survey for England estimated only 0.4% of the adult population are problem gamblers.
“The tone of this announcement suggests the government risks losing sight of these realities while catering to anti-gambling prohibitionists, which benefits no one.”
Online slot stake limit set at £5 for over-25s
This tone extended to the announcement’s second part, which involved setting stakes for online slots. The government described slots as “a higher-risk gambling product linked with significant losses, lengthy sessions, and binge play.”
The announcement might seem familiar, as the former Tory government announced the slot stake limits in February earlier this year, promising to enforce them by September. However, that deadline passed without action.
According to the February revelations, players aged 18 to 24 will have a limit of £2 per spin, while those over 25 will have a limit of £5 per spin.
The government referenced research from the Office for Health Improvement and Disparities and the Gambling Survey for Great Britain to justify the stake limits. Research indicates young adults are particularly susceptible to gambling-related harm, with under-25s having some of the highest average problem gambling scores.
“We are safeguarding those at risk, especially young adults, by introducing stake limits for online slots,” stated Baroness Twycross. “These steps will equip the NHS for the future and strengthen protections, while allowing people to gamble safely.”