DCMS settles RET Levy orders and activates stake limits

  • UM News
  • Posted 1 year ago
00:00 / 00:00

UK Gambling will apply the regulatory measures of a statutory levy on funding of research, education, and treatment (RET Levy) of gambling harms and online stake limits as a new player protection.

Announced this morning by DCMS, the government has advanced landmark proposals from the Gambling Review’s White Paper to strengthen gambling legislation and improve funding for RET services.

DCMS also confirmed the introduction of online slot stake limits of £5 for those aged over 25 and £2 for young adults aged 18 to 24, as recommended by the White Paper.

Baroness Twycross: DCMS

Prior to the announcement, reports indicated that DCMS Gambling Minister Baroness Twycross was expected to reveal key measures imminently.  This morning, she stated: “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.”

Levy design settled 

The update confirms DCMS’s final design for the RET Levy as a statutory measure to ensure £100 million in annual funding for organisations, projects, and initiatives supporting the treatment and prevention of problem gambling.

As detailed , a “landmark levy” will be charged to all licensed operators, guaranteeing increased, ringfenced, and consistent funding to address gambling harm, with all operators required to contribute their fair share.

The RET Levy will be applied as a percentage of Gross Gambling Yield (GGY) or its equivalent, with rates varying by sector and activity. As detailed in the October 2023 consultation, the levy will be implemented by the 2026/27 financial year as follows:

1% from all online operators (excluding society lotteries with remote licences).
1% from remote software licences.
1% from remote machine technical licences.
1% from remote pool betting licences.
0.4% from land-based casinos and betting operations.
0.4% from non-remote software licences.
0.4% from non-remote machine technical licences.
0.4% from non-remote pool betting licences.
0.1% from land-based arcades and bingo operations.
0.1% from society lotteries, including External Lottery Managers and local authority lotteries licensed by the Gambling Commission.

Society lottery operators will pay the levy based on proceeds retained after contributing to good causes and prize payouts. Operators with gross profits under £500,000 will be exempt from the levy.

Allocation of RET funds 

The statutory levy will position the NHS as the chief commissioner of RET services, operating under a new framework to distribute funds effectively. The allocation of funds is as follows:

50% of the revenue will go to NHS England and equivalent bodies in Scotland and Wales to develop a comprehensive support and treatment system, covering referrals, triage, recovery programmes, and aftercare services. 
30% of the funds will focus on gambling harm prevention, including public health campaigns and training for frontline workers to identify and address gambling-related issues. The government plans to detail these strategies in the coming months. 
20% of the funds will be allocated to UK Research and Innovation (UKRI) to establish a Research Programme on Gambling, aimed at delivering evidence-based insights to shape future policies and regulations.

Andrew Gwynne: Labour

In support of the RET Levy, 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.”

Transition period ends for Stake Limits 

The transition period for implementing £5 and £2 stake limits on online slots concludes at the end of November.

Approved in February, these limits began rolling out in September under secondary legislation. Operators were given six weeks to comply with the new rules, followed by an additional six weeks to implement technical solutions ensuring full compliance with the reduced £2 stake limit for young adults aged 18 to 24.

DCMS defends stake limits as a critical protection for customers engaging with online slots, identified as one of the highest-risk gambling products. Research from the Office for Health Improvement and Disparities and the Gambling Survey for Great Britain highlights that individuals under 25 are among the most vulnerable, with some of the highest rates of problem gambling within their age group.

The proposed online stake limits build upon previous measures introduced in 2021, which included slowing down play speed and banning autoplay features. These changes aim to reduce play intensity and give players greater awareness of their gambling behaviour.

DCMS concluded: “Technological developments in recent years have dramatically changed the way people gamble. Gambling has shifted from betting shops and casinos to online platforms, enabling play anywhere, anytime, on mobile devices, and leading to a significant rise in online gambling behaviour.

The levy and online slot stake limits announced today complement a series of major reforms introduced by the government and the Gambling Commission to make gambling safer in an age of technological advances. These include financial risk checks to detect risky behaviour and stricter marketing controls.”

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