Amidst a wave of regulatory changes in UK gambling, the DCMS has solidified plans to introduce online slot stake limits of £5 for those aged 25 and over, and £2 for young adults aged 18-24, as recommended by the White Paper.
The implementation of these £5 and £2 stake limits on online slots is set for the end of November, marking a significant shift in UK gambling safeguards. Although approved in February, the rollout of these changes has been fragmented.
Operators were initially given six weeks to comply with the new rules, followed by an additional six weeks to implement technical solutions ensuring compliance with the £2 stake limit for 18-24 year olds.
The DCMS has cited these recent changes as ‘a critical protection’ in safeguarding players, specifically aiming to enhance protections for younger, more vulnerable players.
DCMS stated: “Technological developments in recent years have dramatically changed the way people gamble. Gambling has transitioned from betting shops and casinos to online platforms, making it possible to play anywhere, anytime, on mobile devices, which has led to a significant increase in online gambling behaviour.
Further rollouts of White Paper measures will see UK gambling adopt a statutory levy to fund research, education, and treatment (RET Levy) of gambling harms alongside online stake limits.
This recent update regarding the RET Levy aims to ensure £100m in annual funding for organizations, projects, and initiatives dedicated to the treatment and prevention of problem gambling.
Today, the DCMS filed an accompanying consultation response on the RET Levy’s structure, revealing the Levy rates (% charged on previous year Gross Gambling Yield):
1.1% from all online operators
1.1% from all software licenses
0.5% from land-based casinos
0.5% from land-based betting
0.2% from on-course bookmakers
0.2% from Adult Gaming Centres
0.2% from land-based bingo
0.1% from Family Entertainment Centres
0.1% from pool betting licenses
0.1% from all machine technical licenses
Operators with gross profits under £500,000 will be exempt from the levy, with the government planning to review the statutory levy system within five years, with the first formal review expected by 2030.
Before the announcement, reports indicated that DCMS Gambling Minister Baroness Twycross was anticipated to reveal key measures imminently. Twycross stated this morning: “The introduction of the first legally mandated levy will be instrumental in supporting research, raising awareness, and reducing the stigma surrounding gambling-related harm.
“We are also helping 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, while also allowing people to continue to gamble safely.”
In support of the RET Levy, Minister for Health Andrew Gwynne commented: “Tackling gambling harm is a crucial part of our commitment to help people live longer, healthier lives.
“This levy will provide an important funding boost for the NHS while 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 receive the most effective care possible.”
Allocation of RET funds
The statutory levy will establish the NHS as the chief commissioner of RET services 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, addressing referrals, triage, recovery programmes, and aftercare services.
30% of the funds will concentrate on gambling harm prevention, encompassing public health campaigns and training for frontline workers to identify and manage gambling-related issues. The government plans to elaborate on 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 providing evidence-based insights to shape future policies and regulations.
Grainne Hurst, BGC CEO concluded: “The BGC supported the plans outlined in the White Paper published last year to reform stake limits and introduce a mandatory levy to fund Research, Prevention, and treatment.
“BGC members voluntarily contributed over £170m in the last four years to tackle problem gambling and gambling-related harm, including £50m this year alone, funding an independent network of charities currently caring for 85 percent of all problem gamblers receiving treatment in Britain.
“Ministers must not lose sight of the fact that the vast majority of the 22.5m people who enjoy a bet each month — be it on the lottery, in bookmakers, casinos, bingo halls, or online — do so safely, while the most recent NHS Health Survey for England estimated that just 0.4 percent of the adult population are problem gamblers.
“The tone of this announcement suggests the Government is at risk of losing sight of these facts, while simply responding to the influence of anti-gambling prohibitionists, which serves no one.”
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