UK Government Announces Statutory Levy and Caps on Online Slot Stakes

  • UM News
  • Posted 5 months ago
00:00

The Department for Culture, Media and Sport (DCMS) has announced the introduction of a statutory levy for UK operators to finance NHS services aimed at addressing gambling-related harm.

Set to generate £100 million annually, this levy will be applicable to all licensed operators, ensuring “increased, ringfenced, and consistent funding to prevent and tackle gambling harm.”

Operators will be required to allocate between 0.1% and 1.1% of their gross gambling yield (GGY), contingent upon their sector.

Society lottery operators will contribute based on proceeds retained after the distribution of good causes and prizes.

The statutory levy system will undergo a formal review within five years, with the first evaluation anticipated by 2030.

Following government consultations involving clinicians, academics, the industry, and the public, 50% of the levy funds will be directed to NHS England and its corresponding bodies in Scotland and Wales.

This allocation will aid in developing a comprehensive system for gambling harm support and treatment.

The government intends for 30% of the levy funds to be allocated towards preventative measures against gambling-related harm.

These initiatives may include national public health campaigns and training for frontline staff.

The remaining 20% will support UK Research and Innovation (UKRI) and the Gambling Commission in developing tailored research programs on gambling, “conducting vital research to inform future policy and regulation.”

The government emphasized that the gambling industry will have no influence over how funds for research, prevention, and treatment (RET) are utilized.

According to the DCMS, the levy will ensure equitable contributions from all operators towards gambling harm research, prevention, and treatment, addressing concerns that some companies currently contribute as little as £1 per year.

The DCMS also confirmed the implementation of stake limits for online slot games.

The stake limit for individuals over 25 will be £5 per spin, while those aged 18-24 will face a cap of £2 per spin.

This decision follows insights from the Office for Health Improvement and Disparities and the Gambling Survey for Great Britain, highlighting younger adults as a group with high scores on the Problem Gambling Severity Index (PGSI).

Baroness Twycross, UK Minister for Gambling, stated: “Gambling harm can devastate finances, relationships, and lives. We are resolute in enhancing protections for those at risk and providing effective support for the affected.”

“The statutory levy is crucial in supporting research, raising awareness, and reducing the stigma surrounding gambling-related harm.”

“We’re also focused on safeguarding young adults by introducing stake limits for online slots, aiding in building an NHS equipped for the future and strengthening protections while enabling safe gambling.”

While supporting the levy, Betting and Gaming Council (BGC) CEO Grainne Hurst stressed the contributions of member operators and cautioned the government against losing perspective.

Hurst noted, “The BGC supported reforms in last year’s white paper, including stake limits and a mandatory levy for Research, Prevention, and Treatment.”

“BGC members voluntarily contributed over £170 million over four years, addressing problem gambling and gambling-related harm, including £50 million for independent charities caring for 85% of treatment recipients in Britain.”

“Ministers must remember that the vast majority of the 22.5 million monthly bettors—whether on lotteries, in bookmakers, casinos, bingo halls, or online—do so safely. The latest NHS Health Survey for England estimates only 0.4% of the adult population are problem gamblers.”

“The government’s announcement risks losing sight of these facts, appearing to cater to anti-gambling prohibitionist sentiments, which serves no one.”

The post UK government confirms statutory levy and online slots stakes caps first appeared on EGR Intel.


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