Great Britain’s government has today (27 November) set out plans for a new statutory levy on gambling profits, with the aim of raising £100 million (€120 million/$126 million) for gambling-related harm prevention, and also confirmed new stake limits on online slots.
The announcement is billed as a major step towards reducing gambling harm in Great Britain. Both the levy and stake limits were included in the previous government’s Gambling Act white paper published last year.
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NHS and reform campaigners’ reactions
Haven’t we heard of slot stake limits before?
The rate paid by each business will ranging from 0.1% to 1.1% of gross gambling yield (GGY). The exact rate will be determined based on the sector, vertical and the type of gambling they offer. This will take into account licensees’ operating costs, and the risk profile of the products they offer.
The current voluntary system doesn’t ensure all operators pay their fair share, the government claimed. Some pay as little as £1 a year towards research, prevention and treatment, it noted.
The reforms follow a consultation that ran from October 2023 to January 2024. It collected input from clinicians, academics, the industry and wider public on how the levy should be designed and implemented.
The new statutory levy appears to come into effect in 2025. The government has pledged a formal review of its effect within five years, by 2030.
NHS to receive 50% of new levy funds
It is hoped the levy will generate £100 million for the research, prevention and treatment of gambling harms. Half of the funding, the government said, will be allocated to the NHS-led gambling treatment system.
Some 30% of funding will be invested in prevention efforts, including national public health campaigns and training frontline staff. The remaining 20% will be directed to UK Research and Innovation (UKRI) to develop a bespoke research programme on gambling.
The Gambling Commission will oversee distribution of the funds. Meanwhile, the gambling industry will have no say over how money for research, prevention and treatment is spent.
“Gambling harm can ruin people’s finances, relationships, and ultimately lives,” Baroness Twycross said. “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.”
NHS backing for new measures
Claire Murdoch, NHS national director for mental health, said the organisation has long been calling for a statutory levy on gambling.
“I am delighted to welcome the 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,” Murdoch said. “We will continue to work with government to do all we can to protect problem gamblers from this billion-pound industry.”
Gambling harms can have a “devastating” effect on people’s lives, professor Henrietta Bowden-Jones, national clinical advisor on gambling harms at NHS England, added .
“This 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.”
Reform campaigners claim victory
The introduction of the statutory levy was hailed by two of the most prominent reform campaign groups.
Ian Duncan Smith, the Tory MP who chairs the All Party Parliamentary Group for Gambling Related Harm, pointed out the Westminster pressure group called for the measure five years ago.
“For the first time the gambling industry will be mandated to pay for the harm they cause,” Duncan Smith said. “Whilst there is much more to do, this is a seismic moment, a huge step forward, and I welcome it unreservedly.”
Meanwhile Lord Don Foster argued the levy was a “damning inditcment of the sector” for failing to pay enough voluntarily.
“The money raised by this levy will go some way towards paying for gambling treatment, research and harm prevention but levels of payment must be reviewed over time to ensure adequate funding,” said Lord Foster, who chairs Peers for Gambling Reform in the House of Lords. “I look forward to working with the government on the implementation of this levy which is so urgently needed.”
BGC – government must not ‘dance to the tune of anti-gambling prohibitionists’
Betting and Gaming Council (BGC) CEO Grainne Hurst welcomed the introduction of the levy, but took exception to the tone taken in the government’s announcement.
“BGC members voluntarily contributed over £170 million over the last four years to tackle problem gambling and gambling related harm,” Hurst said in a statement following the announcement. “This includes £50 million this year alone. They are funding an independent network of charities currently caring for 85% of problem gamblers receiving treatment in Britain.”
However the release hinted that many licensees were not paying their fair share. Murdoch and Bowden-Jones focused on the negative effects of gambling. An increased levy on products considered higher-risk even echoes the ‘polluter pays’ line used by reform campaigners. This prompted Hurst to defend the industry.
“Ministers must not lose sight of the fact the vast majority of people who enjoy a bet each month do so safely. The most recent NHS Health Survey for England estimated just 0.4% of the adult population are problem gamblers.
“The tone of this announcement suggests government is at risk of losing perspective of these facts, while simply dancing to the tune of anti-gambling prohibitionists, which serves no one.”
Online slot stake limit set at £5 for over-25s
This tone was evident in the second part of the announcement, implementing stakes for online slots. Slots are “a higher-risk gambling product associated with large losses, long sessions, and binge play” according to the government.
The announcement may seem familiar. That’s because the previous Tory government announced the slot stake limits in February this year. It pledged to introduce the limits by September. That date passed without any movement.
As first revealed in February, players aged 18 to 24 will be limited to spending £2 per spin. This increases to £5 a spin for over-25s.
The government cited research from the Office for Health Improvement and Disparities and the Gambling Survey for Great Britain in imposing the stake limits. Research suggests young adults are particularly vulnerable to gambling related harm. Under-25s having one of the highest average problem gambling scores of any age group.
“We are helping protect those at risk, with a particular focus on young adults, by introducing stake limits for online slots,” Baroness Twycross said. “These measures will help build an NHS fit for our future and strengthen protections whilst also allowing people to continue to gamble safely.”