The UK government has confirmed new steps toward enhancing legislation aimed at reducing gambling-related harm. This includes plans for a mandatory levy on gambling profits and restrictions on online slot stakes, both designed to address the growing issue of gambling addiction.
This new levy will apply to all licensed gambling operators, ensuring that funding for research, prevention, and treatment is not only increased but also consistently allocated. Currently, contributions from gambling companies are voluntary and vary widely, but they still contribute tens of millions of pounds a year.
Additionally, the Gambling Minister, Baroness Fiona Twycross (pictured), has revealed plans to introduce stake limits for online slots—considered a high-risk form of gambling due to their potential for significant losses and prolonged play sessions. For individuals aged 25 and older, the stake limit will be set at £5 per spin, while those between 18 and 24 will have a limit of £2 per spin.
The government said the introduction of this legally mandated levy will play a crucial role in funding research initiatives, raising awareness about gambling harm, and reducing stigma associated with it. Research indicates that younger adults are particularly susceptible to gambling-related issues, with a notable percentage scoring high on the Problem Gambling Severity Index.
Planned distribution of funds
From October 2023 through January 2024, the government engaged with clinicians, academics, industry representatives, and the public to gather insights on how best to design and implement this levy. Following this consultation process, it was confirmed that half of the funds generated would be allocated to NHS England and relevant organizations in Scotland and Wales.
The funds will primarily be used for developing comprehensive support systems for those affected by gambling issues. This system will encompass everything from initial referrals to ongoing recovery care.
Preventative measures are also a key focus in combating gambling harm; thus, 30% of the levy’s funds will be dedicated to prevention efforts. This may involve national public health campaigns or training programs for frontline staff who interact with those at risk. The government aims to carefully consider these decisions before outlining further steps in the upcoming months.
The remaining 20% of funding will go towards UK Research and Innovation (UKRI) along with the Gambling Commission for specialized research programs related to gambling.
The distribution of funds from this levy will be managed by the UK Gambling Commission (UKGC) under governmental guidance. The gambling industry itself will not influence how these funds are utilized for research or treatment initiatives.
The levy structure will vary based on different sectors within the gambling industry so that impacts remain proportionate according to operational costs and levels of harmful behavior associated with various forms of betting.
Gaming industry speaks up
Industry insiders have spoken up in response to these developments, pointing out what some of the supporters of the new measures haven’t acknowledged. Grainne Hurst, the CEO of the Betting and Gaming Council, highlighted that BGC members have voluntarily contributed over £170m over four years toward addressing problem gambling issues.
This includes £50m this year alone—supporting charities that aid approximately 85% of individuals seeking treatment in Britain.
In her comments, Hurst expressed support for both the proposed stake limits and mandatory levy outlined in last year’s White Paper aimed at reforming gambling practices. However, she cautioned against losing sight of essential facts: most people who engage in betting do so safely without issues.
Surveys dating back several years, as cited by the UKGC on multiple occasions, suggest only about 0.4% of adults identify as problem gamblers. Hurst warned that if policymakers become overly influenced by anti-gambling sentiments without considering these realities, it could lead to misguided regulations that do not benefit anyone involved.
Rob Mabbett, Engagement Director at Better Change, provided Next.io with a response, as well. He stated: “The government statement today regarding the introduction of a mandatory levy to fund research, education and treatment of gambling harm fails to mention the outstanding work done by many organisations over the past 5 years to reduce gambling harm.
“It mentions that some organisations have contributed as little as £1 through the current system; whilst I agree that everyone needs to contribute an appropriate amount, it fails to mention the organisations that contributed over £20million and the BGC initiative that raised over £100million in the past 4 years.”
“We are now looking at a levy that will raise over £100million in a year with half of that going to treatment. Given that the number of people who access treatment each year has fallen since 2019, you have to ask the question why? And what will all that money be spent on?
“There is an added statement that funding from the levy will be independent of industry influence, which is fine (they didn’t influence it before either), but I would advise that the industry ask for receipts from their levy payments as we need to know what this huge amount of money will be spent on.”
Mindway AI CEO Rasmus Kjaergaard also weighed in, telling Next.io: “The announcement of a statutory levy and online slot stake limits represents a significant step in tackling gambling harms. While increased funding for research, prevention, and treatment (RPT) is welcome, it’s crucial to collaborate with existing treatment providers, who bring vast expertise to the space—losing this knowledge would be a critical setback.
“Furthermore, we believe that incorporating a more behavioural approach to adopting detection systems and player monitoring solutions could have helped mitigate gambling-related harm in the UK market over the market-wide focus on monetary spend. This might have reduced the need for such stringent measures on online stake limits, potentially minimizing the impact on remote gambling tax revenues nationwide.
