UK Gambling Act Reforms Introduce Slot Stake Limits and Statutory Levy

The UK Government has taken significant steps in adopting new gambling regulations to combat gambling-related harm. It confirms plans to apply a statutory levy on gambling profits and limit slot bets to deal with gambling addiction.

Baroness Twycross, the UK Gambling Minister, has drafted how the betting levy will function as the government affirms its commitment to tackling gambling-related harm. The new rules will also set a £5 maximum cap on slot spins for adults aged 25 and over; those aged 18 to 24 will only wager up to £2 per spin.

Landmark Levy Structure

The betting levy will apply to all gambling operators with a UK Gambling Commission (UKGC) license. The current system is voluntary, with some operators donating as little as £1 annually towards safer gambling efforts. The new tax will collect fair contributions from all operators.

The betting levy is expected to raise £100 million for gambling harm research, prevention, and treatment systems. 50% of the taxes will fund comprehensive treatment and support systems in England, Scotland, and Wales.

30% will go towards public health campaigns and prevention measures. The UK Research and Innovation (UKRI) and Gambling Commission will receive the remaining 20% to run gambling research programs and support research on policy and regulation.

Bet Limits to Limit Gambling Harm

The government’s introduction of stake limits is meant to address the surge in gambling addiction. The regulation targets slots since they are a higher-risk gambling product associated with massive losses and long gameplay sessions.

Research from GamCare reveals that in 2023 – 2024, 45% of individuals dialing the National Gambling Helpline had reported slot gambling issues, a significant increase from 2020 – 2021’s 34%. The National Health Service (NHS) also highlighted a notable increase in gambling addiction cases in the past year.

NHS National Director for Mental Health Clair Murdoch commented, “Problem gambling can completely ruin lives and the issue has skyrocketed, with NHS services treating record numbers with our latest data showing a staggering 129% increase in service referrals compared with the same period last year.”

Mixed Reactions

The regulatory changes have sparked conflicting reactions from industry stakeholders. The Betting and Gaming Council (BGC) has applauded the initiative, highlighting its £170 million voluntary contributions over the past four years towards safer gambling efforts. However, the council has voiced concern about the announcement delivery, hinting that the government needs to limit the influence of anti-gambling propagandists.

BGC CEO Grainne Hurst explained, “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.” Nevertheless, the council understands the need for legislation updates to address gambling-related harm and help the public with these issues.