Reduced slot caps and mandatory levies may hinder operator growth
The UK government has introduced significant measures to address gambling-related harm, including stake limits on online slots and a mandatory tax on operators expected to raise £100 million (US$127 million) annually. Gambling Minister Baroness Twycross announced these changes, emphasizing their importance in tackling addiction and its associated damages.
The new rules impose a stake limit of £2 (US$2.54) per spin for players under 25 and £5 (US$6.35) for those over 25. This reflects research showing young adults are particularly vulnerable to gambling-related harm, as online slots are often linked to binge play and large losses.
Additionally, the government has replaced the voluntary levy with a mandatory one. All licensed gambling operators will now contribute between 0.1% and 1.1% of their Gross Gambling Yield, depending on their sector.
Half of the funds will go directly to the NHS to support treatment for gambling addiction, with the remainder allocated for research and prevention initiatives. The Department for Culture, Media and Sport (DCMS) noted this change ensures consistent and equitable funding, addressing disparities in contributions under the previous voluntary system.
Baroness Twycross highlighted the devastating impact gambling harm can have on finances, relationships, and lives. She emphasized the importance of these measures in protecting at-risk individuals and supporting those already affected.
NHS mental health director Claire Murdoch welcomed the tax, noting a 129% increase in gambling addiction referrals compared to the previous year. She stressed the need for sustained government action to combat the growing issue.
Advocates like Will Prochaska of the Coalition to End Gambling Ads called for broader reform, comparing the industry’s influence to that of Big Tobacco. He urged the government to consider gambling’s broader societal role and further empower the Department of Health to combat harm.
The reforms reflect a renewed commitment to safeguarding vulnerable individuals and ensuring accountability within the gambling industry.
Emma Rodriguez is the Proofreader at the Big Blind, with seven years of experience and five years in online gambling. She plays a crucial role in maintaining content quality by ensuring error-free, reader-friendly information about the gambling industry.
