UK Confirms Mandatory Gaming Levy and £5 Online Slots Cap in Gambling Reform

UK Confirms Mandatory Gaming Levy and £5 Online Slots Cap in Gambling Reform

By Michael Harrison

November 27, 2024 at 11:49 PM

The UK government has confirmed the implementation of a mandatory levy on all casino and betting companies operating in the country, alongside new restrictions on online slots stakes. The measures aim to enhance problem gambling prevention and treatment.

The mandatory levy will generate approximately £100 million (US$127 million) annually, replacing the current voluntary system. Under the new structure, operators will contribute between 0.1% and 1.1% of revenue, with online businesses paying higher rates due to lower operational costs.

Westminster Parliament along River Thames

Westminster Parliament along River Thames

The Department of Culture, Media, and Sport (DCMS) also announced strict caps on online slots stakes:

  • £5 maximum per spin for players over 25
  • £2 maximum per spin for players aged 18-24

These changes follow recommendations from the previous government's gambling reform white paper. Implementation is scheduled for 2025.

Gambling Minister Baroness Twycross emphasized the levy's importance in supporting research and reducing gambling-related harm stigma. The Betting & Gaming Council (BGC) has backed the mandatory levy, though its chief executive Grainne Hurst cautioned against overlooking that most of the 22.5 million UK gamblers bet responsibly, with problem gambling affecting approximately 0.4% of adults.

Previous voluntary contributions varied significantly, from Flutter Entertainment's £18 million and Entain Plc's £16.8 million to minimal amounts from smaller operators, highlighting the need for standardized industry support for gambling harm prevention and treatment.

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