Following consultation, the UK government has confirmed plans to implement a statutory levy on gambling profits and online slot stake limits to help tackle the issue of gambling addiction.
The levy will be charged at a set rate for all holders of a given Gambling Commission licence, ranging from 1.1% to 0.1% of Gross Gambling Yield (the amount retained by gambling operators after the payment of winnings before operating cost deductions), or equivalent, depending on the sector and nature of gambling activity. The aim is to ensure that impacts are proportionate. Rates take into account the difference in operating costs and the levels of harmful gambling associated with different gambling activities. Society lottery operators will pay the levy as a proportion of proceeds retained after good causes and prizes are paid out.
The Gambling Commission will distribute funding from the levy to the NHS and UKRI, the umbrella body for research councils, under the strategic direction of the government.
The Gambling Minister has also confirmed that the government will introduce stake limits for online slots. The proposed online slot stake limits will work together with previous changes to slots game design which have been in place since 2021. This includes slowing down the speed of play and banning autoplay features, aiming to reduce play intensity and provide customers with a better understanding of their gambling. Stake limits will be set at £5 per spin for adults aged 25 and over and £2 per spin for 18-24 year old.
The UK government will formally review the statutory levy system within five years, with the first formal review expected by 2030.