UK Govt. Confirms Mandatory Levy, Online Slots Cap Incoming

Posted on: November 27, 2024, 04:20h. 

Last updated on: November 27, 2024, 04:20h.

Philip Conneller @casinoorgphilc Read More

Expertise: Gaming Business, Regulation, Tribal Gaming.

All casino and betting companies operating in the UK will be subject to a mandatory levy that will raise around £100 million (US$127 million) per year to fund problem gambling research and treatment.

The new Labour Party administration’s Department of Culture, Media, and Sport (DCMS) announced Wednesday that the levy will replace an existing voluntary system that allows UK-licensed operators to choose how much they wish to contribute.

While many operators donate generously to the voluntary levy, some give significantly less. In the last financial year to March 2024, payments ranged from the £18 million and £16.8 million donated by Flutter Entertainment and Entain Plc respectively, to the £0.96 offered by a charity devoted, ironically, to “corporate giving.”

£5 Max. Spin

The announcement confirmed the implementation of measures recommended in the previous government’s white paper on gambling reform, published last year. The DCMS said it would also press ahead with imposing a cap on online slots stakes, as also recommended in the white paper, which are currently unlimited.

Stakes will be fixed at a maximum £5 per spin (US$6.43) for those aged over 25 and £2 (US$2.53) for 18 to 24-year-olds.

Gambling harm can ruin people’s finances, relationships and ultimately, lives,” said gambling minister Baroness Twycross. “We are absolutely committed to implementing strengthened measures for those at risk, as well as providing effective support for those affected.

“The introduction of the first legally mandated levy will be instrumental in supporting research, raising awareness and reducing the stigma around gambling-related harm,” she added.

The changes have been a long time coming, and they still won’t be implemented until next year. Under the new levy system, operators will be required to pay between 0.1% and 1.1% of revenue, with online businesses contributing at the higher rate because costs are lower.

BGC Backs Move

Industry advocacy group the Betting & Gaming Council (BGC) initially opposed the mandatory levy but later opted to back the policy, perhaps because BGC members are contributing most of the voluntary payments.

But BGC chief executive Grainne Hurst took umbrage at the tone of Baroness Twycross’s announcement.

Ministers must not lose sight of the fact the vast majority of the 22.5 million people who enjoy a bet each month, on the lottery, in bookmakers, casinos, bingo halls, and online do so safely, while the most recent NHS Health Survey for England estimated that just 0.4 per cent of the adult population are problem gamblers,” Hurst said.

“The tone of this announcement suggests the government is at risk of losing perspective of these facts, while simply dancing to the tune of anti-gambling prohibitionists, which serves no one,” she added.