Home » UK Introduces £5 Online Slot Betting Cap and Statutory Levy to Tackle Gambling Addiction

UK Introduces £5 Online Slot Betting Cap and Statutory Levy to Tackle Gambling Addiction

UK Introduces £5 Online Slot Betting Cap and Statutory Levy to Tackle Gambling Addiction

The UK government has revealed plans for significant changes to gambling regulations in an effort to combat gambling addiction. Among the most notable proposals is a new set of restrictions on online slot machine stakes, with limits on how much players can bet. The new rules are set to apply for the first time ever: a £5 maximum bet per spin will be introduced for adults aged 25 and over, while those aged 18 to 24 will be limited to £2 per spin. The government is also rolling out a new statutory levy on gambling companies to fund addiction treatment programs, marking a significant shift in how the industry will be held accountable for its impact on public health.

Addressing the surge in gambling addiction:

Online gambling addiction, particularly with slot games, has been a growing concern, especially in the wake of the Covid-19 pandemic. Data from charity GamCare revealed that in the 2023-2024 period, 45% of callers to the National Gambling Helpline had reported issues with online slot games, a sharp increase from 34% in 2020-2021. Jon Armstrong from GamCare highlighted the repetitive nature of these games, which can lead to long, binge-like sessions that exacerbate addiction.

“We’ve got lots of examples of people playing them through the night, and being able to repetitively gamble over an extended period of time,” Armstrong explained. This concern has prompted the government to intervene with a series of regulatory changes aimed at reducing the harm caused by online gambling.

The new stake limits are part of a broader strategy to protect vulnerable groups, especially younger adults who, according to research, are disproportionately affected by gambling-related harm. As BBC reports, Baroness Fiona Twycross, Gambling Minister, stated, “Gambling harm can ruin people’s finances, relationships, and ultimately lives,” emphasizing that these restrictions are necessary to safeguard public health, particularly for those at risk.

The Introduction of a statutory levy:

Another major development in the government’s approach is the introduction of a mandatory levy on gambling companies. This levy, set to raise £100 million, will fund research, prevention, and treatment programs to address gambling addiction. Currently, some gambling operators contribute as little as £1 annually toward these initiatives, with the voluntary system not ensuring an equitable distribution of funds across the industry.

Under the new system, all licensed gambling operators will be required to contribute fairly, with the funds split into specific categories: 50% will go directly to NHS treatment services, 30% will be allocated for public health campaigns and prevention measures, and the remaining 20% will fund research efforts through organizations like UK Research and Innovation (UKRI).

Baroness Twycross further explained, “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 that the government’s actions would help create an NHS “fit for our future,” ensuring that effective care and support systems are in place for those affected by gambling harm.

The announcement has sparked mixed reactions, particularly from industry stakeholders. The Betting and Gaming Council, which represents gambling companies, has expressed support for the government’s efforts, noting its own voluntary contributions of £170 million over the past four years to fund gambling harm services. However, the council also raised concerns about the tone of the announcement, suggesting that the government might be influenced too strongly by anti-gambling advocates.

Grainne Hurst, CEO of the Betting and Gaming Council, commented, “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.” Despite this, the council has acknowledged the necessity of reforms to address gambling harm and continues to work with the government on these issues.

A step towards a safer gambling environment:

As gambling technology continues to evolve, with an increasing number of individuals gambling on mobile devices, the UK government has also introduced tighter regulations for online gambling behavior. The new measures, which include stake limits and a mandated levy, complement earlier changes to gambling laws, such as the slowing down of game speeds and the removal of autoplay features in slot machines. These reforms are designed to reduce the intensity of gambling sessions and provide better transparency for players.

Claire Murdoch, NHS national director for mental health, applauded the government’s efforts, stating, “Problem gambling can completely ruin lives, and the issue has skyrocketed.” NHS services have seen a dramatic rise in the number of people seeking help, with a 129% increase in referrals compared to the previous year.

Professor Henrietta Bowden-Jones, National Clinical Advisor on Gambling Harms at NHS England, further emphasized the importance of the new levy, saying in the regulator’s press release, “We know that 2.5% of the population are gambling in a severe and harmful way, but many more are affected.” She welcomed the government’s new strategy as a vital step in addressing the devastating impact of gambling addiction.