The government confirms online slots cap and betting levy to fund NHS services
Bookmakers and casinos will be forced to fund NHS services tackling problem gambling after Labor approved the previous government’s plans, which also included a cap of just £2 on the amounts that can be wagered on online gaming machines.
The Guardian revealed on Monday that the government was close to passing the new “statutory levy”, which would see the proceeds of around £100 million a year used to fund the research, prevention and treatment of gambling harm.
The Department for Culture, Media and Sport confirmed the plans on Wednesday and said it was also going ahead with a limit on what online casino customers can bet on slot machines.
The stake, which is currently unlimited, is set at £5 per spin for those over 25 and £2 for 18 to 24 year olds.
Gambling Minister Baroness Twycross said: “Gambling harm can ruin people’s finances, relationships and ultimately people’s lives. We are absolutely committed to implementing enhanced measures for those at risk, and providing effective support to those affected.
“The introduction of the first legally mandated levy will play an important role in supporting research, raising awareness and reducing the stigma around gambling-related harm.”
In 2022, industry lobby group the Betting & Gaming Council (BGC) said a mandatory levy would be a “step backwards”.. The BGC has since decided to back the levy and said on Wednesday its members donated £50 million last year to tackle gambling-related harm.
The lobby group emphasized that the “vast majority” of people gamble safely, including on the National Lottery. It also pointed to a 2021 NHS survey that found 0.4% of the population have a gambling problem, ignoring a more recent estimate of 2.5% from the Gambling Commission.
“The tone of this announcement suggests that the government risks losing perspective on these facts as it simply dances to the tune of anti-gambling campaigners who serve no one,” said BGC CEO Grainne Hurst, a former director of Ladbrokes. and former aide to ex-Tory MP Philip Davies.
The statutory levy replaces the current voluntary system, in which gaming companies determine themselves how much they contribute. Currently, the charity GambleAware receives the vast majority of funding from the sector; last year £49.5 million was raised.
Although most companies in the sector contribute significant amounts, some companies have been known to pay as little as £1, entitling them to a list of annual donors.
The new levy will be set at a range between 0.1% and 1.1% of sales, with online businesses expected to pay the higher rate because their costs are lower.
Half goes to the NHS, 30% to those working to prevent harm and the rest to UK Research and Innovation to fund research.
Both the levy and the slot limit are expected to come into effect next year, with online casinos given a grace period to implement the betting limit.