Government to bring forward statutory levy on gambling operators to generate £100 million for the research, prevention and treatment of gambling harms
The government has taken its first steps towards strengthening gambling harm legislation today, confirming plans to implement a statutory levy on gambling profits and online slot stake limits to help tackle the issue of gambling addiction.
Gambling Minister Baroness Twycross has outlined how a levy on gambling operators will be designed and implemented as the government moves forward on its manifesto commitment to reduce gambling harm.
The landmark levy will be charged to all licensed operators and will guarantee increased, ringfenced and consistent funding to prevent and tackle gambling harm.
Under the current voluntary system not all gambling companies contribute equally, with some operators paying as little as £1 a year towards research, prevention and treatment. The new mandatory levy will ensure all operators contribute a fair share.
The Gambling Minister has also confirmed that the government will introduce stake limits for online slots, a higher-risk gambling product associated with large losses, long sessions, and binge play.
Stake limits will be set at £5 per spin for adults aged 25 and over and £2 per spin for 18-24 year olds. Evidence from the Office for Health Improvement and Disparities and the Gambling Survey for Great Britain shows young adults can be particularly vulnerable to gambling related harm with under 25s having one of the highest proportion of respondents scoring 8 or more on the Problem Gambling Severity Index (PGSI) of any age group.
Minister for Gambling, Baroness Twycross said:
From October 2023 to January 2024, the government sought views from clinicians, academics, the industry and the wider public on how the levy should be designed and implemented.
In its response to this consultation, the government has confirmed 50% of all funding generated will be directed to NHS England and appropriate bodies in Scotland and Wales to develop a comprehensive support and treatment system. This will include referrals and triage, through to recovery and aftercare.
Prevention is a crucial part of the government’s efforts to tackle gambling harm. 30% of levy funding will go towards investment in this area, which could include measures such as national public health campaigns and training for frontline staff. The government is taking the time to get the important decision on the future of prevention right and will publish next steps in the coming months.
The remaining 20% of funding will be directed to UK Research and Innovation (UKRI) and the Gambling Commission to develop bespoke Research Programmes on Gambling, undertaking vital research to inform future policy and regulation.
Claire Murdoch, NHS national director for mental health, said:
Professor Henrietta Bowden-Jones, National Clinical Advisor on Gambling Harms at NHS England, said:
Funding from the levy will be distributed to the NHS and UKRI, the umbrella body for research councils, by the Gambling Commission under the strategic direction of the government. The gambling industry will have no say over how money for research, prevention and treatment is spent.
The levy will be charged to all licensed gambling activity at varying levels depending on the sector and nature of the gambling activity to ensure impacts are proportionate. Rates take into account the difference in operating costs and the levels of harmful gambling associated with different gambling activities.
Minister for Health Andrew Gwynne said:
Technological developments in recent years have paved the way for a dramatic shift in the ways people gamble. Gambling has moved away from betting shops and casinos to people being able to play anywhere, anytime, on their phones, leading to a significant increase in online gambling behaviour.
The levy and online slot stake limits announced today complements a raft of major changes the government and the Gambling Commission is delivering to make gambling safer in an age of technological advances. This includes including financial risk checks to better alert operators to risky behaviours and tighter controls on marketing.
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Notes to Editors