London (Parliament Politics Magazine) – The British government is imposing a £5 cap on online slot bets for individuals over 25 and £2 for younger adults, also proposing to increase tax on gambling companies to fund addiction treatment programs.
Under new plans, endorsed by Labour, bookmakers and casinos will contribute to National Health Services (NHS) for problem gambling, including a £2 limit on online slot machine bets.
The government will limit the amount individuals can bet on online slot games to tackle gambling addiction.
On Wednesday, the Department for Culture, Media and Sport (DCMS) confirmed the plans, which also include a limit on how much online casino customers can stake on slot machines.
The DCMS also argued the measures would enable people to “gamble safely” but the betting industry’s top lobby group raised concerns that the government was “at risk of losing perspective.”
Currently, unlimited stakes will be capped at £5 per spin for individuals over 25 and £2 for 18 to 24 years old.
According to the data from GamCare, addiction to online gambling slots has risen since the COVID-19 pandemic.
The National Gambling Helpline reveals that during the years 2023-2024, 45% of 6,697 callers reported issues with online slot games, a major increase from 34% in 2020-2021.
Minister: New tax will help tackle gambling harm
Baroness Twycross, the gambling minister stated, “Gambling harm can ruin people’s finances, relationships and ultimately, lives. We are absolutely committed to implementing strengthened measures for those at risk, as well as providing effective support for those affected.”
Ms Baroness also announced that the government would introduce “the first legally mandated” tax on the betting industry to support gambling addiction treatment.
BGC shifts stance on gambling levy
The Betting & Gaming Council (BGC), a top lobby group of the gambling industry, initially opposed a mandatory levy in 2022, stating on Wednesday that its members contributed £50m to address gambling-related harm last year.
The lobby group seems to have reversed its position as political backing for the measure grew. Former BGC chair Brigid Simmonds had said in 2022 that imposing a levy on the industry would be a “backward step” with no effect on gambling harm.
The group highlighted that the “vast majority” of people gamble safely, including those using the National Lottery, and mentioned a 2021 NHS survey that found 0.4% of the population has a gambling issue, despite a more recent Gambling Commission estimate of 2.5%.
Grainne Hurst, the BGC’s chief executive stated, “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”.
The statutory levy will replace the current voluntary system, and the charity GambleAware will continue to receive the majority of funding, collecting £49.5m funds last year.
Government’s new gambling levy
The new levy will range from 0.1% to 1.1% of revenue, with online businesses expected to pay the higher rate due to their reduced costs.
NHS will receive half, 30% of the fund will go towards harm prevention efforts, and the remaining funds will be allocated to UK Research and Innovation for research purposes.
The levy and stake limit for slots are expected to be implemented next year, allowing online casinos a grace period to enforce the stake cap.
NHS mental health director welcomes government initiative
NHS director, Claire Murdoch welcomes the gambling levy, vows to support problem gamblers and collaborates with the government to tackle the issue.
She said, “Problem gambling can completely ruin lives and the issue has skyrocketed, with NHS services treating record numbers and our latest data showing a staggering 129% increase in service referrals compared with the same period last year.”
NHS advisor on gambling harms response
Professor Henrietta Bowden-Jones, National Clinical Advisor on Gambling Harms at NHS England, said the proposed initiative is crucial, as the government’s new levy aims to address the growing impact of gambling harms on communities, supporting treatment, prevention, and research through an independent, evidence-based strategy.
She added, “Gambling harms have a devastating effect on people’s lives. We know that 2.5% of the population are gambling in a severe and harmful way but many more are affected, whether family members or gamblers already experiencing negative consequences but below the clinical threshold.”
The NHS and UKRI will receive funding from the levy, managed by the Gambling Commission under the government’s strategic guidance.