Government Introduces Stake Limits and Mandatory Levy to Combat Online Gambling Addiction
The UK government is implementing significant measures to address the growing problem of online gambling addiction, particularly focusing on online slot games. The Department for Culture, Media and Sport (DCMS) has proposed new regulations that include stake limits and a mandatory tax on gambling companies to fund addiction treatment.
Under the new guidelines, adults aged 25 and over will be restricted to a £5 per spin limit on online slots, while those aged 18 to 24 will face a lower limit of £2 per spin. These restrictions aim to protect vulnerable individuals from excessive gambling, especially younger adults.
The move comes in response to alarming data from GamCare, which reveals a substantial increase in gambling addiction. In the 2023-2024 period, 45% of callers to the National Gambling Helpline reported problems with online slot games, a significant jump from 34% in 2020-2021. Additionally, NHS referrals for gambling-related issues have more than doubled compared to the previous year.
Gambling minister Fiona Twycross emphasized the importance of these measures, stating that gambling harm can devastate people’s finances, relationships, and lives. The government plans to introduce the first legally mandated tax on the betting industry to support addiction treatment.
The proposed mandatory levy would raise approximately £100 million for gambling harm prevention and treatment. The funds will be allocated as follows:
– 50% for direct NHS care
– 30% for public health campaigns and prevention measures
– 20% for research
The Betting and Gaming Council, the industry’s lobby group, has previously contributed £170 million voluntarily to gambling harm services over the past four years. However, the government noted that under the current system, some operators were contributing as little as £1 annually.
While the Betting and Gaming Council’s chief executive Grainne Hurst supported the proposals, she cautioned that the government might be “dancing to the tune of anti-gambling prohibitionists.”
Mark Weiss from GamCare welcomed the proposals, particularly the youth-focused stake limits, describing them as an important step in preventing future harm.
The levy could range from 0.1% to 1.1% of a firm’s gross gambling yield, depending on the sector. These proposals stem from a consultation conducted by the previous Conservative government between October 2023 and January 2024.
The comprehensive approach aims to balance protecting individuals from gambling addiction while maintaining a regulated gambling environment. By implementing stake limits and securing consistent funding for treatment and prevention, the government hopes to mitigate the growing risks associated with online gambling.
