BBC News reports that the United Kingdom government is taking steps to fight the gambling problem. As part of these efforts, it will prohibit betting on online slot games to a maximum of £5 per spin. The limit will apply to all adults aged 25 and over. Meanwhile, 18 to 24 year olds will face a tighter limit of £2 per spin.
At the same time, the DCMS (Department for Culture, Media and Sport) is raising taxes on gambling companies. The goal is to generate more funds for the NHS (National Health Service) to treat gambling addiction. The new mandatory levy will require gambling firms to contribute between 0.1% and 1.1% of their gross gambling yields. Experts expect this contribution to generate £100 million. The government will allocate the funds to NHS care (50%), prevention measures like public health campaigns (30%), and research (20%).
Gambling Minister Fiona Twycross commented that 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 gambling harm can ruin people’s finances, relationships and ultimately, lives. They are fully committed to implementing stronger measures for those at risk and providing effective support for those affected.
The new levy replaces the current voluntary system in which gambling firms decide how much they contribute. The BGC or Betting and Gaming Council is an industry lobby group. Back in 2022, it said a compulsory levy would be a big step backward in tackling gambling problem.
At the time, former BGC chairman Brigid Simmonds stated that they believed the current system was making good progress. She also argued that a blanket levy would not raise significantly more money for RET. However, it would disproportionately impact casinos and bingo halls, where a 1% hit on turnover would result in a 10% hit on profits.
