Gambling companies hit by statutory levy and cap on online slots

Online slots stakes are to be limited and a £100 million statutory levy will be placed on the gambling industry in new Government measures to tackle to damage done by gambling.

Gambling Minister Baroness Twycross announced this week that highly-addictive online slots, which are associated with “large losses, long sessions, and binge play”, will have stake limits placed upon them.

These will be set at £2 per spin for adults under 25 and £5 per spin for those aged over 25. This reflects evidence which shows that young adults can be particularly vulnerable to gambling related harm.

£100 million levy

In a press release, the Department for Culture, Media and Sport (DCMS) also gave details of the statutory levy which will now be placed on gambling firms.

Operators have until now contributed to a voluntary levy to fund industry research, prevention and treatment for those experiencing gambling-related harm, but there are no stipulations about how much a company must give.

The new rules mean all firms who hold a Gambling Commission licence must contribute a fee ranging from 1.1 per cent to 0.1 per cent of its Gross Gambling Yield, or equivalent, depending on the sector. It is expected to generate £100 million, half of which will go directly to the NHS.

‘Research, prevention and treatment’

The DCMS explained: “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 plans were first proposed by the Conservative Government, and were set to come into force in September, but were delayed by Labour’s victory in the General Election.

Ruined lives

Lady Twycross said: “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.”

She said the stake limit would help “protect those at risk” and that the levy “will be instrumental in supporting research, raising awareness and reducing the stigma around gambling-related harm”.

Claire Murdoch, NHS national director for mental health, 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.

“I am delighted to welcome this commitment to a mandatory gambling levy which the NHS, bereaved families and the voluntary sector have been calling for so we can treat this growing problem – and we will continue to work with government to do all we can to protect problem gamblers from this billion-pound industry.”

‘Big Gambling’

Will Prochaska, Director of Coalition to End Gambling Ads, said: “Today’s announcement of a statutory levy on gambling companies is a hard won step in the right direction, but it must mark the beginning of a full government review of gambling’s place in society.”

He also said: “We wouldn’t allow Big Tobacco to control lung cancer clinics and we mustn’t allow Big Gambling to control mental health services. The purpose of the statutory levy is to remove gambling industry influence, and it can’t come soon enough.

“It’s essential the government gives power to the Department of Health to prevent gambling harm and that it doesn’t think this is ‘job done’ on gambling reform. It must mark the beginning of a full government review of gambling’s place in society.”

CI letter

In September, in response to a letter from The Christian Institute, Lady Twycross said the Government remains committed to its manifesto pledge on reforming gambling legislation.

The Institute, which has been campaigning on the issue for over two decades, had advised Culture Secretary Lisa Nandy of three areas where quick effective action could be taken: gambling advertising, child protection, and online stakes.

The Gambling Minister responded: “The Government recognises the impact harmful gambling can have on individuals and their families and, as stated in its manifesto, is committed to strengthening the protections for those at risk.

“We are in the early stages of the new Government and are still considering the full range of gambling policy. We will consider the best available evidence from a wide range of sources to inform decisions on how best to fulfil the manifesto commitment.”