First announced in 2023, the Gambling Act Review, also referred to as the white paper, has been through several iterations and passed through numerous different stages. Now, the UK government has moved to roll out some of the actions outlined in the legislation, namely the introduction of a new statutory levy on gambling profits and online slot stake limits.
Any regulatory changes are big news in the iGaming world, so it’s no surprise to learn that this recent move by the UK government has been causing quite a stir. Let’s take a look at the new rules in more detail.
Why Have These Changes Been Made?
The gambling industry has come under mounting pressure in recent years, with opposition groups maintaining that operators aren’t doing enough to minimise the impact of gambling-related harm and to protect potentially vulnerable players.
The Gambling Act Review was designed to reduce rates of gambling-related harm and has proposed a variety of ways to do so. One of the review’s key targets is to raise £100 million which will be directed to gambling harm services. In addition, tighter rules on things like slot stake limits are designed to improve protections for vulnerable players.
The New Statutory Levy
To raise the £100 million set out in the white paper, the UK government has updated the statutory levy paid out by gambling companies. According to the government, the new rate will be fairer and will ensure all pay their share towards gambling harm prevention and treatment services.
Rather than a flat rate, businesses will be assessed on a range of criteria, including vertical and the particular sector they operate, before being required to pay a rate of between 0.1 – 1.1% of gross gambling yield. Approximately 50% of the funds raised through the levy will go directly to NHS gambling treatment services, while 30% will be used to invest in prevention initiatives.
The new levy is set to come into effect in 2025. The impact and success of the new rate will be reviewed within five years.
Slot Stake Limits
As well as the levy, the government is set to roll out new online slot stake limits. The white paper has identified slots as ‘high-risk’ products that pose more of a risk to vulnerable players.
Slot stake limits have long been a subject of debate, and this increase was announced back in February of this year. Under the new rules, slot stake limits will be capped at £2 per spin for players under the age of 25. For players over the age of 25, slot stake limits will be capped at £5 per spin.
Research has revealed that young players are more at risk of gambling-related harm, which is why the plans have made the distinction between players under and over the age of 25.
Conclusion
The Gambling Act Review has been in the works for a considerable amount of time. Given the tumultuous government situation in the UK over the past few years, it has struggled to gain any real momentum. However, it would appear that the wheels are finally in motion, and the new levy and online slot stake limits are likely just the first of many new rules and regulations to be introduced.
