UK imposes levy on online slot machines, to raise £100 mn to combat gambling addiction, harm

The UK government announced sweeping new measures on Wednesday (November 27) to combat gambling harm, including a mandatory levy on operators and strict limits on online slot machine stakes.

The new system will replace the current voluntary model, where some operators contribute as little as £1 a year towards research, prevention, and treatment.

The levy will provide consistent funding to address gambling harm, with operators set to generate £100 million for the research, prevention and treatment of gambling harms.

Gambling Minister Baroness Twycross said that the government plans to introduce stake limits for online slots, a high-risk gambling product associated with significant losses.

What kind of charges will UK levy?

The limits will cap stakes at £5 per spin for adults aged 25 and over and £2 per spin for those aged 18-24. Evidence has shown that young adults are particularly vulnerable to gambling-related harm.

“These measures will help build an NHS fit for our future and strengthen protections while also allowing people to continue to gamble safely,” said Twycross.

The government has also pledged to allocate 50 per cent of the levy’s funds to NHS England, as well as equivalent bodies in Scotland and Wales, to create a comprehensive support and treatment system for those affected by gambling harm.

Additionally, 30 per cent will be directed towards prevention initiatives, including public health campaigns and training for frontline staff. The remaining 20 per cent will be used for research, with funds channelled to UK Research and Innovation (UKRI) and the Gambling Commission.

What health officials say

NHS officials have welcomed the government’s commitment to the mandatory levy. Claire Murdoch, NHS national director for mental health, pointed to the significant increase in service referrals, which have risen by 129 per cent compared to the same period last year.

“Problem gambling can completely ruin lives,” she said.

Professor Henrietta Bowden-Jones, National Clinical Advisor on Gambling Harms at NHS England, praised the new levy, saying that 2.5 per cent of the population suffer from severe gambling harm, with many more affected indirectly.

The funds will be distributed under the strategic direction of the government, with no involvement from the gambling industry in deciding how the money is spent. Rates of the levy will vary depending on the gambling activity, ensuring that it is proportional to the sector’s operating costs and associated harm.

The new measures are part of a wider government effort to modernise gambling regulations in response to technological advancements.