The UK government has announced the introduction of a mandatory levy of up to 1.1% on the gross gambling yield (GGY), aiming to generate £100 million annually. The funds will be used to combat gambling-related harms, including treatment programs, research, and public awareness campaigns. This measure is designed to replace the current system, where industry contributions to support initiatives are voluntary and inconsistent.
Details of the new levy and online gambling limits
The levy will vary by sector, ranging from 0.1% to 1.1%, and will apply to all licensed gambling activities. For online slots, the government has set a maximum stake limit of £5 per spin for adults and £2 for players aged 18-24, a demographic identified as more vulnerable to gambling harm.
Half of the revenue from the levy will fund public healthcare systems, such as NHS England, to establish specialized support networks. An additional 30% will go toward prevention efforts, including staff training and public education campaigns, with 20% allocated to research on gambling’s societal impact.
Industry reaction and impact
Organizations like GambleAware have supported the levy, emphasizing that it provides stable funding for education and treatment while reducing reliance on voluntary donations. However, industry representatives, such as the Betting and Gaming Council (BGC), have raised concerns about the potential negative impact on smaller operators and the profitability of major players, particularly with the implementation of online gambling stake limits.
The new levy is expected to be implemented in 2025, with reviews scheduled every five years, starting in 2030. This policy follows increasing public demand for stricter regulations to protect consumers, as outlined in the 2023 White Paper on gambling sector reform.
UK gambling market overview
The UK has one of the most sophisticated gambling markets globally, with a total GGY of £14.1 billion in 2021/22. Approximately 44% of adults reported participating in some form of gambling in the preceding four weeks, with the National Lottery and sports betting being the most popular activities. Despite this, severe gambling addiction rates remain low, affecting just 0.4% of the adult population.
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