The UK government has announced plans to introduce a levy on casino and betting operators’ profits, expected to generate £100 million annually with funds earmarked for problem gambling initiatives.

Under the new framework, a statutory levy will replace the current voluntary system, ensuring that gambling operators contribute to a dedicated fund for combating gambling-related harm on a regular basis.

Currently, voluntary contributions from operators vary, with reports suggesting that some pay as little as £1 annually toward research, prevention, and treatment. The new levy will apply to all licensed gambling operators, with rates adjusted based on operational costs and levels of harmful gambling.

In its announcement, The Department for Culture, Media and Sport (DCMS) confirmed that half of the revenue will go directly to NHS-led treatment and support services.

Funding Allocation

• 50% will support NHS treatment systems across England, Scotland, and Wales, from initial referrals to recovery services.
• 30% will fund public health campaigns and training for frontline staff.
• 20% will be allocated to a UK Research and Innovation program focused on gambling studies.

Minister for Gambling, Baroness 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.

The introduction of the first legally mandated levy will be instrumental in supporting research, raising awareness and reducing the stigma around gambling-related harm.”

As part of the reforms, stake limits for online slots will also be introduced, with maximum stakes of £5 per spin for adults aged 25 and over and £2 per spin for those aged 18 to 24. The measures aim to strengthen protections against gambling addiction.

Baroness Twycross added:

“We are also helping to protect those at risk, with a particular focus on young adults, by introducing stake limits for online slots.

These measures will help build an NHS fit for our future and strengthen protections whilst also allowing people to continue to gamble safely.”

Concerns Over Gambling Harms

According to the latest UK gambling statistics, 2023 saw 0.5% of the population (approximately 246,000 people) listed as problem gamblers while 3.8% (2.2 million people) were ‘at-risk’ gamblers.

A 2023 economic analysis by the UK government estimated that the annual cost of harms associated with gambling is approximately £412.9 million.

Earlier this year  UKGC report revealed 27% of 11-17 year-olds spend their own money on gambling. Research for the 2024 Young People and Gambling Report was carried out via online surveys in schools with 3,869 children providing feedback.

Speaking of the need for the levy, 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.”

Professor Henrietta Bowden-Jones, National Clinical Advisor on Gambling Harms at NHS England, said:

“Gambling harms have a devastating effect on people’s lives. We know that 2.5% of the population are gambling in a severe and harmful way but many more are affected, whether family members or gamblers already experiencing negative consequences but below the clinical threshold.

We recognise the need for more action, which is why I am thrilled to support the Government’s new levy, which will help us address the negative impact of gambling harms on communities using treatment, prevention and research through an independent evidence-based strategy at last.”

BGC Response

Betting and Gaming Council has responded to the government’s plans for the mandatory levy with CEO Grainne Hurst, saying:

“The BGC supported plans outlined in the White Paper published last year to reform stake limits and introduce a mandatory levy to fund Research, Prevention and treatment.

BGC members voluntarily contributed over £170m over the last four years to tackle problem gambling and gambling related harm, including £50m this year alone, funding an independent network of charities currently caring for 85 per cent of all problem gamblers receiving treatment in Britain.

Ministers must not lose sight of the fact that the vast majority of the 22.5m people who enjoy a bet each month, on the lottery, in bookmakers, casinos, bingo halls and online, do so safely, while the most recent NHS Health Survey for England estimated that just 0.4 per cent of the adult population are problem gamblers.

The tone of this announcement suggests Government is at risk of losing perspective of these facts, while simply dancing to the tune of anti-gambling prohibitionists, which serves no one.”

However there was also praise for the levy. Will Prochaska, a gambling reform campaigner, said that the levy would remove industry influence from mental health services, drawing parallels to regulations for Big Tobacco.

“We wouldn’t allow Big Tobacco to control lung cancer clinics, and we mustn’t allow Big Gambling to influence mental health services.”

Jada Yang

iGaming writer with over a decade of experience in sports betting and online casino reporting.