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The United Kingdom Gambling Commission continues to push forward with safer gambling reforms, confirming April 6 as the launch date for the new statutory levy. This comes barely two weeks after it was passed into law. The revised stake limits for online slots are also set to take effect in April and May.
The levy was initially announced in November, with the government hoping to raise £100 million via a percentage of industry stakeholder profits. The funds were earmarked for gambling-related harm prevention.
Each business will contribute between 0.1% and 1.1% of their gross gambling yield (GGY), with the specific rate determined by the gambling type, sector, and vertical involved. The commission will take into account the operator’s risk profile and operational costs to establish the exact payment amount.
Speaking to an audience at the Betting & Gaming Council’s (BGC) AGM yesterday (Feb 27), gambling minister Baroness Twycross announced that operators will be required to make their first statutory levy payment on October 1.
“It’s a huge step forward for the sector,” she told members of the BGC. “It will see increased investment to expand projects and services to reduce harmful gambling. I know we have a shared aim in this area.”
She also announced that the levy had been affirmed by both parliamentary houses and that as of Tuesday (Feb 25), it was a law.
Baroness Twycross also acknowledged the voluntary levy that operators previously contributed to but noted that the new system would help in formalizing contributions and ensure that the government received sustained funding to tackle problem gambling in the country.
Independent Statutory Board to be Created
During the parliamentary debate in the House of Lords earlier this month, Baroness Twycross announced that the government will establish an independent statutory board aimed at overseeing the new levy system.
She emphasized the importance of setting clear objectives to maximize value for money in the allocation of funds. The board will play a crucial role in monitoring spending and assessing the overall effectiveness of the levy.
Baroness Twycross highlighted that the levy has been crafted to “strike the right balance between managing impacts on licensees and ensuring that operators are paying their fair share.”
New Stake Limits Coming in April and May
This week also saw the new stake limits passed into law, with the gambling minister underscoring the necessity of these measures during the debates. According to her, the new limits are designed to protect vulnerable individuals and align online slots with existing regulations for land-based gaming.
The £5 stake per spin limit for players over 25 will go live on April 9, followed by the £2 stake per spin limit for those aged 18 to 24 on May 21.
Baroness Twycross emphasized that extensive consultation, expert evidence, and harm data were carefully reviewed to arrive at these figures. The decision reflects a commitment to safeguarding players, particularly those at higher risk. She also acknowledged that the average stake on online slots is currently around 60p.
“In our view, a £5 stake limit will protect those most vulnerable to serious harm while balancing the impact that this measure will have on the industry,” she told the house.
Source: Next.io
