The UK government has introduced a series of measures aimed at reducing gambling harm and increasing consumer protection. New regulations affect new non Gamstop casinos operators and players alike. The changes include a statutory levy on gambling profits, set stake limits for online slots, and new rules regarding deposit limits and the protection of customer funds.
These steps form part of a broader effort to support the National Health Service (NHS) and fund research, prevention, and treatment services for gambling-related harm. The measures have been designed to provide a fairer system for funding and tighter controls for those at risk of gambling addiction.
Statutory Levy on Gambling Operators
The government has confirmed a mandatory levy on all licensed gambling operators. This move replaces the previous voluntary system, under which some operators paid as little as £1 per year towards gambling harm initiatives. The new levy ensures that every operator contributes to a ringfenced pot of funding dedicated to tackling gambling-related problems.
Key Features of the Levy
- Applicability: The levy will be charged on all licensed gambling activities.
- Calculation: The levy is calculated as a percentage of Gross Gambling Yield (GGY), with rates ranging between 0.1% and 1.1%, depending on the sector.
- Funding Distribution:
- 50% of the funds will be directed to NHS England and equivalent bodies in Scotland and Wales.
- 30% is earmarked for prevention initiatives.
- 20% will support bespoke research programmes through UK Research and Innovation (UKRI) and the Gambling Commission.
| Measure | Description | Percentage / Rate | Funding Recipient |
| Statutory Levy | Mandatory levy on all licensed gambling activities | 0.1% to 1.1% of GGY | NHS England, Scottish & Welsh bodies |
| Prevention Funding | Investment in campaigns and frontline staff training | 30% of total levy funds | Prevention programmes |
| Research Funding | Support for research into gambling harms | 20% of total levy funds | UKRI and Gambling Commission |
The levy will be subject to formal review by 2030. The initial consultation, held between October 2023 and January 2024, included input from clinicians, academics, industry representatives, and members of the public. This consultation has helped shape the design of the levy and its funding distribution.
Online Slot Stake Limits
Operators will soon face new limits on the stakes that can be placed on online slot machines. This decision comes after evidence suggests that certain groups, particularly young adults, are more vulnerable to gambling-related harm.
Details of the Stake Limits
- Age Group 25 and Over: A maximum stake limit of £5 per spin.
- Age Group 18 to 24: A lower maximum stake limit of £2 per spin.
These measures target the high-risk nature of online slots, which are linked to significant financial losses and prolonged play sessions. The Office for Health Improvement and Disparities, along with the Gambling Survey for Great Britain, provided evidence supporting the need for stricter limits, especially for young adults.
- Protect vulnerable players from excessive losses.
- Reduce the intensity and duration of gambling sessions.
- Encourage safer gambling practices.
- Lower the incidence of problem gambling among young adults.
New Deposit Limit and Consumer Protection Measures
In addition to the levy and stake limits, the UK Gambling Commission has introduced new rules to improve consumer protection. The regulations focus on deposit limits and the clarity of financial protection for players.
Deposit Limit Requirements
- Initial Deposit: Operators must make it easy for players to review and alter their deposit limits after their first deposit.
- Regular Reminders: Customers will be reminded to review their accounts, transactions, and deposits every six months.
- Consultation Phase: The Gambling Commission will launch a consultation on the transparency and consistency of these measures.
Protection of Customer Funds
Operators are now required to clearly state the level of protection available for customer funds. The details must be presented before a player makes their first deposit. The levels of protection are categorised as follows:
- Not Protected – No Segregation: Funds are not separated from the operator’s own money.
- Not Protected – Segregation of Customer Funds: Customer funds are held separately but without full protection.
- Medium Protection: A moderate level of protection for player funds.
- High Protection: The highest level of protection, with stringent measures to safeguard customer money.
Operators that do not offer any protection must also state this clearly and remind customers of the situation every six months.
| Protection Level | Description |
| Not Protected – No Segregation | Funds are not separated from the operator’s finances. |
| Not Protected – Segregation | Customer funds are held separately without full protection. |
| Medium Protection | A standard level of safeguarding is in place. |
| High Protection | The highest measures are taken to protect customer funds. |
The new rules are part of the Gambling Commission’s License Conditions and Codes of Practice (LCCP). They aim to improve consumer empowerment and transparency in the gambling sector.
Support and Research Funding
The mandatory levy will significantly boost the funding available for the NHS and other bodies dedicated to tackling gambling harm. The new funding arrangement will support several key areas:
- Treatment Services: Enhanced support for those already experiencing gambling-related harm.
- Prevention Campaigns: National public health campaigns to raise awareness of gambling risks.
- Research Initiatives: Independent research to guide future policy and regulation.
- 50% to NHS and Equivalent Bodies: This funding will help build a network of treatment and support services for those affected by gambling harm.
- 30% for Prevention Initiatives: Funds will be used for public health campaigns and training programmes for frontline staff.
- 20% for Research Programmes: Investment in research through UKRI and the Gambling Commission to inform future regulation and policy decisions.
The NHS national director for mental health has welcomed the mandatory levy. The director noted that the increase in service referrals and the rising number of cases linked to gambling harm highlight the urgent need for additional funding and support.
Industry Reaction and Next Steps
Industry representatives have expressed mixed reactions to the new measures. While many acknowledge the need for stricter regulation to protect vulnerable players, concerns have been raised about the operational impact on online casino businesses.
Key Industry Concerns
- Operational Costs: The levy introduces additional costs that operators must factor into their business models.
- Competitive Balance: Operators worry about maintaining competitiveness in a market with varying rates of levy charges.
- Implementation Challenges: The introduction of new stake and deposit limits will require changes to existing systems and procedures.
- Increased operational costs due to the levy.
- Challenges in updating technology systems for new limits.
- Concerns over potential loss of competitiveness.
- The need for clear guidance from regulatory bodies.
The Gambling Commission and the government have emphasised that these changes are essential to ensure a safer gambling sector. The measures also provide an opportunity to re-establish trust between operators and consumers.
| Date | Milestone |
| October 2023 – January 2024 | Consultation on the design of the levy and measures |
| October 31, 2025 | New regulations, including deposit limit review and protection measures, take effect |
| 2030 | First formal review of the statutory levy system |
The new deposit limit rules and the consumer protection measures will be enforced from October 31, 2025. This timeline gives operators time to adjust and implement the necessary changes. The review set for 2030 will ensure that the statutory levy system remains effective and responsive to changes in the gambling market.
Wider Implications for the Gambling Sector
The new regulations mark a significant shift in the approach to online gambling in the UK. The measures seek to provide a balanced framework that protects players while allowing the gambling sector to continue operating responsibly.
| Aspect | Previous System | New Regulations |
| Levy Contribution | Voluntary contributions with wide variance | Mandatory levy based on GGY |
| Stake Limits | No fixed limits for online slots | Fixed limits: £5 per spin for 25+ and £2 for 18-24 |
| Deposit Limit Review | No regular review requirement | Mandatory review every six months |
| Consumer Protection Info | Vague and inconsistent information | Clear categorisation of fund protection levels |
The introduction of these measures is expected to lead to a more transparent and fair gambling market. Consumers will benefit from improved information on fund protection and more support if they develop gambling-related problems.
Enforcement and Compliance
The government has taken steps to ensure that operators comply with the new regulations. The Gambling Commission will play a key role in monitoring adherence to the rules. Operators who fail to meet the requirements may face penalties and increased scrutiny.
- Regular audits of operators’ systems and processes.
- Clear guidelines and deadlines for updating terms and conditions.
- Ongoing consultation with industry stakeholders to address challenges.
- Public reporting of compliance status to maintain transparency.
The approach taken by the UK government demonstrates a commitment to tackling gambling-related harm. The focus is on creating a system where all players are protected, and the costs of harmful practices are fairly shared by the gambling industry.
Frequently Asked Questions
What is the new statutory levy?
The statutory levy is a mandatory charge on all licensed gambling operators calculated as a percentage of Gross Gambling Yield to fund NHS services, prevention, and research.
What is the purpose of the online slot stake limits?
The stake limits aim to reduce high-risk gambling behaviour and protect vulnerable players, especially young adults.
How will the deposit limit regulations work?
Operators must allow players to review and change their deposit limits after the first deposit and remind them to review their limits every six months.
How are consumer funds protected under the new rules?
Operators must clearly state the level of protection available for customer funds before the first deposit, categorising it into four levels from no protection to high protection.
How is the levy funding distributed?
Half of the funds will support NHS-led treatment, 30% will go towards prevention measures, and 20% will be allocated for research programmes.
What is the timeline for implementing these changes?
The new regulations take effect on October 31, 2025, with the statutory levy system undergoing its first formal review by 2030.