UK Introduces £100 Million Gambling Levy to Combat Problem Gambling

The UK government has announced the implementation of a statutory levy on casino and betting operators’ profits, aimed at raising £100 million annually to fund initiatives addressing gambling-related harm. The levy, part of a broader set of reforms, replaces the existing voluntary contribution system, ensuring all licensed gambling operators contribute regularly to a dedicated fund.

According to the Department for Culture, Media and Sport (DCMS), this levy will help combat gambling harms by financing research, prevention programs, and treatment services. Unlike the voluntary system, where contributions reportedly varied significantly—with some operators paying as little as £1 annually—the new levy will require mandatory contributions based on operators’ costs and the prevalence of harmful gambling.

Half of the funds raised will be allocated to NHS treatment and support services across England, Scotland, and Wales. The remaining funds will be divided between public health campaigns and staff training (30%) and gambling-focused research through a UK Research and Innovation program (20%).

“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,” said Baroness Twycross, Minister for Gambling. “The introduction of the first legally mandated levy will be instrumental in supporting research, raising awareness, and reducing the stigma around gambling-related harm.”

Additionally, new measures will cap stakes for online slot machines, limiting bets to £5 per spin for those aged 25 and over, and £2 per spin for 18 to 24-year-olds. The caps are part of an effort to curb gambling addiction, particularly among young adults.

“We are also helping to protect those at risk, with a particular focus on young adults, by introducing stake limits for online slots,” Twycross said. “These measures will help build an NHS fit for our future and strengthen protections whilst also allowing people to continue to gamble safely.”

The urgency of these reforms is underscored by recent statistics showing that approximately 246,000 people in the UK (0.5% of the population) were identified as problem gamblers in 2023, with 2.2 million people (3.8% of the population) classified as at-risk gamblers. A government analysis earlier this year estimated the annual societal costs of gambling-related harm at £412.9 million.

Concerns over gambling’s impact on younger demographics have also grown. A UK Gambling Commission (UKGC) report revealed that 27% of 11-17-year-olds had spent their own money on gambling activities. In response to these findings, NHS National Director for Mental Health Claire Murdoch emphasized the need for action:

“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, also praised the reforms: “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 recognize 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.”

The Betting and Gaming Council (BGC) expressed cautious support for the levy but warned against overstating the risks of gambling. CEO Grainne Hurst noted:

“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.”

Meanwhile, gambling reform campaigner Will Prochaska welcomed the levy, highlighting the importance of reducing industry influence on mental health initiatives. “We wouldn’t allow Big Tobacco to control lung cancer clinics, and we mustn’t allow Big Gambling to influence mental health services,” he stated.

With these reforms, the government aims to balance the freedoms of responsible gambling with stronger safeguards for vulnerable individuals and communities affected by gambling-related harm.

By fLEXI tEAM