New UK Gaming Tax Targets Harm Reduction

A new tax on UK betting businesses is funding efforts to tackle gambling-related harm.

The UK government has introduced a new statutory gambling levy, forcing licensed betting firms to contribute between 0.1% and 1.1% of their annual gross gambling yield.

The scale of the levy will vary depending on the type of gambling business and associated risk. Online casinos will pay the higher rate, while lower risk betting activity, such as lotteries, will pay less.

Sponsored by Gambling Minister Baroness Twycross, the levy is expected to raise more than £100 million every year. The money raised will directly fund NHS gambling treatment services, prevention programs, and research into gambling addiction.

Stake Limits on Slots

Alongside the levy, new rules to limit stakes for online slots will be introduced in April. The maximum stake, for players aged 25 and over, will be limited to £5 per spin; for players aged 18 to 24, the limit is £2.

To ensure transparency, an independent statutory board will oversee the distribution of funds, ensuring they are ring-fenced and directed exclusively towards gambling related issues.

Gambling companies in the UK already pay taxes on revenue. However, these funds go into the general government budget fund.

Where the Money Will Go

The funds raised through the levy will be used to:

• Expand NHS gambling addiction services, including treatment clinics
• Support prevention and education programs to reduce gambling harm
• Fund independent research into gambling addiction and its impact on society
• Strengthen regulatory efforts to monitor gambling practices and improve industry oversight

The Betting and Gaming Council (BGC), which represents UK gambling operators, has expressed cautious support for the levy.

CEO Grainne Hurst, said: “The BGC supports plans to reform stake limits and introduce a mandatory levy to fund research, prevention and treatment. Members voluntarily contributed more than £170m in the last four years, to tackle problem gambling and gambling related harm.

“Ministers must not lose sight of the fact that the vast majority of the 22.5 million people who enjoy a bet each month 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 the Government is at risk of losing perspective of these facts, while simply dancing to the tune of anti-gambling prohibitionists, which serves no one.”

Some operators have also raised concerns about the financial impact of the new levy, warning that the tax could push players towards unregulated black-market operators, reducing tax revenues and increasing risks for consumers.

Baroness Twycross defended the new legislation, stating: “This levy will ensure that those who profit from gambling contribute fairly to reducing the harm it causes. We are committed to protecting consumers while allowing a responsible industry to thrive.”

Breakdown of Levy Rates By Sector

Operator Type	Levy
Online Operators	1.1%
Software Licenses	1.1%
Land-Based Casinos	0.5%
Land-Based Betting	0.5%
On-Course Bookmakers	0.2%
Adult Gaming Centres	0.2%
Land-Based Bingo	0.2%
Family Entertainment Centres	0.1%
Pool Betting Licenses	0.1%
Machine Technical Licenses	0.1%

References

• https://www.gov.uk/government/consultations/consultation-on-the-statutory-levy-on-gambling-operators/outcome/government-response-to-the-consultation-on-the-structure-distribution-and-governance-of-the-statutory-levy-on-gambling-operators