DCMS today announce new Statutory Levy and Online Slots stake limits

Today the Department for Culture, Media and Sport (DCMS) have announced their plan for introducing a statutory levy and stake limits for online slot games following the White Paper last year.

Statutory Levy

Today, DCMS have confirmed that, following the consultation in October 2023, a statutory levy will be introduced to the industry. The levy will be charged to all licensed operators and will be charged based on an operators previous year Gross Gambling Yield (GGY). The sector split is as follows:

• 1.1% from all online operators (excluding remote betting intermediary trading rooms, society lotteries with remote licences and External Lottery Managers)
• 1.1% from all software licences
• 0.5% from land-based casinos
• 0.5% from land-based betting
• 0.2% from on-course bookmakers
• 0.2% from Adult Gaming Centres
• 0.2% from land-based bingo
• 0.1% from Family Entertainment Centres
• 0.1% from pool betting licences
• 0.1% from all machine technical licences

Previously, the Government proposed the lower levy rates. Significantly the rates announced today see an increase of 0.1% for online, remote software, land-based casino, and arcade and bingo licences, from the proposed rates under the previous government in October 2023. Online and remote software licences see an increase from 1, as was previously proposed, to 1.1%. Land-based casino and betting from 0.4% to 0.5%. The more significant increase is to arcades and bingo which see their rates double from 0.1% to 0.2%. Whereas some licensees have benefited from big decreases in the rates, with all machine licences rate falls from 0.4% to 0.1% and pool betting from 1% to 0.1%.

There will be no exemption for small operators with a GGY of less than £500,000 as had previously been proposed, with the government stating that if a de minimis was set at £500,000 roughly 80% of licensees would be out of scope of the statutory levy. They therefore decided to reduce the proposed de minimis threshold to £10 meaning those licensees with levy payments of £10 or less will not be subject to the levy.

Regulations will now be laid before Parliament following the affirmative procedure. If approved by Parliament, this will impose a new requirement on licensees in scope to pay the levy as directed from 6 April 2025, which the Gambling Commission will then be responsible for enforcing.

The levy distribution will be administered by the Gambling Commission across Great Britain for research, prevention and treatment of gambling-related harm, under the strategic direction of the UK government.

The government announced the distribution of the funds levied will be, 20% for research and specifically to UK Research and Innovation (UKRI) for the establishment of a bespoke Research Programme on Gambling (RPG), and to the Gambling Commission to direct further research in line with the licensing objectives and taking account of its current Evidence Gap and Priorities. 30% of funding to develop a comprehensive approach to prevention across Great Britain. Further consideration of the evidence is needed in order for the government to appoint a lead commissioning body in this area. Finally, 50% on treatment and the funding to NHS England, and appropriate bodies in Scotland and Wales to commission treatment and support services, including in the third sector.

Full details can be found here.

Slot Limits

In addition to the levy, DCMS have also today announced that they will be placing a limit on all online slot machine stakes. The limit will be split dependent on the players age, with a limit of £5 for over 25s and £2 for young adults aged 18 to 24.

DCMS initially consulted on this proposal in early 2023 and have today announced that they will be proceeding forward with the plans.  These stake limits will be subject to an implementation period. This means that, following debates in Parliament, operators will have 6 weeks from the day the statutory instrument is made by the Minister to implement the £5 limit and a further 6 weeks to implement the £2 limit.