DCMS settles RET Levy orders and activates stake limits
November 28, 2024

DCMS settles RET Levy orders and activates stake limits

UK Gambling will apply the regulatory measures of a statutory levy on funding of research, education, and treatment (RET Levy) of gambling harms and online stake limits as a new player protection.

Announced this morning by DCMS, the government has advanced landmark proposals from the Gambling Review’s White Paper to strengthen gambling legislation and improve funding for RET services.

DCMS also confirmed the introduction of online slot stake limits of £5 for those aged over 25 and £2 for young adults aged 18 to 24, as recommended by the White Paper.

SBC News DCMS settles RET Levy orders and activates stake limits

Baroness Twycross: DCMS

Prior to the announcement, reports indicated that DCMS Gambling Minister Baroness Twycross was expected to reveal key measures imminently.  This morning, she stated: “The introduction of the first legally mandated levy will be instrumental in supporting research, raising awareness, and reducing the stigma around gambling-related harm.

We are also helping to protect those at risk, with a particular focus on young adults, by introducing stake limits for online slots.

These measures will help build an NHS fit for our future and strengthen protections, whilst also allowing people to continue to gamble safely.”

Levy design settled 

The update confirms DCMS’s final design for the RET Levy as a statutory measure to ensure £100 million in annual funding for organisations, projects, and initiatives supporting the treatment and prevention of problem gambling.

As detailed , a “landmark levy” will be charged to all licensed operators, guaranteeing increased, ringfenced, and consistent funding to address gambling harm, with all operators required to contribute their fair share.

The RET Levy will be applied as a percentage of Gross Gambling Yield (GGY) or its equivalent, with rates varying by sector and activity.

Update: This morning DCMS filed an accompanying consultation response on the RET Levy’s structure in which it revealed the Levy rates (% charged on previous year Gross Gambling Yield):

  •  1.1% from all online operators
  •  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

 Lottery operators will pay the levy based on proceeds retained after contributing to good causes and prize payouts. – “Levy rate (% charged on proceeds retained after good causes and prizes paid out)• 0.1% from society lotteries and local authority lotteries licensed by the Gambling Commission – Levy rate (% charged on fees charged to society lotteries minus any prizes paid out)• 0.1% from External Lottery Managers”. 

Operators with gross profits under £500,000 will be exempt from the levy as the government will formally review the statutory levy system within five years “with the first formal review expected by 2030.”

Allocation of RET funds 

The statutory levy will position the NHS as the chief commissioner of RET services, operating under a new framework to distribute funds effectively. The allocation of funds is as follows:

  • 50% of the revenue will go to NHS England and equivalent bodies in Scotland and Wales to develop a comprehensive support and treatment system, covering referrals, triage, recovery programmes, and aftercare services.
  • 30% of the funds will focus on gambling harm prevention, including public health campaigns and training for frontline workers to identify and address gambling-related issues. The government plans to detail these strategies in the coming months.
  • 20% of the funds will be allocated to UK Research and Innovation (UKRI) to establish a Research Programme on Gambling, aimed at delivering evidence-based insights to shape future policies and regulations.

SBC News DCMS settles RET Levy orders and activates stake limits

Andrew Gwynne: Labour

In support of the RET Levy, Minister for Health Andrew Gwynne said: “Tackling gambling harm is a crucial part of our commitment to support people to live longer, healthier lives.

This levy will provide an important funding boost for the NHS, whilst also enabling independent research and more effective prevention initiatives. By making NHS England responsible for all treatment and support services for those experiencing gambling-related harms in England, we will ensure people are getting the most effective care possible.”

Transition period ends for Stake Limits 

The transition period for implementing £5 and £2 stake limits on online slots concludes at the end of November.

Approved in February, these limits began rolling out in September under secondary legislation. Operators were given six weeks to comply with the new rules, followed by an additional six weeks to implement technical solutions ensuring full compliance with the reduced £2 stake limit for young adults aged 18 to 24.

DCMS defends stake limits as a critical protection for customers engaging with online slots, identified as one of the highest-risk gambling products. Research from the Office for Health Improvement and Disparities and the Gambling Survey for Great Britain highlights that individuals under 25 are among the most vulnerable, with some of the highest rates of problem gambling within their age group.

The proposed online stake limits build upon previous measures introduced in 2021, which included slowing down play speed and banning autoplay features. These changes aim to reduce play intensity and give players greater awareness of their gambling behaviour.

DCMS concluded: “Technological developments in recent years have dramatically changed the way people gamble. Gambling has shifted from betting shops and casinos to online platforms, enabling play anywhere, anytime, on mobile devices, and leading to a significant rise in online gambling behaviour.

The levy and online slot stake limits announced today complement a series of major reforms introduced by the government and the Gambling Commission to make gambling safer in an age of technological advances. These include financial risk checks to detect risky behaviour and stricter marketing controls.”

Industry backs measures but no need for negative tone

While acknowledging the achievements of the pervious ‘voluntary scheme’, the Betting and Gaming Council (BGC) stated it had no objection to the RET Levy, provided financial contributions were based on a fair system that avoided job losses or disproportionate costs.

SBC News DCMS settles RET Levy orders and activates stake limits

Grainne Hurst: BGC

Grainne Hurst, BGC CEO said: “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.

 

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