Statutory Levy and Lower Stake Limits to Take Effect in UK This April

The levy is expected to generate £100 million annually, with the funds directed towards initiatives aimed at preventing gambling-related harm.

It will be collected from gambling operators based on a percentage of their gross gambling yield (GGY), with rates ranging from 0.1% to 1.1%. The exact percentage will depend on the type of gambling offered as well as things like operational costs. Gambling businesses must make their first payments by 1 October 2025.

Baroness Twycross described the levy as a major step forward for the sector, providing a stable source of funding for projects aimed at reducing gambling-related harm.

To ensure transparency and accountability, an independent board will oversee the allocation of funds and assess the effectiveness of the initiative. Twycross emphasised that the levy has been designed to be fair and proportionate and that it balances financial considerations for operators while ensuring they contribute to harm prevention efforts.

The new levy replaces a voluntary contribution system, which had raised hundreds of millions of pounds from industry stakeholders in the past but did not guarantee any income.

In addition to the levy, new stake limits for online slots will be introduced in April and May. The first phase, starting 9 April, will cap individual spins at £5. The second phase, beginning 21 May, will impose a stricter £2 limit for players aged 18 to 24.

These changes were first proposed in February 2025 and are now formally set to become law. The government has justified the limits as a way to bring online slot betting in line with land-based machines while protecting vulnerable players. Twycross also highlighted that the average stake for online slots is just £0.60, suggesting that most players will not be significantly impacted. The focus of these restrictions is on high-risk individuals, rather than casual gamblers.

The BGC has supported the statutory levy in general and acknowledges that it provides a structured and predictable funding model for harm prevention and the promotion of responsible gambling.

The introduction of stake limits on online slots may also affect player engagement and revenue streams for operators. How these changes will ultimately shape the UK gambling industry remains to be seen, but they signal a new era of UK legislation.