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Harris Hagan

UK Gambling Law

Home / UK Gambling Law
20Nov

The Legal 500 Country Comparative Guide – Gambling Law

20th November 2025 Ruby Duncalf Harris Hagan, Uncategorised 32

In its fourth year of publication, Partners Bahar Alaeddini and David Whyte have jointly contributed to the UK chapter of The Legal 500: Gambling Law Comparative Guides 2025 4th Edition (the “Guide”), with Bahar once again acting as contributing editor.

Legal 500 – Country Comparative Guides 2025Download

The publication – which this year spans 22 jurisdictions – gives the readers an overview of gambling law, regulatory and licensing requirements in various jurisdictions and the UK, on matters including:

  • key gambling legislation and the legal definition of gambling;
  • types of gambling licences available, with a headline of the application procedures;
  • prohibited gambling products;
  • information on gambling advertising and marketing affiliates;
  • penalties for unlawful gambling;
  • anti-money laundering and safer gambling requirements;
  • shareholder reporting and approval thresholds;
  • the regulator’s enforcement and sanction powers; and
  • horizon scanning across the next 12-24 months and risks to the sector.

Of particular interest, in this year’s edition of the Guide are the key proposals for regulatory development expected over the next 12-24 months, including outstanding White Paper reforms, which we outline in the UK chapter.

This year’s edition of the Guide is accompanied by The Legal 500: Hot Topics with Bahar Alaeddini, David Whyte and Associate Ruby Duncalf jointly contributing to the UK chapter, providing a history of and status update on the 2023 White Paper proposals.

You can read the Guide and compare jurisdictions here.

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10Nov

Gambling Commission concludes its series on illegal online gambling

10th November 2025 Ting Fung Harris Hagan, Responsible Gambling, Uncategorised 32

On 6 November 2025, the Gambling Commission published the final report in its four-part series on illegal gambling. The series, which launched in September 2025, aims to understand consumer engagement with illegal online gambling, the associated risks posed and the actions being taken to disrupt it, and has thus far addressed:  

  • Part 1: Consumer awareness, drivers and motivations
  • Part 2: Consumer engagement and trends
  • Part 3: Disruption of illegal online gambling

The final report, titled ‘Challenges of estimating the size of the illegal online gambling market’,  explores the challenges of quantifying an activity that is, by its nature, hidden. Chief Executive, Andrew Rhodes states that:

“Illegal online gambling remains a serious threat to consumers and to the integrity of the regulated market. While measuring the full scale of the problem is complex, our understanding is growing — and so too is our ability to disrupt illegal operators.”

Challenges to understanding, progress building and shared responsibility

The final report notes the continuing significant methodological challenges of measuring the scale of the illegal online gambling market but also, that although no single estimate of market size has been published, the Gambling Commission has nevertheless, developed a stronger evidence base and clearer understanding of both consumer behaviour and illegal operator tactics. The Gambling Commission emphasises that tackling illegal gambling requires a coordinated response and continued collaboration across government, industry and digital platforms.

Next steps

The Gambling Commission will continue its programme of research, data collection and enforcement activity on illegal gambling, which it identifies as a ‘key strategic priority’ and will provide updates accordingly as it progresses. Annex A of the final report outlines a summary of next steps to improve the reliability of estimates, including options for new sources of data and evidence, alongside an assessment of whether these options will satisfactorily fill key information gaps.

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28Oct

DCMS Consultation on Category D gaming machines and licensing for bingo premises

28th October 2025 Ting Fung Harris Hagan, Responsible Gambling, Uncategorised 41

The Department for Culture, Media and Sport opened its consultation on Category D gaming machines and licensing for bingo premises on 15 October 2025.

Consultation proposals

The aim of the consultation is to ensure that the regulatory framework is fit for purpose, with the proposals addressing:

  • Stakes and prizes for Category D machines

For non-money prize machines, Government is proposing to split the “non-money prize machine” category into two; one for “non-money prize, slot style” machines, which maintain the current 30p stake limit and a £8 non-money prize limit, and one for “non-money prize, non-slot style” machines with a stake limit of up to 50p and non-money prize limits of up to £20. Other proposed changes include creation of a new pusher subcategory of machines, an increased non-money prize limit from £50 to £75 for crane-grabs and an increased stake limit from 20p to 30p for coin pushers.

  • Age limit for ‘cash out’ slot style machines

The consultation includes the proposal to make it an offence to invite, cause or permit anyone under 18 to use ‘cash out’ slot-style Category D machines, as set out in the previous government’s response to its consultation on measures relating to the land-based sector.

In respect of the voluntary agreement implemented by Bacta members in 2021 to ban under 18s using adult-only gaming machines, Government proposes to move this agreement into legislation to cover the minority of family entertainment centres not already complying with Bacta’s age restriction agreement.

  • Bingo licensing

The key proposal relates to the establishment of a ‘bingo area’ in all licensed bingo premises to help create a clearer distinction between adult gaming centres and bingo premises, and to ensure that land-based gambling premises are appropriately licensed. The consultation proposes three options for the amount of floor space in licensed bingo premises that should be designated as a continuous bingo area – either a 30, 40 or 50 percent minimum (it is Government’s view that requiring a proportion of floor space greater than 50 percent of the venue could be disproportionately burdensome for some small bingo venues.).

Government is also seeking views on rules that could apply to a ‘bingo area’, including prohibiting cabinet and in-fill style gaming machines in a ‘bingo area’, the type of content that can be included on electronic bino terminals in the ‘bingo area’, and requiring a minimum number of positions for bingo in the ‘bingo area’.

Participants may respond online or email their responses to the consultation questions to [email protected]. The consultation closes at 11:59pm on 9 January 2026.

If you have any questions, please do not hesitate to contact us.

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28Apr

White Paper Series: The White Paper, 2 years on

28th April 2025 Jessica Wilson White Paper 147

The 27 April 2025 marks two years since the Government published its White Paper. As we reach the two-year anniversary, we take the opportunity to reflect on the last 12 months and consider what is in store for the upcoming year.

Where did we get to?

At the one-year anniversary of the White Paper, we noted in our blog that a lot of work had been done by all parties to advance the implementation of the proposals in the White Paper, particularly through the publication of numerous consultations from the Gambling Commission and Government. Whilst progress had been made, at that stage there was no clear direction of travel (until the Gambling Commission’s response to the Summer Consultation was published, just days after the one-year anniversary). Whilst the Government’s goal of implementing the main White Paper measures by summer 2024 seemed like a tight deadline – particularly for the requirements that required secondary legislation – at that time we understood that the Department for Culture, Media and Sport (“DCMS”) would be publishing responses to the consultations on the statutory levy and land-based measures “in the coming weeks”. The industry was also aware that there would be a General Election in 2024, and whilst delays were anticipated, it was thought that this was unlikely to affect the final outcome of the White Paper proposals.

What happened over the last 12 months?

Momentum continued as we entered the second year since the White Paper was published, and the Gambling Commission published its response to its Summer Consultation on the 1 May 2024. Setting out the planned approach for financial vulnerability checks, remote game design, direct marketing and some land-based changes, the consultation response provided the industry with some certainty and confirmation that tangible progress was being made.

However, all activity was brought to a halt when the General Election was announced on 22 May 2024. Originally anticipated for autumn 2024, the General Election took place on 4 July 2024, resulting in a new Labour government. As the new Government was finding its feet (and was on summer recess), momentum in progressing implementation of the White Paper proposals fizzled, and the proposals that required secondary legislation and parliamentary time were put on hold. The second half of 2024 was quieter while we waited patiently for the Government to make its next move.

The Government’s original target of summer 2024 came and went, and it was not until 27 November 2024 when DCMS published its initial response to its consultation on the statutory levy, and confirmed its approach regarding stake limits for online slots (which were originally anticipated to come into effect in September 2024).

As we entered 2025, activity started to increase. The Gambling Commission launched its January 2025 consultation regarding Gaming Machine Technical Standards and Testing Strategy on 29 January 2025, published responses to the Autumn 2023 consultation on 4 February 2025 and 26 March 2025, and launched a supplementary consultation regarding the Remote Technical Standards on 6 March 2025. Additionally, on 25 February 2025, statutory instruments for online slots stake limits and the statutory levy were signed into law.

One constant over the past year is the notable lack of progress in respect of the voluntary creation of a non-statutory Gambling Ombudsman, one of the cornerstone proposals of the White Paper. The Gambling Ombudsman is intended to be an independent, free to use, non-statutory body that will handle social responsibility complaints from consumers and was due to start taking claims from summer 2024.

Key 2024 – 2025 highlights for White Paper proposals at the time of writing are:

  • The Gambling Commission’s response to its Summer Consultation on 1 May 2024, which set out requirements for many White Paper proposals relating to financial vulnerability checks, remote game design, direct marketing requirements, land-based age verification, and changes to requirements to hold a personal management licence.
  • The introduction of financial vulnerability checks on 30 August 2024. As the most controversial White Paper proposal, the introduction of such checks is a milestone for the industry. The light-touch financial vulnerability checks involving the assessment of publicly available data came into force at £500 a month to ease introduction. The trigger was reduced to £150 a month from 28 February 2025.
  • The passing of a Statutory Instrument on 25 February 2025, introducing the statutory levy under The Gambling Levy Regulations 2025 (“The Levy Regulations”), which came into effect on 6 April 2025. The regulations require licensees to pay a mandated levy to the Gambling Commission, unless the amount of that levy is £10 or less. The Gambling Commission published supplementary guidance on 7 April 2025.
  • The passing of a Statutory Instrument on 25 February 2025, under The Gambling Act (Operating Licence Conditions) (Amendments) Regulations 2025. This introduced online slots stake limits at £5 for those aged 25 and over (applicable from 9 April 2025), and £2 for those aged 18-24 years old (applicable from 21 May 2025). The Gambling Commission published supplementary guidance on 30 January 2025.

April 2024 – April 2025 timeline for the White Paper proposals

  • 1 May 2024 – The Gambling Commission published its response to its Summer 2023 Consultation. Its response confirmed (a) the introduction of light-touch financial vulnerability checks for gambling customers with a net deposit of more than £150 a month, (b) the launch of a pilot scheme to test how enhanced financial risk assessments will work in practice, (c) new remote game design requirements to extend the requirements that already apply to slots to other online products, resulting in publication of new remote technical standards, (d) changes to direct marketing requirements obliging online gambling businesses to provide options to opt-in to product types and channels, (e) requirements for all land-based licensees to carry out age verification test-purchasing, (f) changes to the LCCP to confirm that best practice for land-based operators is “Think 25”, and (g) extension of the management roles expected to hold a personal management licence.
  • 1 May 2024 – The Betting and Gaming Council published the Industry Voluntary Code on Customer Checks and Documentation Requests Based on Spend (the “Code”). The Code was developed jointly between members of the Betting and Gaming Council and the Gambling Commission, and is a voluntary interim scheme intended to bring “consistency across the regulated sector for operators who adopt it – until the frictionless financial risk assessments set out in the Government’s White Paper can be developed, tested and implemented”.
  • 15 May 2024 – Progression of the Criminal Justice Bill, setting out new powers for the Gambling Commission to more effectively take action against illegal online gambling, to the report stage.
  • 16 May 2024 – DCMS published its response to its consultation on Measures relating to the land-based gambling sector. The response outlined the proposed implementation of measures to: relax casino rules for 1968 Act casinos, increase gaming machine entitlement ratios in arcades and bingo halls, accept cashless payments on gaming machines, introduce a legal age limit of 18 for Category D slot style machines, and increase local authority fees. The majority of land-based reforms require legislation to be implemented.
  • 1 July 2024 – Quarterly regulatory returns reporting introduced. This change was originally proposed in the Gambling Commission’s Autumn 2023 Consultation, and was confirmed in its consultation response published on 27 March 2024.
  • 4 July 2024 – UK General Election.
  • 25 July 2024 – The Gambling Commission published the new Gambling Survey of Great Britain (the “GSGB”), collecting data from 20,000 respondents each year and set to establish a new baseline for understanding gambling behaviour in Great Britain. The GSGB publication caused widespread concern in the industry about the accuracy and reliability of the data, that it will be misused and that it will give the new Labour government a reason to depart from what was already proposed in the White Paper, and have a longer term adverse impact on gambling policy.
  • 30 August 2024 – Introduction of new social responsibility code provision (“SRCP”) 3.4.4, which sets out requirements for light-touch financial vulnerability checks at an initial threshold of £500 a month. The pilot for financial risk assessments was also launched and is expected to run until April 2025.
  • 30 August 2024 – Introduction of new age-verification requirements, under SRCP 3.2.1, 3.2.3(8), 3.2.5(7) and 3.2.7(9) of the LCCP. The requirements oblige all land-based gambling licensees to conduct test purchasing and change from “Think 21” to “Think 25”.
  • 27 November 2024 – DCMS published its initial response to the Consultation on the structure, distribution and governance of the statutory levy on gambling operators. The initial response committed to having the levy in place by summer 2025, with 50% going to the NHS, 30% to gambling harm prevention, and 20% to develop bespoke research programmes on gambling.
  • 29 November 2024 – New requirements under licence condition 1.2.1(2) of the LCCP introduced. The requirements extend the ‘specified management offices’ to include the Chair of the Board, money laundering compliance officer and money laundering reporting officer, and confirm that the individual responsible for the overall management and direction of the licensee’s business or affairs is likely to be the CEO, Managing Director or equivalent. Holders of specified management offices are required to hold a personal management licence (“PML”).
  • 5 December 2024 – DCMS announced its Gambling Act Review evaluation plan.  DCMS expect the evaluation to be reported in 2026.
  • 17 January 2025 – The revised Remote gambling and software technical standards (RTS)  came into force extending the requirements that apply to slots to other online products.
  • 29 January 2025 – The Gambling Commission launched its January 2025 consultation which sets out proposed changes to the Gaming Machine Technical Standards, the Gaming Machine Testing Strategy, and the LCCP. The proposals relate to consolidating and updating the existing 12 gaming machine technical standards into a single standard, and introducing five new standards, a licence condition and social responsibility code provision in respect of safe use of gaming machines. The consultation closes on 20 May 2025 and is a serious cause for concern for the land-based industry. We would encourage clients to respond and provide evidence as to: the disproportionate cost of the proposals and the adverse impact upon business relative to any reduction of gambling harm, whether the proposals are even necessary given existing safer gambling measures in their venues, and the huge impact on the enjoyment of gaming machines by the overwhelming majority of consumers.
  • 30 January 2025 – The Gambling Commission published its online slots stake limit guidance on the Statutory Instrument, which clarifies the stake limits and implementation dates, and provides example scenarios.
  • 4 February 2025 – The Gambling Commission published its response to its Autumn 2023 consultation. Its response confirmed (a) new requirements for customer led tools to give consumers more effective ways to manage their gambling by making it easier to set and maintain deposit limits on their online accounts, (b) the requirement that operators whose customer funds are ‘not protected’ in the event of insolvency must actively remind customers once every six months that their funds are not protected, and (c) the removal of the requirement to make annual financial contributions to a list of research, prevention and treatment organisations to pave the way for the new statutory levy by 31 March 2025.
  • 10 February 2025 – The Gambling Commission published an update on the financial risk assessment pilot, which outlined the findings from Stage 1 of the three-stage pilot, identified the issues relating to data quality and implementation, and explained what can be expected with Stages 2 and 3.
  • 25 February 2025 –Statutory Instrument, The Gambling Act 2005 (Operating Licence Conditions) (Amendment) Regulations 2025, signed into law, adding a new licence condition to all remote casino operating licences which introduces a maximum stake limit for online slots games in Great Britain. The total amount which an individual may stake in relation to any game cycle may not exceed (a) £2, where the individual is less than 25 years old, and (b) £5, where the individual is 25 years old or over.
  • 25 February 2025 –Statutory Instrument, The Levy Regulations, signed into law, requiring all operating licence holders in Great Britain to pay a mandated levy to the Gambling Commission. The Levy Regulations came into force on 6 April 2025. 
  • 28 February 2025 – The requirement set out in SRCP 3.4.4(7) of the LCCP for financial vulnerability checks at £500 a month reduced to £150 a month, as set out in SRCP 3.4.4(6).
  • 6 March 2025 – The Gambling Commission launched a supplementary consultation setting out its proposals for clarifying the definition of financial limits in the Remote Gambling and Software Technical Standards, to ensure there is a differentiation between “deposit limits and “loss limits”.  The consultation closed on 30 April 2025.
  • 26 March 2025 – The Gambling Commission published a response to its Autumn 2023 consultation. Its response confirmed (a) a ban on operators offering mixed product promotional offers which provide bonuses on the condition the consumer plays different gambling products, such as betting and playing slots, (b) a requirement to cap the wagering requirement of promotional offers to 10, and (c) rewording SRCP 5.1.1 (Rewards and Bonuses) of the LCCP to ensure clarity of the Gambling Commission’s expectations of operators around socially responsible incentives. Requirements to come into force on 19 December 2025.
  • 31 March 2025 – The removal of SRCP 3.1.1(2) of the LCCP requiring licensees to make annual financial contributions to a list of research, prevention and treatment organisations.
  • 6 April 2025 – The Levy Regulations came into force. The first invoices will be issued on 1 September 2025, with payment required on or before 1 October 2025.
  • 7 April 2025 –The Gambling Commission published its statutory levy guidance to accompany the Levy Regulations, including details of who will collect the levy, who must pay the levy, how the levy is calculated, when licensees need to pay, how to pay the levy, and the consequences of not paying the levy.
  • 9 April 2025 – The Statutory Instrument adding a new licence condition to all remote casino operating licences which introduces a maximum stake limit for online slots games in Great Britain came into force.

What can we expect next?

Changes which will be implemented in 2025:

  • 1 May 2025 – New direct marketing requirements come into force.
  • 21 May 2025 – £2 stake limit for online slots for those aged 18-24 years old to come into force.
  • 31 October 2025 – New customer led tools and requirements regarding the protection of customer funds in the event of insolvency, and further updates to RTS in relation to financial limits come into force.
  • 19 December 2025 – New requirements for socially responsible incentives come into force.

Other areas which will likely progress in the next year at varying speeds:

  • Establishment of the Gambling Ombudsman.
  • The publication of the Gambling Commission’s response to its December 2023 Consultation, which closed on 15 March 2024, relating to the criteria for imposing a financial penalty and penalty calculation methodology, and changes to financial key event reporting.
  • Implementation of the new land-based measures as set out in DCMS’s consultation response of 16 May 2024.
  • Progress with the Criminal Justice Bill in Parliament and extension of the Gambling Commission’s powers to tackle illegal gambling.
  • DCMS’s consultation on Gambling Commission fees.

The second year of the White Paper saw a number of the proposals “ticked off” with their implementation having now taken place, or lined up to take place soon. The overwhelming list of proposals has shortened, and the gambling industry is now gradually transitioning to the post-White Paper era. We look forward to seeing where things stand by the time of the three-year anniversary.

Please sign up to our blog to receive insight and commentary on the continued journey of the White Paper.

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10Mar

White Paper Series: Supplementary consultation published calling for views on deposit limits

10th March 2025 Harris Hagan Harris Hagan, Responsible Gambling, Uncategorised, White Paper 192

The Gambling Commission is calling for views on how to achieve consistency and clarity for consumers that choose to set deposit limits.

The supplementary consultation, published on 6 March 2025, calls for views from interested parties on new rules aimed at increasing consumer control over deposit limits, which will come into force on 31 October 2025 and which we discussed in our blog: White Paper Series: New rules on customer led tools, customer funds and statutory levy. In this new supplementary consultation, the Gambling Commission is seeking opinions on how deposit limits should be defined and communicated to customers, with the aim of achieving consistency and clarity across the industry.

This is the fourth Gambling Commission consultation linked to the White Paper.

Why is a supplementary consultation needed?

The Gambling Commission acknowledges that typically, ‘deposit limits’ have worked as a simple limit on the amount a customer can deposit over a specific time period (for example, if a customer chooses to set a £20 weekly deposit limit, they can deposit a maximum of £20 into their account in that week). However, they have recently observed some operators offering ‘net deposit limits’, whereby withdrawals are also taken into account.

“For example, if a customer chooses to set a £20 weekly deposit limit but then withdraws £10 then the total amount they can deposit that week goes up to £30. This can be confusing for customers, especially if the descriptions for the different types of limit are similar.”

The Gambling Commission considers that financial limits termed ‘net’ deposit limits would not meet the definition of ‘deposit limits’ proposed in its initial consultation. It is concerned that the introduction of ‘net’ deposit limits has created inconsistency in how deposit limits work, which prevents the customer being able to make a proactive and informed choice as to what financial limits are right for them – limiting consumer empowerment and choice.

To ensure clarity, rather than implement the initial consultation and ‘pursue this as a compliance matter’, the Gambling Commission has chosen to consult further on this issue. The supplementary consultation therefore sets out proposals to:

  • revise the remote gambling and software technical standards (”RTS”) relating to financial limits to make clear that, as a minimum and default, ‘gross’ deposit limits must be offered to customers;
  • ensure that the term ‘deposit limit’ is used consistently by operators, i.e. only to describe ‘gross’ and not ‘net’ limits;
  • provide increased consumer choice by amending the implementation guidance for the RTS to allow for ‘net’ limits to be set in addition to other types of limits, should the customer choose. 

The Gambling Commission’s view is that offering a default type of deposit limit across all operators will be beneficial for consumers in terms of improving understanding of how limits work and would enable consumers to use the same type of limit across more than one account. 

Next steps

The supplementary consultation is open until 30 April 2025.

The changes on customer led tools and the protection of customer funds will come into force on 31 October 2025.

Please get in touch with us if you would like our assistance preparing a response to the supplementary consultation or if you have any questions about these upcoming changes.

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28Feb

White Paper Series: Statutory Instrument published for statutory levy

28th February 2025 Harris Hagan White Paper 168

Following the final Parliamentary procedures, The Gambling Levy Regulations 2025 (the “Levy Regulations”) were signed into law on 25 February 2025 as a statutory instrument.

As a reminder, the Levy Regulations will come into effect on 6 April 2025 and require all operating licence holders in Great Britain to pay a mandated levy to the Gambling Commission, unless the amount of that levy is £10 or less.

The levy period

The amount due under the Levy Regulations is calculated by reference to an operator’s gross gambling yield (“GGY”) in each levy period. Generally, the levy period runs from 1 April in one year to 31 March in the next. However, the first levy period for most operating licence holders will be 9 month period from 1 July 2024 to reflect the way that the Gambling Commission collects the relevant data. The exception being lottery operating (society) licence holders for whom the first levy period will be the 12 month period from 1 April 2024. Basing the calculation upon GGY in the preceding year will provide certainty as to the amount of the levy payable in any given year.

The leviable amount

The “leviable amount” (effectively GGY) in respect of a levy period is as follows:

(3) In relation to a holder of an operating licence which is not a lottery operating licence, the “leviable amount” in respect of a levy period is—

(a) the aggregate of—

(i)   amounts paid during the levy period to the holder of the operating licence by way of stakes in connection with the activities authorised by the operating licence, and

(ii)   amounts (exclusive of value added tax) that otherwise accrue during the levy period to the holder of the operating licence directly in connection with activities authorised by the licence, minus

(b) the aggregate of amounts deducted during the levy period by the holder of the operating licence for the provision of prizes or winnings in connection with the activities authorised by the licence.

(4) In relation to a holder of a lottery operating (external lottery manager) licence, the “leviable amount” in respect of a levy period is—

(a) the aggregate of amounts paid to, or otherwise obtained by, the holder of the operating licence during the levy period by way of fees in connection with the lotteries promoted in reliance on the operating licence, minus

(b) the aggregate of amounts deducted during the levy period from the amounts described in sub-paragraph (a) by the holder of the operating licence for the provision of prizes in connection with the lotteries promoted in reliance on the operating licence.

(5) In relation to a holder of a lottery operating (society) licence, the “leviable amount” in respect of a levy period is—

(a) the aggregate of the proceeds of lotteries promoted in reliance on the operating licence which accrue during the levy period, minus

(b) the aggregate of amounts deducted during the levy period from the proceeds described in sub-paragraph (a) by the holder of the operating licence for—

(i)   the provision of prizes in connection with the lotteries promoted in reliance on the operating licence, and

(ii)   a purpose described in section 99(2) of the Gambling Act 2005.

The amount of the levy

Regulation 4 of the Levy Regulations sets out how the amount of the levy will be determined:

  1. 1.1% of the leviable amount for holders of the following operating licences:
    1. a gambling software operating licence;
    2. a remote betting intermediary operating licence which is not a betting intermediary (trading room only) operating licence;
    3. a remote bingo operating licence;
    4. a remote casino operating licence;
    5. a remote general betting operating licence.
  1. 0.5% of the leviable amount for holders of the following operating licences:
    1. a betting intermediary (trading room only) operating licence;
    2. a non-remote betting intermediary operating licence;
    3. a non-remote casino operating licence;
    4. a non-remote general betting operating licence which is not a non-remote general betting (on-track or on-course) operating licence.
  1. 0.2% of the leviable amount for holders of the following operating licences:
    1. a gaming machine general operating licence for an adult gaming centre;
    2. a non-remote bingo operating licence;
    3. a non-remote general betting (on-track or on-course) operating licence.
  1. 0.1% of the leviable amount for holders of the following operating licences:
    1. a gaming machine general operating licence for a family entertainment centre;
    2. a gaming machine technical operating licence;
    3. a lottery operating licence;
    4. a pool betting operating licence.

If an operating licence is combined (i.e. it includes more than one of the licences described in regulation 4 above), the levy will be payable in respect of the leviable amount for each licence held.

First levy period only – Note for holders of an operating licence which is not a lottery operating (society) licence – so most operators – the amount of the levy in respect of the first levy period is A × 1⅓, where A is the amount of the levy that would be determined in respect of that period in accordance with the applicable set rate payable of the leviable amount for the kind of operating licence in subsequent levy periods. This is because the first levy period for most licensees is only 9 months, rather than 12 months, and this is a pro rata calculation of the leviable amount for a 12-month period.

Example: for an operating licensee with a remote bingo operating licence, the first levy payment will be 1.1% of the GGY for the period 1 July 2024 – 31 March 2025 × 1⅓, payable by 1 October 2025. The subsequent levy payment will be 1.1% of the GGY for the period 1 April 2025 – 31 March 2026, payable by 1 October 2026.

Timing of payment of the levy

The levy must be paid before 1 October following the end of each levy period.

We trust our explanation of the calculation is helpful. For further clarification, we understand from the explanatory memorandum to the Levy Regulations that the Gambling Commission intends to publish guidance on the calculation, payment, collection and enforcement of the statutory levy in advance of the Levy Regulations coming into force on 6 April 2025.

For further details of the statutory levy and the Government’s announcement to introduce the statutory levy, please see our previous blog: White Paper Series: Initial Consultation Response on Statutory Levy and Update on Online Slot Stake Limits.

Please get in touch with us if you have any questions about the statutory levy or the Government’s announcement.

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05Feb

White Paper Series: New rules on customer led tools, customer funds and statutory levy

5th February 2025 Harris Hagan Harris Hagan, Responsible Gambling, Uncategorised, White Paper 220

On 4 February 2025, the Gambling Commission announced changes aimed at increasing consumer control over deposit limits and greater transparency of customer funds protection by operators. Also, a further change to the Gambling Commission’s Licence Conditions and Codes of Practice (“LCCP”) will also pave the way for implementation of the Government’s upcoming statutory levy. These changes are part of the consultation response to the Autumn 2023 Consultation and are consistent with the commitments within the White Paper.

What are the changes?

  1.      New customer led tools 

The new rules will give consumers more effective ways to manage their gambling by making it easier to set and maintain deposit limits on their online accounts, in ways that work best for them. These rules will take good practice already offered by some operators and expand that so customers can expect the same standards across the industry.

From 31 October 2025, all gambling operators must prompt their customers to set a financial limit before they make their first deposit and make it easy to review and alter this limit at any point after.

Gambling operators will also be required to remind customers every six months to review their account and transaction information. The Gambling Commission believes this will help customers consider if they want to change existing, or set new, deposit limits.

The announcement confirms that the Gambling Commission’s work revealed recent changes by some operators on how deposit limits are offered, which could cause confusion for consumers. As a result, a short supplementary consultation will be launched on proposals to improve consistency and transparency for consumers on how financial limits work.

2.    Transparency of protection of customer funds

Operators who hold customer funds must already set out in the terms and conditions whether these are protected in the event of insolvency, the level of such protection and the method by which this is achieved. They must also make this information available at the point at which a customer first deposits money.

The level of protection must be described as either ‘not protected – no segregation’, ‘not protected – segregation of customer funds’, ‘medium protection’ or ‘high protection’.

From 31 October 2025, operators whose customer funds are ‘not protected’ in the event of insolvency must actively remind customers once every six months that their funds are not protected.

Whilst there is no legal duty on gambling operators to protect customers funds in the event of insolvency, many of them do so voluntarily. The Gambling Commission believes the changes will help consumers understand which operators protect their funds and which do not – information which will support them in making choices about who they gamble with.

3.     Changes connected with the new statutory levy

The LCCP currently requires operators to make annual financial contributions to a list of research, prevention and treatment organisations.

This requirement will be removed close to the introduction of the Government’s statutory levy (expected to come into force on 6 April 2025) as it will become obsolete. The Gambling Commission will notify licensees of the date of implementation as soon as the Parliamentary process is complete.

Tim Miller, Commission Executive Director for research and policy, said:

“These changes illustrate our commitment to ensuring gambling is fair and open by improving consumer empowerment and choice.

“These changes will help consumers decide on deposit limits, enable them to keep track of their spending and ensure they are fully aware of what happens to their funds should an operator become insolvent.

“We will now continue our work to deliver our remaining White Paper commitments, including our programme of evaluation.”

Next steps

The new statutory levy requirement is expected to come into force on 6 April 2025. Changes on customer led tools and the protection of customer funds will come into force on 31 October 2025.

Please get in touch with us if you have any questions about these upcoming changes.

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04Feb

White Paper Series: Gambling Commission launches January 2025 consultation

4th February 2025 Harris Hagan Harris Hagan, Responsible Gambling, Uncategorised, White Paper 190

On 29 January 2025, the Gambling Commission launched its January 2025 consultation (the “January 2025 Consultation”). It is the Gambling Commission’s third consultation addressing its commitments within the White Paper, following the Summer 2024 consultation and Autumn 2023 consultation.

What does the January 2025 Consultation propose?

The January 2025 Consultation sets out proposed changes to the Gaming Machine Technical Standards (“GMTS”), the Gaming Machine Testing Strategy (“Testing Strategy”), and the Licence Conditions and Codes of Practice (“LCCP”), several of which were foreshadowed in the Gambling Commission’s Advice to Government in April 2023.

These include:

  • introducing five new standards, a licence condition and a social responsibility code provision designed to support and empower consumers to use gaming machines safely at every stage of the customer journey – this includes proposals on time and monetary limit setting functionality and information provision, such as safer gambling messaging and the display of net position and session time;
  • amending three existing standards having considered industry proposals to improve customer enjoyment and gameplay;
  • consolidating the existing 12 gaming machine technical standards into a single standard, whilst amending the format to be more consistent with the Remote gambling and software technical standards for greater clarity; and
  • updating the gaming machine technical standards and the related testing strategy to remove obsolete material.

1.     Consolidation of the GMTS

The Gambling Commission proposes to consolidate the 12 existing GMTS into a single standard and amend the format to be more consistent with the Remote gambling and software technical standards. The proposed consolidated version of the GMTS will be structured into 8 main standards and apply to all the main categories of gaming machines, with a further 6 standards for specific technical requirements. Although the text is proposed to be re-structured, these are essentially unchanged from the existing GMTS and cover areas such as legacy gaming machines, wireless network requirements and linked progressive requirements.

Given the now identical maximum charges for use (and maximum payouts) on Category B2 and B3 gaming machines is £2 per game (reduced from £100 per game in 2019), the Gambling Commission propose amending the GMTS for Category B2 gaming machines. Proposals are in relation to the game speed of play, that each game cycle must last at least 2.5 seconds (GMTS 5.7), and use of compensators and/or regulators, now permissible subject to compliance with the requirements and implementation guidance (GMTS 5.8).

2. Amendments to the GMTS

The proposals include amendments to the existing GMTS following the Gambling Commission’s consideration of industry proposals to improve consumer enjoyment and gameplay. These include:

  1. changes to game links (meaning an element, feature or outcome from one game is either held over or made reference to (recreated) in the next game (for example, reel band holds)) by (i) adjusting the value and the number of repeats permissible on Category C gaming machines (GMTS 5.14b) and (ii) removing the need for a 50/50 chance following a losing game on Category B gaming machines (GMTS 5.14a); and
  2. changes to live jackpots by allowing a player to gamble a live jackpot win on all categories of gaming machine (GMTS 5.9) – allowing live jackpots to be gambled, in the same manner that other prizes can be. This would not require consumers to gamble but rather choose to gamble or collect the live jackpot win in full at their own discretion.

It is noted in the January 2025 Consultation that several other proposals were discounted for a variety of reasons. These reasons included, for example, risk to the licensing objectives and the need for primary legislation which sits outside of the Gambling Commission’s remit.

3. New technical standards of the GMTS

The Gambling Commission seeks to support and empower consumers to use gaming machines safely at every stage of the customer journey.

Notably, the January 2025 Consultation proposes to introduce five new technical standards of the GMTS. These new standards focus on:

  1. time and monetary limit setting (GMTS 15.1) including:
    • requiring operators to ensure machines offer a default option of no more than a 20-minute session and £150 in deposits;
    • requiring customers to set their own limits, but these must not be more than 60 minutes or £450 deposited – setting no limits will not be an option; and
    • requiring players to take a mandatory break in play of at least 30 seconds when they hit their assigned limits; in addition, an alert will be sent to staff in the venue to inform them that a gambler has reached their pre-set threshold;
  2. safe gambling messaging during breaks in play when a customer set limit or default limit is reached or modified prior to being reached. The provision of information other than safer gambling messaging – such as a marketing of games or new promotional offers – in this scenario, will be prohibited (GMTS 15.2);
  3. display of net position and elapsed time (GMTS 15.3);
  4. awards less than or equal to the last total stake gambled must not be celebrated (GMTS 15.4); and
  5. prohibiting features that permit a customer to reduce the time until the result is known (GMTS 15.5).

Regular readers will note the similarities between some of the new technical standards and the changes to the remote games design requirements that came into force on 17 January 2025. For further information, please see our blog: Reminder: Changes to remote games design requirements come into force on 17 January 2025.

A copy of the proposed new GMTS is available here.

    f.  Update to a social responsibility code provision of the LCCP

    It is also proposed that a social responsibility code provision (SRCP 3.3.3) of the LCCP should be amended to require licensees to ensure that any gaming machines comply with GMTS 15.1 in relation to time and monetary limit setting, and ensure that staff alerts for limit setting are acted upon appropriately and in a timely manner.

    g. Update to the Testing Strategy

    The Gambling Commission wants to update the Testing Strategy to remove obsolete material in the strategy. Proposals include removal of the initial transitional arrangements and implementation dates.

    In addition, the Gambling Commission proposes to align the testing requirements for Category B2 gaming machines with those applicable to Category B3 gaming machines, due to the identical maximum charges for use (and maximum payouts) on Category B2 and B3 gaming machines.

    A copy of the proposed new Testing Strategy is available here.

    h.  New licence condition of the LCCP

    The January 2025 Consultation proposes to introduce a new licence condition of the LCCP, under the powers conferred by section 86(2) of the Gambling Act 2005, which will allow the Gambling Commission to effectively address instances whereby a gaming machine has been illegally manufactured, supplied, installed, adapted, maintained or repaired, or does not comply with the GMTS. Making a specified machine available for use after the Gambling Commission has notified the licensee in writing that the manufacture, supply, installation, adaption, maintenance or repair of the machine will now be a breach of a licence condition if it (a) was not carried out in reliance on a gaming machine technical operating licence, or (b) did not comply with the Commission’s gaming machine technical standards, which could give rise to enforcement action by the Gambling Commission .

    Will this be the last White Paper consultation by the Gambling Commission?

    While this is the Gambling Commission’s third consultation implementing proposals in the White Paper, it is unlikely to be the last. A further Gambling Commission consultation for the land-based sector may be required in due course if the Government decides to remove the prohibition on the direct use of debit cards on gaming machines. The Gambling Commission is also considering undertaking a further consultation to consider the effects of legislative change following the Gambling Act Review.

    Next steps

    The January 2025 Consultation will be open for 16 weeks, closing on 20 May 2025. Responses can be submitted online, or by post to the Gambling Commission’s Policy Team.

    We strongly encourage all licensees and stakeholders to review and respond to the January 2025 Consultation. Please get in touch with us if you would like to discuss this matter further or require our assistance preparing responses.

     

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    29Jan

    Unlicensed gambling – Part 3: The warning, the webinar and the method(ology) to the madness 

    29th January 2025 Gemma Boore Harris Hagan, Responsible Gambling, Uncategorised 198

    In this Part 3 of our recent blogs on unlicensed gambling, we discuss recent statements made by the Gambling Commission regarding the steps that it is taking to identify, quantify and disrupt illegal online gambling in Great Britain (“GB”). 

    If you would like to read more on this subject please see: Unlicensed gambling – Part 1: Growing threat or exaggerated myth? and Unlicensed gambling – Part 2: Is the Gambling Commission winning the “whack-a-mole” game? 

    The Warning 

    On 20 January 2025, the Gambling Commission posted a warning notice to the gambling industry on its website in which it explained it had become aware of casino games supplied by licensed operators appearing on unlicensed websites available to GB consumers illegally, and called on its B2B licensees to help it to tackle the illegal, unlicensed market. 

    The Gambling Commission noted that in some instances, third party resellers (who are also commonly known in the industry as aggregators) are distributing games supplied by its licensees to the illegal market, often in breach of contractual obligations. In the Gambling Commission’s view, licensees may have been negligent in permitting this and warned that that this practice might place a Gambling Commission issued operating licence at risk. 

    To mitigate this regulatory risk, the Gambling Commission advised its B2B licensees: 

    • to actively monitor their business relationships to ensure their partners are not participating in offering illegal gambling facilities to the GB market; 
    • to terminate relationships where non-compliance has occurred; and 
    • to actively engage with the Gambling Commission where such activities are identified, setting out the preventative measures adopted to ensure such activity ceases immediately, making clear that: 

    “Actively notifying the Commission and setting out a clear plan to mitigate the issue at pace is a minimum requirement.”  

    The Webinar 

    The previous week, Harris Hagan’s Managing Partner, John Hagan hosted the International Association of Gaming Advisors (IAGA) Best Practices Webinar on 15 January 2025, titled “Setting the UK Gambling Agenda for 2025: a less political year?”. During the webinar, Andrew Rhodes (Chief Executive of the Gambling Commission) and Grainne Hurst (Chief Executive of the Betting & Gaming Council (“BGC”)) shared their thoughts on various topics, including unlicensed gambling.  

    Rhodes confirmed that the Gambling Commission has invested in disrupting the illegal, online gambling market during recent years, with some success. However:  

    “Everyone should accept there has always been an illegal market present and much as different people want to debate the size and value of it, the reality is we need to understand the flow into it and why that happens, as well as preventing its ability to operate at scale.” 

    Rhodes emphasised that “legitimate” licensees are expected to undertake their own due-diligence on their suppliers and partners to ensure they are not engaged in unlicensed activity facing into GB – expressing concern at why anyone in the licensed industry would want to be in business with a company that is supporting illegal competition.  

    Rhodes went on to confirm that in 2025, the Gambling Commission will continue to use new capabilities around covert test purchasing and other investigative tools to identify those who are assisting illegal operators, as well as targeting those illegal operators directly – concluding by making clear that where the Gambling Commission feels it is necessary to suspend or revoke the licence of any operator or supplier, they will do. 

    Meanwhile, Hurst confirmed that disrupting the unlicensed market is a top priority for the BGC, alongside delivering the outstanding elements of the White Paper and making sure that a sensible tax harmonisation is put in place when the new regime is announced later this year. While they are still in the process of formalising next steps, action is being taken following the Gambling Commission’s challenge to the industry last year, and B2B BGC members will soon be required to commit not to provide content to unlicensed operators serving the GB market.   

    The Method(ology) to the Madness 

    The recent flurry of warnings by the Gambling Commission regarding unlicensed gambling follow its release last year of a statistics and research paper, Unlicensed gambling – Using data to identify unlicensed operators and estimate the scale of this market – October 2024 (the “Methodology Paper”). The Methodology Paper was a first step for the Gambling Commission in sharing its work in developing its capacity to identify unlicensed operators in GB, in which it explains how it is using an evidence-led approach to disrupt unlicensed gambling. 

    Focus  

    Although the Gambling Commission acknowledges in the Methodology Paper that unlicensed gambling can also take place in land-based premises, the paper is focused on the online market ‘where data has the greatest potential to help us make an impact’.  The Gambling Commission explains in the Methodology Paper that it has undertaken several stages of work to formulate its approach which include: 

    1. Understanding the motivations for consumers to enter the online unlicensed market, and the channels through which they do so 

    The Gambling Commission is focusing on specific areas of consumer motivation: people who have experienced gambling harms – especially those who are self-excluded; and consumers looking to avoid identity verification.  

    1. Identifying unlicensed operators and estimating the scale of usage by GB customers 

    Web traffic data and gambling behaviour data will be used to estimate the gross gambling yield (“GGY”) of the online unlicensed market, although the Gambling Commission concedes that making an accurate estimate will be challenging, as much activity is deliberately obscured by virtual private networks (“VPNs”).   

    Methodology  

    The Gambling Commission will use the following methods to identify and measure the scale of the online unlicensed market:  

    1. Google search results to list of search terms 

    Results to search terms will be monitored on a monthly basis. The search terms will be devised from a combination of industry engagement and consumer research, advice from the Gambling Commission’s intelligence and enforcement teams, and additional desktop research on to identify terms used on affiliate pages such as “not on GAMSTOP” that are used to target particular groups of consumers.  

    1. Identify affiliate pages or articles listing unlicensed sites 

    The Gambling Commission will identify affiliate sites and/or articles that recommend gambling websites targeting specific consumer groups, for instance, “best UK casinos not on GAMSTOP”, by checking for key words on web pages and identifying the presence of outgoing affiliate links. 

    1. Extract links to unlicensed gambling sites and obtain web traffic data 

    Unlicensed sites that are linked from affiliate pages and/or articles will be reviewed to determine whether they are blocked to GB customers. Under the current methodology, the Gambling Commission is able to flag sites that are blocked immediately upon opening but not sites that are blocked upon account registration. Web traffic and average visit duration data is obtained for each of the unlicensed sites using Similarweb, which is a digital intelligence platform that allows access to estimated web traffic data. 

    1. Combine web traffic data with research data to estimate spend on the identified sites 

    To estimate the GGY associated with identified sites, web traffic data will be combined with an estimate of average consumer spending behaviour, the latter of which will be based on data from the Gambling Commission’s Patterns of Play research.  

    The intended output of the above work will be twofold: (a) a dashboard of unlicensed operators ranked according to current usage by GB consumers, which can be used by enforcement teams to prioritise and target disruption activity; and (b) to allow the Gambling Commission to estimate the likely scale of the unlicensed market for GB consumers. 

    Limitations  

    The Gambling Commission acknowledges within the Methodology Paper, that its methodology cannot capture the whole online unlicensed market. For instance, GB traffic from consumers using a VPN.  

    Other assumptions and limitations include:  

    • The assumption that gambling behaviour on unlicensed sites is the same as on licensed sites; 
    • GGY estimates are based on online slots play only, as it is assumed that a significant proportion of unlicensed gambling activity is slots; 
    • Unlicensed sites are included in the GGY estimate regardless of the average visit duration, including very short average visit durations which could indicate visits where no money is spent or very long durations which could indicate periods of inactivity; and  
    • Not all consumer motivations are currently included in the core search terms.  

    Next steps 

    The Gambling Commission has called on the industry to report suspicious activity to the Gambling Commission’s intelligence team at [email protected] or, alternatively, through the following confidential portal: Tell us something in confidence. 

    Please get in touch with us if you have any questions regarding unlicensed gambling in GB, your due diligence obligations and how to actively monitor your business relationships, or if you would like assistance reporting a suspicion to, or responding to an information request from, the Gambling Commission.  

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    29Nov

    White Paper Series: Initial Consultation Response on Statutory Levy and Update on Online Slot Stake Limits

    29th November 2024 John Hagan White Paper 186

    The Department for Digital, Culture, Media and Sport (“DCMS”) announced on 27 November 2024 that the Government will bring forward the statutory levy on gambling operators to generate £100 million for the research, prevention and treatment of gambling harms. The Government has also confirmed online slot stake limits of £5 for adults aged 25 and over and £2 for young adults aged 18 to 24.

    Statutory Levy

    Gambling Minister Baroness Twycross indicated in her Ministerial Statement that the update is only an initial response to the consultation on the structure, distribution and governance of the statutory levy on gambling operators launched on 17 October 2023 (see our previous blog on the consultation), and that its aim is to publish a further response document in the coming months. The Government maintains its commitment to having the levy in place by the summer of 2025.

    The Government has confirmed that the mandated levy will be charged to all licensed operators at varying levels depending on the sector, at a set rate for all holders of a given Gambling Commission licence, with rates accounting for the difference in operating costs and the levels of harmful gambling associated with different gambling activities. “In recognition of the higher rates of problem gambling associated with products online compared to most land-based products, as well as the higher operating costs in the land-based sector, the levy will see online operators pay more towards research, prevention and treatment.”

    The Government believes that a mandated levy “will guarantee increased, ringfenced and consistent funding to prevent and tackle gambling harm” and “ensure all operators contribute a fair share”, stating that “under the current voluntary system not all gambling companies contribute equally, with some operators paying as little as £1 a year towards research, prevention and treatment”.

    The levy will be introduced via secondary legislation. It will be collected by the Gambling Commission and overseen by a Gambling Levy Programme Board that will have central oversight, and which will in turn be assisted by a Gambling Levy Advisory Group that will provide expert advice on funding priorities and other emerging issues.

    Levy funding will be split as follows:

    • 50% will be directed to NHS England and appropriate bodies in Scotland and Wales to develop a comprehensive support and treatment system. This will include referrals and triage, through to recovery and aftercare. So “half of funding to directly benefit NHS-led gambling treatment system”.
    • 30% will go towards investment in gambling harm prevention, which could include measures such as national public health campaigns and training for frontline staff. A lead commissioning body in this crucial and novel area has not yet been appointed, with the Government taking the time to get the important decision on the future of prevention right.
    • 20% will be directed to UK Research and Innovation (UKRI) and the Gambling Commission to develop bespoke Research Programmes on Gambling, undertaking vital research to inform future policy and regulation.


    “The current funding system for research, prevention and treatment of gambling-related harms reliant on voluntary donations from industry is no longer fit for purpose. While the industry’s significant uplift in the level of donations in recent years is welcome, we recognise that the quantum of funding is not the only requirement for an effective and equitable system.”

    Baroness Twycross, Gambling Minister

    The Government emphasises in its initial response that with distribution of funding to the NHS, UKRI and the Gambling Commission, “the gambling industry will have no say over how money for research, prevention and treatment is spent”.

    A formal review of the levy system will be conducted within five years, where the structure and health of the levy system will be assessed, and adjustments can be made to ensure that the Government is achieving its aims.

    Online slot stake limits

    As widely anticipated, stake limits will be set at £5 per spin for adults aged 25 and over and £2 per spin for young adults aged 18 to 24, “bringing online slot games in line with existing restrictions on slot machines in casinos”. DCMS’ press release cites Evidence from the Office for Health Improvement and Disparities and the Gambling Survey for Great Britain which shows that young adults can be particularly vulnerable to gambling related harm with under 25s having one of the highest proportion of respondents scoring eight or more on the Problem Gambling Severity Index of any age group. It also reiterates that online slots are “a higher-risk gambling product associated with large losses, long sessions, and binge play”.

    Next steps

    Operators are required to maintain voluntary financial contributions to research, prevention and treatment until the levy comes into force, with Baroness Twycross adding that its initial response “should provide sufficient notice to licensees of our approach”.

    As stated above, the Government aims to publish its full response to the statutory levy consultation in the coming months, which will also include further detail on the 30% investment of levy funds in gambling harm prevention. The Government notes that the statutory instrument is silent on the distribution of levy funding, including in relation to prevention, and it is pressing on with its initial response and progressing the legislative process to meet its commitment to have the levy in place by the summer of 2025.

    In respect of online slot stake limits, these will be subject to an implementation period. This means that, following debates in Parliament, operators will have six weeks from the day the statutory instrument is made to implement the £5 limit and a further six weeks thereafter to implement the £2 limit.

    We will provide you with updates in due course but please do not hesitate to get in touch if you have any questions.

    Our preliminary thoughts on the initial response

    At the heart of the White Paper is a balance between consumer freedoms and choice on one hand, and protection from harm on the other. The White Paper was broadly well received when it was delivered in Parliament, within all sectors of industry, by the NHS, in the third sector and at the Gambling Commission, because the (Conservative) Government had achieved a healthy balance in its reforms; crudely put, there was something in it for everyone. As we said in our inaugural blog on the White Paper in May 2023, however, “it is imperative that the process remains balanced and that all the key stakeholders see comparable progress in relation to their interests”.

    The announcement of the bringing forward of the statutory levy by the Labour Government is undoubtedly a momentous day for certain stakeholders and a cause for their celebration, and perhaps unsurprisingly the language is emotive and provocative, with for example the NHS saying problem gambling has “skyrocketed” and resolving to do all it can “to protect gamblers from this billion-pound industry”, and the All Party Group for Gambling related Harm saying that “for the first time the gambling industry will be mandated to pay for the harm they cause”. Even the Government itself in its press release makes more of the £1 some operators have been paying than the £50 million in voluntary contributions by Betting and Gaming Council members this year alone.

    That said, we believe that it was always inevitable that the Government (whether Labour or Conservative) would lead with the statutory levy before introducing any measures relating to consumer freedom or choice, such as the long overdue land-based casino modernisation. The new Labour Government had to establish its credentials as being tougher on the gambling industry than the previous government and deliver on its manifesto promise commitment to reduce gambling harm. And we would suggest it was also sadly inevitable that the rhetoric would be critical of industry, even unfair and misleading, particularly at a time when fundamental gambling statistics such as the percentage of problem gamblers in the population are so keenly contested.

    But the statutory levy itself was a fundamental plank of the White Paper, so it does not come as a surprise, even if as rumoured the rates transpire to be slightly higher than proposed, again Labour being tougher than the Conservatives. Indeed, industry has been supportive of a statutory levy in principle for some years now. Nor are the online slot stake limits a surprise, with the previous government making a similar announcement before disastrously calling an early General Election. Further, the financial implications of both the statutory levy and online slots stake limits should already be baked into industry projections and should not have a punitive impact, at least in the near future, the risk of course being that the levy rates will again, inevitably, increase in the years ahead.

    For all the above reasons, we are not for the moment overly concerned that the Government is heading in a new direction when it comes to gambling reform. This is not a policy area where the new Government might argue that it was left a “black hole”, quite the reverse, it was left a fully-fledged policy developed over many years and wrapped in White Paper, which it would be well advised to adopt and move on with other legislative priorities free from gambling distractions. Nothing has happened this week which was not expected and we remain optimistic that the delicate balance of the White Paper will be delivered by the Government and the Gambling Commission in the year ahead. We will of course continue to monitor for any departure from that course in future blogs.

    With thanks to Ting Fung for her invaluable co-authorship.

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