The levy, first announced in November, supports the government’s plans to raise £100 million (€120 million/$126 million) for gambling-related harm prevention via a percentage of industry stakeholder profits.
The rate paid by each business will range from 0.1% to 1.1% of gross gambling yield (GGY). The exact rate will be determined based on the sector, vertical and the type of gambling they offer. This will take into account licensees’ operating costs and the risk profile of the products they offer.
Baroness Twycross today told members of the BGC that operators will be required to make their first levy payment on 1 October. “It’s a huge step forward for the sector,” she noted.
“It will see increased investment to expand projects and services to reduce harmful gambling. I know we have a shared aim in this area.”
The levy, she said, had been affirmed by both parliamentary houses and became law on Tuesday (25 February).
“I know the BGC has been largely supportive of the levy and we recognise the work done by the sector through the voluntary levy previously,” Baroness Twycross added.
Levy independent body to be formed
Speaking during a parliamentary debate in the House of Lords on 12 February, Baroness Twycross said the government would set clear objectives for the system to maximise value for money. This includes an independent statutory board to closely monitor spending and the overall effectiveness of the levy.
She said the levy had been designed in an effective and proportionate way to “strike the right balance between managing impacts on licensees and ensuring that operators are paying their fair share.”
Slots stakes to be enforced in April
Elsewhere, Baroness Twycross told the AGM the £5 and £2 stake limits on online slots will come into effect as of 9 April and 21 May, respectively.
As first revealed in February last year, players aged 18 to 24 will be limited to spending £2 per spin. This increases to £5 a spin for over-25s.
The slots stake limits were also passed into law this week following debates in both houses earlier in the month. Baroness Twycross said during the February Lords debate the measure would bring online slots in line with their land-based counterparts in terms of stake limits.
“In our view, a £5 stake limit will protect those most vulnerable to serious harm while balancing the impact that this measure will have on the industry,” she told the house.
“Primarily, we considered consultation responses, expert evidence and harms data related to each of the staking levels and determined that the £5 limit targets those customers most at risk of harm. I note that the average stake on online slots is 60p.”
Original article: https://igamingbusiness.com/legal-compliance/baroness-twycross-statutory-levy-launch-online-slots-stakes/
