Key Developments

The UK government has introduced its most significant gambling law reform since the Gambling Act 2005. Announced in April 2023 through the policy paper “Gambling Reform for the Digital Age,” these changes specifically target online gambling operations with enhanced consumer protection measures.

The Gambling Commission implemented these changes through a phased approach with regulations that came into force across four stages between August 2024 and February 2025. As of March 2025, all major elements of the reform are now in effect, with only the statutory levy remaining to be implemented on 6 April 2025.

Primary Changes from Previous Regulation

1. Statutory Levy

A mandatory levy will replace the current voluntary contribution system, funding research, education, and treatment for gambling addiction. The levy comes into effect on 6 April 2025, with first payments due by 1 October 2025.

The levy rates vary by sector based on Gross Gambling Yield (GGY):

• Online operators and software licences: 1.1% of GGY
• Land-based casino and betting operators: 0.5% of GGY
• Adult gaming centres, on-course bookmakers, and bingo premises: 0.2% of GGY
• Other licensees (including society lotteries and ELMs): 0.1% of GGY

Operators with levy payments below £10 are exempt. Funds will be distributed with 50% allocated to treatment services, 30% to prevention strategies, and 20% to research.

2. Financial Vulnerability Checks

The Commission will implement “frictionless financial risk assessments” to prevent excessive losses in short timeframes. Unlike previous systems, these checks will:

• Operate seamlessly in the background
• Use existing online information
• Target only high-risk players (estimated 20% of users)
• Minimise disruption to normal gameplay

3. Online Slots Stake Limits

For the first time, online slots will face statutory stake limits between £2 and £15 per spin, addressing a significant regulatory gap between online and land-based gambling. Previously, online slots had no statutory limits, despite evidence showing higher problem gambling rates.

4. Enhanced Age Verification

More stringent age verification processes will be implemented for both online and land-based gambling, with specific protections being considered for under-25s, potentially including lower stake limits.

5. Marketing Consent Requirements

New regulations will enhance consumer choice regarding gambling marketing, likely requiring more explicit consent from customers before sending promotional materials.

Required Actions for iGaming Operators

With most measures now in effect as of March 2025, operators must ensure full compliance with:

Immediate Priorities:

• Confirm all player protection systems are fully implemented and functioning correctly
• Verify online slots configurations comply with the £2-£15 stake limits
• Ensure marketing consent mechanisms meet new regulatory standards
• Prepare financial systems for the statutory levy implementation in April 2025

Financial Planning for Levy (Before October 2025):

• Calculate expected levy obligations based on your GGY and applicable sector rate
• Adjust financial forecasts to accommodate the new statutory payment
• Prepare accounting processes for the first levy payment due 1 October 2025
• Review product pricing and cost structures to maintain profitability

Ongoing Compliance:

• Maintain audit trails of all player protection measures and their effectiveness
• Develop regular compliance reporting for the enhanced Gambling Commission requirements
• Monitor the impact of regulations on player behaviour and revenue
• Evaluate strategic product adjustments to optimise performance within the new framework

Compliance Considerations

The reforms significantly expand the Gambling Commission’s regulatory powers, particularly regarding online operations. Recent enforcement actions, such as a £19 million fine imposed on an operator for allowing a customer to spend £23,000 in just 20 minutes, demonstrate the serious approach to non-compliance.

Operators must balance regulatory requirements with maintaining a commercially viable service. The challenge will be implementing robust protection measures while preserving a positive user experience.

For iGaming businesses operating in the UK market or considering entry, these reforms represent a substantial shift requiring significant operational adjustments and compliance measures.

Wolja Digital provides comprehensive legal support for iGaming businesses navigating regulatory changes. Contact our specialists for tailored advice on gambling compliance.