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Online slot games are among the UK’s most popular casino games, but the government has taken aim at these games by introducing new gambling limits to target problem gambling. Although the industry has made great strides in cooperating with the government to tackle the issue, questions have been raised over whether this is the right way to go.
New online gambling limits for online slot machines are set to take hold, with the government’s new policy aimed at setting per-spin limits on slot machines to tackle gambling addiction. But what impact will these limits actually have on players?
The UK is Europe’s current leader in online gambling. According to the latest stats, the UK is the second largest online casino market in the world, with much of the credit going to the country’s relatively liberal stance on permitting online gambling [1].
Despite this, the government has taken action over fears that a minority of problem gamblers are putting an undue burden on the NHS. Alongside new online slot stake limits, the government has also introduced a levy of 0.1% to 1.1% of gross gambling yield annually on all online casinos to fund the NHS [2].
It was recently confirmed by JohnSlots, that the government will introduce a £2 per spin limit on online slot machines for gamblers under 25 and a £5 limit for older gamblers [3].
It’s a move that mirrors the previous government’s limits placed in fixed-odds betting terminals (FOBTs) back in 2019, which also opted for the £2 per spin limit. Already, the gambling industry has raised concerns about the threat to the industry, which pulled in a record £10.95 billion revenue figure in 2023, excluding the National Lottery [4].
New regulations haven’t come out of nowhere. The previous government under Boris Johnson initially called for a review of the Gambling Act 2005 in an attempt to create safer gambling environments for all. In 2023, the final white paper was published, outlining the country’s vision for more modern gambling regulations.
In particular, the white paper focused on current protections for players and whether they were fit for purpose. It was recommended that new protections be implemented to reduce the harm gambling causes.
Since then, the previous and current government has consulted on limits for slot machines, with numbers from £2 to £15 being floated. Eventually, they decided to opt for the more conservative side of the spectrum but allowed an age-based tiered approach to slot limits, hence the two limits.
The impact of new online gambling limits has yet to be felt, but it’s expected that players will see changes to their experience.
Operators have criticised the move as disproportionately affecting their revenues. On the other hand, the Betting and Gaming Council cited that they broadly support the proposals while citing that the group had already voluntarily contributed £170 million to provide help for people who struggle with online gambling [5].
So, what are the potential outcomes of these new online gambling limits for players?
The first issue is that players may experience smaller jackpots. All slot games have jackpots that correspond to the stakes players put in. That’s why more expensive games pay out larger jackpots. Huge jackpots will likely become a thing of the past if the maximum possible wager is capped at such a low number.
Another issue that has been cited by operators is that since players can only wager smaller amounts, it will result in players spending longer, thus exasperating the problem for the minority of problem gamblers.
Paradoxically, some players may decide to compensate for the lower stakes with longer game times. This could inevitably result in players spending longer playing their favourite slots, especially if they’re focused on claiming a bonus or climbing the ranks of a VIP loyalty scheme. Unfortunately, these limits could end up doing more harm than good.
Recreational players will likely feel like the government is meddling in their business. It’s every player’s right to spend their money in whichever way they please. Many players have expressed frustration that their leisure time has been disrupted by these new limits. It’s especially problematic when it’s estimated that just 0.5% of UK adults have a problem with gambling, which is an extreme minority of the country [6].
Whilst this may not sound like a real issue, we’ve already begun seeing the impacts of this with the rise of illegal gambling. Illicit gambling occurs when UK citizens register with websites that don’t have an active license from the Gambling Commission. In nearly all cases, these casinos utilise unsafe and unfair practices and are based overseas.
According to the latest figures, illegal gambling generated £270 million last year, with the number clearly rising [7]. Many high rollers have turned to these operators due to lower wagering limits. From an industry perspective, this is a real problem because these are the players that form the backbone of the UK’s advanced gambling sector.
New online slot limits aren’t the first time many players have felt pushed toward the black market. Other changes made in the past few years include:
Black market play doesn’t just mean a loss of revenue for the legitimate UK gambling industry but also a loss of tax revenue for the government. Moreover, players who turn to the black market gambling industry are unprotected, thus putting their finances at risk.
The UK’s gambling industry has advanced so quickly from Flash-based games to the virtual reality and live dealer games of today because the industry has had the resources to innovate. The cutting-edge player experiences of today come directly from many serious gamblers who enjoy playing regularly.
By imposing online slot limits, these players may depart entirely to the black market or quit, thus depriving the industry of the research and development funds that empower them to build the games of the future.
Ultimately, the financial strain that these limits could put on the industry – together with the mandatory NHS levy – may well result in the pace of innovation slowing down, which impacts every player.
Bonuses are one of the biggest factors that encourage people to play. These rewards encourage people to try out new games and casinos whilst also rewarding players for their loyalty. Although there have been no changes to how bonuses are distributed or what they can consist of, the Gambling Commission said in 2023 it would be investigating how bonuses are structured, targeted, and awarded [8].
In all probability, it’s likely to result in a major reform to the bonus system in an attempt to reduce the temptation for problem gamblers to play. Indeed, bonuses create more activity, which is why they’re there in the first place. However, limiting or removing them could become yet another drag on the industry in the years to come.
Restrictions on bonuses are nothing new. Other jurisdictions already have them in place. For example, Sweden permits bonuses to be offered to players, but operators may only offer a single bonus or face enormous financial penalties.
Again, it’s another type of action that penalises responsible gamblers and acts as another driving force toward the illegal gaming market. Moreover, there’s no evidence that problem gamblers are less likely to play when bonuses are restricted.
It’s the golden question, and the answer will determine whether the government’s approach to online gambling is the correct one. At face value, it would appear that reducing how much people can wager will prevent them from being taken advantage of financially by unscrupulous operators.
On the other hand, there are no guarantees that these limits will have any impact at all. Some of the reasons why it might not make a difference, or even worsen the issue, include:
Anti-gambling legislation has been passed to limit many of the features of slot games, like auto-play mode, yet there’s no evidence to show that the number of problem gamblers has declined. According to an article, the UK’s regulator believes that problem gambling could be eight times higher than previously thought [9].
In short, it’s about addressing the psychological drivers and behaviours displayed by problem gamblers and encouraging them to reach out. Only time will tell whether these new slot limits will have the intended effect.
Gambling-Related Harms Evidence Review: Summary. Published by gov.uk.
Major Reform of Gambling Laws to Protect Vulnerable Users in Smartphone Era. Published by gov.uk.
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