In November 2024, the UK Government announced that they will be bringing a statutory levy on profits from online gambling; while also introducing a limit to the amount a player can stake on a single spin of a slot game.
This change is a welcome one for UK players, offering further protections for vulnerable gamblers and providing health authorities across the UK with the ability to help when needed, but what will be the longer-term impact on players at casinos and sportsbook sites?
There are over 140+ online casinos available to UK players, plus even more sports betting sites. Although operators have not commented yet, players are likely to feel the brunt of these changes, as losses in revenue will be passed on to the player. Del Pugh of BookiesBonuses.com looks at how these changes could affect players and operators alike.
Changes for the player
The fundamental change that players will see, is a reduction in the maximum stake a player can make on a spin of a casino slot game.
For any player over 25 years old, a maximum stake of £5 will be in place, with a reduction to a £2 stake for players aged 18-24. The reasoning behind this change is to offer younger adults an extra layer of protection, with research suggesting a higher percentage of players in that age group having difficulties due to problem gambling, especially with the former rules allowing stakes as high as £50 per spin.
The changes were welcomed by safer gambling charities and to an extent by gambling operators, they had argued for a higher maximum stake of £10, fearing it would deter regular players, despite no real evidence to suggest this would be the case.
What the future holds
As mentioned above, the likelihood of these changes affecting players will be high, especially as operators will look to maintain profit margins seen before the law changed. So how would this affect players?
Welcome bonuses
Operators look to attract new customers, with tempting promotions and offers, such as free spins, free bets or bonus funds. So, with the current changes in place, an eventual reduction in these bonuses will occur, as operators look to claw back losses from the new rules and its new players who are arguably the easiest to target.
Return To Player (RTP)
Return To Player is the average percentage returned to players per £1 staked. The higher the percentage the better it is for the player.
As recently as 2023, All GAMSTOP (a gambling self-exclusion service) registered online casinos in the UK were required to have a 99.9% RTP, up from 95% and so with the reduction of the maximum stakes on top of this, it is expected that jackpots and maximum wins will be reduced on many slots at sites registered with GAMSTOP or removed entirely.
It is worth mentioning, however, that some popular online casino sites are not affiliated with this service and can still use the 95% RTP from before, as it is not a legal requirement.
Betting odds
Although not directly affected by the changes, many casino sites also provide a sports betting service, so it is not beyond the realm of possibility that sports bettors will see poorer betting odds on sporting events. The number of betting markets available to players online would make it easy to recoup lost profits by paying less money out on winning bets through reduced odds.
Conclusion
The changes are of course a positive thing. Helping those with gambling issues by reducing the amounts that can be staked on online slots is inherently a good thing and be applauded, whilst in theory having little impact on regular players who can manage their gambling successfully.
However, operators like all companies will be looking to protect profits, with players likely to feel the brunt of these changes, while we could also see GAMSTOP affiliation being reduced, as the legal changes to stake amounts and the 99.9% RTP will be unsustainable in the eyes of those operators currently a member of GAMSTOP.
We will get a clearer picture over the next six months to a year, but I expect players to see the effects soon.
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