How Will the New Maximum Stake Limits Affect Online Slots GGY
The first three months of 2025 again saw the UK gambling industry produce impressive revenue figures, particularly the online sector. A major contribution to the success are online slot games but will that continue now that new maximum stake limits have been introduced?
The first quarter of 2025 produced gross gambling yield (GGY) of £1.45 billion. That was a drop from £1.54 billion in the previous quarter but still 7% up on the same period in 2024. Of the £1.45 billion, £689 million came from online slots, 47% of the total revenue.
That figure was an 11% year-on-year (YoY) increase and there was also good news regarding the number of spins players were making. The total of 23.4 billion was 6% higher than seen 12 months previously.
Also seeing an increase was the number of online slot sessions that had a duration of at least an hour. The total figure was 10.1 million and that was an increase of 5%. The average length of each session remained stable at 17 minutes.
The slots section is therefore vital for any online casino, says Gambler Media’s spokesperson, a marketing agency for online gambling sites in the UK. A strong portfolio is needed in what is a very competitive market. That’s why sites are always on the lookout to be forging partnerships with slots developers to give them the best possible selection of games.
Recently, NetBet UK did this and signed a partnership with Blueprint Gaming. The Swedish slots developer Gaming Corps has signed a deal with 32Red as they look to expand in the UK market.
While slot games are so important to the UK gambling industry, there have been continual concerns over how safe they are. Support groups have spoken about how those coming to them for help say their gambling problems began by the playing of online slot games.
There have been plans to reform the Gambling Act 2005 for several years. That legislation came into force before the huge growth seen in the online gambling industry. Now the new Labour administration has brought in new maximum stake limits for online slot games.
Speaking about the need for the changes, they described online slots as “a higher-risk gambling product associated with large losses, long sessions, and binge play".
The average session for players is only 17 minutes but huge losses can still be incurred in that time. One problem is when players begin to lose money and then begin to chase their losses in an attempt to improve the situation. This can often lead to further losses being made by the player.
There has been great concern over the problems that are being faced by younger players. Online slots can often be their introduction to gambling before playing at other areas of the online casino.
No maximum stake limit had been in place until the recent changes. Similar action was taken against the fixed odds machines that are seen in land-based bookmaker shops. That led to some redundancies and shop closures happening.
Now maximum stake limits have been introduced for online slots. From April 9, the maximum stake was £5 a spin for all adults. Then from May 21, the maximum stake for those aged between 18 and 24 was reduced to £2.
The hope is that the new maximum stake limits will “protect players, reduce harm and ensure online gambling remains a form of entertainment, not a source of hardship.” The decision to set a lower figure for younger players came after “particular concerns” had been made clear and the desire is that this give those under 25 “an additional layer of protection during a critical life stage.”
While many have welcomed the changes, others believe that the £2 figure should be imposed for all players. There are still calls for the speed of online slots to be further reduced. It will be interesting to see how players react to the changes. Will they just decide to play longer or decide to leave the licensed and regulated site and play on the black market?
The latter move would not be good for the UK gambling industry. There is already a large number of players who are leaving the licensed sites due to increasing regulation such as affordability checks. The level of customer protection on the black market is much lower due to the lack of regulation. It also takes money away from the licensed market and that in turn means less tax revenue for the Treasury.
With further regulation on the way such as a mandatory levy on companies, it may prove difficult for UK gambling companies to maintain the high online revenues currently being achieved.
