Bookmakers and casinos will be forced to fund NHS services that tackle problem gambling, after Labour rubber-stamped the previous government’s plans, which also include a cap of as little as £2 on the sums that can be staked on online slot machines.

The Guardian revealed on Monday that the government was poised to approve the new “statutory levy”, using proceeds of around £100m a year to fund research, prevention and treatment of gambling harms.

The Department for Culture, Media and Sport confirmed the plans on Wednesday and said it was also pressing ahead with a limit on what online casino customers can stake on slot machines.

Stakes, which are currently unlimited, will be set at £5 per spin for those aged over 25 and £2 for 18 to 24-year-olds.

The gambling minister, Baroness Twycross, said: “Gambling harm can ruin people’s finances, relationships and ultimately, lives. We are absolutely committed to implementing strengthened measures for those at risk, as well as providing effective support for those affected.

“The introduction of the first legally mandated levy will be instrumental in supporting research, raising awareness and reducing the stigma around gambling-related harm.”

In 2022, the industry’s lobby group, the Betting & Gaming Council (BGC), said a compulsory levy would be a “backward step”. The BGC has since decided to support the levy and said on Wednesday that its members gave £50m to tackle gambling-related harm last year.

The lobby group highlighted that the “vast majority” of people gamble safely, including on the National Lottery. It also pointed to a 2021 NHS survey that found 0.4% of the population have a gambling problem, ignoring a more recent estimate of 2.5% from the Gambling Commission.

“The tone of this announcement suggests the government is at risk of losing perspective of these facts, while simply dancing to the tune of anti-gambling prohibitionists, which serves no one,” said the BGC’s chief executive, Grainne Hurst, a former Ladbrokes executive and one-time aide to the ex-Tory MP Philip Davies.

The statutory levy will replace the current voluntary system, under which gambling firms decide how much they contribute. At present, the charity GambleAware receives the vast majority of industry funding, collecting £49.5m last year.

While most companies in the sector contribute significant sums, some have been known to pay as little as £1, entitling them to appear on a list of annual donors.

The new levy will be set at a range between 0.1% and 1.1% of revenue, with online businesses expected to pay the higher rate because their costs are lower.

Half will go to the NHS, 30% to those working to prevent harms and the remainder to UK Research and Innovation to fund research.

Both the levy and the slots limit are expected to take effect next year, with online casinos given a grace period to implement the stake cap.