Do you have lateral/side to side play as well; in other words, is there play when you manually move the drive side to side without the steering arm moving? There may be a few things at play here; there is an acceptable spec for the gap at the lower swivel pin, check that the two nuts at the top of the gimbal ring are tighten to spec, do you have water leaking into the boat from the steering arm cavity? The only way to get rid of the vertical play is to tighten the nut on the swivel pin. If you have lateral play, I suspect you may be due for a swivel pin replacement. There is a kit available from Merc that allows you to drill two holes at the top of the transom assembly to gain access to the steering arm nut from the outside. You then have to use a punch to spin the nut off. This will allow you to switch out the swivel pin, seal bushing etc. When you have the gimbal ring out, check for wear in the swivel pin bore. If there is, simply replacing the pin will not solve the lateral play. The kit includes a new nut and plugs for the holes you need to drill out. Labour intensive if you don't have the right tools. Get a manual, it'll tell you how to diagnose what may be causing the play, the proceedure and the tools you need for the cure.