UK Gambling Commission publishes levy rates as £100 million harm prevention target takes effect

The UK Gambling Commission has released detailed statutory levy rates applicable to all licensed gambling operators, marking the formal implementation of a policy intended to generate £100 million ($130.6 million) annually for initiatives targeting gambling-related harm.

Effective from April 6, the statutory levy was originally proposed in the 2023 Gambling Act white paper. It replaces the previous voluntary scheme that had faced criticism for being inadequate in securing operator contributions toward prevention, research, and treatment programs. The government aims for the new system to close funding gaps and ensure consistent financial support for harm reduction.

At a recent Betting & Gaming Council annual general meeting, Gambling Minister Baroness Twycross described the levy as a “huge step forward,” stating its potential to reduce problem gambling and better align industry responsibility with the social costs of gambling.

In an update published on April 7, the Gambling Commission outlined the specific rates assigned to different license categories. Online gambling operators will bear the highest burden, with most remote licences, such as remote casino, bingo, and betting, subject to a 1.1% levy on gross gambling yield (GGY).

In contrast, land-based operations will pay significantly lower rates, ranging from 0.5% for traditional betting and casino operators to just 0.1% for family entertainment centers and gaming machine suppliers.

Both remote and non-remote gambling software providers will be subject to a 1.1% levy. Lottery operators and external lottery managers, whether remote or land-based, will also pay a flat rate of 0.1%.

According to the Commission, these rates have been calculated based on a mix of GGY, retained proceeds after prizes and good causes, and gross sales value. The final levy amount for each operator will be determined using data submitted through Regulatory Returns. The Commission has warned that providing inaccurate data could directly affect the amount owed.

The first invoices are scheduled to be issued on September 1, with payments due by October 1. Going forward, the levy will be invoiced annually, covering the fiscal year starting every April 1. Non-compliance could lead to license revocation, the Commission has confirmed.

However, the rollout of the levy has not been without controversy. A panel of academic researchers recently raised concerns about the potential influence of industry funding on research independence.

During a session of the parliamentary Committee for Health and Social Care, Professor Sam Chamberlain of the University of Southampton stated: “What you have is a dearth of good quality research, in my opinion, over the last decades, as many of the good researchers in the field of gambling would have not been prepared to take that money because of ethical and other concerns."