Gambling Commission outlines rates per licence for statutory levy
The UK Gambling Commission has recently detailed the rates each licensee will be required to pay under the new statutory levy, a move aimed at raising £100 million (€115.3 million/$130.7 million) for the prevention of gambling-related harms.
The statutory levy was officially implemented on 6 April, following its inclusion in the previous government’s Gambling Act white paper in 2023. The legislation was motivated by concerns that gambling operators were not contributing adequately to mitigate gambling-related harms under the previous voluntary levy system.
In February, Gambling Minister Baroness Twycross addressed the Betting & Gaming Council’s (BGC) Annual General Meeting, characterizing the introduction of the statutory levy as a significant advancement for the gambling sector. The government anticipates that this initiative will play a crucial role in reducing instances of problem gambling.
On 7 April, the Gambling Commission published an update concerning the levy, specifying the rates that each category of license holder will be required to pay. It appears that online gambling operators will bear the highest financial obligations compared to their land-based counterparts.
Understanding the Statutory Levy Rates
Below is a comprehensive breakdown of the statutory levy rates applicable to various gambling license types:
| Online Gambling Licence Type | Levy Rate (%) | Land-based Gambling Licence Type | Levy Rate (%) |
|---|---|---|---|
| Remote Bingo | 1.1% | Non-remote 1968 Act Casino | 0.5% |
| Remote Bingo Game Host | 1.1% | Non-remote 2005 Act Casino | 0.5% |
| Remote Casino | 1.1% | Non-remote General Betting Standard | 0.5% |
| Remote Casino Game Host | 1.1% | Non-remote Betting Intermediary | 0.5% |
| Remote General Betting Standard (Real Events) | 1.1% | Non-remote Bingo | 0.2% |
| Remote General Betting Standard (Virtual Events) | 1.1% | Adult Gaming Centre | 0.2% |
| Remote Betting Host (Real Events) | 1.1% | Non-remote General Betting Limited | 0.2% |
| Remote Betting Host (Virtual Events) | 1.1% | Family Entertainment Centre | 0.1% |
| Non-remote Pool Betting | 0.1% | Remote Betting Intermediary | 1.1% |
| Non-remote Gaming Machine Technical – Full | 0.1% | Remote Linked Licences Gambling Software | 1.1% |
| Non-remote Gaming Machine Technical – Software | 0.1% | Remote Gaming Machine Technical – Full | 0.1% |
| Remote Betting Intermediary (Trading Rooms Only) | 0.5% |
A 0.1% levy rate will also apply to holders of various non-remote and remote lottery operating licences, further diversifying the contributions from different sectors within the gambling industry.
Calculation of the Statutory Levy
The Gambling Commission has outlined the methodology for calculating the statutory levy rates. The calculations are based on several factors:
- Gross Gambling Yield (GGY): The total revenue generated from gambling activities.
- Proceeds after distributing funds for good causes and prize payouts.
- Gross sales value or any other financial metrics related to licensed activities.
The levy amount will be determined using data submitted by licensees through Regulatory Returns, with an emphasis on the necessity for accuracy in reporting. Any inaccuracies in the data may affect the final levy calculation and the financial obligation of the licensee.
Next Steps for Licensees
Legal industry expert Harris Hagan has advised that licensees should not make any payments towards the levy until they receive their formal invoices. The first round of invoices is scheduled to be issued on 1 September, with payment due by 1 October. Future annual invoicing will continue each 1 September, covering the 12-month period from the beginning of the tax year on 1 April.
Failure to comply with the levy payment requirements could lead to severe penalties, including the potential revocation of a licensee’s operating license.
Addressing Concerns Regarding the Statutory Levy
This month, a panel comprising gambling harm researchers raised significant concerns regarding the influence of the gambling industry over research supported by the statutory levy funds. Historically, researchers have expressed hesitation to accept funding from the gambling sector, fearing that such support might skew the integrity of their research.
Professor Sam Chamberlain from the University of Southampton articulated these concerns during a parliamentary committee session focused on health and social care. He remarked, “There has been a scarcity of high-quality research over recent decades, as numerous reputable researchers in the gambling field have been unwilling to accept funds due to ethical considerations.”
Chamberlain added that while industry funding has traditionally funneled through a major charity to various organizations, it has not extinguished the need for rigorous and independent research in addressing the complexities of gambling harms.
As the gambling sector evolves, maintaining transparency, accountability, and ethical research practices remain paramount to fostering a safe and responsible gambling environment.
