On 6 April 2025, the statutory levy came into effect across Great Britain, marking a significant shift from the prior voluntary contribution system to a mandatory regulatory framework under the oversight of the Gambling Commission. This change was initially proposed in the 2023 Gambling Act white paper and aims to standardize the collection of funds from gambling operators.
Operators are now subject to levy rates that vary based on their Gross Gambling Yield (GGY), the types of gambling activities they offer, and whether these are conducted online or in physical locations. The levy rates range from 0.1% for mainly land-based activities to as high as 1.1% for online casino operations. The differentiation aims to ensure a fair contribution reflective of the impact and reach of each operation.
For most licensees, the calculation of the statutory levy will be based on regulatory returns data collected between July 2024 and March 2025, with this figure multiplied by one and one-third to determine the levy amount. Society lottery licences, however, will use data from 1 April 2024 to 31 March 2025 for this purpose.
The annual invoicing of the levy will take place on 1 September, with payment required in full by 1 October each year. Non-compliance, including late payment, will be strictly enforced. The Gambling Commission has emphasized that failure to meet these requirements could result in the revocation of an operator’s licence. The only exception to this is if the non-compliance is due to an administrative error, in which case the licensee must notify the Commission before the 1 October deadline.
Addressing potential confusion, the Gambling Commission clarified in their report that the statutory levy is distinct from any voluntary contributions operators might wish to make towards research, prevention, and treatment of gambling-related harm. While operators can still engage in voluntary financial contributions, these will not offset the statutory levy obligations.
This change is aligned with GambleAware’s recent announcement of ceasing all activities by March 2026, as its functions transition to governmental control under this new levy system. GambleAware, historically supportive of the levy since its proposal, will no longer receive voluntary industry funding, presenting a significant shift in its operational model.
The government anticipates the new levy to generate approximately £100 million annually, aimed at preventing gambling-related harm and supporting associated research and treatment initiatives. However, this transition has not been without its concerns.
Industry stakeholders have voiced the necessity for a robust regulatory framework to guide the allocation of levy funds. In May, during an iGB editorial, Victoria Reed, founder of Better Change, stressed the importance of a fair and unbiased approach in determining how these funds are utilized. She warned that without such measures in place, there is a risk of mismanaging public funds and negating the valuable experience and progress made in preventing gambling-related harm over the years.
The introduction of this statutory levy is a pivotal moment for the British gambling industry, as it moves from voluntary contributions to a structured, mandatory levy. This approach aims to provide a more predictable and sustainable source of funding for addressing gambling-related issues. Nonetheless, it brings with it challenges related to implementation and oversight, which will require careful management to ensure its success.
As this new system takes hold, operators and stakeholders alike watch with interest and caution to see how effectively the funds are managed and whether the intended outcomes of reducing gambling-related harm are achieved. The shift from a voluntary to a compulsory system represents a commitment by the British government to take a more active role in regulating and supporting the gambling sector, reflecting broader trends in regulatory practices globally.
Despite some criticisms, many see the statutory levy as a necessary evolution in the regulatory landscape, designed to ensure that the gambling industry contributes fairly to the societal costs of gambling-related harm. The success of this initiative will depend greatly on transparent processes and the accountability of those tasked with managing the funds and implementing harm-reduction strategies.
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