Key points:
- New statutory levy replaces voluntary contributions, raising £100m annually for gambling harm initiative
- Tiered rates ensure higher contributions from riskier gambling sectors
- Rates range from 1.1% for online operators to 0.1% for society lotteries
The UK Government has introduced a statutory levy on gambling operators, aiming to generate £100m ($126m) annually to fund the research, prevention and treatment of gambling harms. The levy was expected to be released this week following initial reporting.
This move replaces the voluntary system under the Gambling Commission’s Social Responsibility Code, which saw the industry contribute £50m in 2023/24.
Under the new system, the levy rates are tiered based on operators’ gross gambling yield (GGY): 1.1% for online operators, 0.5% for land-based casinos and betting shops, 0.2% for adult gaming centres and bingo premises, and 0.1% for society lotteries and external lottery managers (ELMs). Operators with payments under £10 will be exempt.
These figures represent a slight increase from initial proposals, designed to meet the £100m target.
Good to know: In the 2023/24 period, just four major gambling operators contributed 94% of the £50m in voluntary Research, Education and Treatment (RET) contributions.
Keystone Law’s gambling partner, Richard Williams, highlighted the financial impact on the industry, explaining that while total contributions will roughly double compared to the 2023/24 fiscal year, the burden will vary by sector.
Williams noted that land-based operators, already under strain from recent National Insurance increases, will benefit from reduced rates relative to their online counterparts. This approach, he argues, aligns with risk levels, as products with higher harm potential bear greater responsibility.
Despite concerns over additional costs, many observers believe the levy is a fair trade-off given the industry’s avoidance of higher gambling taxes in the recent budget. Critics have long argued that voluntary contributions allowed some operators to underfund RPT efforts, leaving larger companies to shoulder disproportionate costs. The mandatory levy seeks to rectify this imbalance.
GambleAware welcomed the levy and related measures, including online slot stake limits for under-25s. However, the charity emphasised the urgency of appointing a prevention commissioner to ensure continuity in addressing gambling harms.
GambleAware also called for a national strategy from the new levy board to maximise the system's effectiveness, stating: “We believe it is vital that the levy board urgently develops a national strategy to address gambling harms as part of its remit, to ensure the new RPT system is as effective as possible."
