UK Gambling Commission publishes new £100m statutory levy rates

Gambling Commission

The UK Gambling Commission (UKGC) have published updated levy rates applied through their new statutory levy programme. 

The programme was introduced as a result of the 2023 Gambling Act white paper. The bill was introduced by the previous Conservative Government and found that betting companies were not paying enough to support gambling harm protections under the voluntary levy programme. 

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Most online betting companies are being charged 1.1% under the levy, with the majority of offline betting charged at 0.5%.

The Gambling Act 2023 was published in April 2023. It included new affordability checks, which required operators to conduct in-depth checks on players who lose more than £1,000 per month or £2,000 in a quarter. 

Players would also undergo soft checks if they lost more than £125 in a month or £500 a year. A trial has been undertaken, with hundreds of thousands of accounts having undergone ‘frictionless’ soft checks. 

The report also called for stake limits. Earlier this month, new slot limits were introduced, with players aged 25 or over being limited to £5 stakes, and players aged between 18 and 24 being restricted to spins of £2 or less.

There were also calls for a new gambling complaints ombudsman, a demand for more effective tackling of black market betting companies, and, importantly, more funding for research, education and treatment (RET). 

Operators currently pay a voluntary levy towards these programmes, but the white paper stated that companies were not paying enough to tackle the potential harm of problem gambling. Therefore, in came the statutory levy. 

The Department for Culture, Media and Sport said that the new levy would raise £100m and the Government confirmed that 50% of the money raised would go to the NHS, 30% would fund gambling harm prevention efforts and 20% would be handed over to the UK Research and Innovation programme to help shape future policies and regulation. 

The proposals did come under considerable fire. Gambling minister Baroness Twycross said she supported the initiative but questioned the tone of the message, saying: “Ministers must not lose sight of the fact the vast majority of the 22.5 million people who enjoy a bet each month, on the lottery, in bookmakers, casinos, bingo halls and online do so safely, while the most recent NHS Health Survey for England estimated that just 0.4% of the adult population are problem gamblers.”

In February, Baroness Twycross said the introduction of the statutory levy represents a huge step forward and the UKGC has now confirmed the rates. Operators have been told to wait until they receive an invoice in September, before paying the first year. 

They will then receive an annual invoice every September. Rates are determined by calculating gross gaming yield and then subtracting proceeds paid to good causes and player winnings. 

Gambling operator levy rates