Gambling Commission outlines rates per licence for statutory levy
The UK statutory levy came into effect on 6 April, having been included in the previous government’s Gambling Act white paper in 2023 with the belief operators weren’t paying their fair share to support gambling harms under the voluntary levy.
Gambling minister Baroness Twycross told the Betting & Gaming Council’s (BGC) AGM in February the new UK statutory levy was a “huge step forward” for the gambling sector, with the hope it will reduce problem gambling.
On Monday (7 April), the Gambling Commission released an update on the levy including the rates each licence holder will be required to pay, with online gambling generally set to face the highest rate.
What are the statutory rates?
The statutory levy rates are as follows:
| 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% |
| Remote general betting limited | 1.1% | Non-remote pool betting | 0.1% |
| Remote betting intermediary | 1.1% | Non-remote gaming machine technical – full | 0.1% |
| Non-remote gambling software | 1.1% | Non-remote gaming machine technical – software | 0.1% |
| Non-remote linked licences gambling software | 1.1% | Non-remote gaming machine technical – supplier | 0.1% |
| Remote gambling software | 1.1% | Non-remote linked licences gaming machine technical | 0.1% |
| Remote linked licences gambling software | 1.1% | Remote gaming machine technical – full | 0.1% |
| Remote betting intermediary (trading rooms only) | 0.5% | Remote gaming machine technical – software | 0.1% |
| Remote pool betting | 0.1% | Remote gaming machine technical – supplier | 0.1% |
| Remote linked licences gaming machine technical | 0.1% |
Additionally, a 0.1% rate will be applied to non-remote society lottery operating licence holders, remote society lottery licence holders, non-remote external lottery manager operating licence holders and the remote external lottery manager operating licence holders.
How has the statutory levy been calculated?
The Gambling Commission also explained how the rates for the statutory levy had been calculated.
The basis of the rate has been calculated by taking into account gross gambling yield (GGY) and the proceeds retained after good causes and prizes have been paid out, as well as the gross value of sales or any amounts that otherwise relate to activities authorised by the licence.
The final amount for the levy will be calculated using the data provided by licensees through Regulatory Returns, with companies obligated to provide accurate data. Any inaccurate data will impact the final calculation of the amount owed in the levy.
What’s next?
Industry law firm Harris Hagan explained licensees must not pay the money from the levy until they receive their invoice, with the first invoices to be sent out on 1 September. Payment will then need to be completed on or before 1 October.
From then, the levy will be invoiced on an annual basis on 1 September, covering the period of 12 months from the start of the tax year on 1 April.
Licensees that fail to pay the levy can have their licences revoked.
Concerns over the statutory levy
Earlier this month, a panel of gambling harms researchers shared concerns on the industry’s influence over research that will be funded by the levy.
The panel warned, in the past, researchers had been wary of accepting funding from the sector due to concerns over the sector’s influence on the research.
Sam Chamberlain, professor of psychiatry at the University of Southampton, told the parliamental committee for health and social care: “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.
“In pragmatic terms, the industry has been giving cash to one massive charity that then has been handing out that money to various organisations. [But] I’m not saying that all of that work is invalid.”