UK Betting Levy Rates Adjusted Upwards
The UK is advancing its plan to introduce a statutory betting levy that will apply to all licensed betting and gaming operators. The rates, ranging from 0.1% to 1.1% of Gross Gambling Yield (GGY), represent adjustments from earlier proposals, with some operators facing increased rates while others see reductions.
Varying Levy Rates for Different Sectors
Expected to take effect from April next year, the levy aims to generate funds for gambling harm research, treatment, and prevention. The statutory levy applies differently across industry sectors. Machine technical licenses, pool betting providers, and family entertainment centers will be charged the lowest rate of 0.1%. Land-based bingo parlors, adult gaming centers, and on-course bookmakers face a 0.2% levy, while land-based casinos and betting venues will pay 0.5%. Online gambling operators and software license holders are subject to the highest rate, set at 1.1%.
Nick Arron, a lead partner at Poppleston Allen’s betting and gaming team, noted that the finalized rates are higher than those initially proposed in October 2023. For example, the levy for online operators increased from the proposed 1% to 1.1%, while the rate for land-based betting venues and casinos rose from 0.4% to 0.5%. Similarly, arcades and bingo parlors now face a 0.2% rate, double the originally suggested 0.1%.
While some sectors are experiencing higher rates, others have seen reductions. Machine technical licenses, initially proposed at 0.4%, will now face the lowest rate of 0.1%. Similarly, the levy for pool betting providers dropped from a proposed 1% to 0.1%. These changes reflect the government’s intention to balance the levy with the costs of doing business in each sector.
Estimated Impact of the Levy
The statutory levy is expected to generate approximately £100 million annually. These funds will support initiatives targeting gambling harm, including research, treatment programs, and prevention strategies. Additionally, a portion of the proceeds will contribute to the NHS, bolstering resources for harm prevention and treatment.
The proposal, however, still requires parliamentary approval. If passed without delays, the levy will take effect in April 2025. This significant policy change underscores the UK’s commitment to addressing gambling harm while ensuring a sustainable regulatory framework for the industry.
