UK Implements Mandatory Gambling Levy to Tackle Gambling Harms
The UK Government has introduced a statutory gambling levy designed to raise £100 million annually to fund research, prevention, and treatment of gambling-related harms.
New Levy Rates and Contributions
The mandatory levy features a tiered rate structure 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
- 0.1% for society lotteries and external lottery managers (ELMs)
Operators with contributions under £10 will be exempt. These rates represent a modest increase from initial proposals, reflecting the need to meet the annual £100 million target. This shift is expected to roughly double total industry contributions compared to the £50 million raised in the 2023/24 fiscal year.
Sector-Specific Financial Impacts
Richard Williams, gambling partner at Keystone Law, commented on the financial implications for the industry, noting that the new system introduces varying levels of impact across sectors.
While online operators face the highest rates, land-based operators benefit from comparatively lower contributions, which Williams suggests align with the relative risk levels of different gambling products.
He also highlighted that land-based businesses, already burdened by recent National Insurance increases, will experience less strain under this tiered system.
Addressing Criticisms of the Voluntary System
The introduction of a mandatory levy addresses longstanding criticism of the voluntary funding system, which often placed disproportionate financial pressure on larger operators. Critics argued that some companies under-contributed, creating an uneven playing field. The new levy seeks to standardize contributions and ensure equitable financial responsibility across the industry.
GambleAware’s Call for a National Strategy
GambleAware welcomed the statutory levy as well as complementary measures such as stake limits for online slots targeting players under 25. The charity emphasized the importance of a unified national strategy to maximize the levy’s effectiveness.
In a statement, GambleAware urged the newly established levy board to prioritize harm prevention:
“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.”
Additionally, the organization stressed the need to appoint a prevention commissioner to oversee the system’s implementation and maintain focus on reducing gambling harms.
While some industry observers express concern about the additional financial burden, many see the levy as a fair compromise, particularly given the avoidance of higher gambling taxes in the recent budget.
