Statutory Gambling Levy

Introduction

Following a public consultation led by the Department for Culture, Media and Sport (DCMS), which ran from 17 October to 14 December 2023, and subsequent analysis of the responses to the consultation (opens in new tab), the UK government has introduced a statutory levy to be charged to all licensed gambling activity at varying levels depending on the sector and nature of the gambling activity to ensure impacts are proportionate.

The government’s response to the consultation, published on 27 November 2024, set out the government’s decisions regarding the key aspects of the design and implementation of the statutory levy. The statutory levy has now been introduced via the Gambling Levy Regulations 2025 ('the Regulations') (opens in new tab) and commenced on 6 April 2025.

The statutory levy will be collected and administered by the Gambling Commission under the strategic direction of the UK government, replacing the previous system of industry RET contributions under Licence Conditions and Codes of Practice (LCCP), under which the amounts contributed were voluntary.

The government has decided that statutory levy funding will be directed in specific proportions for the purposes of research, prevention and treatment, in line with the requirements under section 123 of the Gambling Act 2005 (opens in new tab). The priority for the government is to increase the level of investment and strengthen the provision of projects and services to further understand, tackle and treat gambling-related harm.

As the UK government lead on gambling policy, DCMS is responsible for statutory levy policy. This includes:

• setting of the statutory levy rates per licensed gambling activity
• providing strategic direction for the distribution of statutory levy funding for research, prevention and treatment
• establishing robust governance arrangements that ensure sufficient transparency and accountability.

The Commission is responsible for the collection and administration of the statutory levy (under the strategic direction of DCMS). This includes:

• collection of the statutory levy
• enforcement of non-payment of the statutory levy
• publication of annual statutory levy receipts
• being the initial point of contact for appeal and complaints in relation to the calculation and collection of statutory levy receipts.

How the statutory levy is calculated

As required by the Gambling Levy Regulations 2025 ('the Regulations') (opens in new tab) the basis and rate will vary depending on the licensed activity. Full details of the statutory levy rate can be found in the government response to the statutory levy consultation (opens in new tab). The leviable rates range from 0.1 percent to 1.1 percent.

Where the total billable statutory levy value for a licensee is £10 or less for a relevant period, the licensee will not be required to pay.

For licences other than lottery operating licences, the levy is calculated as follows based on gambling revenues earned from GB customers:

• amounts paid during the levy period to the holder of the operating licence by way of stakes in connection with the activities authorised by the operating licence, PLUS
• amounts (exclusive of value added tax) that otherwise accrue during the levy period to the holder of the operating licence directly in connection with activities authorised by the licence, MINUS
• the aggregate of amounts deducted during the levy period by the holder of the operating licence for the provision of prizes or winnings in connection with the activities authorised by the licence.

For society lottery operating licences, the levy is calculated as follows:

• the aggregate of the proceeds of lotteries promoted in reliance on the operating licence which accrue during the levy period, MINUS
• the aggregate of amounts deducted during the levy period from the proceeds by the holder of the operating licence for:
• the provision of prizes in connection with the lotteries promoted in reliance on the operating licence, and
• a purpose described in section 99(2) of the Gambling Act 2005 (opens in new tab).

For external lottery manager operating licences, the levy is calculated as follows:

• the aggregate of amounts paid to, or otherwise obtained by, the holder of the operating licence during the levy period by way of fees in connection with the lotteries promoted in reliance on the operating licence, MINUS
• the aggregate of sums deducted during the levy period from the above amounts by the holder of the operating licence for the provision of prizes in connection with the lotteries promoted in reliance on the operating licence.

The calculation for the amount owed under the statutory levy is based on the data licensees provide via Regulatory Returns. Licensees have an obligation under the Gambling Act 2005 to provide true and correct data in a timely fashion.

For most operators, the levy is calculated based only on gambling facilities provided to GB customers.

The levy will be calculated based on the regulatory return data submitted for the prior financial year (see the timing section on the following page for more information). The Commission’s standard approach is that after a levy invoice has been issued, any amendments to the regulatory return data used to calculate the levy invoice will be reviewed and actioned, if agreed by the Commission. However, if those amendments result in a change to the levy value, the under or overpayment will be kept on the operator’s account and applied to the following year’s levy invoice.

Timing of the statutory levy

For the first year the calculation of the statutory levy for all licences, except society lottery operating licences, will be based on Regulatory Returns data from July 2024 to March 2025 multiplied by one and one-third. For society lottery operating licences the calculation will be based on data reported to the Gambling Commission relating to 1 April 2024 to 31 March 2025, as defined in the the Gambling Levy Regulations 2025 ('the Regulations') (opens in new tab).

The statutory levy will then be invoiced on an annual basis, on 1 September, and will be based on the activity from the previous financial year. For example an invoice issued on 1 September 2026 would be based on regulatory return data relating to April 2025 to March 2026.

Indicative example for the first year of the statutory levy

For the first statutory levy period, payments for a remote casino operating licence will be calculated on Regulatory Returns data from July 2024 to March 2025 multiplied by one and one-third. These licensees were invoiced on 1 September, and payments were due before 1 October 2025.

Payment of the statutory levy

Invoices for the statutory levy will be available online through eServices from 1 September each year, with full payment required before 1 October.

Payment of the statutory levy is a licence requirement, and therefore non-payment or late payment of the statutory levy could result in operating licence revocation, unless the Gambling Commission is satisfied that this is due to administrative error.

You must not pay the statutory levy until you have received your invoice(s). Invoices will be available for licensees on eServices and payment can be made by GovPay or Bank Transfer. If payments for the statutory levy are made via Bank Transfer they must be made into the bank account specified on the statutory levy invoice. Statutory levy payments must be paid in full before 1 October for the relevant year, in line with the details on the invoice, and cannot be paid by instalments.

Payments must:

• be made to the correct bank account
• be for the full value of the invoice
• quote the invoice number in full
• not be combined with any other payments to the Commission.

If the payment does not meet the listed requirements it may be returned and your licence could be at risk of revocation.

Non-GB invoices update

In September 2025 the Gambling Commission invoiced operators separately for GB and non-GB leviable activity.

Following a review, it has been resolved that the Gambling Levy Regulations should be interpreted so that the levy is payable only in respect of gambling revenue earned from GB customers and not from income earned abroad (for relevant revenue streams see How the statutory levy is calculated).

A GB customer is defined as a customer who is physically located in Great Britain when they use gambling facilities provided in reliance on a licence issued by us, regardless of their usual residential address.

This includes income received by the holder of a gambling software operating licence for supplying software to another which uses it or intends to use it to offer facilities for gambling to GB customers.

This revised approach will replace the distinction previously made between invoices raised for GB and non-GB activities. A single invoice covering all leviable income will be issued in future years.

Where current invoices relate to activities for which the levy is not payable, the operator will be informed that these invoices have been cancelled. If an operator has paid such an invoice, they will be notified and a refund processed by the end of February 2026.

Any operator with ongoing concerns about the extent to which an invoice has treated any of its particular activities as leviable should notify the Commission using the following email address: statutorylevy@gamblingcommission.gov.uk.

How to prepare for the statutory levy payment

You can prepare for the statutory levy payment by ensuring:

• your Regulatory Returns data is submitted correctly and on time
• you have access to eServices
• we have an up to date email address for your organisation.

Further information around payments will be emailed to operators in the coming months.

Payment of LCCP RET contributions

Following the announcement of the introduction of the statutory levy, we consulted on a proposed change to our Licence Conditions and Code of Practice (LCCP) to remove the requirement for licensees to make a voluntary annual financial contribution to one or more organisations.

As of 31 March 2025 licensees are no longer required to make annual financial contributions to research, prevention and treatment under the LCCP as the statutory levy has been introduced.

Please note that any future voluntary contributions you make to bodies that conduct research, prevention and treatment will not count towards your statutory levy and the statutory levy invoice must be paid in full.

You can read more about this change including the final wording of the provision in the Removing obsolete Gambling Commission requirements due to the government's upcoming statutory levy - Consultation Response published February 2025.

Further enquiries

Any further questions relating to the statutory levy policy, distribution or governance should be directed to the Department for Culture, Media and Sport (DCMS) on gamblinglevysecretariat@dcms.gov.uk.

Any further questions relating to the statutory levy calculations or payment should be directed to the Gambling Commission on statutorylevy@gamblingcommission.gov.uk.