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:

• 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.

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

For operating licence holders who require a licence because they site key remote equipment in GB¹ or who hold a software operating licence², the levy is calculated based on all income deriving from those activities, whether in GB or abroad.

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. Any incorrect data submitted would impact the calculation of the amount owed under the statutory levy and risks licensee non-compliance with the law.

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¹ See section 36(4) Gambling Act 2005 (opens in new tab).

² Under section 41 Gambling Act 2005 (opens in new tab).

Timing of the statutory levy

The first statutory levy period is defined in the the Gambling Levy Regulations 2025 ('the Regulations') (opens in new tab). It begins on 1 April 2024 for lottery operating (society) licences, or 1 July for all other operating licensees. For all licensees, except society lottery operating licences, the calculation of the statutory levy 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.

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 the levy payable for 2026 to 2027, but would be based on regulatory return data relating to 2025 to 2026 (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 will be invoiced on 1 September, and payments are due before 1 October 2025.

This is not a duplication of any payments made under the voluntary scheme during 2024 to 2025. From April 2025 onwards each financial year’s statutory levy will be based on prior year activity levels.

Payment of the statutory levy

Invoices for the statutory levy this financial year (2025 to 2026) will be available online through eServices from 1 September 2025, with full payment required before 1 October 2025, subject to the next section of this guidance.

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.

For the first year of the statutory levy each licensee will receive one combined invoice for all GB activity, and a second invoice for non-GB activity if appropriate; for example if you have a remote and non-remote licence but only report GB activity you will only receive one statutory levy invoice per year.

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.

Calculation of the levy for the first levy period

The Gambling Commission recognises that some operators may have submitted returns including non-leviable foreign income, whereas other operators will have submitted returns which do not fully account for leviable income earned from foreign customers.

The Commission will invoice operators separately for GB and non-GB leviable activity. It is the operator’s responsibility to pay the full amount of the levy based on supply to GB customers before 1 October 2025.

For any non-GB invoices that an operator believes includes non-leviable activity from foreign customers, it is the operator’s responsibility to notify the Commission promptly and in any event before 1 October 2025 of any query in relation to income earned from foreign customers, in order to avoid enforcement measures based on the full amount invoiced. If it does so, the Commission will suspend enforcement of that element of the levy until the query is resolved. In raising a query, the operator should give full reasons why particular sums are not due.

If the Commission’s invoices do not include any sums which ought to be brought into account, it is the operator’s responsibility to notify the Commission of the shortfall and the reasons for it, and to pay the full sum due. If it fails to do so, the Commission may take enforcement measures, including revocation of the licence pursuant to section 119 of the Gambling Act 2005 (opens in new tab).

Please notify the Commission via 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.