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Deadline Approaches for Initial Statutory Levy Payments in the UK Gambling Sector
By October 1, license-holders in Great Britain are required to submit their first payments toward the new statutory levy, a critical compliance measure introduced by the Gambling Commission.
This levy, which took effect on April 6, 2023, is a shift from the previous voluntary framework, as outlined in the 2023 Gambling Act white paper. The commission now manages the collection of these funds to ensure adherence among operators.
The levy rates vary according to the Gross Gaming Yield (GGY) of the operators, categorized by the type of gambling activities they offer—whether digital or physical. Ranging from 0.1% for land-based activities to 1.1% for online casinos, the rates reflect the specific nature of each operator’s service.
Most licensees’ levy obligations will be calculated using regulatory returns submitted between July 2024 and March 2025, multiplied by a factor of 1.33. However, society lottery licenses will derive their figures from a different time frame, specifically from April 1, 2024, to March 31, 2025.
Subsequent annual levy invoices will be issued on September 1, and full payment is expected by the following October 1. The Gambling Commission has cautioned that failure to comply could lead to the revocation of a license, underscoring the importance of timely payments. According to the commission, “Compensation for non-payment or delays will not be entertained unless attributed to administrative mistakes.”
The commission will differentiate between British and non-British activities in their invoicing, but licensees must report any discrepancies in their calculations before the looming October deadline.
Clarification on Voluntary Contributions
In light of the recent changes, the commission addressed uncertainties regarding voluntary contributions. While operators are still permitted to support research, prevention, and treatment efforts financially, such contributions will not count toward fulfilling their statutory obligations. This means that the full statutory levy amount remains due, regardless of any voluntary payments made.
This shift coincides with GambleAware’s announcement that it will cease operations by March 2026, transitioning its responsibilities to the British government, a move prompted by the introduction of the statutory levy. Although GambleAware has supported the levy framework since its inception, it will face a reduction in funding previously sourced from voluntary contributions.
The government anticipates that this new structure will generate approximately £100 million ($135 million) to combat gambling-related harm.
Experts in the field emphasize the necessity of a solid regulatory structure accompanying the statutory levy. As noted by Victoria Reed, founder of Better Change, a transparent and equitable process for allocating these funds is crucial. She stated, “If we lack this framework, we risk not only misappropriating public funds but also compromising the valuable progress made over the years in preventing gambling-related harm.”
This version retains the essential information while providing a different angle on the topic to ensure originality.